Tanico Inc. 2024 Annual Report Review

Introduction

Tanico Inc., a Nevada-based company, has been making strides in the development of innovative children's games aimed at providing valuable feedback to parents about their child's psychological well-being. The company's 10-K filing for the fiscal year ending September 30, 2024, provides a comprehensive overview of its business operations, financial performance, and future prospects. This review will delve into the key aspects of Tanico's 10-K filing, highlighting the company's business model, financial health, risk factors, and overall investment potential.

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Business Overview

Tanico Inc. was incorporated on May 3, 2021, and has since focused on developing children's games that help parents monitor their child's psychological development. The company's products are designed to detect early signs of psychological issues by analyzing children's reactions to various game scenarios. The target market includes families with preschool children aged 4 to 7 and professional child psychologists interested in long-term behavioral monitoring.

The company plans to generate revenue through subscription fees from parents and partnerships with the professional psychology community. Tanico's marketing strategy leverages digital platforms such as its website, YouTube, and social media to reach its audience. The company also offers free trials and light versions of its products to attract customers.

Financial Performance

Income Statement

For the fiscal year ending September 30, 2024, Tanico Inc. reported no revenue, a significant drop from the $5,000 reported in the previous year. The company's total operating expenses amounted to $29,967, resulting in a net loss of $20,967. This loss is slightly higher than the $19,022 loss reported in the previous year.

Balance Sheet

As of September 30, 2024, Tanico's total assets stood at $9,611, a decrease from $14,540 in the previous year. The company's liabilities increased to $41,928 from $25,890, leading to a stockholders' deficit of $32,317. The company's cash position is weak, with only $9,611 in cash and current liabilities of $41,928.

Cash Flow

Tanico's cash flow from operations was negative, with $20,726 used in operating activities. The company generated $16,038 from financing activities, primarily through a director's loan. The cash balance decreased by $4,688 over the year.

Risk Factors

Tanico Inc. faces several risk factors that could impact its business operations and financial performance. The company is in the early stages of development and has not yet generated significant revenue. Its ability to continue as a going concern is contingent upon raising additional capital and successfully implementing its business plan.

The company's auditors have issued a "going concern" opinion, highlighting the substantial doubt about Tanico's ability to continue operations without additional funding. The company also faces competition from established players in the children's gaming and educational software market.

Legal Proceedings

As of the date of the 10-K filing, Tanico Inc. is not involved in any legal proceedings. The management is not aware of any pending or threatened legal actions against the company.

Conclusion

Tanico Inc. is a promising startup with a unique business model focused on children's psychological development. However, the company's financial performance raises concerns about its ability to sustain operations without additional funding. The lack of revenue and increasing liabilities are significant red flags for potential investors.

While the company's innovative approach and target market offer growth potential, the current financial instability and "going concern" opinion from auditors suggest a cautious approach to investment. Tanico's success will largely depend on its ability to secure funding and effectively execute its business strategy.

In conclusion, Tanico Inc. presents a moderate investment risk with a score of 3.5 out of 10. Investors should closely monitor the company's progress in securing additional capital and generating revenue before making investment decisions.