Welsis Corp: A Comprehensive Review of the 2024 10-K Filing

Introduction

Welsis Corp, a company incorporated in Wyoming, has recently filed its 10-K report for the fiscal year ending September 30, 2024. This report provides a detailed overview of the company's operations, financial performance, and future prospects. In this blog post, we will delve into the key aspects of Welsis Corp's 10-K filing, including its business model, financial health, risk factors, and overall investment potential.

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Business Overview

Welsis Corp was initially established as a development-stage startup providing online psychological help services, also known as teletherapy or telepsychology services. The company offered on-demand professional psychological consultations via mobile devices, the internet, video, and phone calls. However, in a significant shift, Welsis Corp announced its entry into the cryptocurrency and blockchain industry by launching TokenTraders.net, a crypto-exchange platform.

This strategic pivot marks a substantial change in the company's business model, moving from telehealth services to the rapidly evolving cryptocurrency market. The new platform, TokenTraders.net, allows users to exchange and trade cryptocurrencies with real-time rates and minimal fees, featuring an in-built crypto wallet for secure storage.

Financial Performance

Income Statement

For the fiscal year ending September 30, 2024, Welsis Corp reported a net loss of $24,683, an improvement from the previous year's net loss of $41,068. This reduction in net loss was primarily due to a gain on debt forgiveness amounting to $55,000.

Balance Sheet

The company's balance sheet reveals a working capital deficiency of $71,696 as of September 30, 2024, compared to a deficiency of $141,306 the previous year. This improvement is attributed to a decrease in accounts payable and accrued liabilities.

Cash Flow

Welsis Corp's cash flow statement indicates a net cash outflow from operating activities of $29,979, with no cash inflow from investing activities. The company managed to secure $20,145 from financing activities, primarily through advances from related parties and the issuance of convertible notes.

Risk Factors

Welsis Corp's 10-K filing highlights several risk factors that potential investors should consider. The company is currently not generating sufficient revenue to support its operations and is heavily reliant on additional funding through equity or debt instruments. The recent shift in business focus to the cryptocurrency market introduces new risks, including regulatory challenges and market volatility.

Additionally, the company's financial statements raise concerns about its ability to continue as a going concern, given its accumulated deficit and negative operating cash flow.

Legal Proceedings

As of the date of the 10-K filing, Welsis Corp is not involved in any pending legal proceedings or litigation that could materially affect its operations.

Management and Governance

The company's management underwent significant changes during the fiscal year, with Skywest Pinnacle Limited acquiring a majority stake and appointing Kwok Boon Kit as the new CEO. This change in leadership coincides with the company's strategic shift towards the cryptocurrency industry.

Conclusion

Welsis Corp's 10-K filing presents a mixed picture of its current state and future prospects. While the company's entry into the cryptocurrency market offers potential growth opportunities, it also introduces significant risks and uncertainties. The financial statements indicate ongoing challenges in achieving profitability and maintaining liquidity.

Investors considering Welsis Corp should weigh the potential rewards of its new business direction against the inherent risks and financial instability. The company's ability to secure additional funding and successfully navigate the competitive and regulatory landscape of the cryptocurrency market will be crucial to its long-term success.

Overall, Welsis Corp's investment potential is rated at 3.5 out of 10, reflecting the high-risk nature of its current operations and financial position.