Caro Holdings Reports $4.4M Revenue Growth but Faces Net Loss in Latest Quarter

Caro Holdings Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending December 31, 2024. The company generated revenues of $4.4 million for the three months ended December 31, 2024, a substantial increase from $521 in the same period the previous year. For the nine months ending December 31, 2024, revenues reached $28.9 million, compared to just $521 for the same period in 2023. Despite this revenue growth, the company reported a net loss of $267,199 for the quarter, up from a loss of $115,888 in the prior year, and a net loss of $381,782 for the nine-month period, down from $443,520 in the previous year.

The financial performance reflects a notable increase in operating expenses, which rose to $138,943 for the quarter, compared to $77,869 in the prior year, primarily due to higher advertising costs and amortization expenses. For the nine-month period, operating expenses decreased slightly to $226,719 from $255,851, attributed to reduced accounting and consulting fees. The company also reported a significant increase in convertible notes payable, which rose to $1.07 billion as of December 31, 2024, from $735 million in March 2024, contributing to a working capital deficiency that increased to $1.03 billion.

Strategically, Caro Holdings has been focusing on expanding its digital presence and capabilities. The company has developed a comprehensive e-commerce platform aimed at small to mid-sized brands looking to enhance their digital footprint. This platform is designed to support various business models, including B2B, B2C, and D2C. Additionally, the company is in the process of acquiring a marketplace provider in the spirits industry, which is expected to be finalized in the second quarter of 2025. This acquisition will involve issuing up to 12.55 million shares based on the achievement of specific revenue milestones.

Operationally, Caro Holdings has made strides in customer engagement and product adoption. The company has been actively soliciting clients across multiple industries and is enhancing its e-commerce software to meet market demands. As of December 31, 2024, the company reported total current assets of $259.8 million, an increase from $233.7 million in March 2024, while total current liabilities rose to $1.29 billion from $947 million. The increase in liabilities is primarily due to the growth in convertible notes and accrued interest.

Looking ahead, Caro Holdings acknowledges the challenges it faces, including its accumulated deficit of $1.48 million and ongoing losses. The company emphasizes the need for additional capital to sustain operations and implement its business plan. Management remains optimistic about the potential for future revenue growth and is actively seeking funding opportunities to support its strategic initiatives. However, the company cautions that there are no guarantees regarding the availability of additional funds or the terms under which they may be obtained.