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Financial Performance Overview
Century Cobalt Corp., a Nevada corporation focused on the identification and exploration of mineral properties for discovering economical cobalt assets, recently reported its financial performance for the nine months ended August 31, 2022. The company recorded a net loss of $268,576 during this period, highlighting the challenges faced as it explores new opportunities in the cobalt market.
Consolidated Balance Sheets
The company’s consolidated balance sheets for the period ending August 31, 2022, revealed total current assets of $6,327, compared to $26,654 at the end of November 2021. Total assets for the period stood at $6,327, compared to $159,277 in November 2021. This significant decrease highlights the financial challenges Century Cobalt has faced during this reporting period.
Total Current Liabilities
Century Cobalt’s total current liabilities at the end of August 2022 amounted to $1,803,560, compared to $1,690,104 in November 2021. This increase in liabilities can be attributed to a rise in accounts payable, accrued interest, and notes payable, indicating an increase in the company’s financial commitments during the period. The company’s total stockholders’ equity (deficit) stood at $(1,797,233) in August 2022, as compared to $(1,530,827) in November 2021.
Consolidated Statements of Operations (Unaudited)
The company’s consolidated statements of operations (unaudited) show the breakdown of expenses during the reporting period. Operating expenses for the nine months ended August 31, 2022, amounted to $221,967, compared with $546,106 over the same period in 2021. These expenses included accounting and legal fees, transfer agent and filing fees, consulting fees, exploration expenses, and general and administrative expenses.
Other Income (Expense) Category
Century Cobalt’s other income (expense) category noted a total expense of $(46,609) for the nine months ended August 31, 2022, compared to $(112,887) for the same period in 2021. These expenses included interest expense and loss on foreign currency transactions. A gain from equity method investment of $16,008 was also reported during this period.
Unrestricted Cash and Cash Equivalents
As of August 31, 2022, Century Cobalt had unrestricted cash of $6,327 to be used in future business operations. The company maintains its cash in bank deposit accounts that are insured up to $250,000. Although the balances may exceed this limit, management is confident that there is little risk associated with the excess.
Stock-Based Compensation
In terms of stock-based compensation, the company accounted for share-based payments issued to employees and non-employees for goods and services under the fair value recognition provisions of ASC No. 718. During the nine months ended August 31, 2022, Century Cobalt recognized a total of $2,170 in stock-based compensation, compared to $157,594 for the same period in 2021.
Future Prospects and Commitment
Century Cobalt’s recent financial performance highlights the challenges and uncertainties associated with the exploration of mineral properties for cobalt deposits. While the company reported a net loss for the nine months ended August 31, 2022, it remains committed to identifying and exploring new opportunities in the cobalt market to improve its financial position moving forward.
Note that we may hold securities mentioned in this article. The source of this article are the SEC filings available at https://www.sec.gov/Archives/edgar/data/1456802/000147793223004504/ccob_10q.htm that we extracted with the help of various software tools. Even though we have implemented various fact-checking processes, some incorrect information may have remained in the article (false positive). Let us know if you find any inconsistencies!