Video River Networks Reports Significant Revenue Growth, Net Income Turnaround in Latest Quarter

Video River Networks, Inc. (formerly Nighthawk Systems Inc.) has reported significant financial changes in its latest 10-Q filing for the period ending September 30, 2024. The company, which has transitioned from a real estate focus to a technology-centric model specializing in Electric Vehicles (EV), Artificial Intelligence (AI), Machine Learning (ML), and Robotics (EV-AI-ML-R), recorded total revenue of $1,135,578 for the nine months ended September 30, 2024, a notable increase from $0 in the same period of 2023. However, for the three months ended September 30, 2024, the company reported no revenue, consistent with the previous year.

The gross profit for the nine-month period was $876,907, compared to $0 in 2023, while the gross profit for the three-month period improved from a loss of $(18,791) in 2023 to $0 in 2024. Operating expenses significantly decreased to $75,929 for the nine months ended September 30, 2024, down from $218,761 in the prior year, and to $9,053 for the three months, compared to $58,397 in 2023. This reduction in expenses contributed to a net income of $1,486,138 for the nine months, up from $658,146 in 2023, while the net loss for the three months was $(9,053), an improvement from $(77,188) in the same quarter of the previous year.

The company’s total assets decreased to $1,560,167 as of September 30, 2024, from $3,820,398 at the end of 2023, primarily due to the write-off related to the disposition of its subsidiary, Alpharidge Capital LLC, which was sold for $1,562,067 in a transaction structured for 240 monthly installments. Total stockholders’ equity also fell to $1,484,143 from $3,490,614, reflecting the impact of this transaction and a net loss for the period.

Cash and cash equivalents at the end of the reporting period stood at $4,610, down from $19,456 a year earlier. The company reported net cash used in operating activities of $(69,419) for the nine months ended September 30, 2024, compared to a net cash provided of $817,900 in the same period of 2023. The company’s liquidity sources include cryptocurrency mining, real estate sales, trading securities, and an Entrepreneurship Development Initiative.

Management has indicated that the company’s ability to continue as a going concern is contingent upon raising additional capital and potentially merging with another entity. The company is actively seeking financing options and has plans to address material weaknesses in internal controls over financial reporting, including the establishment of an independent audit committee and hiring additional accounting personnel.