Tue, Nov 19, 10:05 PM (242 days ago)
In the first quarter of 2024, World Scan Project, Inc. (Ticker: WSP) reported significant financial challenges, including a net loss of $308,261 compared to a profit of $2,022,241 in the same quarter of 2023. Total revenues fell sharply to $1,805,445 from $7,743,164, primarily driven by a substantial decline in cryptocurrency miner sales, which decreased from $7,737,907 to $1,261,420. The company incurred $179,625 in research and development expenses, a new cost not recorded in the prior year. Cash and cash equivalents dropped to $767,210, down from $5,698,883, largely due to increased advance payments and prepaid expenses totaling $11,930,635. Operating cash flows were negative at $10,519,503, reflecting heightened expenditures and reduced revenue. The working capital also decreased to $6,023,960, indicating liquidity pressures. Despite these setbacks, management maintains a going concern outlook but acknowledges the need for improved revenue generation. The company faces uncertainties related to market conditions and operational impacts from COVID-19, which it believes have minimal effects on its primary revenue streams at present.