Hallmark Venture Group Reports No Revenue and Significant Losses in Latest 10-Q Filing

Hallmark Venture Group, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending March 31, 2025. The company recorded no revenue during this period, mirroring the same lack of revenue reported in the previous year. Total operating expenses surged to $58,010, up from $18,766 in the first quarter of 2024, primarily due to increased general and administrative costs and professional fees. The net loss for the quarter amounted to $728,927, a stark contrast to a net income of $18,005 reported in the same quarter last year.

The company's financial position has deteriorated, with total assets plummeting to $60,162 as of March 31, 2025, down from $686,536 at the end of 2024. This decline is attributed to the discontinuation of its only operating segment, Jubilee Intel, LLC, which has been classified as a discontinued operation. The assets from discontinued operations fell to $23,618, while liabilities increased to $1,346,464, resulting in a stockholders' deficit of $1,286,302, compared to a deficit of $557,375 at the end of the previous fiscal year.

Operationally, Hallmark has faced significant changes, including the complete cessation of its revenue-generating activities through Jubilee. The company has also recognized a bad debt expense of $105,326 related to a note receivable, reflecting ongoing challenges in asset collectability. The company’s cash position improved slightly to $36,544 from $3,629 at the end of 2024, but it remains insufficient to cover its liabilities and operational needs.

Looking ahead, Hallmark's management has indicated that additional financing is critical for the company to continue its operations. The company is exploring various avenues for capital, including equity offerings and debt restructuring. However, there is substantial uncertainty regarding the availability of these funds and the terms under which they may be secured. The company’s ability to continue as a going concern is in question, given its accumulated deficit of $3,824,942 and the need for significant capital to support its business development goals.

In summary, Hallmark Venture Group, Inc. is navigating a challenging financial landscape marked by a lack of revenue, increasing losses, and a deteriorating asset base. The company is in the process of restructuring and seeking new business opportunities, but its future remains uncertain without securing additional capital.