JAAG Enterprises Ltd., incorporated on January 25, 2022, in Nevada, USA, has reported its financial performance for the third quarter of 2024, highlighting significant developments in revenue, profitability, and operational challenges. The company acquired 100% interest in JAAG Uniform Limited, a Hong Kong-based uniform supplier, on May 27, 2022.

For the quarter ended September 30, 2024, JAAG Enterprises recorded revenues of $9.979 million, a substantial increase from $3.185 million in the same period of 2023. This growth in revenue is attributed to the company's focus on the design, supply, and distribution of uniform garments and accessories. The gross profit for Q3 2024 was $4.222 million, compared to $1.572 million in Q3 2023, indicating improved profitability despite a cost of sales of $5.757 million, which rose from $1.613 million year-over-year.

The company reported a net loss of $9.250 million for Q3 2024, a decrease from a net loss of $13.436 million in Q3 2023, reflecting a reduction in losses despite increased operational expenses. Selling, general, and administrative (SG&A) expenses decreased to $13.295 million from $15.011 million in the prior year, contributing to the improved net loss figure.

JAAG Enterprises' cash position as of September 30, 2024, was $11,127, with outstanding liabilities totaling $43,366, leading to a working capital deficiency of $32,239, up from $22,989 as of June 30, 2024. The company expressed substantial doubt about its ability to continue as a going concern due to insufficient cash to cover upcoming expenses and anticipates needing $50,000 in additional investment capital over the next 12 months for operational funding.

The company has relied on cash advances from stockholders, totaling $18,782 for the quarter, to support day-to-day operations. As of September 30, 2024, total assets were reported at $11,127, a significant increase from $4,836 as of June 30, 2024.

Management has identified deficiencies in internal controls over financial reporting, concluding that these controls were not effective as of September 30, 2024. The company is in the process of implementing enhanced internal control mechanisms to address these issues.

JAAG Enterprises continues to operate in a challenging financial environment, with all revenues derived from Hong Kong and reliance on a single major supplier for approximately 60% of total accounts payable. The company has no current arrangements for additional financing and is focused on improving its operational and financial stability.