Winvest Group Ltd. reported a drastic 85.14% revenue decline for the six months ended June 30, 2025, with revenues plummeting to $11,500 from $77,340 in the prior-year period. This decrease was primarily due to the termination of key contracts with clients such as Surewell International, Pacific Range Hood, Superco Home Appliances, and Ding Yun Sheng in 2024. The company recorded a gross loss of $120, a reversal from a gross profit of $34,580 in the same period last year.
Operating expenses rose to $266,840 from $245,757, driven by increased advertising, audit, legal, and other professional fees, as well as salaries. Other expenses surged to $652,892, largely due to higher interest expense and a substantial loss on investment of $647,462 from Infinity Fund Australia Pty Ltd repurchasing its Series A Preferred Stock at a lower unit price. As a result, the net loss widened considerably to $919,852 for the six months ended June 30, 2025, compared to a loss of $323,555 in the prior-year period.
The company reported an accumulated deficit of $106.72 million and a working capital deficit of $1.15 million as of June 30, 2025. Management explicitly stated that existing operational cash flow is insufficient to fund anticipated operations, raising 'substantial doubt' about its long-term viability without external intervention. Net cash used in operating activities was $307,369, while net cash provided by financing activities amounted to $242,234, including $170,000 from share capital issuance and $75,000 from a convertible promissory note issued on March 6, 2025.
Furthermore, management concluded that the company's disclosure controls and procedures were 'not effective' as of June 30, 2025, and identified a material weakness in internal control over financial reporting due to 'inadequate segregation of duties and effective risk assessment.' The company also carries a $100,000 contingency liability for unassessed tax filings.
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