Tue, Jan 7, 4:15 PM (10 days ago)
Zhanling International Limited (Ticker: ZHAN) reported its quarterly results for the period ending November 30, 2024, revealing continued financial distress. The company recorded no revenue during the quarter, and incurred a net loss of $10,596 for Q2 2024, and $16,566 for the six months ended, marking a significant increase in losses compared to the prior year. Operating expenses, primarily professional fees, rose by 108% in Q2 year-over-year. As of November 30, 2024, Zhanling's total assets stood at $8,763, with liabilities totaling $33,703, resulting in a stockholders' deficit of $24,940. Cash flow analysis indicated a net cash outflow of $27,039 from operating activities, funded by advances from a related party. The company faces substantial doubt regarding its ability to continue as a going concern, necessitating additional capital through equity financing or further loans. Management has acknowledged these challenges and is exploring options to stabilize operations. No significant changes in internal controls were reported, but weaknesses were noted, raising concerns about financial reporting accuracy.