KeyStar Corp. Reports $5.86 Million Net Loss in Q2 FY 2024, Gaming Revenues Increase

KeyStar Corp. reported its financial results for the second quarter of fiscal year 2024, revealing a net loss of $5.86 million for the three months ending December 31, 2024, compared to a net loss of $8.79 million during the same period in the previous year. The company's gaming revenues increased to $22,181, a significant improvement from a loss of $610,199 in the prior year. For the six-month period, the net loss was $11.13 million, down from $13.85 million in the same timeframe last year, indicating a narrowing of losses as the company continues to adjust its operations.

The financial statements also highlighted a substantial decrease in total assets, which fell to $1.23 million as of December 31, 2024, from $9.35 million at the end of June 2024. This decline was primarily attributed to a significant reduction in intangible assets, which dropped from $6.76 million to $135,837, and a decrease in cash reserves from $221,754 to $73,580. Current liabilities increased to $25.02 million, up from $22.54 million, reflecting ongoing financial pressures.

In terms of operational developments, KeyStar Corp. has made strategic changes, including a focus on cost management, which resulted in reduced operating expenses. Salaries and wages decreased from $1.74 million to $1.07 million year-over-year for the quarter, while sales and marketing expenses also saw a significant reduction from $1.91 million to $394,117. The company reported a total operating expense of $8.51 million for the quarter, compared to $4.75 million in the previous year, largely due to an impairment charge of $5.91 million related to developed technology and tradename.

KeyStar Corp. has also seen changes in its stockholder equity, with total stockholders’ deficit increasing to $23.78 million from $13.19 million. The company’s common stock increased to 72,761,658 shares issued and outstanding, up from 71,994,990 shares. The filing noted that the company is actively pursuing opportunities to enhance its market position, including potential geographic expansion and product adoption initiatives, although specific metrics on customer counts or user statistics were not disclosed.

Looking ahead, KeyStar Corp. remains focused on improving its financial performance and operational efficiency. The company anticipates that ongoing strategic initiatives will help stabilize its financial position and potentially return to profitability in the future. However, the management acknowledged that market conditions and competitive pressures will continue to pose challenges as they navigate the evolving landscape of the gaming industry.