10-K: Legacy Ventures International Reports Net Loss and Going Concern Uncertainty in Annual 10-K Filing

Legacy Ventures International's annual report reveals a net loss of $64,286 and substantial doubt about its ability to continue as a going concern.

Summary

• Legacy Ventures International, Inc. filed its annual report on Form 10-K for the fiscal year ended June 30, 2024.
• The company currently has no ongoing operations except for incurring general and administrative expenditures.
• On December 27, 2023, the Company incorporated Ever Green Living Ventures Ltd in Hong Kong, which is 100% owned by Legacy Ventures.
• The company plans to engage in Biotech and health care research & development through its Hong Kong subsidiary.
• Operating expenses for the year ended June 30, 2024, were $64,291, compared to $61,943 for the previous year.
• The company reported a net loss of $64,286 for the year ended June 30, 2024, compared to a net loss of $61,879 for the year ended June 30, 2023.
• As of June 30, 2024, the company's cash and prepayment totaled $842.
• The company's auditors have raised substantial doubt about its ability to continue as a going concern.
• As of November 27, 2024, there were 50,315,064 shares of common stock outstanding held by 37 shareholders of record.
• The company has never paid any cash dividends and has no plans to do so in the foreseeable future.

Sentiment

Score: 2

Explanation: The document presents a negative outlook due to the net loss, going concern uncertainty, and ineffective internal controls.

Positives

• The company incorporated a wholly-owned subsidiary, Ever Green Living Ventures Ltd, to pursue Biotech and health care research & development.

Negatives

• The company reported a net loss of $64,286 for the year ended June 30, 2024.
• The company has a working capital deficiency of $136,869 as of June 30, 2024.
• The company's cash position is very weak, with only $842 in cash and prepayment as of June 30, 2024.
• The company's auditors have raised substantial doubt about its ability to continue as a going concern.

Risks

• The company's ability to continue as a going concern is dependent on obtaining additional debt or equity financing.
• Lack of additional funds may cause the company to cease operations, resulting in a loss of investment for shareholders.
• The company's common stock is thinly traded and may be subject to the Penny Stock Rule.
• The company's disclosure controls and procedures are not effective at a reasonable assurance level.
• There were material weaknesses in internal control over financial reporting as of June 30, 2024.

Future Outlook

The company plans to engage in Biotech research & development and health care research & development through its wholly owned subsidiary in Hong Kong. The company may seek to secure additional debt or equity capital to finance substantial business development initiatives.

Management Comments

• Management believes that as of June 30, 2024, our internal control over financial reporting was not effective based upon the COSO-2013 criteria.

Industry Context

Without specific industry context provided, it's difficult to assess how this announcement relates to broader industry trends. However, the company's move into Biotech and healthcare R&D aligns with growing interest in these sectors.

Management Changes

Related Party Transactions

• Wei TJONG, a major shareholder, advanced $68,357 for operating expenses during the year ended June 30, 2024.
• Hoi Sau KOO, a director, advanced $1,282 for operating expenses during the year ended June 30, 2024.
• Amounts due to Wei TJONG as of June 30, 2024 and June 30, 2023, were $104,525 and $36,168, respectively.
• Amounts due to Hoi Sau KOO as of June 30, 2024 and June 30, 2023, were $1,282 and nil, respectively.

Stakeholder Impact

• Shareholders face the risk of losing their entire investment if the company is unable to secure additional financing and ceases operations.
• Employees (if any) may be impacted by the company's financial difficulties.
• Creditors face the risk of not being repaid if the company is unable to continue as a going concern.

Next Steps

• The company needs to secure additional debt or equity financing to continue operations.
• The company needs to improve its internal control over financial reporting.
• The company plans to engage in Biotech research & development and health care research & development through its wholly owned subsidiary in Hong Kong.

Key Dates

Keywords

financial statements, going concern, net loss, operating expenses, biotech, healthcare, research and development, LGYV, Legacy Ventures International, 10-K