10-K: Goliath Film and Media Holdings Reports Mixed Results in Annual Filing

Goliath Film and Media Holdings reports a net loss for fiscal year 2024, contrasting with a net income in the previous year, while facing ongoing concerns about its ability to continue as a going concern.

Summary

• Goliath Film and Media Holdings reported a net loss of $396 for the fiscal year ended April 30, 2024, a significant downturn compared to the net income of $76,569 in the previous fiscal year.
• The company's revenue decreased to $47,674 in 2024 from $121,582 in 2023, primarily due to reduced distribution fees from Mar Vista Entertainment.
• Operating expenses increased slightly to $48,070 in 2024 from $45,013 in 2023, driven by higher consulting costs and write-offs of prepaid expenses.
• The company's total assets decreased significantly to $437 in 2024 from $16,714 in 2023, mainly due to a reduction in cash and the write-off of prepaid expenses.
• Total liabilities also decreased to $101,039 in 2024 from $116,920 in 2023, primarily due to a reduction in accounts payable to related parties.
• Goliath Film and Media Holdings has a history of losses, with accumulated losses totaling $1,072,600, raising substantial doubt about its ability to continue as a going concern.
• The company's future operations depend on its ability to execute its business strategy of distributing digital content and securing necessary capital.
• The company's cash needs for the year ending April 30, 2025 are estimated to be $200,000, which they plan to raise through a combination of debt and equity financing.

Sentiment

Score: 3

Explanation: The document presents a concerning financial picture with a net loss, declining revenue, and significant asset reduction. The company's going concern status and reliance on related party funding further contribute to a negative sentiment.

Positives

• The company's total liabilities decreased by $15,881, primarily due to a decrease in accounts payable to related parties.
• The company has a plan to raise $200,000 to cover its cash needs through the end of the 2025 fiscal year.

Negatives

• The company experienced a net loss of $396 in fiscal year 2024, a significant decrease from the net income of $76,569 in the previous year.
• The company's revenue decreased by $73,908, primarily due to lower distribution fees from Mar Vista Entertainment.
• The company's total assets decreased by $16,277, mainly due to a reduction in cash and the write-off of prepaid expenses.
• The company has accumulated losses of $1,072,600, raising substantial doubt about its ability to continue as a going concern.

Risks

• The company's limited operating history makes it difficult to evaluate future business prospects.
• Economic conditions and an uncertain economic outlook could adversely affect the company's results of operations and financial condition.
• The company's results of operations depend significantly on the commercial success of the motion pictures and television programming it distributes.
• The company's success depends on the ability of its senior management team and its ability to attract and retain key personnel.
• The company may raise capital in future offerings, which could dilute existing investors.
• The company's common stock is quoted only on the OTC Bulletin Board, which may have an unfavorable impact on its stock price and liquidity.
• The company's compliance with corporate governance and disclosure standards is costly.
• The company's compliance with SEC rules concerning internal controls may be time-consuming, difficult, and costly.
• The company has a history of losses and may not be able to continue as a going concern.

Future Outlook

The company plans to focus on developing and producing content with distributors for licensing, aiming for at least three projects in the next 90 days to one year. They estimate needing $200,000 in cash for the year ending April 30, 2025, which they plan to raise through debt and equity financing.

Management Comments

• Management acknowledges that the company does not have significant cash or other current assets, nor does it have an established source of revenues sufficient to cover its operating costs, which raises substantial doubt about its ability to continue as a going concern.
• Management plans to continue to fund the company through debt and securities sales and issuances, and focus on a possible joint venture or merger until the company generates revenues through the operations of such merged company or joint venture.

Industry Context

The company operates in the niche market of film and television content, focusing on areas like education, faith-based, horror, and socially responsible minority content. They are not directly competing with major streaming platforms like Amazon, Netflix, and Hulu, but rather aim to provide them with quality content. The company believes there is a growing demand for niche content, which presents an opportunity for them.

Comparison to Industry Standards

• Goliath Film and Media Holdings' financial performance is significantly below industry standards for established film production and distribution companies.
• Companies like Lionsgate and A24, which focus on independent film production and distribution, typically have much higher revenues and more diversified distribution channels.
• Goliath's reliance on a single distributor, Mar Vista, and its limited revenue streams are not typical of larger, more successful film companies.
• The company's negative net income and accumulated losses are also not in line with industry benchmarks for profitable film production and distribution companies.
• The company's lack of independent directors and audit committee also deviates from standard corporate governance practices in the industry.

Related Party Transactions

• The company borrows funds from its affiliates for working capital purposes.
• The company has recorded a principal balance due of $18,663 and $22,463 under Accounts payable related party at April 30, 2024 and 2023, respectively.
• The company received advances of $11,150 from C&R Films, Kevin Frawley, and Mike Criscione in 2024.
• The company made payments of $23,541 to C&R Films for film production costs and reimbursement of various expenses in 2024.
• Kevin Frawley paid expenses totaling $10,492 on behalf of the company in 2024.
• Mike Criscione paid expenses totaling $18,303 on behalf of the company in 2024.

Stakeholder Impact

• Shareholders may be concerned about the company's net loss, declining revenue, and going concern status.
• Employees may be affected by the company's financial instability and potential need for restructuring.
• Customers may be impacted by the company's ability to produce and distribute content.
• Suppliers and creditors may be concerned about the company's ability to meet its financial obligations.

Next Steps

• The company plans to focus on developing and producing content with distributors for licensing.
• The company aims to produce at least three projects in the next 90 days to one year.
• The company will seek to raise $200,000 in capital to cover its cash needs through the end of the 2025 fiscal year.

Key Dates

Keywords

film distribution, motion pictures, digital content, revenue, net loss, operating expenses, going concern, Mar Vista Entertainment, OTC Bulletin Board, related party transactions