Luduson G Inc. Reports Significant Financial Turnaround, Revenue Growth, and Strategic Acquisitions in 10-Q Filing

Luduson G Inc. reported significant financial developments in its 10-Q filing for the nine months ended September 30, 2024. The company achieved revenue of $14 million, a notable recovery from a net loss of $220,747 during the same period in 2023. This turnaround is attributed to strategic acquisitions and operational expansions, particularly following the reverse takeover of Glamourous Group Holding Limited (GGHI) completed on July 6, 2023.

Total assets surged to $22.1 million as of September 30, 2024, compared to $7.1 million at the end of 2023. This increase was driven by a rise in both current and non-current assets, with total current assets reaching $12.8 million and non-current assets at $9.3 million. Shareholders’ equity also saw a substantial increase, rising to $20.8 million from $5.8 million at the end of the previous fiscal year.

Despite the positive revenue figures, the company reported a net loss of $1.5 million for the third quarter of 2024, compared to a loss of $217,422 in the same quarter of 2023. The increase in operating expenses, which rose to $1.5 million from $210,771 year-over-year, contributed to this loss. The company’s net cash used in operating activities improved to $28,996 for the nine months ended September 30, 2024, compared to a cash inflow of $220,145 in the prior year.

Luduson G Inc. has been actively restructuring and expanding its operations. The company launched a collaboration venture with V1-Play Pixel Art, valued at $250 million, and expanded its service offerings to include listing consulting through its Malaysian subsidiary, LWH Consulting Sdn Bhd. However, LWH Consulting was disposed of on September 28, 2024, after being rolled in earlier in the year.

The company also issued 5 million shares for $2.5 million to Dr. Kin Fat Chan for the acquisition of Metaverse Innovation Laboratory projects, which aim to enhance its capabilities in the metaverse sector. As of September 30, 2024, Luduson G Inc. had 563.5 million shares outstanding, an increase from 503.5 million at the end of 2023.

The company identified material weaknesses in its internal controls over financial reporting, concluding that its disclosure controls and procedures were not effective as of the reporting date. No changes in internal control over financial reporting were noted during the quarter that could materially affect its financial reporting.