Awaysis Capital, Inc. 2024 10-K Review: A Deep Dive into the Real Estate and Hospitality Venture

Introduction

Awaysis Capital, Inc., a Delaware-based real estate management and hospitality company, has recently filed its 10-K form for the fiscal year ending June 30, 2024. The company is focused on acquiring, redeveloping, and managing residential vacation home communities in desirable travel destinations. This review will delve into the key aspects of Awaysis Capital's 10-K filing, examining its business model, financial performance, risk factors, and overall investment potential.

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Business Overview

Awaysis Capital operates in the real estate and hospitality industry, targeting undervalued residential and resort communities for acquisition and redevelopment. The company aims to create a network of residential and resort enclave communities under the "Awaysis" brand, optimizing both sales and rental revenues. Awaysis Capital's strategy is to capitalize on the growing trend of remote work and extended travel stays by transforming properties into convenient enclaves with comprehensive amenities.

The company's initial focus is on properties in Belize, with plans to expand into other regions such as the Caribbean, Europe, South America, and the United States. Awaysis Capital's business model includes selling developed resort inventory, providing management services under HOA agreements, and managing short-term rentals.

Financial Performance

Revenue and Profitability

For the fiscal year ending June 30, 2024, Awaysis Capital reported revenues of $50,674, a significant decrease from $107,760 in the previous year. The decline in revenue is attributed to ongoing construction at the Casamora property, which limited rental opportunities. The company incurred a net loss of $7,093,476, up from a net loss of $4,295,446 in the prior year. The accumulated deficit as of June 30, 2024, was $12,642,933.

Operating Expenses

Awaysis Capital's operating expenses for the year totaled $7,074,632, with general and administrative expenses accounting for $7,037,957. The increase in expenses is primarily due to the company's efforts to scale its operations and prepare for future growth. Sales and marketing expenses decreased to $36,675 from $91,319, reflecting a stabilization in marketing efforts.

Cash Flow and Liquidity

As of June 30, 2024, Awaysis Capital had cash reserves of $745,991 and a positive working capital of $7,795,602. The company raised funds through the issuance of shares and a $1,100,000 loan from an affiliate. Despite these efforts, Awaysis Capital anticipates the need for additional capital to meet long-term operating requirements and complete property developments.

Risk Factors

Awaysis Capital's 10-K filing outlines several risk factors that could impact its business and financial performance:

• Limited Operating History: As a development-stage company, Awaysis Capital has not yet achieved profitability, making it challenging to evaluate its business and investment potential.
• Dependence on Management: The company's success is heavily reliant on its management team, particularly its Co-CEOs, Michael Singh and Andrew Trumbach.
• Capital Intensive Operations: The company's business model requires significant capital investment, and there is no guarantee that Awaysis Capital will secure the necessary funding.
• Market and Economic Conditions: Awaysis Capital's financial success is sensitive to changes in economic conditions, such as recession, inflation, and interest rates.
• Competition: The real estate and hospitality industries are highly competitive, and Awaysis Capital faces competition from well-established companies with greater resources.

Conclusion

Awaysis Capital, Inc. presents an intriguing investment opportunity in the real estate and hospitality sector, with a unique business model focused on creating residential and resort enclaves. However, the company's limited operating history, significant net losses, and reliance on external funding pose substantial risks. Potential investors should carefully consider these factors and monitor Awaysis Capital's progress in achieving its strategic objectives.

Overall, Awaysis Capital's 10-K filing reflects a company in the early stages of development, with ambitious plans but considerable challenges ahead. The company's ability to execute its business strategy and secure necessary funding will be critical to its future success.