Preaxia Health Care Payment Systems Reports Reduced Net Loss and Increased Total Assets

Preaxia Health Care Payment Systems Inc. reported its financial results for the six months ending November 30, 2024, revealing a net loss of $18,293, a significant reduction from the $86,028 loss recorded during the same period in 2023. The company did not generate any revenue in either period, maintaining a consistent lack of sales. Total operating expenses for the six months decreased to $18,293 from $86,028, primarily due to reduced consulting fees and lower administrative costs. The decrease in expenses reflects the company's ongoing efforts to manage costs amid its startup phase.

In terms of financial position, Preaxia's total assets increased to $165,000 as of November 30, 2024, compared to $14,000 at the end of the previous fiscal year. However, the company continues to face a substantial working capital deficit of $2,414,472, slightly worsening from $2,396,179 as of May 31, 2024. The increase in the deficit is attributed to a decrease in accounts payable and accrued liabilities, alongside an increase in advances from related parties. The company’s accumulated deficit also grew to $5,146,673 from $5,128,380.

Operationally, Preaxia remains focused on developing its health care payment processing services, particularly targeting the health spending account market. The company plans to launch its products initially in Canada, capitalizing on the growing demand for consumer-directed health care solutions. Preaxia aims to establish strategic alliances with health insurance companies and other stakeholders to enhance its market presence. The company has no significant cash reserves, with only $165 in cash as of the latest reporting date, underscoring the need for additional capital to support its operations.

Preaxia's management has indicated that the company will require approximately $1,000,000 over the next twelve months to meet its operational needs and fulfill its business plan. The company is exploring various avenues for raising capital, including private placements of equity securities. However, there is considerable uncertainty regarding the ability to secure necessary funding, which poses a risk to the company's ongoing operations. The management has expressed that the continuation of the business is contingent upon obtaining further financing and achieving market acceptance of its products.

Looking ahead, Preaxia acknowledges the challenges it faces, including the need to attract investors and the potential for significant dilution of existing shareholders if additional equity is issued. The company remains committed to its strategic objectives but recognizes that its ability to execute its plans is heavily reliant on securing adequate financial resources. The management's forward-looking statements emphasize the importance of navigating these financial hurdles to establish a sustainable operational framework.