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Hartford Creative Group Inc (HFUS+8.30%). has submitted its 10-Q filing for the quarterly period ended October 31, 2024.
The filing includes financial statements for the quarter, showing revenue of $467,462 from advertising placement services, a new business line launched in January 2024. No revenue was reported for the same quarter in 2023 due to the divestment of previous business segments.
Operating costs and expenses totaled $275,390, with $109,822 attributed to the cost of revenue and $165,568 to selling, general, and administrative expenses. These expenses increased compared to the previous year due to the expansion of business operations.
The company reported an operating income of $192,072, compared to an operating loss of $20,192 in the same quarter last year. Net income for the quarter was $127,269, compared to a net loss of $25,456 in the previous year.
Cash provided by operating activities was $348,049, while cash used in investing activities was $675,826, primarily due to short-term loan receivables. Financing activities provided $64,949 in cash, mainly from related party loans.
Hartford Creative Group Inc. had a working capital deficit of $3,482,524 as of October 31, 2024, with total assets of $1,937,683 and total liabilities of $5,207,529.
The company continues to focus on its social media advertising business, aiming to expand its customer base and increase revenue in the upcoming months. It also plans to explore opportunities in the mini-drama business.
Management has identified material weaknesses in internal controls, including a lack of proper authorization procedures and inadequate segregation of duties.
The company is evaluating options for additional financing and potential uplisting to the Nasdaq exchange to support its business expansion and address its working capital needs.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Hartford Creative Group Inc quarterly 10-Q report dated December 16, 2024. To report an error, please email earnings@qz.com.