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Dh Enchantment Inc (ENMI0.00%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing details the company's organizational structure, noting that Dh Enchantment Inc is a Nevada holding company with no operations of its own, operating through subsidiaries in Hong Kong and Taiwan. The company focuses on logistics services through its brand 'Buyippee'.
The report highlights significant legal and operational risks associated with its operations in Hong Kong. These include potential changes in Chinese government regulations that could impact the company's ability to transfer cash or assets and affect the value of its securities.
Dh Enchantment Inc reported total revenues of $361,387 for the three months ended September 30, 2024, a decrease from $442,994 in the same period of 2023. The decrease was attributed to sluggish demand in logistic and fulfillment services.
The company reported a net loss of $407,620 for the three months ended September 30, 2024, compared to a net income of $4,492 in the same period of the previous year.
Operating expenses for the quarter increased significantly, with sales and marketing expenses rising to $57,993 from $13,057, and general and administrative expenses increasing to $369,125 from $27,073.
Dh Enchantment Inc's balance sheet shows a working capital deficit of $1,508,555 as of September 30, 2024. The company has not yet established an ongoing source of revenues sufficient to cover its operating costs.
The company highlights its reliance on financial support from stockholders to continue operations, noting substantial doubt about its ability to continue as a going concern.
The filing also discusses the company's intention to expand its product selection and global transportation services, as well as its plans to expand its purchaser platform outside of Hong Kong.
Dh Enchantment Inc's management identified material weaknesses in internal controls over financial reporting, including inadequate segregation of duties and insufficient written policies and procedures.
The report concludes with a statement on the absence of any pending legal proceedings or significant unregistered sales of equity securities during the period.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Dh Enchantment Inc quarterly 10-Q report dated November 19, 2024. To report an error, please email earnings@qz.com.