AFB Limited 2024 10-K Report Review

Introduction

AFB Limited, a Nevada corporation, is an e-commerce advisory firm that specializes in helping businesses navigate the complexities of online commerce. The company was incorporated on August 18, 2023, and operates primarily in Hong Kong, with a focus on expanding its client base throughout Southeast Asia. This review will delve into the company's 2024 10-K report, highlighting key aspects of its business operations, financial performance, and potential risks.

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Business Overview

AFB Limited provides e-commerce advisory services, assisting businesses in developing and executing effective online strategies. The company operates without trademark and patent protection, which poses significant risks to its brand identity and competitive edge. AFB Limited's services are structured into three phases: pre-engagement planning, execution, and monitoring and review. The company leverages its website and social media platforms for marketing and engages in direct outreach at business events.

Financial Performance

Revenue and Profitability

For the fiscal year ended November 30, 2024, AFB Limited reported revenues of $43,150, a significant increase from $6,000 in the previous period. Despite this growth, the company incurred a net loss of $31,850, compared to a net loss of $24,695 in 2023. The increase in revenue was offset by higher general and administrative expenses, which totaled $57,000 in 2024.

Cash Flow and Liquidity

AFB Limited's cash and cash equivalents increased from $8,185 in 2023 to $29,258 in 2024, primarily due to the issuance of common stock. The company used $29,927 in operating activities and generated $51,000 from financing activities. However, the company's cash position remains insufficient to support its operations without additional funding.

Balance Sheet

As of November 30, 2024, AFB Limited had total assets of $33,806 and total liabilities of $36,351, resulting in a working capital deficit of $2,545. The company's accumulated deficit increased to $56,545, raising concerns about its ability to continue as a going concern.

Risk Factors

AFB Limited faces several risks, including:

• Lack of Trademark and Patent Protection: The absence of legal protection for its brand and innovations exposes the company to potential infringement and competitive threats.
• Financial Instability: The company's ongoing losses and working capital deficit raise doubts about its financial sustainability.
• Regulatory Compliance: Operating in Hong Kong, AFB Limited must adhere to local privacy and intellectual property laws, as well as navigate the complex legal landscape between Hong Kong and China.

Management and Governance

AFB Limited is led by Tak Chun Wong, who serves as the Chief Executive Officer, Chief Financial Officer, and Director. The company lacks a formal audit committee and independent directors, which may impact its governance and oversight capabilities.

Conclusion

AFB Limited's 2024 10-K report highlights a company in the early stages of growth, with a focus on expanding its e-commerce advisory services. While the company has demonstrated revenue growth, its financial instability and lack of trademark protection pose significant risks. Potential investors should carefully consider these factors and the company's ability to secure additional funding before making investment decisions.

Overall, AFB Limited presents a moderate investment risk, with a score of 3.5 out of 10, reflecting its potential for growth tempered by financial and operational challenges.