BioPower Operations Corp (Ticker: BOPO), a renewable energy company engaged in waste-to-energy projects and services, has reported a net loss of $147,578 for the first quarter of 2023. The report highlights the firm’s financial performance, detailing its income, expenses, liabilities, and equity over the three-month period ending February 28, 2023.
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Operating Income and Expenses
Operating income for the quarter totaled $(50,850), compared to an income of $48,575 during the previous year’s same period. This decline was primarily caused by a decrease in accounts receivable and an increase in prepaid expenses. On the other hand, accounts payable and accrued expenses increased by $47,313, whereas accounts payable and accrued expenses for related parties rose by $40,604.
Other Expenses and Net Loss
Other expenses for the quarter included a loss on derivative of $(27), interest expense of $(75,512), and interest expense for related party of $(21,189). These expenses contributed to the overall net loss of $(147,578) for Q1 2023. As a result, the net loss per common share stood at $(0.00) for both basic and diluted calculations.
Common Shares and Cash Flow
During Q1 2023, the company held a weighted average of 45,625,000 common shares outstanding (basic and diluted), while in Q1 2022, the company had a weighted average of 45,000,000 common shares outstanding.
The consolidated cash flow statement revealed that net cash used in operating activities amounted to $(690) for Q1 2023, compared to a net cash usage of $(87,492) during the previous year’s first quarter. Consequently, the company experienced a net increase in cash and cash equivalents of $(690) during Q1 2023. At the end of the period, BOPO had cash and cash equivalents of $135, down from $825 at the beginning of the quarter.
Financial Challenges and Future Outlook
The company’s financial statements raise substantial doubt about its ability to continue as a going concern, considering its accumulated deficit of $10,497,102 and stockholders’ deficit of $6,087,321. BOPO has historically raised capital through private placements and may continue to do so while also looking to pay for consulting services with common stock to maximize working capital.
The results of these financial statements provide valuable insights into BioPower Operations Corp’s performance during Q1 2023. The increase in net loss compared to Q1 2022 suggests that the firm needs to address its financial challenges, including raising additional capital and exploring alternative sources of financing to secure its future growth and profitability.
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