Wewards, Inc. Reports Continued Net Losses, No Revenue Generation in Latest Quarter

Wewards, Inc. reported its financial results for the three months ended August 31, 2024, revealing a continued trend of net losses and no revenue generation. The company, which operates a web-based platform allowing consumers to purchase goods and earn rebates in Bitcoin, has not generated any revenue during the reported period or the previous fiscal year ending May 31, 2024.

As of August 31, 2024, Wewards' total assets were $741,747, a decrease from $764,692 as of May 31, 2024. Total liabilities increased to $14,158,160 from $14,021,006 in the same period. The accumulated deficit also widened to $(18,685,428) from $(18,525,329). Total stockholders' equity remained negative, reported at $(13,416,413) compared to $(13,256,314) in the prior period.

Operating expenses for the three months ended August 31, 2024, were significantly reduced to $32,690, down from $74,552 in the same period of 2023, marking a decrease of 56%. This reduction was primarily due to the termination of a lease effective October 31, 2023, which led to a dramatic drop in rent expenses from $45,000 to $75. However, general and administrative expenses increased by 101% to $1,540, while professional fees rose by 8% to $31,075.

The operating loss for the quarter was $(32,690), a notable improvement from $(74,552) in the previous year. The net loss also decreased to $(160,099) from $(200,833), reflecting a 20% reduction attributed to lower rent expenses, although this was partially offset by decreased interest income due to falling interest rates.

Cash balances at the end of the reporting period stood at $741,560, down from $810,313 a year earlier. The company reported net cash used in operating activities of $(22,645), a significant improvement from $(79,092) in the same quarter of 2023. Despite these improvements, Wewards indicated that it does not currently have sufficient funds to sustain operations at current levels for the next twelve months and will require additional financing.

Wewards continues to depend on its CEO and majority shareholder, Mr. Pei, for financing, primarily through convertible loans. The company has convertible notes payable to a related party totaling $10,500,000, which, if converted, would significantly increase Mr. Pei's ownership stake in the company. The financial statements remain unaudited and prepared in accordance with GAAP.