Starguide Group Reports Significant Revenue Decline and Net Loss in Latest Quarter

Starguide Group, Inc. reported significant financial challenges in its 10-Q filing for the period ending July 31, 2024. The company experienced a substantial decline in revenue, with total revenue for the three months ending July 31, 2024, at $42, a decrease of 97% from $1,399 in the same period in 2023. For the six months ended July 31, 2024, revenue was $150, down 95% from $3,185 in the prior year. This decline reflects ongoing difficulties in generating sales, attributed to the company's development stage focus on distributing Indian traditional art and crafts globally.

Despite the drop in revenue, Starguide Group reported a net loss of $16,595 for the three months ended July 31, 2024, which is an improvement from a net loss of $32,517 in the same period in 2023, marking a 49% reduction. For the six months, the net loss was $39,831, compared to $51,099 in the previous year, reflecting a 22% improvement. Operating expenses also decreased significantly, totaling $15,895 for the three months ended July 31, 2024, down 54% from $34,406 in the same period in 2023, primarily due to lower audit fees, rent, and software costs.

The company's total assets decreased to $1,878 million as of July 31, 2024, from $2,246 million as of January 31, 2024. Current assets fell to $63 million, down from $161 million, largely due to a reduction in accounts receivable. Total liabilities increased to $293,616 million, up from $252,581 million, driven by higher convertible notes and amounts due to related parties. The accumulated deficit grew to $(296,702) million, and total stockholders' deficit increased to $(291,738) million.

Starguide Group's cash and cash equivalents were reported at $63 as of July 31, 2024, a significant decrease from $818 a year earlier. The company reported net cash used in operating activities of $(38,218) for the six months ended July 31, 2024, an improvement from $(42,878) in the same period in 2023. The company continues to rely on financial support from its major shareholder, Northeast International Holdings Limited, which holds approximately 68% of the issued shares.

In terms of strategic developments, Starguide Group acquired 80% of Live Investments Holdings for $16,000 in December 2022, which owns Live Lead Tech Ltd., a cloud-based lead generation software company. However, the company has faced substantial doubt regarding its ability to continue as a going concern due to its financial conditions and reliance on external funding.