Hanryu Holdings, Inc. reported its financial results for the three months ended March 31, 2024, revealing a decrease in revenue and improvements in net loss compared to the same period in the previous year. The company generated revenue of $185,000, down from $223,000 in Q1 2023, marking a 17% decline. Despite this decrease, the gross profit remained consistent at $185,000. The net loss attributable to equity holders was $1,047,071, significantly improved from a net loss of $3,061,555 in Q1 2023, reflecting a 66% reduction in losses.

Operating losses also decreased to $1,098,001 from $2,806,457 year-over-year. The company reported a notable reduction in total operating expenses, which fell to $1,098,186 from $2,806,680, primarily due to decreased marketing and advertising expenses and general administrative costs. Marketing and advertising expenses plummeted to $3,500 from $289,473, while general and administrative expenses decreased by 55% to $1,094,686.

Cash and cash equivalents as of March 31, 2024, were reported at $9,996, a significant drop from $5,427,830 at the end of 2023. Total current assets decreased slightly to $16,927,203 from $17,617,070, while total assets also fell to $19,500,845 from $20,544,956. Total current liabilities increased to $8,022,156 from $7,476,491, contributing to a decline in total stockholders' equity, which decreased to $11,478,689 from $13,068,465.

The company has been actively restructuring its operations, having divested its subsidiaries—Hanryu Times, Fantoo Entertainment, and K-Commerce—on December 28, 2023, which were classified as discontinued operations. This divestiture resulted in a gain of $3,390,323. The company is focusing on its FANTOO platform, which has surpassed 27 million users, and plans to launch an Epic branded e-commerce platform, expected to be a significant income source.

In terms of financing, Hanryu Holdings completed an IPO in July 2023, raising approximately $7.7 million in net proceeds. The company is also exploring additional capital-raising strategies to support future operations. As of March 31, 2024, the company reported no outstanding related party transactions and has no contractual obligations.

Overall, while revenue has declined, the company has made strides in reducing its losses and restructuring its operations to focus on its core platform, FANTOO, amidst ongoing efforts to secure additional funding.