GHST World Inc. Reports Improved Financials, But Remains Concerned About Future Viability

GHST World Inc. reported its financial results for the three months ended September 30, 2024, showing significant changes in revenue and net loss compared to the same period in the previous year. The company generated revenues of $45,732, a notable increase from $23,841 in the prior year. This growth is attributed to the company's focus on consulting services, which are recognized when performance obligations are satisfied.

Total operating expenses for the quarter decreased to $58,449 from $78,841 in the same period last year, reflecting a strategic effort to manage costs more effectively. As a result, the net loss for the quarter was reduced to $12,717, a substantial improvement from the net loss of $56,095 reported for the same period in 2023.

Despite the reduction in losses, the company continues to face challenges, as indicated by an accumulated deficit of $(13,894,666) as of September 30, 2024, compared to $(13,426,760) a year earlier. The total stockholders’ deficit also increased to $(320,991) from $(177,608) in the previous year, highlighting ongoing financial difficulties.

Cash flow analysis reveals that net cash used in operating activities was $(45,173) for the quarter, slightly higher than $(43,302) in the same period last year. However, cash flows from financing activities saw a significant increase, rising to $29,039 from $11,243, indicating a reliance on external funding sources. The company’s cash position at the end of the reporting period was $2,168, down from $7,436 a year prior.

GHST World Inc. has expressed substantial doubt about its ability to continue as a going concern over the next twelve months unless it can raise additional capital or generate significant revenue. The company plans to seek funding through existing shareholders and potential sales of minority interests in its subsidiaries. Additionally, management has identified a material weakness in internal controls over financial reporting, which has not been addressed during the reporting period.

The company is also focused on developing its Smart Shin Guard product, a wearable device aimed at analyzing player performance data, with plans to market it in 2025. The company has relied heavily on loans from related parties for funding, with advances from these parties increasing to $298,893 as of September 30, 2024, from $269,854 at the end of June 2024.