Cluster Group Holdings Limited Co. Reports Increased Net Loss and No Revenue in Q1 2025

Cluster Group Holdings Limited Co., formerly known as China Teletech Holding Inc., reported its financial results for the first quarter of 2025, revealing a net loss of $8,763, a significant increase from the net loss of $1,053 recorded in the same period of 2024. The company did not generate any revenue during this quarter, maintaining a trend of no revenue generation that has persisted over the past year. Operating expenses rose sharply to $8,763, compared to $1,053 in the prior year, primarily due to increased professional fees and general administrative costs associated with regulatory compliance and reporting requirements.

The company's balance sheet as of March 31, 2025, showed total liabilities of $98,143, up from $89,380 at the end of 2024. The increase in liabilities was driven by a rise in accounts payable and amounts due to related parties, which reached $91,086, compared to $72,623 at the end of the previous fiscal year. The total stockholders' deficit also widened to $98,143 from $89,380, reflecting the ongoing financial challenges faced by the company.

Strategically, the company underwent a significant rebranding, changing its name from China Teletech Holdings Inc. to Cluster Group Holdings Limited Co. on November 7, 2024, to better align with its new business direction. The company is currently in a developmental stage and is exploring opportunities for mergers, acquisitions, or other business combinations, particularly in the food industry. However, as of now, there are no definitive agreements in place for such transactions.

Operationally, the company has not yet established significant operations or revenue streams, which raises concerns about its ability to continue as a going concern. The management has indicated that it plans to raise additional funds through public or private offerings to support its business activities. The company’s reliance on related party advances for working capital underscores its precarious financial position, as it has not yet identified alternative sources of capital.

Looking ahead, Cluster Group Holdings Limited Co. acknowledges the risks associated with its status as an emerging growth company. The management remains optimistic about the potential for future revenue generation through strategic business combinations, but there are no guarantees regarding the success of these efforts. The company expects to continue incurring losses until a suitable transaction is executed, and it remains dependent on the financial support of related parties to sustain its operations in the interim.