Tofla Megaline Reports Revenue Decline and Increased Losses for Six Months Ending January 31, 2025

Tofla Megaline Inc. reported its financial results for the six months ending January 31, 2025, revealing a significant decline in revenue and an increase in operating expenses compared to the same period in the previous fiscal year. The company generated total revenues of $23,000, a slight increase from $21,700 in the prior year. However, during the three months ending January 31, 2025, Tofla did not report any revenue, a stark contrast to the $21,700 generated in the same quarter of 2024. The company's net loss for the six months was $43,854, compared to a loss of $10,419 in the previous year, indicating a worsening financial position.

The company's operating expenses surged to $66,854 for the six months ending January 31, 2025, up from $32,119 in the same period last year. This increase was attributed to higher general and administrative expenses, which rose due to professional fees associated with an OTCQB application and website maintenance costs. Additionally, amortization expenses increased as the company acquired more intangible assets over time. The total liabilities of Tofla Megaline stood at $148,572 as of January 31, 2025, compared to $125,001 as of July 31, 2024, reflecting a growing financial burden.

In terms of strategic developments, Tofla Megaline underwent a significant management change in January 2025, with the resignation of its former CEO and the appointment of new leadership. This transition is expected to influence the company's strategic focus, as the new management is evaluating opportunities to diversify revenue streams and enhance long-term growth. The company has not yet made definitive decisions regarding new business lines but is actively assessing its operational structure and market opportunities.

Operationally, Tofla Megaline reported no cash on hand as of January 31, 2025, and a negative working capital of $138,172, indicating liquidity challenges. The company has 5,352,035 shares of common stock outstanding, with no new shares issued during the reporting period. The filing also noted that one customer accounted for 100% of the company's total revenues during the six months ended January 31, 2025, highlighting a significant reliance on a single client for revenue generation.

Looking ahead, Tofla Megaline's management expressed expectations for revenue growth over the next twelve months, contingent on the company's ability to generate profitable operations and secure necessary financing. The company plans to finance its operations through loans from directors and potential private placements of common stock if revenue does not cover expenses. However, the management acknowledged substantial doubt about the company's ability to continue as a going concern, emphasizing the need for strategic adjustments and financial support to navigate its current challenges.