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Kid Castle Educational Corporation has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing zero revenue compared to negative $18,791 in the same quarter the previous year. The company reported a net loss of $4,195 for the three months ended September 30, 2024, compared to a net loss of $76,903 in the previous year.
For the nine months ended September 30, 2024, Kid Castle reported net income of $1,517,144, compared to $668,001 in the same period the previous year. The increase in net income was attributed to the disposition of an operating subsidiary.
The company recorded no revenue from its Entrepreneurship Development Initiative during the period. Operating expenses for the nine months ended September 30, 2024, were $44,924, compared to $208,906 in the previous year.
Kid Castle's financial condition as of September 30, 2024, shows a working capital of $78,120, consisting of trade receivables and no short-term liabilities. The company had a cash balance of $0 at the end of the period.
Kid Castle's principal sources of liquidity include cryptocurrency mining, real estate sales, and trading securities. The company continues to depend on cash advances from its directors and officers to finance operations.
The filing highlights the company's focus on rolling up artificial intelligence, machine learning, robotics, and digital assets businesses in North America. The company plans to raise significant additional capital to sustain operations for the next 12 months.
The company identified material weaknesses in its internal control over financial reporting, primarily due to a lack of sufficient staff with appropriate training in GAAP and SEC rules and regulations.
Kid Castle is not currently involved in any legal proceedings that would have a material effect on its financial condition or results of operations. However, the company received a Wells Notice from the SEC regarding potential enforcement action.
The company did not engage in any off-balance sheet arrangements as of September 30, 2024, and has no significant contractual obligations or commitments.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Kid Castle Educational Corp. quarterly 10-Q report dated November 19, 2024. To report an error, please email earnings@qz.com.