Landbay Inc. Reports Revenue Surge Amid Continued Losses in Latest 10-Q Filing

Landbay Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending December 31, 2024. The company generated revenues of $170,857 for the three months ended December 31, 2024, a substantial increase from $1,102 in the same period the previous year. For the nine-month period, total revenue reached $172,916, compared to $4,280 in the prior year. Despite this increase in revenue, Landbay incurred a net loss of $9,111 for the quarter and $66,168 for the nine months, up from losses of $7,722 and $32,348, respectively, in the previous fiscal year. The increase in losses was primarily attributed to a rise in operating expenses, which totaled $25,367 for the quarter and $82,763 for the nine months, compared to $7,988 and $32,883 in the prior year.

The company has undergone significant strategic changes, including a shift in its business focus from furniture sales to online data marketing services through its subsidiary, Zhejiang Toumi. This transition was part of a broader management change that occurred in April 2024, following a stock purchase agreement that resulted in a change of control. The new management team has since discontinued the furniture sales business, which had previously generated minimal revenue. The establishment of Zhejiang Toumi has allowed Landbay to diversify its revenue streams, although the launch of its live software service business has faced delays due to technical issues.

Operationally, Landbay's customer concentration remains high, with 67% of its revenue for the quarter derived from its top two customers. The company reported a working capital deficit of $61,440 as of December 31, 2024, an improvement from $97,392 at the end of the previous fiscal period. This reduction was largely due to the forgiveness of loans by shareholders, which has positively impacted the company's financial position. The total cash balance at the end of the reporting period was $18,148, up from $8,761 at the end of March 2024.

Looking ahead, Landbay's management has expressed concerns regarding the company's ability to continue as a going concern, citing negative financial trends and accumulated losses. The management plans to improve profitability and generate sufficient cash flow to meet operational needs, while also seeking additional working capital from shareholders. However, the company acknowledges that there is no assurance these plans will be sufficient to address its financial challenges.

In summary, Landbay Inc. has experienced a notable increase in revenue due to its strategic pivot towards online services, yet it continues to face significant operational losses and financial uncertainties. The company's future performance will depend on its ability to execute its new business strategy and manage its financial obligations effectively.