20-F: 37 Capital Inc. Files 20-F Annual Report for Fiscal Year Ended December 31, 2024

37 Capital Inc. reports its financial results for the fiscal year ended December 31, 2024, highlighting a comprehensive loss of $208,993 and ongoing mineral exploration activities.

Summary

• 37 Capital Inc. has filed its 20-F Annual Report for the fiscal year ended December 31, 2024.
• The company reported a comprehensive loss of $208,993, compared to a loss of $48,820 in 2023 and $125,036 in 2022.
• Basic and diluted loss per common share was $0.01, compared to $0.00 in 2023 and $0.03 in 2022.
• Total assets increased to $170,656 from $121,374 in 2023 and $55,683 in 2022.
• The company has a working capital deficiency of $697,369.
• The company owns a 100% undivided interest in the Extra High Property in British Columbia, with mineral claims valid until December 28, 2028.
• Exploration work on the Extra High Property in 2023 totaled $50,000.
• The company is seeking opportunities of merit and requires additional financing to continue operations.
• As of December 31, 2024, 10,675,000 share purchase warrants and 1,900,000 stock options were outstanding.
• Roberto Fia owns 30.58% of the company's shares, while Jacob H. Kalpakian owns 22.82%.

Sentiment

Score: 3

Explanation: The document presents a concerning financial picture with increasing losses and a significant working capital deficiency. While the company is pursuing new opportunities and seeking financing, the overall outlook is uncertain.

Positives

• Total assets increased to $170,656 as of December 31, 2024, from $121,374 in 2023.
• The company owns a 100% undivided interest in the Extra High Property in British Columbia, with mineral claims valid until December 28, 2028.
• Exploration work was conducted on the Extra High Property in 2023, totaling $50,000.
• The company closed two tranches of private placement which was announced on October 1, 2024 for gross proceeds of $117,000 and issued 1,170,000 units of the Company.

Negatives

• The company reported a comprehensive loss of $208,993 for the fiscal year ended December 31, 2024.
• The company has a working capital deficiency of $697,369 as of December 31, 2024.
• The company has outstanding debts and has incurred operating losses.
• The company has no assurances whatsoever that sufficient funding can be available for the Company to continue its operations uninterruptedly.

Risks

• The company's securities should be considered a highly speculative investment.
• The company does not anticipate generating any revenue in the foreseeable future.
• There are a number of outstanding securities and agreements pursuant to which common shares of the company may be issued in the future, resulting in further dilution.
• Governmental regulations could have an adverse impact on the company.
• Trading in the common shares of the company may be halted or suspended.
• The exploration of mineral properties involves significant risks.
• The market price of the company's common shares has experienced considerable volatility.
• The company has outstanding debts, a working capital deficiency, and has incurred operating losses.
• The company has no assurances whatsoever that sufficient funding can be available for the company to continue its operations uninterruptedly.

Future Outlook

The company is seeking opportunities of merit and requires additional financing to continue operations.

Industry Context

As a junior mineral exploration company, 37 Capital Inc. operates in a high-risk, capital-intensive industry where success depends on identifying and developing commercially viable mineral deposits. The company's financial performance and future prospects are closely tied to commodity prices, exploration results, and its ability to secure funding.

Comparison to Industry Standards

• It is difficult to compare 37 Capital Inc. to industry standards due to its limited operations and lack of revenue.
• Many junior mineral exploration companies have similar financial profiles, characterized by operating losses and reliance on equity financing.
• Companies like Golden Minerals Company and Excellon Resources, which are also involved in mineral exploration, have faced similar challenges in raising capital and achieving profitability.
• However, these companies often have more advanced projects or existing production, providing a clearer path to revenue generation.

Management Changes

Legal Proceedings

• The company is presently not a party to any legal proceedings.

Related Party Transactions

• The company shares office space and certain employees with Jackpot Digital Inc., a related company with certain common key management personnel.
• The company has an office lease agreement with Jackpot Digital Inc. at a monthly rate of $1,000 plus applicable taxes.
• The company has an office support services agreement with Jackpot Digital Inc. at a monthly rate of $1,000 plus applicable taxes.
• On December 10, 2024 an insider of the Company subscribed for 610,000 units in the capital of the Company at $0.10 per unit in the private placement financing.

Stakeholder Impact

• Shareholders face the risk of further dilution due to potential future equity financings.
• The company's ability to continue as a going concern is dependent on securing additional funding.
• Employees may be affected by the company's financial challenges and need to reduce operating costs.
• Creditors face the risk of non-payment due to the company's working capital deficiency.

Next Steps

• The company is seeking opportunities of merit.
• The company intends to seek equity and/or debt financing through private placements and/or public offerings and/or loans.
• Management continues to seek financing for general working capital requirements, and ideally to raise additional funds to carry out further mineral exploration programs on the Extra High Property based on the recommendation of Discovery Consultants.

Key Dates

Keywords

mineral exploration, financial results, Extra High Property, private placement, working capital, comprehensive loss, stock options, warrants, 20-F, 37 Capital Inc.