Natural Resource Holdings Reports Significant Improvement in Net Loss, Decrease in Operating Expenses

Natural Resource Holdings, Inc. reported its financial results for the three months ended July 31, 2024, showing significant changes compared to the same period in the previous year. The company, which transitioned from an online beauty subscription service to focus on mining operations, did not generate any revenue during this quarter, consistent with the previous year.

The net loss for the quarter was $9,162, a substantial decrease from the net loss of $2,010,256 reported for the same period in 2023, reflecting a reduction of $2,001,094 (approximately 100%). This improvement was primarily driven by a significant decrease in total operating expenses, which fell to $7,528 from $2,008,138 in the prior year. General and administrative expenses also decreased to $7,038 from $8,138.

Total assets as of July 31, 2024, were reported at $38,257, a slight decline from $38,747 as of April 30, 2024. Total liabilities increased to $308,101 from $299,429, contributing to a total stockholders’ deficit of $(269,844), compared to $(260,682) in the previous period. The working capital deficit improved slightly to $165,987 from $174,570.

Cash flows used in operating activities increased to $(16,394) from $(14,394) year-over-year, while cash flows provided by financing activities rose to $16,394 from $14,394, both reflecting a 14% increase. The company issued convertible notes to an unaffiliated party, which contributed to the financing activities.

Natural Resource Holdings has been actively managing its financial position, with no revenue generated from operations. The company has incurred recurring losses and is preparing for future operations, with plans to raise additional capital through equity or debt securities. As of July 31, 2024, the accumulated deficit stood at $2,471,644.

The company has not recognized any tax benefits from uncertain tax positions and has accrued $125,000 in late tax filing interest and penalties. Additionally, there were no off-balance sheet arrangements that materially affect the financial condition or results.

The company continues to explore opportunities in the mining sector, having acquired mining claims in Canada, although exploration activities have been delayed due to external factors. The management anticipates that working capital requirements will be funded through existing resources and further issuances of securities, with expected increases in operating expenses related to software acquisition and marketing.