T-REX Acquisition Corp: A Deep Dive into the 2024 10-K Filing

Introduction

T-REX Acquisition Corp, a company engaged in cryptocurrency mining and virtual asset acquisition, has recently filed its 10-K report for the fiscal year ending June 30, 2024. This report provides a comprehensive overview of the company's operations, financial performance, and risk factors. In this blog post, we will delve into the key aspects of the 10-K filing, analyzing the company's business model, financial health, and potential risks.

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Business Overview

T-REX Acquisition Corp operates primarily in the cryptocurrency mining sector through its subsidiary, Raptor Mining LLC. The company focuses on securing distributed ledger platforms, with Bitcoin being the primary cryptocurrency mined. However, the company faced operational challenges in 2024, as its mining operations were paused in March, and contracts for two locations were terminated. A new contract was signed in October 2024 to resume mining at a single location.

The company is also exploring opportunities in the cryptocurrency co-location business model through its subsidiary, Megalodon Mining and Electric, LLC. This model involves hosting third-party-owned cryptocurrency mining equipment in exchange for a fee.

Financial Performance

Revenue and Profitability

For the fiscal year ending June 30, 2024, T-REX reported revenues of $15,824, a significant decrease from $55,637 in the previous year. This decline is attributed to the consolidation of mining operations and the temporary halt in mining activities. The company incurred a net loss of $1,007,654, an improvement from the previous year's loss of $1,839,770. The reduction in net loss is primarily due to decreased stock-based compensation and depreciation expenses.

Balance Sheet and Cash Flow

As of June 30, 2024, T-REX had total assets of $152,249 and total liabilities of $1,259,444, resulting in a working capital deficit of $1,107,195. The company's cash flow from operating activities was negative, with a net cash outflow of $626,479. This was offset by cash inflows from financing activities, totaling $602,606.

Risk Factors

T-REX faces several risk factors that could impact its operations and financial performance. The company has a history of operating losses and an unproven business model, which may hinder its ability to achieve profitability. Additionally, the cryptocurrency market is highly volatile, and fluctuations in Bitcoin's value could adversely affect the company's revenue.

The company also faces competition from established and emerging cryptocurrency mining companies, which may have greater financial resources and access to capital. Regulatory changes and cybersecurity threats pose additional risks to the company's operations.

Conclusion

T-REX Acquisition Corp's 10-K filing for 2024 highlights the challenges and opportunities facing the company in the cryptocurrency mining industry. While the company has made efforts to consolidate its operations and explore new business models, it continues to face significant financial and operational risks. Investors should carefully consider these factors when evaluating the company's investment potential.

Overall, T-REX's current financial position and operational challenges suggest a cautious approach for potential investors. The company's ability to adapt to market changes and effectively manage its risks will be crucial in determining its future success.