MakingORG, Inc. 2023 Annual Report Review

Introduction

MakingORG, Inc., a Nevada-based company, has been in the power sports business since its incorporation in 2012. Over the years, the company has transitioned into the health product sector, focusing on Acer truncatum bunge seed oil and related products. This review delves into the company's 2023 10-K filing, analyzing its business operations, financial performance, and potential investment risks.

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Business Overview

MakingORG, Inc. operates primarily in China, with its headquarters in Chongqing. The company, through its subsidiaries, purchases Acer truncatum bunge seed oil from China, outsources manufacturing, and sells the products in the United States and China. The product line includes health products like nervonic acid oil, seed oil capsules, and edible oils.

The company faces significant competition from established firms with greater resources. Despite its niche market, MakingORG remains a minor player in the industry.

Financial Performance

Revenue and Profitability

In 2023, MakingORG reported a significant increase in sales, with revenue reaching $142,048, a 267% increase from 2022. This growth is attributed to the recovery from COVID-19 disruptions and increased sales in China. However, the company still reported a net loss of $82,682, a 29% improvement from the previous year's loss of $116,355.

Operating Expenses

The company's operating expenses increased by 14% to $115,186 in 2023, primarily due to higher professional fees. Despite the increase in expenses, the company managed to reduce its net loss, indicating some operational improvements.

Cash Flow and Liquidity

MakingORG's cash and cash equivalents decreased by 22% to $18,504 by the end of 2023. The company continues to rely on advances from its sole officer and director for financing, highlighting its liquidity challenges.

Risk Factors

Economic and Political Risks in China

MakingORG's operations are heavily influenced by China's economic and political environment. Changes in government policies, currency fluctuations, and legal uncertainties pose significant risks to the company's operations.

Financial Risks

The company has a convertible note payable of $200,000, with interest expenses of $24,000 annually. This financial obligation, coupled with its reliance on a single customer for revenue, adds to its financial risk profile.

Going Concern

The company's auditors have expressed substantial doubt about its ability to continue as a going concern, citing recurring losses and negative cash flows. This raises concerns about MakingORG's long-term viability.

Conclusion

MakingORG, Inc. presents a mixed investment opportunity. While the company has shown revenue growth and reduced losses, it faces significant risks, particularly related to its financial stability and reliance on the Chinese market. Potential investors should weigh these factors carefully before making investment decisions.

Overall, MakingORG's 2023 performance indicates some positive trends, but the company's financial health and market position remain precarious. Investors should approach with caution, considering both the potential for growth and the inherent risks.