Forge Innovation Development Corp. reported a total revenue of $668,339 for the fiscal year ending December 31, 2024, marking a 52% increase from $438,474 in the previous year. This growth is attributed primarily to the acquisition of Legend International Investment, LP, which occurred in March 2023, and the subsequent leasing of additional units throughout 2024. However, the company experienced a significant decline in property management income, which fell to zero from $45,000 in 2023, due to the intercompany nature of transactions following the acquisition.
The company's operational expenses increased to $1,751,749 in 2024, up from $1,690,134 in 2023. This rise was driven by higher depreciation expenses, which increased from $239,816 to $318,696, and a rise in general and administrative expenses from $234,596 to $303,365. The company also reported a net loss of $1,560,413 for 2024, compared to a net loss of $1,250,242 in 2023, reflecting ongoing challenges in achieving profitability.
In terms of strategic developments, Forge Innovation completed the acquisition of a 51% interest in Legend LP, which owns the Mission Marketplace shopping center in Jurupa Valley, California. This acquisition was valued at $1,377,000 and was executed through the issuance of 1,967,143 shares of common stock. The company’s total assets decreased to $8,215,198 as of December 31, 2024, down from $9,306,401 in the previous year, largely due to cash outflows for operating expenses and property acquisitions.
The company’s financial position remains precarious, with an accumulated deficit of $3,754,427 as of December 31, 2024, and a negative working capital of $1,174,511. The company had cash reserves of $32,403 at year-end, a slight increase from $4,892 in 2023. Management has expressed concerns regarding the company's ability to continue as a going concern, citing negative financial trends and cash flow challenges. Plans to improve profitability and cash flow generation are in place, but there is no assurance that these efforts will be successful.
Looking ahead, Forge Innovation aims to enhance its business operations by focusing on property management and real estate development in Southern California. The company is also exploring opportunities to improve its financial stability and operational efficiency. However, the ongoing legal proceedings and the recent receivership of Legend LP may pose additional risks to its future performance.
About FORGE INNOVATION DEVELOPMENT CORP.
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