THC Therapeutics Reports Increased Net Loss and No Revenue for Fiscal Year Ending July 31, 2024

THC Therapeutics, Inc. reported a net loss of $811,562 for the fiscal year ending July 31, 2024, a significant increase from the $387,036 loss recorded in the previous year. The company did not generate any revenue during both fiscal years, maintaining a consistent trend of no sales as it continues to develop its flagship product, the dHydronator®, a sanitizing herb dryer designed for cannabis and other herbs. Operating expenses rose to $541,975, up from $493,912 in 2023, primarily due to increased professional fees and general administrative costs, which were partially offset by a reduction in salaries following the resignation of the former CEO.

The company’s total assets decreased to $10,648 as of July 31, 2024, from $12,990 a year earlier, while total liabilities increased to $3,812,203, resulting in a working capital deficit of $3,712,168. The increase in liabilities was attributed to higher accounts payable and accrued expenses, as well as a rise in derivative liabilities related to convertible notes. THC Therapeutics has accumulated a deficit of approximately $39.24 million since its inception, raising substantial doubt about its ability to continue as a going concern without additional financing.

In terms of strategic developments, THC Therapeutics has been actively pursuing acquisitions and partnerships within the cannabis industry. Notably, on June 20, 2025, the company closed a Share Exchange Agreement to acquire 100% of The Headquarters Group, Inc. This acquisition is part of the company's broader strategy to expand its market presence and operational capabilities. The company is also planning to hire additional sales and marketing staff to support the launch of the dHydronator® once sufficient funding is secured.

Operationally, THC Therapeutics has not yet established a customer base, as it is still in the development phase of its product. The dHydronator® has undergone laboratory testing, demonstrating its ability to reduce moisture content in cannabis from 80% to 10% in a significantly shorter time frame compared to traditional methods. The company plans to market the product initially to legal cannabis growers and suppliers in the U.S. and Canada, with aspirations for global expansion as the technology gains traction.

Looking ahead, THC Therapeutics anticipates needing approximately $3.81 million to fund its operations over the next 12 months. The company intends to seek additional financing through equity offerings and debt arrangements, although it acknowledges the uncertainty surrounding its ability to secure such funding. The management's focus remains on executing its operational plans and achieving product commercialization, which are critical for the company's future viability and growth.