10-Q: Goliath Film and Media Holdings Reports Q1 2025 Results: Minimal Revenue and Continued Losses

Goliath Film and Media Holdings reports no revenue and a net loss of $10,241 for the quarter ended July 31, 2024, raising concerns about its ability to continue as a going concern.

Summary

• Goliath Film and Media Holdings reported its financial results for the quarter ended July 31, 2024.
• The company had no film production revenue during the quarter.
• The net loss for the quarter was $10,241, slightly better than the $10,817 loss in the same period last year.
• Operating expenses decreased slightly to $10,241 from $10,817 year-over-year.
• The company's total assets were $304 as of July 31, 2024, down from $437 as of April 30, 2024.
• Total liabilities increased to $111,147 from $101,039 during the same period.
• The company's historical losses totaled $1,082,841 as of July 31, 2024, raising substantial doubt about its ability to continue as a going concern.
• Management plans to continue as a going concern by executing its business strategy and raising necessary capital.
• The company estimates its cash needs for the year ending April 30, 2025, to be $200,000.
• As of July 31, 2024, the Company has not issued an aggregate 38,153,269 common shares to three shareholders (a total of 32,153,269 to related parties and 6,000,000 to a third party).

Sentiment

Score: 3

Explanation: The sentiment is negative due to the lack of revenue, continued losses, and concerns about the company's ability to continue as a going concern. The company's reliance on related party financing and the need for additional capital raise further contribute to the negative sentiment.

Positives

• The net loss decreased slightly compared to the same period last year, from $10,817 to $10,241.
• Operating expenses decreased by $576, or 5.3%, primarily due to decreases in professional fees and consulting services.

Negatives

• The company reported no film production revenue for the quarter.
• The company has an accumulated deficit of $1,082,841, raising substantial doubt about its ability to continue as a going concern.
• Total assets decreased from $437 to $304.
• Total liabilities increased from $101,039 to $111,147.

Risks

• The company's ability to continue as a going concern is dependent on its ability to execute its business strategy and raise necessary capital.
• The company may experience a cash shortfall and be required to raise additional capital.
• There is no assurance that the company will be able to obtain financing.
• The company's failure to obtain financing could have a material and adverse effect upon it and its shareholders.
• As of July 31, 2024, the Company has not issued an aggregate 38,153,269 common shares to three shareholders (a total of 32,153,269 to related parties and 6,000,000 to a third party).

Future Outlook

The company plans to continue its business strategy of digital content development and production, and to raise the necessary capital to pay ongoing general and administrative expenses.

Management Comments

• The Companys management plan to continue as a going concern revolves around its ability to execute its business strategy of digital content, as well as raising the necessary capital to pay ongoing general and administrative expenses of the Company.

Industry Context

The company operates in the competitive film and media industry, focusing on niche markets. They are attempting to provide content to larger streaming services such as Netflix.

Comparison to Industry Standards

• It is difficult to compare Goliath Film and Media Holdings to industry standards due to its small size and focus on niche markets.
• Larger film production companies like Lionsgate or STX Entertainment have significantly higher revenues and production budgets.
• Goliath's strategy of licensing content to distributors is similar to that of independent film producers.
• The company's reliance on related party financing is not typical of larger, more established film production companies.

Related Party Transactions

• The Company borrows funds from the Companys affiliates for working capital purposes from time to time.
• During the three months ended July 31, 2024, the Company received advances of $2,000 from Kevin Frawley and during the three months ended July 31, 2023, the Company received advances of $2,500 from Mike Criscione.
• During the three months ended July 31, 2024 and 2023, the Company received no advances and made payments of $0 and $8,010, respectively, to C&R Films for film production costs and reimbursement of various expenses.
• During the three months ended July 31, 2024 and 2023, the Company received no advances and made no payments to Dos Cabezas for film production costs and reimbursement of various expenses.
• During the three months ended July 31, 2024 and 2023, the Company received advances of $2,000 and $0, respectively, and made no payments to Kevin Frawley, an affiliate, for reimbursement of various expenses.
• During the three months ended July 31, 2024 and 2023, the Company received advances of $0 and $2,500 and made no payments to Mike Criscione, Director, for reimbursement of various expenses.

Stakeholder Impact

• Shareholders face the risk of further dilution if the company raises capital through equity offerings.
• Employees (if any) face uncertainty due to the company's financial instability.
• Creditors face the risk of non-payment if the company is unable to continue as a going concern.

Next Steps

• The company plans to continue developing and producing content with distributors for licensing.
• The company will focus on raising additional capital through debt and securities sales and issuances.
• The company will explore a possible joint venture or merger.

Key Dates

Keywords

film production, media holdings, financial results, net loss, revenue, going concern, related party transactions