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Trex Acquisition Corp (TRXA0.00%) has submitted its 10-K filing for the fiscal year ended June 30, 2024.
The filing details the company's operations in cryptocurrency mining through its subsidiary, Raptor Mining LLC. The company has paused its mining operations since March 2024 and entered a new contract in October 2024 to resume at a single location.
For the fiscal year ended June 30, 2024, Trex reported revenues of $15,824, a decrease from $55,637 in the previous year. The decrease is attributed to the consolidation of mining operations and halting of mining activity.
The cost of revenue for the year was $30,258, down from $572,218 in the prior year, due to reduced operational costs and depreciation expenses.
Trex reported a net loss of $1,007,654 for the year, compared to a net loss of $1,839,770 in the previous year. The decrease in net loss is primarily due to a reduction in stock-based compensation and depreciation expenses.
The company faces significant competition in the cryptocurrency mining industry and has identified several risk factors, including regulatory changes, technological obsolescence, and market volatility.
Trex's financial position as of June 30, 2024, includes current assets of $152,249 and current liabilities of $1,259,444, resulting in a working capital deficit of $1,107,195.
The company plans to fund its operations through cryptocurrency sales and potential equity or debt financing. It has also entered into a non-binding letter of intent to acquire a co-location facility in Idaho.
Trex's management acknowledges the existence of material weaknesses in internal controls over financial reporting and plans to implement a cybersecurity risk management program by the end of 2024.
The company has no employees and relies on two officers for its operations. It has issued several convertible promissory notes and warrants as part of its financing activities.
Trex does not anticipate paying cash dividends on its common stock in the foreseeable future, and its stock is categorized as a 'penny stock', which may affect trading and liquidity.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Trex Acquisition Corp annual 10-K report dated November 21, 2024. To report an error, please email earnings@qz.com.