Cloudweb, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing a mixed performance in terms of revenue, profitability, and financial position compared to the previous fiscal period.

For the three months ended September 30, 2024, Cloudweb recorded a net loss of $12,441, a significant improvement from a net loss of $17,690 in the same period of 2023, reflecting a decrease of 30%. Operating expenses for Q3 2024 were $3,300, down 61% from $8,550 in Q3 2023. This reduction in expenses contributed to the narrower loss.

Over the nine-month period, the company reported a net loss of $57,476, a slight improvement from a net loss of $59,726 for the same period in 2023, marking a 4% reduction. Total operating expenses for the nine months ended September 30, 2024, were $30,250, down from $32,600 in 2023, indicating a 7% decrease primarily due to lower professional fees.

Despite these improvements in losses and expenses, Cloudweb's financial position showed signs of strain. Total current liabilities increased to $628,010 as of September 30, 2024, from $570,534 at the end of 2023. Total liabilities rose to $695,336, compared to $637,860 previously. The total stockholders’ deficit also worsened to $(695,336) from $(637,860), indicating a deteriorating financial health.

The company’s cash flows from operating activities showed a net cash outflow of $(31,050) for the nine months ended September 30, 2024, an improvement from $(37,549) in the same period of 2023. However, cash flows from financing activities also decreased to $31,050 from $37,549, reflecting a reliance on advancements from related parties, which totaled $31,050 in 2024 compared to $37,549 in 2023.

Cloudweb continues to explore strategic options for its web hosting and data storage services, including the potential for free hosting supported by advertising and white labeling services. However, the company faces substantial doubt regarding its ability to continue as a going concern, with an accumulated deficit of $233,445,423 as of September 30, 2024. The company’s disclosure controls and procedures were deemed ineffective, and no significant changes in internal control over financial reporting were reported during the period.