10-Q: GiveMePower Corporation Reports Q1 2025 Results: No Revenue, Continued Losses, and Going Concern Concerns

GiveMePower Corporation reported no revenue and a net loss of $8,288 for the three months ended March 31, 2025, raising concerns about its ability to continue as a going concern.

Summary

• GiveMePower Corporation, a Nevada corporation, focuses on empowering black persons in the United States through real estate and financial services.
• The company reported no revenue for the three months ended March 31, 2025, and 2024.
• Net loss for the three months ended March 31, 2025, was $8,288, compared to a net loss of $14,222 for the same period in 2024.
• Operating expenses decreased from $14,222 in Q1 2024 to $8,288 in Q1 2025.
• As of March 31, 2025, the company had a negative working capital of $304.
• The company's accumulated deficit as of March 31, 2025, was $6,623,745.
• The company's ability to continue as a going concern is dependent on obtaining adequate capital.
• Management intends to fund future operations through private or public equity and/or debt offerings.
• The company is currently involved in litigation with the SEC.
• Material weaknesses in internal control over financial reporting were identified.

Sentiment

Score: 2

Explanation: The document presents a negative outlook due to the company's lack of revenue, continued losses, going concern concerns, SEC litigation, and material weaknesses in internal control.

Positives

• Operating expenses decreased from $14,222 in Q1 2024 to $8,288 in Q1 2025.

Negatives

• The company reported no revenue for the three months ended March 31, 2025.
• The company experienced a net loss of $8,288 for the three months ended March 31, 2025.
• The company's accumulated deficit as of March 31, 2025, was $6,623,745.
• The company has a negative working capital of $304 as of March 31, 2025.
• The company's ability to continue as a going concern is dependent on obtaining adequate capital.
• The company is currently involved in litigation with the SEC.
• Material weaknesses in internal control over financial reporting were identified.

Risks

• The company's ability to continue as a going concern is dependent on obtaining adequate capital.
• The company is currently involved in litigation with the SEC, which could have a material adverse effect on its business, financial condition, or operating results.
• Material weaknesses in internal control over financial reporting could lead to errors in financial reporting.
• The company faces competition from more established private equity firms and management companies.
• The company's future performance is subject to government regulations, which could impact its business model.
• The company has no W-2 employees and relies on independent contractors and consultants, which could impact its ability to operate effectively.

Future Outlook

Management intends to fund future operations through private or public equity and/or debt offerings and is reconsidering restarting real estate operations with anticipated interest rate cuts.

Management Comments

• The Company does believe our current cash balances will be insufficient to allow us to fund our operating plan for the next twelve months.
• However, we shall continue to access cash advances from our Officers and Directors to fund our operating activities until such a time that we become cash-flow positive through operating activities.

Industry Context

The company aims to become a financial technology company (FINTEC) focused on serving black communities, which aligns with broader industry trends of fintech companies targeting underserved populations.

Comparison to Industry Standards

• The company's financial performance is significantly below industry standards for both real estate and financial services companies.
• Comparable companies in the real estate sector typically generate revenue from property sales or rentals, while GiveMePower Corporation reported no revenue.
• Fintech companies focused on underserved communities often rely on innovative lending platforms and digital payment solutions, which GiveMePower Corporation is still in the process of developing.
• The company's negative working capital and accumulated deficit are indicative of financial distress and are not typical for established companies in either sector.

Legal Proceedings

• GiveMePower, Inc. is currently in litigation with the United States Securities and Exchange Commission in an action filed by the SEC in the Central District of California styled Securities and Exchange Commission v. Frank Igwealor, et al., 2:24-cv-09941-SRM-PD.
• On November 18, 2024, the Company, our officer and two directors were listed as defendants in a Complaint filed by the U.S. Securities and Exchange Commission in the Central District of California.

Related Party Transactions

• As at March 31, 2025 and December 31, 2024, the Company's controlling firm and significant stockholder advanced $ 267,821 and $ 262,113 respectively, to the Company for working capital.
• These advances are non-interest bearing and payable on demand.

Stakeholder Impact

• Shareholders face the risk of dilution from potential equity financing.
• Employees and contractors face uncertainty due to the company's financial instability.
• Customers in black communities may not benefit from the company's planned financial services if it cannot secure funding and resolve its financial issues.
• Creditors face the risk of non-payment due to the company's financial difficulties.

Next Steps

• The company intends to fund future operations through private or public equity and/or debt offerings.
• The company plans to take actions to correct material weaknesses in internal control over financial reporting.
• The company will continue to defend against the SEC complaint.

Key Dates

Keywords

financial services, real estate, GiveMePower Corporation, financial technology, black businesses, opportunity zones, financial results, going concern, SEC litigation, internal control