In the recent SEC report released by GPL Holdings, Inc. (GPLL), the company reported a net loss of $12,144 for the three months ended April 30, 2023, and a net loss of $41,951 for the nine months ended April 30, 2023. The cause of these losses is attributed to negative financial trends, no established source of revenue, operating loss, working capital deficiency, and other adverse key financial ratios.
The company demonstrates adverse conditions that raise substantial doubt about its ability to continue as a going concern for one year following the issuance of the financial statements. GPLL has not yet established a source of revenue to cover its operating costs, which may require further funding in the future. However, it does not have any formal commitment, arrangement, or legal obligation to advance or loan funds for such needs.
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Current Financial Status
As of April 30, 2023, GPL Holdings, Inc. had a cash balance of $806. During the nine months ended April 30, 2023, the company had net cash used in financing activities amounting to $42,757, which is attributed entirely to a loan provided by the company’s sole director, Lee Crawford. Mr. Crawford paid expenses on behalf of the company during the periods ended April 30, 2023, July 31, 2022, and July 31, 2021. The company utilizes the home office space and equipment of its management at no cost.
New Business Opportunities
In light of the difficulties faced by the company, the management, which includes Sylvester Lee Crawford, the sole officer and director of GPLL, will undertake the analysis of new business opportunities. As of this date, the company has not entered into any definitive agreement with any party regarding business opportunities.
The company’s financial statements reveal that, in the case that GPLL cannot continue as a going concern, there may be adjustments necessary to the recoverability and classification of recorded assets and the amounts and classification of liabilities. Currently, the company has 176,285,321 shares of common stock issued and outstanding.
Addressing Financial Challenges
To address its financial challenges and ensure a sustainable future, GPL Holdings, Inc. must focus on establishing a source of revenue, seeking additional financing when necessary, and maintaining effective internal controls and procedures to enhance its financial performance.
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