Groove Botanicals, Inc. (formerly Avalon Oil & Gas, Inc.) reported its financial results for the three and six months ended September 30, 2024, highlighting significant changes in its financial position and performance compared to the previous fiscal period.

As of September 30, 2024, the company had cash of $6,133,000, a substantial increase from $1,688,000 as of March 31, 2024. Total current assets also rose to $11,125,000 from $2,142,000 during the same period. However, total current liabilities increased to $947,289,000 from $762,699,000, resulting in total stockholder’s equity declining to $(936,164,000) from $(760,557,000).

For the three months ended September 30, 2024, Groove Botanicals reported an operating loss of $(29,833,000), slightly higher than the $(27,795,000) loss recorded in the same period in 2023. The net loss for this quarter was $(29,833,000), compared to $(30,045,000) in the prior year. Loss attributed to common stockholders was $(84,452,000), down from $(84,663,000) in 2023. Total operating expenses increased to $29,833,000 from $27,795,000, primarily due to a significant rise in legal and professional fees, which surged from $1,298,000 to $7,410,000.

For the six months ended September 30, 2024, the company reported a net loss of $(66,372,000), a notable improvement from $(156,272,000) in the same period in 2023. The loss attributed to common stockholders also decreased to $(175,607,000) from $(265,507,000). Total operating expenses for this period were $66,372,000, down from $151,772,000, largely due to a drastic reduction in consulting expenses from $78,300,000 to $1,250,000.

The company has not generated any revenue since its inception and does not expect to do so in the near future. It continues to focus on assembling a portfolio of early-stage EV battery technologies from universities in Norway, Sweden, and Finland, although it currently holds no patents or technologies in this area. The management has expressed a belief in the potential of specialized energy technologies for stable business growth.

In terms of financing, Groove Botanicals received $67,913,000 from related parties during the six months ended September 30, 2024, compared to $49,102,000 in the same period in 2023. The company is actively seeking additional capital to support its operations and has raised concerns regarding its ability to continue as a going concern, as it has incurred recurring net losses and has limited capital resources.