Freedom Holdings Reports Revenue Growth Following TAG Merger, Faces Operational Challenges

Freedom Holdings, Inc., also known as Freedom Acquisition Corp, reported its financial results for the three and six months ending March 31, 2025, revealing a significant increase in revenue following its merger with The Awareness Group (TAG) in September 2024. The company generated revenues of $199,478 for the three months and $677,152 for the six months, a notable shift from no revenues reported in the same periods of the previous year. The gross margin for the six months was $531,607, with costs of revenues amounting to $145,545.

The financial performance reflects substantial changes compared to the previous fiscal period, particularly in total assets, which surged to $57.56 million from $29.05 million as of September 30, 2024. This increase was primarily driven by the acquisition of solar assets and the recognition of investment tax credits amounting to $3.55 million. However, the company reported a net loss of $289,909 for the three months and $255,118 for the six months, compared to a smaller loss of $17,435 for the three months and $20,689 for the six months in the prior year.

Operationally, Freedom Holdings has seen a significant expansion in its asset base, particularly in solar equipment, which increased to $20.78 million from $7.68 million. The company also reported a notable increase in notes receivable, which rose to $11.68 million from $150,000. The total liabilities increased to $26.18 million, primarily due to accrued project costs and deferred revenues, reflecting the company's ongoing investments in its solar initiatives. The company’s employee headcount and customer engagement metrics were not disclosed in the filing.

The filing also noted that the company is facing challenges related to its accumulated deficit of $10.69 million and ongoing operational losses, raising concerns about its ability to continue as a going concern. Management indicated that until the company can demonstrate consistent profitability and cash flow generation, it may require additional funding to support its operations and growth initiatives. The company plans to focus on raising capital and improving operational efficiencies in the coming months.

Looking ahead, Freedom Holdings aims to leverage its recent merger and asset acquisitions to enhance its market position in the renewable energy sector. However, the company acknowledged the uncertainties surrounding its ability to generate sufficient cash flow and secure additional financing, which are critical for its future growth and operational stability. The management's outlook remains cautious, emphasizing the need for strategic planning and potential capital raises to navigate the challenges ahead.