BlueOne Card Reports No Revenue, Net Loss in Latest Quarter Amid Ongoing Financial Challenges

BlueOne Card, Inc. reported significant financial challenges in its 10-Q filing for the three and six months ended September 30, 2024. The company recorded no revenue during this period, a stark decline from $3,000 in the same periods of 2023, reflecting ongoing difficulties in generating sales from its prepaid debit and gift card solutions.

Operating expenses decreased to $229,816 for the three months ended September 30, 2024, down from $425,376 in the prior year, primarily due to reductions in advertising, consulting, and general administrative costs. For the six-month period, operating expenses were $487,421, compared to $748,881 in 2023. Despite these reductions, the company reported a net loss of $234,061 for the three months and $493,420 for the six months, improvements from losses of $415,236 and $738,165, respectively, in the prior year. The basic and diluted net loss per share also improved, from $(0.03) to $(0.02) for the three months and from $(0.06) to $(0.04) for the six months.

As of September 30, 2024, BlueOne's total assets decreased to $835,799 from $986,032 as of March 31, 2024, while total liabilities rose significantly to $924,417 from $741,230. The accumulated deficit increased to $(4,365,172), up from $(3,871,752) in the previous period, indicating ongoing financial strain. The company also reported a working capital deficit of $887,855.

In terms of strategic developments, BlueOne terminated its relationship with its previous vendor, EndlessOne Global, Inc., in December 2023, and subsequently entered a Master Program Manager Services Agreement with Expanse Financial Technologies, Inc. in February 2024. This agreement is expected to enhance the company's operational capabilities. Additionally, on October 25, 2024, BlueOne announced plans to acquire a 60% stake in Millennium EBS, Inc. for $500,000 and 2,100,000 shares of common stock, aiming to strengthen its position in the fintech sector.

The company continues to face substantial doubt regarding its ability to continue operations without additional financial support, as indicated by its going concern assessment. As of the reporting date, BlueOne had cash reserves of $11,975, a significant decrease from $75,063 at the end of the previous fiscal period. The company plans to finance its operations through equity and debt financing, partnerships, or other business transactions, while also aiming to meet NASDAQ listing requirements by Q4 2026, subject to market conditions.