Eventiko Inc. Reports Worsening Financial Performance, Accumulated Deficit Reaches $72.5 Million

Eventiko Inc. reported its financial results for the period ending October 31, 2024, revealing ongoing challenges in revenue generation and profitability. The company, which focuses on organizing fashion events and related services, has not generated any revenue since its inception. As of October 31, 2024, the accumulated deficit increased to $72.5 million from $56.9 million as of April 30, 2024. This reflects a significant rise in operational losses, with net losses for the six months ending October 31, 2024, amounting to $15.6 million, compared to $5.6 million for the same period in the previous year.

Operating expenses for the six months ended October 31, 2024, totaled $15.6 million, a substantial increase from $5.6 million in the prior year. General and administrative expenses also rose sharply, from $5.6 million to $15.6 million over the same period. The net loss from operations for the three months ended October 31, 2024, was $2.9 million, down from $4.8 million in the same quarter of 2023, indicating a slight improvement in operational efficiency despite the overall increase in expenses.

The company's cash position remains precarious, with no cash reported as of October 31, 2024. Current liabilities increased to $15.6 million from $14.3 million, primarily due to loans from related parties. The total stockholders' equity also reflects a negative balance of $(15.6 million), worsening from $(14.3 million) in the previous period.

Eventiko's financing activities included a director's loan of $15.6 million, which was crucial for maintaining operations. The company has indicated that future funding will likely come from equity financing through the sale of common stock, although no specific plans are currently in place. Management has expressed concerns regarding the company's ability to continue as a going concern, citing the need for additional investment capital to cover ongoing operational expenses.

The company has not adopted a stock option plan or granted stock options, and there are no off-balance sheet arrangements that materially affect its financial condition. Management has acknowledged deficiencies in its disclosure controls and procedures, which were deemed ineffective as of October 31, 2024. Despite these challenges, Eventiko Inc. continues to seek opportunities for growth and expansion in the event management sector, particularly in Asian markets.