LVPAI Group Reports No Revenues, Reduced Losses, and Governance Changes in Latest Quarter

LVPAI Group Limited reported its financial results for the three and six months ended July 31, 2024, revealing continued challenges in revenue generation and profitability. The company reported no revenues for both the three-month and six-month periods, consistent with the same periods in the previous fiscal year. Operating expenses decreased to $(9,030) for the three months ended July 31, 2024, down from $(11,635) in the prior year, while for the six months, operating expenses were $(18,320), compared to $(22,415) in 2023. This reduction in operating expenses contributed to a smaller net loss of $(9,030) for the three months ended July 31, 2024, compared to a net loss of $(11,653) in the same period of 2023. For the six months, the net loss was $(18,320), an improvement from $(22,415) in the previous year.

As of July 31, 2024, total liabilities increased to $123,420 from $105,100 as of January 31, 2024. The amount due to related parties also rose significantly to $123,165, up from $104,660. The total stockholders’ deficit widened to $(123,420) from $(105,100) in the previous reporting period. The company’s accumulated deficit increased slightly to $(19,750,471) from $(19,714,493) year-over-year.

The weighted average number of shares outstanding increased significantly, with 24,682,957 shares for the three months ended July 31, 2024, compared to 13,253,788 shares in the same period of 2023. For the six months, the average number of shares outstanding rose to 49,914,424 from 13,253,788.

In terms of corporate governance, there were notable changes, including the appointment of Ms. Xu Ni as a director on July 5, 2024, and the resignation of Zhang Wenmin as CFO, with Wei Zurui taking over the role. The company also underwent a significant share transaction on December 1, 2023, transferring shares that resulted in a new controlling shareholder.

The company remains dormant since November 2011 and is exploring alternative financing options, including private placements and the sale of common stock, to address its ongoing financial challenges. As of July 31, 2024, LVPAI Group had no cash equivalents and reported negative operating cash flows of $(18,505). The company has also identified material weaknesses in its internal controls over financial reporting, which have not been addressed in the current reporting period.