Revenue plunges 54% to $12K; net loss nearly triples as cash reserves fall 74%

Revenue fell 54% year-over-year from $26,015 to $12,000, reversing the prior year's strong growth from $500. This sharp decline indicates the company is struggling to sustain its revenue base.

Net loss increased 178% from $14,703 to $40,926, driven by the revenue decline and higher operating expenses. The company's burn rate has accelerated significantly despite the prior year showing improvement.

The escrow account balance fell 74% from $19,520 to $5,041, indicating rapid cash consumption. Total assets declined from $60,604 to $37,025, reflecting the company's weakening liquidity position.

General and administrative expenses increased 30% from $40,718 to $52,926, reversing the prior year's cost reduction. The expense growth combined with revenue decline drove the widening loss.

Accumulated amortization on the mobile application doubled from $4,550 to $13,650, with the annual amortization expense increasing from $4,550 to $9,100. This reflects the ongoing depreciation of the $45,500 mobile application asset acquired in the prior year.

Cash flows from financing activities fell 77% from $73,983 to $17,347. The prior year included a $45,500 note payable for the mobile application acquisition; current year financing consists primarily of interest payable ($4,552) and related party loans ($795).

The auditor's going concern paragraph now reports a working capital deficit of $176,807 (up from $144,980) and a net loss of $40,926 (up from $14,703). The financial position has materially deteriorated year-over-year, with the deficit widening by $31,827 and the loss nearly tripling.

The director changed from Alexandra Solomovskaya to Natalia Perman. The director loan balance increased from $67,724 to $68,520. The current filing also removes the word "sole" before "director," though no additional directors are disclosed.

Revenue fell 54% year-over-year, from $26,015 to $12,000. The company is a development-stage beauty consulting and hair care business; the revenue decline compounds the going concern risk.

Accumulated deficit increased from $124,856 to $165,782, reflecting the $40,926 net loss for the year. The company has now accumulated $165,782 in losses since inception.

Unpaid consulting fees owed to the director increased from $49,000 to $61,000, consistent with the $1,000 per month accrual described in the consulting agreement. The company continues to defer payment to the director.

The auditor added a critical audit matter section focused on going concern uncertainty, describing the procedures performed to evaluate management's plans and the company's liquidity. This reflects the auditor's heightened focus on the company's ability to continue operating.