Oyocar Group Inc. 2024 Annual Report Review

Introduction

Oyocar Group Inc., a Nevada-based company, specializes in the acquisition, refurbishment, and resale of used vehicles sourced primarily from the United States. The company caters to both domestic clients within the USA and international customers, particularly in the Dominican Republic. This review will delve into the company's 2024 10-K filing, analyzing its business model, financial performance, and potential investment risks.

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Business Model

Oyocar Group Inc. was incorporated on July 10, 2023, and operates in the used vehicle market. The company provides a comprehensive service that includes vehicle inspection, necessary repairs, and logistics management for shipping vehicles to their final destination. The business model is designed to ensure a seamless process from purchase to delivery, with a focus on high-quality, road-ready vehicles.

The company’s mission is to deliver high-quality vehicles while offering comprehensive support throughout the transaction process. This includes handling the complexities of international shipping, customs clearance, and regulatory compliance.

Financial Performance

Revenue and Profitability

For the fiscal year ending August 31, 2024, Oyocar Group Inc. reported revenue of $46,959, with a gross profit of $7,020. However, the company incurred total operating expenses of $30,620, resulting in a net loss of $23,600. This is a significant increase from the net loss of $988 reported for the period from inception to August 31, 2023.

Balance Sheet

As of August 31, 2024, Oyocar Group Inc. had total assets of $90,850, compared to $4,000 as of August 31, 2023. The increase in assets is primarily due to cash and cash equivalents, prepaid expenses, accounts receivable, and inventory. Total liabilities stood at $36,408, up from $988 in the previous year, resulting in stockholders’ equity of $54,442.

Cash Flow

The company generated $47,285 in net cash from operating activities, primarily due to changes in working capital. Net cash used in investing activities was $3,940, while financing activities provided $89,845, mainly from the issuance of common stock and advances from related parties.

Risk Factors

Oyocar Group Inc. did not report any unusual risk factors in its 10-K filing. However, the company is still in its early stages and faces typical risks associated with start-ups, such as the need for additional capital and the challenge of establishing a stable revenue stream.

Legal Proceedings

The company is not currently involved in any legal proceedings and is not aware of any pending or potential legal actions.

Cybersecurity

Cybersecurity risk management is part of Oyocar Group Inc.'s overall risk management strategy. The company relies on third-party service providers for cybersecurity protections and has not experienced any cybersecurity incidents in fiscal year 2024.

Investment Potential

Strengths

• Comprehensive Service Offering: Oyocar Group Inc. provides a full spectrum of services, from vehicle inspection to delivery, which can be appealing to customers looking for a hassle-free experience.
• International Market Reach: The company’s focus on both domestic and international markets, particularly the Dominican Republic, provides a broader customer base.

Weaknesses

• Financial Losses: The company reported a net loss for the fiscal year, indicating challenges in achieving profitability.
• Dependence on External Financing: Oyocar Group Inc. relies heavily on external financing to fund its operations, which may not always be available on favorable terms.

Conclusion

Oyocar Group Inc. is in the early stages of its business journey, with a promising business model but facing significant financial challenges. The company’s ability to secure additional capital and achieve profitability will be crucial for its long-term success. Potential investors should weigh the risks and rewards carefully, considering the company’s current financial position and market potential.

Final Thoughts

While Oyocar Group Inc. has a solid business model and a clear mission, the financial losses and reliance on external financing present significant risks. Investors should approach with caution, keeping an eye on the company’s ability to improve its financial performance and secure necessary funding.

Overall, Oyocar Group Inc. presents a moderate investment opportunity with a score of 3.5 out of 10, reflecting its potential but also the inherent risks involved.