Freedom Holdings, Inc. 2024 Annual Report Review

Introduction

Freedom Holdings, Inc., also known as Freedom Acquisition Corp, has undergone significant changes in the fiscal year ending September 30, 2024. This review will delve into the company's business operations, financial performance, and risk factors as outlined in their 10-K filing. The aim is to provide a comprehensive understanding of the company's current standing and future potential.

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Business Overview

Freedom Holdings, Inc. was initially incorporated in Maryland in 2005, with a focus on the mortgage industry. However, the company has pivoted through various sectors over the years, including oil and gas, asphalt shingle recycling, and business consulting. In 2023, the company entered into a definitive agreement with MedCann Industries, Inc., which was later ceased in June 2024.

The most significant development in 2024 was the reverse merger with The Awareness Group LLC (TAG), an emerging player in the alternative energy space. This merger has positioned Freedom Holdings as a wholly-owned subsidiary of TAG, with TAG's management taking over the executive roles. The company is now focused on the alternative energy sector, particularly through the TAG GRID platform, which offers solar services and financing solutions.

Financial Performance

Revenue and Expenses

For the fiscal year ending September 30, 2024, Freedom Holdings reported revenues of $1,272,800, a significant increase from zero revenue in the previous year. The cost of goods sold was $1,005,341, resulting in a gross margin of $267,459. Operating expenses totaled $310,096, leading to a net operating loss of $42,637.

Assets and Liabilities

The company's total assets increased dramatically to $30,270,399 from $588 in the previous year, primarily due to the TAG merger. Total liabilities also increased to $7,354,162 from $412,477. The company ended the year with a working capital surplus of $3.9 million.

Cash Flow

Net cash provided by operating activities was $99,214, compared to a cash use of $51,706 in the previous year. However, net cash used in financing activities was $3,987, compared to cash provided of $52,117 in the previous year.

Net Loss

The company reported a net loss of $20,426 for the year, a significant improvement from the $399,918 loss in the previous year. The accumulated deficit stands at $9,950,869.

Risk Factors

Freedom Holdings faces several risk factors that could impact its future performance:

1. Going Concern: The company has a history of operating losses and its auditors have expressed substantial doubt about its ability to continue as a going concern.
2. Limited Operating History: The company has limited assets and financial resources, and its future success is heavily dependent on the successful implementation of the TAG business model.
3. Regulatory Risks: The company may face further government regulation, which could adversely affect its operations.
4. Liquidity Issues: There is currently a limited and sporadic trading market for the company's common stock, which could impact liquidity.
5. Penny Stock Rules: The company's stock is subject to penny stock rules, which could restrict marketability and liquidity.

Conclusion

Freedom Holdings, Inc. is at a pivotal point in its business journey. The reverse merger with TAG has provided a new direction and potential for growth in the alternative energy sector. However, the company faces significant challenges, including its ability to generate sufficient cash flow and secure additional funding. The company's future success will depend on its ability to overcome these challenges and fully integrate the TAG business model.

Investors should carefully consider these factors when evaluating the investment potential of Freedom Holdings, Inc. While the company has made strides in improving its financial position, the risks associated with its operations and market conditions cannot be overlooked.

Overall, Freedom Holdings, Inc. presents a moderate investment opportunity with potential for growth, but also significant risks that need to be managed effectively.