My City Builders Reports Revenue Increase to $25,528 but Net Loss of $74,485

My City Builders, Inc. reported its financial results for the three months ending October 31, 2024, revealing a total revenue of $25,528, a significant increase from $6,169 in the same period last year. The company attributed this growth primarily to an increase in rental income, which rose from $6,169 to $25,528. Despite the increase in revenue, My City Builders experienced a net loss of $74,485, slightly improved from a net loss of $78,577 in the prior year. The basic and diluted loss per share was $(0.01), compared to $(0.13) in the previous year.

In terms of operational metrics, My City Builders reported a total current asset value of $1,699,636 as of October 31, 2024, up from $1,635,857 at the end of the previous fiscal period. The company’s homes inventory for sale also increased to $1,684,279 from $1,613,005. However, total liabilities rose to $2,584,117 from $2,307,369, primarily due to an increase in accounts payable and accrued liabilities, which decreased from $79,563 to $47,607. The accumulated deficit increased to $(2,094,394) from $(2,019,954), reflecting ongoing operational challenges.

Strategically, My City Builders continues to focus on its real estate operations through its wholly-owned subsidiary, RAC Real Estate Acquisition Corp. The company is actively engaged in low-income housing projects, including the development of single-family homes in Gadsden, Alabama. The formation of RAC Gadsden, LLC, which is 98% owned by RAC, is a key development aimed at purchasing and rehabilitating properties in the region. This initiative aligns with the company's broader strategy to invest in low-income housing markets.

The company’s cash flow statement indicates a net cash used in operating activities of $(159,601), compared to $(38,048) in the same period last year, highlighting increased operational expenditures. Cash flows from investing activities also increased, with $(153,435) used for construction compared to $(94,960) in the prior year. However, financing activities provided a net cash inflow of $307,960, up from $201,710, indicating reliance on external financing to support operations.

Looking ahead, My City Builders anticipates continued challenges in achieving profitability but remains committed to its strategic focus on low-income housing development. The company acknowledges the inherent risks and uncertainties in its forward-looking statements, emphasizing that actual results may differ materially from those projected. Management plans to monitor market conditions closely and adjust its strategies as necessary to enhance operational efficiency and financial performance.