Startech Labs, Inc. reported its financial results for the three months ended August 31, 2024, revealing a net loss of $24.986 million, a decrease from a net loss of $26.786 million in the same period of the previous year. This reduction in net loss, amounting to $1.800 million or 7%, was primarily attributed to a decrease in professional fees. Total operating expenses for the quarter were $17.538 million, down from $19.338 million in the prior year, reflecting a 9% decrease.
As of August 31, 2024, the company reported total current liabilities of $398.699 million, an increase from $373.713 million as of May 31, 2024. The accumulated deficit rose slightly to $(39.114 million) from $(39.089 million) during the same period. The total stockholders' deficit also increased to $(398.699 million) from $(373.713 million).
Cash used in operating activities for the quarter was $16.631 million, compared to $16.580 million in the same period in 2023. The company received $16.631 million from financing activities, consistent with the previous year’s $16.580 million. The amount due to the Director increased to $118.450 million from $101.819 million as of May 31, 2024, reflecting ongoing reliance on related party financing.
Startech Labs has incurred cumulative net losses of $39.114 million since its inception on April 20, 2013. The company continues to face challenges in generating sufficient revenue to cover operating costs and has indicated that it will depend on additional financing to meet its obligations and achieve profitability. The independent auditors' report raised concerns regarding the company's ability to continue as a going concern.
The company’s strategic focus remains on the development of mobile applications for consumers to find optimal cellular rate plans and fare aggregators for travel metasearch engines. Startech Labs has historically funded its operations through stock sales and loans, and it plans to continue this approach until it can generate sufficient revenue. The company has authorized 75 million shares of common stock, with 60.647 million shares issued and outstanding as of August 31, 2024.
About Startech Labs, Inc.
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