Caro Holdings Inc. reported significant financial developments in its 10-Q filing for the period ending September 30, 2024. The company generated revenues of $5,626 for the three months ended September 30, 2024, and $24,443 for the six months ended September 30, 2024, marking a substantial increase from $0 in the same periods of the previous year. This growth reflects the company's strategic shift towards digital solutions and e-commerce services, targeting small to mid-size brands.

Operating expenses for the three months decreased to $46,125 from $65,802 in the prior year, a reduction of 30%. For the six months, operating expenses fell to $87,776 from $177,982, a decrease of 51%. The loss from operations improved significantly, with a loss of $(40,499) for the three months compared to $(65,802) in 2023, and $(63,333) for the six months, down from $(177,982) in the previous year. The net loss for the three months was $(68,155), a 62% reduction from $(181,386) in 2023, while the six-month net loss decreased to $(114,583) from $(327,632), representing a 65% improvement.

As of September 30, 2024, total current assets increased to $245,062 from $233,716 as of March 31, 2024. However, total current liabilities rose to $1,039,329 from $947,035, leading to a working capital deficiency that worsened from $(713,319) to $(794,267). The accumulated deficit also increased to $(1,217,534) from $(1,102,951) during the same period.

Caro Holdings has been actively pursuing growth through strategic acquisitions, including a recent agreement to acquire a marketplace provider in the spirits industry, contingent on achieving specific revenue milestones. The company also entered into a software purchase agreement for a Unified Communications Platform, further enhancing its digital capabilities.

Cash at the end of the reporting period was $26,536, up from $20,794 at the beginning of the period. The company reported net cash used in operating activities of $(50,361) for the six months, a significant improvement from $(169,090) in the prior year. Financing activities provided $74,500, primarily from convertible notes, compared to $201,900 in the previous year.

Management has identified material weaknesses in internal controls over financial reporting, citing inadequate segregation of duties and insufficient policies. The company continues to face substantial doubt regarding its ability to continue as a going concern, emphasizing the need for additional capital to execute its business plan.