Gamer Pakistan Inc. reported significant financial developments in its latest 10-Q filing for the third quarter of 2024. The company generated revenue of approximately $2.19 million for the nine months ended September 30, 2024, a notable increase from zero revenue reported in the same period of 2023. For the third quarter alone, revenue was $205,000, marking the first revenue generation since the company's inception. However, the company also reported a net loss of $1.95 million for the nine months, compared to a loss of $311,546 in the prior year, indicating a substantial increase in operational costs.

The increase in losses was primarily attributed to a significant rise in general and administrative expenses, which totaled approximately $1.97 million for the nine months ended September 30, 2024, compared to $298,000 for the same period in 2023. This increase was driven by higher consulting fees, professional services, and payroll expenses. The company’s total operating expenses for the nine months reached $1.97 million, reflecting a substantial increase in operational activities as it sought to establish its presence in the esports market.

In terms of strategic developments, Gamer Pakistan Inc. has been focusing on expanding its operations through its subsidiary, K2 Gamer, which it acquired a 90% stake in July 2023. The company aims to organize approximately 12 esports tournaments in 2024, targeting partnerships with universities in Pakistan to enhance its market presence. However, due to ongoing political and economic uncertainties in Pakistan, the company has decided to cease operations in the region and is exploring alternative opportunities.

As of September 30, 2024, Gamer Pakistan reported cash and restricted cash of approximately $1.34 million, a decrease from $3.77 million at the end of 2023. The company raised approximately $6.8 million through its initial public offering (IPO) in October 2023, with net proceeds of about $5.84 million. Despite this capital influx, the company anticipates needing additional funding to support its operational and expansion plans, raising concerns about its ability to continue as a going concern.

Looking ahead, Gamer Pakistan Inc. is focused on leveraging its IPO proceeds to cover operational expenses and marketing efforts. However, the company acknowledges the need for further financing to sustain its business model and achieve its growth objectives. The management has expressed optimism about future revenue generation but recognizes the inherent risks associated with establishing a new business in a challenging economic environment.

About Gamer Pakistan Inc

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