Arculus System Reports No Revenue and Increased Losses for Quarter Ending December 31, 2024

Arculus System Co., Ltd. reported its financial results for the quarter ending December 31, 2024, revealing a significant increase in operating expenses and a continued lack of revenue generation. The company recorded no revenues for the quarter, consistent with the same period in the previous year. Operating expenses surged to $30,417, a 246.6% increase from $8,776 in the prior year, primarily due to heightened general and administrative costs and professional fees associated with corporate overhead. Consequently, the net loss for the quarter expanded to $30,417, compared to a loss of $8,776 in the same quarter of 2023.

The company's financial position showed a notable increase in total assets, which rose to $18,197 from $3,145 year-over-year. However, total liabilities also increased significantly to $139,874 from $94,405, resulting in a stockholders' equity deficit of $121,677, compared to a deficit of $91,260 in the previous year. The increase in liabilities was largely attributed to accounts payable and accrued payroll, as well as advances from related parties, which totaled $137,147 as of December 31, 2024.

In terms of strategic developments, Arculus System has shifted its focus to delivering a suite of Electronic Design Automation (EDA) tools and integrated circuit (IC) design services. The company has introduced its flagship product, the Architecture Compiler, aimed at optimizing system-on-chip (SoC) architecture design. Additionally, the company has developed iPROfiler, an AI-driven SoC performance analysis tool designed to enhance collaboration among design teams. Despite these advancements, the company has yet to establish a revenue-generating operation, relying on short-term, non-interest-bearing advances from related parties to fund its activities.

Looking ahead, Arculus System's management has expressed the need for additional capital, estimating approximately $500,000 to support ongoing operations and implement its business plan. The company plans to pursue funding through equity or debt securities. However, management has acknowledged the uncertainty surrounding its ability to secure such funding, which raises substantial doubt about its ability to continue as a going concern. The financial statements have been prepared under the assumption that the company will continue its operations, but the lack of established revenue streams and the growing accumulated deficit of $211,031 as of December 31, 2024, underscore the challenges ahead.