Guru App Factory Corp: A Comprehensive Review of the 2024 10-K Filing

Introduction

Guru App Factory Corp, a development-stage company, has recently filed its 10-K report for the fiscal year ending July 31, 2024. As a company focused on developing mobile applications and providing software development services, it operates in a competitive and rapidly evolving industry. This blog post aims to provide a detailed analysis of the company's 10-K filing, highlighting key aspects of its business operations, financial performance, and potential risks.

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Business Overview

Guru App Factory Corp was incorporated in Nevada on March 7, 2023. The company is primarily engaged in developing, publishing, and selling mobile applications on iOS and Google Play platforms. It generates revenue through app development for third parties, branded advertisements, and consumer transactions, including in-app purchases. Additionally, the company offers software development consulting services to small and medium-sized enterprises across various IT sectors.

Key Services

• Comprehensive Software Development Services: Tailored solutions for clients in the IT industry.
• Consulting Services: Expertise in data encryption, blockchain operations, and software development.
• Mobile App Development: Focus on encryption and data protection.

Financial Performance

Revenue and Expenses

For the fiscal year ending July 31, 2024, Guru App Factory Corp reported revenue of $82,500, a significant increase from $0 in the previous period. This growth is attributed to the successful launch of its products and services. However, the company incurred operating expenses of $105,472, resulting in a net loss of $22,972 for the year.

Balance Sheet

As of July 31, 2024, the company reported total assets of $68,190, up from $4,064 in the previous year. Total liabilities increased to $25,803 from $825, while stockholders' equity rose to $42,387 from $3,239. The increase in assets and equity is primarily due to the issuance of common stock and advances from related parties.

Cash Flow

The company generated $2,359 in net cash from operating activities, primarily due to an increase in accounts payable and prepaid sales. However, it used $45,978 in investing activities, mainly for computer software development. Financing activities provided $62,598, largely from the issuance of common stock.

Risk Factors

Going Concern

The company's financial statements raise substantial doubt about its ability to continue as a going concern. With an accumulated deficit of $23,733 and ongoing net losses, Guru App Factory Corp will require additional capital to meet its long-term operating requirements.

Cybersecurity

While the company has not experienced any cybersecurity incidents in fiscal year 2024, it relies heavily on third-party service providers for cybersecurity protections. This dependency poses a potential risk, as any breach could significantly impact operations.

Management and Governance

Deniss Volkovs serves as the President, Treasurer, Secretary, and sole Director of the company. He owns 56.29% of the outstanding shares, giving him significant control over the company's operations and decisions.

Conclusion

Guru App Factory Corp is in its early stages of development, with promising growth in revenue but facing challenges in achieving profitability. The company's reliance on external financing and its going concern status are critical factors for potential investors to consider. While the company has made strides in its business operations, it must address its financial stability and risk management to enhance its investment potential.

Overall, Guru App Factory Corp presents a moderate investment opportunity with a score of 4.5 out of 10. Investors should closely monitor the company's progress in securing additional capital and achieving sustainable growth.

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This analysis provides a snapshot of Guru App Factory Corp's current standing and future prospects. As the company navigates its growth phase, it will be crucial to address its financial challenges and leverage its strengths in the mobile app development industry.