Wed, Aug 14, 7:28 PM (153 days ago)
For the quarter ended June 30, 2024, Zhen Ding Resources Inc. reported a net loss of $150,243, a slight decrease from $152,855 in the prior year, attributed to reduced operating and interest expenses. The company continues to face significant challenges, including idling its mineral processing operations due to an inability to secure necessary permits and financing. Current assets rose to $14,468 from $6,293, while current liabilities remained substantial at $10,675,132, resulting in a working capital deficit of $10,660,664. Cash flow from operating activities improved marginally, with a net cash outflow of $48,658 compared to $52,311 in 2023. Financing activities provided $56,630, an increase from $41,850, primarily from related party loans. Despite these efforts, the company has not generated revenue, relying heavily on related party financing to sustain operations. Looking forward, Zhen Ding aims to raise approximately $3,350,000 to restart operations and expand mining permits. However, uncertainties persist regarding the ability to secure this funding and the potential impact on future operations. The company’s accumulated losses amount to $22,672,590 since inception, raising concerns about its going concern status.