Business context and reporting period
The provided filing is a Form 10-Q for LAZEX INC., a travel consulting and brewery-tour services company, for the quarter and nine months ended January 31, 2018. This does not match the request metadata identifying AIRWA INC.; verify the issuer before relying on this summary.
Financial results and liquidity
Amounts are in U.S. dollars. The quarter ended January 31, 2018 had no revenue and a net loss of $2,293, versus no revenue and a reported net loss of $2,125 in the comparable quarter, according to the financial statements.
| Metric | Nine months ended Jan. 31, 2018 | Prior comparable period |
|---|---|---|
| Revenue | $13,240 | $4,800 |
| Operating expenses | $17,273 | $5,645 |
| Net loss | $4,033 | $845 |
| Operating cash flow | $(8,090) | $655 |
| Investing cash flow | $(4,800) | $(3,000) |
| Financing cash flow | $18,700 | $0 |
At January 31, 2018, cash was $21,780, current assets $22,425, total assets $28,159, current liabilities and total liabilities $1,114, and stockholders’ equity $27,045. The liability was a $1,114 unsecured, non-interest-bearing related-party loan due on demand. No margin measure is meaningful given the quarterly absence of revenue and nine-month operating loss.
Changes, outlook and risks
- Nine-month revenue increased $8,440 year over year, attributed to more tours in the first and second fiscal quarters. Expenses rose $11,628; cited items included $4,000 for assistance with DTC eligibility, $3,000 for tour videos, higher administrative costs, and professional fees.
- The company issued 935,000 shares at $0.02 each for $18,700. Shares outstanding were 6,155,000 at January 31, 2018.
- Management expects existing cash, further advances, and securities or debt issuances to fund the next twelve months, but anticipates additional capital needs. The filing warns financing may not be available on acceptable terms and equity or convertible-debt issuance could dilute shareholders.
- The filing states there is substantial doubt about the company’s ability to continue as a going concern. It reports no material subsequent events, no material off-balance-sheet arrangements, and no known pending or threatened legal proceedings.
- Management concluded disclosure controls and procedures were not effective; no material changes in internal control over financial reporting were reported.
- Customer concentration was high: four customers accounted for all nine-month revenue, with the largest representing 40.03%.
Important facts to verify
- Issuer identity: the request names AIRWA INC., but the filing identifies LAZEX INC.
- Results contain conflicting descriptions: MD&A calls the prior-year quarterly $2,125 result a net income and the prior-year nine-month $845 result net income; the financial statements show losses in both periods. The quarter’s financial-statement comparison is also a loss of $2,125.
- Confirm the reported loss-per-share values, shown as $0.00 despite reported net losses, and review the weighted-average share calculations.
- Review the going-concern disclosure, funding assumptions, customer concentration, and the effectiveness-of-controls conclusion.