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King Resources Inc (KRFG0.00%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing a net loss of $626,064 compared to a net loss of $129,848 in the same quarter the previous year. The loss is attributed to an impairment of goodwill amounting to $458,550.
Revenue for the quarter was $19,239, consistent with $19,193 in the prior year. The revenue was primarily generated from a single customer, Marvel Digital Group Limited.
Cost of revenue for the quarter was $11,544, resulting in a gross profit of $7,695, similar to the prior year's gross profit of $7,678.
Operating expenses increased to $175,209 from $36,846 in the previous year, primarily due to an increase in sales and marketing expenses.
For the nine months ended December 31, 2024, the company reported a net income of $1,710,071 compared to a net loss of $580,680 in the previous year. This change is mainly due to a gain on the disposal of subsidiaries amounting to $2,513,875.
The filing details that King Resources Inc is a holding company with operations conducted through subsidiaries based in Hong Kong and the British Virgin Islands. The company highlights the risks associated with its structure and operations in these regions.
The company does not anticipate paying dividends in the foreseeable future and will rely on financial support from stockholders and external financing to continue operations.
King Resources Inc continues to face challenges related to its operations in Hong Kong and potential regulatory changes in China, which may impact its business and financial condition.
The filing also notes that the company has identified material weaknesses in its internal controls over financial reporting, which management is addressing with the assistance of external consultants.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the King Resources Inc quarterly 10-Q report dated February 14, 2025. To report an error, please email earnings@qz.com.