Eventiko Inc. Reports Significant Losses, Accumulated Deficit Grows Amid Ongoing Financial Challenges

Eventiko Inc. reported its financial results for the three months ended July 31, 2024, revealing significant challenges in its operations. The company has not generated any revenue since its inception and continues to face substantial financial losses. For the current period, Eventiko recorded a net loss of $12,694, a notable increase from a net loss of $750 during the same period in 2023. This increase in losses is attributed to a substantial rise in general and administrative expenses, which escalated to $12,694 from $750 year-over-year, primarily due to professional and incorporation fees.

The company's accumulated deficit has also grown, reaching $(69,589) as of July 31, 2024, compared to $(56,895) as of April 30, 2024. Total stockholders’ equity remains negative at $(12,694), slightly improved from $(14,260) in the previous quarter. The increase in additional paid-in capital to $56,476 from $42,216 indicates some capital infusion, primarily through loans from related parties.

Cash flow analysis shows that net cash used in operating activities for the three months ended July 31, 2024, was $(12,694), a decline from $(5,530) in the prior year. However, the company reported net cash provided by financing activities of $12,694, a significant turnaround from $(5,554) in the same period last year, reflecting reliance on director loans to sustain operations.

Eventiko's financial viability remains in question, as it has not established a stable revenue source to cover its operating costs. The company has indicated a need for additional capital to meet long-term operating requirements and plans to raise funds through equity or debt securities. Currently, it has no employees other than its officer and director and lacks employee benefit plans.

Management has acknowledged that its disclosure controls and procedures were not effective as of July 31, 2024, which raises concerns about the accuracy and timeliness of financial reporting. The company has no off-balance sheet arrangements that are material to investors and continues to operate under the assumption that it will remain a going concern.