Kheoba Corp: A Detailed Analysis of the 2024 10-K Filing

Introduction

Kheoba Corp, a development stage company, is making strides in the software and travel industry. With a focus on providing an online platform for private and group adventures in Georgia, the Caucasus mountains region, and Tenerife, Spain, the company is positioning itself in a niche market. This blog post delves into the company's 2024 10-K filing, analyzing its business model, financial performance, and potential risks.

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Business Overview

Kheoba Corp is a Nevada-based company with its principal executive office in Tenerife, Spain. The company aims to offer a unique travel experience through its online platform, which includes features like booking multi-day tours, a tour guide ranking algorithm, and an AI-based tour selection tool. The platform also integrates a CRM system for tour suppliers, enhancing the management of tours and customer interactions.

Revenue Streams

Kheoba Corp generates revenue from two primary sources:

1. Tourist Programs: These include guided tours in Georgia and beginner surf lessons in Tenerife.
2. Software Sales: The company sells access to its CRM platform, which is designed to assist tour guides and agencies in managing their operations efficiently.

The company has also launched its website, kheoba.com, to attract signature tour guides and agencies, offering them an annual subscription model for accessing the CRM platform.

Financial Performance

Revenue and Expenses

For the fiscal year ending October 31, 2024, Kheoba Corp reported a revenue of $41,055, a significant increase from $16,000 in 2023. This growth is attributed to an increase in sales volume. However, the cost of goods sold rose to $14,000 from $0, impacting the gross profit.

Operating expenses surged to $61,350 from $16,047, primarily due to increased professional fees, marketing, and amortization expenses. Consequently, the company reported a net loss of $34,295, up from a loss of $47 in the previous year.

Balance Sheet

As of October 31, 2024, Kheoba Corp's total assets stood at $36,541, with current liabilities at $32,408. The company's stockholders' equity decreased to $4,133 from $22,488, reflecting the net loss and increased liabilities.

Cash Flow

The company used $23,132 in operating activities and $21,130 in investing activities, primarily for software and website development. Financing activities provided $28,580, mainly from the sale of common stock and loans.

Risk Factors

Kheoba Corp's 10-K filing highlights several risk factors:

• Going Concern: The company has an accumulated deficit and insufficient revenue, raising doubts about its ability to continue as a going concern.
• Cybersecurity: While no significant threats were identified in 2024, the company acknowledges the potential risks associated with cybersecurity.
• Market Competition: The travel and software industries are highly competitive, with many established players offering similar services.

Management and Governance

The company's management team is led by Gaga Gvenetadze, who serves as the President, CEO, and Director. The board also includes directors with experience in tourism and IT. However, the company lacks an audit committee and formal internal controls, which could pose challenges in financial reporting and governance.

Conclusion

Kheoba Corp is in the early stages of development, with a promising business model targeting niche markets in the travel and software industries. However, the company faces significant financial challenges, including a substantial net loss and concerns about its ability to continue as a going concern. Investors should weigh these risks against the potential growth opportunities in the company's target markets.

Overall, Kheoba Corp's 2024 10-K filing provides a comprehensive overview of its current position and future prospects. While the company has made progress in increasing its revenue, it must address its financial and operational challenges to achieve long-term success.