Global Arena Holding Reports 72% Revenue Increase but Faces Significant Net Loss in Q1 2025

Global Arena Holding, Inc. (GAHI) reported a significant increase in revenue for the first quarter of 2025, generating $399,263 compared to $232,123 in the same period of 2024, marking a 72% increase. This growth is attributed to a higher number of elections held during the quarter. However, the company also experienced a net loss of $288,123, which is a 120% increase from the net loss of $131,018 reported in the previous year. The increase in losses is primarily due to a substantial rise in operating expenses, which totaled $476,752, up 166% from $179,245 in the prior year.

The company's operating expenses were driven by several factors, including a 267% increase in salaries and benefits, which rose to $161,189 from $43,967. Professional fees also saw a significant increase, climbing to $129,597 from $34,870, reflecting higher costs associated with accounting and legal services. Additionally, printing costs surged to $74,594, up from $16,295, due to expenses related to the special elections held during the quarter. Despite the revenue growth, the increase in expenses outpaced revenue, leading to a loss from operations of $77,489, a decline from the income of $52,878 reported in the same quarter of 2024.

In terms of strategic developments, GAHI has been actively pursuing acquisitions and partnerships to enhance its business operations. The company has made significant investments in technology, including the development of proprietary election software and systems designed to improve the security and efficiency of election processes. GAHI's subsidiary, Global Election Services, Inc. (GES), has been focusing on providing technology-enabled election services, which has become a core part of its business model. The company also acquired a 30% stake in TrueVote Inc., which is working on a decentralized digital voting system.

Operationally, GAHI reported a cash balance of $20,166 as of March 31, 2025, an increase from $13,415 at the end of 2024. The company has been utilizing convertible promissory notes to raise capital, with $355,000 raised during the quarter. However, the company continues to face challenges, including a working capital deficit of $11,085,709 and an accumulated deficit of $33,794,993. Management has expressed concerns about the company's ability to continue as a going concern, emphasizing the need for additional financing to support operations and growth initiatives.

Looking ahead, GAHI remains focused on executing its business plan and exploring opportunities for further capital raising. The company is optimistic about its ability to secure additional funding, which it plans to use to develop its operations and achieve profitability. However, management acknowledges the uncertainties surrounding market conditions and the company's financial health, which could impact its future performance and operational capabilities.