10-K: Greenlit Ventures Inc. Reports Losses and Going Concern Uncertainty in 10-K Filing

Greenlit Ventures Inc.'s 10-K filing reveals ongoing losses, a working capital deficiency, and substantial doubt about the company's ability to continue as a going concern.

Summary

• Greenlit Ventures Inc., formerly MS Young Adventure Enterprise, Inc., is a marketing and management consulting company that also operates in the encryption industry.
• The company's 10-K filing for the year ended December 31, 2024, reveals a net loss of $227,487, significantly higher than the $63,589 loss in 2023.
• Operating expenses increased substantially due to professional fees, including $175,000 in stock-based compensation.
• The company has a working capital deficiency of $25,625 as of December 31, 2024, compared to $13,631 in the previous year.
• There is substantial doubt about the company's ability to continue as a going concern, dependent on raising capital and achieving profitable operations.
• The company's internal controls over financial reporting were deemed ineffective due to material weaknesses.
• As of March 26, 2025, the company had 4,082,479 shares of common stock outstanding, held by three record holders.
• The company has one employee, Fu Yong Nan, who serves as CEO, CFO, and Secretary.
• The company is authorized to issue 100,000,000 shares of common stock and 20,000,000 shares of preferred stock.
• The company incurred stock-based compensation of $175,000 from issuance of 3,500,000 shares of common stock to the Director of the Company for services from March 10, 2024 through March 10, 2024.

Sentiment

Score: 2

Explanation: The document presents a negative outlook due to significant losses, a going concern warning, and ineffective internal controls. The company's financial situation is precarious, and its future is highly uncertain.

Positives

• The company is attempting to address the increasing need for Digital Privacy by developing and providing a suite of robust, easy-to-use solutions that will safeguard consumers private information.
• The company has identified a potential market for its encryption services.

Negatives

• The company has incurred significant net losses, with a net loss of $227,487 during the year ended December 31, 2024.
• The company has a working capital deficiency of $25,625 as of December 31, 2024.
• The company's internal controls over financial reporting are ineffective due to material weaknesses.
• The company has a history of name changes and changes in control.
• The company has minimal revenue since inception to date and accumulated deficit of $723,160 through the year ended December 31, 2024.

Risks

• The company's ability to continue as a going concern is dependent on raising capital and achieving profitable operations.
• The company faces competition in both the marketing and management consulting industry and the encryption industry.
• The company's internal controls over financial reporting are ineffective, which could lead to material misstatements in financial statements.
• The company's success depends on implementing effective sales and marketing strategies.
• The company's operations could be affected by global health concerns, such as COVID-19.

Future Outlook

The company's future is uncertain, dependent on its ability to raise capital and achieve profitable operations from its encryption services. Management believes that current actions to obtain additional funding and implement its strategic plans provide the opportunity for the Company to continue as a going concern.

Management Comments

• Management believes that the material weaknesses set forth in items (2) and (3) above did not have an effect on our financial results.
• Management believes that the lack of a functioning audit committee and the lack of a majority of outside directors on our board of directors results in ineffective oversight in the establishment and monitoring of required internal controls and procedures, which could result in a material misstatement in our financial statements in future periods.

Industry Context

The company operates in the competitive marketing and management consulting industry and the encryption industry. It faces competition from larger firms with greater resources. The company hopes to fill the growing demand for services that address the increasing need for Digital Privacy by developing and providing a suite of robust, easy-to-use solutions that will safeguard consumers private information.

Comparison to Industry Standards

• It is difficult to compare Greenlit Ventures Inc. to industry standards due to its early stage and unique combination of consulting and encryption services.
• In the consulting industry, firms like Morgan Stanley, Wells Fargo & Company, Bank of America Corporation and Ameriprise Financial Inc. are much larger and have significantly more resources.
• In the e-mail encryption industry, Trend Micro, Cisco, Sophos, Zoho Mail and BAE Systems are major players with established market positions.
• Greenlit's financial performance and internal control weaknesses are concerning compared to established industry benchmarks.

Related Party Transactions

• The company incurred stock-based compensation of $175,000 from issuance of 3,500,000 shares of common stock to the Director of the Company for services from March 10, 2024 through March 10, 2024.

Stakeholder Impact

• Shareholders face significant risk due to the company's financial instability and going concern uncertainty.
• Employees are at risk due to the company's financial instability.
• Creditors face increased risk of non-payment due to the company's financial difficulties.

Next Steps

• The company needs to raise capital to continue operations.
• The company needs to improve its internal controls over financial reporting.
• The company needs to implement effective sales and marketing strategies to generate revenue.

Key Dates

Keywords

financial statements, going concern, internal controls, net loss, working capital, Greenlit Ventures, encryption, consulting