Wed, May 15, 8:58 PM (205 days ago)
Two Hands Corporation's Form 10-Q for the quarter ended March 31, 2024, reveals a struggling financial position. The company reported a net loss of $782,146, an increase from the $505,484 loss in the same quarter last year, primarily due to higher interest expenses and losses on the settlement of convertible notes. Sales decreased by 7% to $163,477, with a gross profit margin of 9.2%. Operating expenses dropped by 17% to $305,190, driven by lower salaries and benefits, and occupancy expenses. The balance sheet shows a significant stockholders' deficit of $2,799,656, with current liabilities substantially exceeding current assets, contributing to a working capital deficit of $1,966,532. Cash flow from operating activities was negative at $134,196, though partially offset by $121,655 from financing activities. The company relies heavily on cash advances from related parties and a line of credit, raising concerns about its ability to continue as a going concern. Future operations depend on securing additional capital and improving cash flows.