Golden Royal Development Inc. reported its financial results for the three and nine months ended June 30, 2024, revealing significant changes in its financial position compared to the previous fiscal period. The company, which focuses on mineral exploration in oil, gas, and mining properties, has yet to generate any revenue from its operations.

As of June 30, 2024, the company had cash of $19, a substantial decrease from $190 as of September 30, 2023. Total liabilities increased to $286,246,000 from $258,164,000 during the same period. The accumulated deficit also widened to $(316,528,000) from $(288,275,000), and total stockholders’ deficit rose to $(286,227,000) from $(257,974,000).

Operating expenses for the three months ended June 30, 2024, were reported at $6,108,000, a significant reduction from $16,115,000 in the same quarter of 2023. For the nine-month period, operating expenses decreased to $28,253,000 from $50,707,000 year-over-year. Despite the reduction in expenses, the company reported a loss from operations of $(6,108,000) for the third quarter of 2024, compared to $(16,115,000) in the prior year. The net loss for the nine months ended June 30, 2024, was $(28,253,000), down from $(50,707,000) in the same period of 2023.

The company recorded an impairment expense of $2,650,000 related to mineral rights acquisition and exploration costs for the nine months ended June 30, 2024, compared to $1,100,000 for the same period in 2023. Additionally, the company has been in default for non-payment of annual lease fees for its mineral leases, accruing significant liabilities.

Cash used in operating activities decreased to $(15,563,000) for the nine months ended June 30, 2024, from $(27,056,000) in the previous year. The company also reported net cash provided by financing activities of $15,392,000, down from $27,061,000 in the same period of 2023.

The company’s President advanced $32,958,000 to the company during the nine months ended June 30, 2024, with a balance due to the officer of $155,028,000 as of that date. The company has indicated a need for approximately $2.5 million in capital for its exploration projects and plans to issue equity securities to meet this requirement.

Furthermore, the company identified material weaknesses in its disclosure controls and procedures, including inadequate control activities and a lack of expertise in financial reporting. The CEO concluded that the company’s system of disclosure controls was not effective as of June 30, 2024.