Two Hands Corporation Reports Significant Decline in Sales and Increased Net Loss in Q1 2025

Two Hands Corporation reported a significant decline in financial performance for the first quarter of 2025, with total sales dropping to $0 from $163,477 in the same period last year. The company also recorded a net loss of $330,432, a notable improvement compared to the net loss of $782,146 reported for the first quarter of 2024. This reduction in losses was attributed to decreased operating expenses, which fell to $257,069 from $305,190 year-over-year, primarily due to lower salaries and consulting fees.

The company's total assets decreased to $39.9 million as of March 31, 2025, down from $97.7 million at the end of 2024. This decline was largely driven by a reduction in accounts receivable and cash reserves, which increased to $2,752 from $1,733. Total liabilities also rose to $3.9 million, compared to $3.7 million at the end of the previous fiscal year, reflecting ongoing financial challenges. The stockholders' deficit increased to $3.9 million, up from $3.6 million, indicating continued financial strain.

Strategically, Two Hands Corporation has shifted its focus away from its grocery delivery services, having sold the assets of its gocart.city platform in May 2024. The company is now concentrating on its wholesale food distribution branch, Cuore Food Services, and has announced plans to reposition for future growth outside of this legacy business. The company is also in discussions to secure additional capital through private loans and equity lines of credit, although it has not established any formal agreements for future funding.

Operationally, the company has seen a significant reduction in its workforce, which has impacted its ability to generate revenue. As of March 31, 2025, the company had 5,639,232,132 shares of common stock outstanding, reflecting a substantial increase in share issuance over the past year. The company is currently trading on the Canadian Securities Exchange under the symbol "TWOH," and it is exploring avenues to improve cash flow, including reducing customer incentives and managing accounts payable more effectively.

Looking ahead, Two Hands Corporation faces substantial challenges, including a working capital deficiency of $3.9 million and an accumulated deficit of $94.9 million. The company has indicated that it will need to raise additional capital to continue operations and implement its business plan, which includes an estimated cash expenditure of $300,000 over the next 12 months. The management has expressed uncertainty about its ability to secure necessary funding, which could impact its operational viability moving forward.