Invech Holdings Reports Significant Financial Challenges, Shifts Focus to Regulatory Compliance and Consulting

Invech Holdings, Inc. (OTC: IVHI) reported significant financial challenges for the nine-month period ending September 30, 2024. The company recorded no revenue during this period, consistent with the previous fiscal year. Total assets decreased to $3,150 from $7,000 as of December 31, 2023, while total liabilities surged to $88,048 from $40,475, resulting in a total stockholders’ deficit of $(84,898), up from $(33,475) at the end of 2023.

Operating expenses for the nine months ended September 30, 2024, amounted to $51,423, a substantial increase from $29,434 in the same period of 2023. This rise in expenses contributed to a net loss of $(51,423) for the current period, compared to a net loss of $(29,434) in the prior year. The company’s cash position deteriorated, ending the period with $0 in cash, down from $40,000 at the end of September 2023. Net cash used in operating activities also increased to $(54,573) from $(23,246) year-over-year.

In terms of strategic developments, Invech Holdings has shifted its business focus towards regulatory compliance and consulting for public companies, including services such as FINRA corporate filings and SEC reporting. This new direction was initiated following a change of control on January 21, 2023, when the company sold 300,000 shares of Convertible Series A Preferred Stock to Small Cap Compliance, LLC for $40,000. The company has since entered into a Consulting Service Agreement with Invech Consulting Corporation to enhance its market presence.

Despite these strategic shifts, the company continues to face operational challenges, including a lack of significant revenue generation since its inception and a reliance on advances from related parties for working capital. For the nine months ended September 30, 2024, Invech received $47,573 in cash advances from a related party, compared to $29,434 in the same period of 2023.

Management has acknowledged weaknesses in internal controls over financial reporting, citing issues with timely processing and communication of material information. They are exploring ways to improve these controls, although complete mitigation is deemed impractical due to the company's size.

Overall, Invech Holdings, Inc. is navigating a difficult financial landscape while attempting to establish itself in the microcap public company compliance sector.