WDSP 10-K & 10-Q changes, risk factors and insider trading
World Scan Project, Inc. · OTC · Wholesale-Computers & Peripheral Equipment & Software · CIK 1813744 · All filings on SEC.gov
At a glance
What changed in the latest 10-K
Risk Factors
As a smaller reporting company, as defined in Rule 12b-2 of the Exchange Act, we are not required to provide the information called for by this Item.
No wording changes found in this section.
Full comparison: every changed paragraph (0)
Management's Discussion & Analysis (MD&A)
Largest changes
“Having reviewed the above, the Company realizes that whether we shall be able to continue demonstrating the positive trends demonstrated in our previous financial statements, lies in our ability to continue to generate revenue and increase revenue going forward. Principally, the Company's consolidated financial statements are based on going concern assumptions, which assume the realization of assets and offset of liabilities in the normal course of business. …”see in full comparison
“The Company assessed the impact of COVID-19 and believes there to be minimal impact of COVID-19 on the Company’s crypto miner sales, which is currently the Company’s primary source of revenue. The Company will need to continue to monitor COVID-19 and the effects it may have, socially and economically, as it is possible that such developments may in fact impact our operations going forward or more specifically, our sales results. At this time, the Company believes that it will not affect our assumptions as a going concern.”see in full comparison
“Based on the Company’s evaluation and considering the positive financials trends the Company has experienced for many previous quarters, management believes that the one-time R&D expense this quarter will not adversely impact the Company’s ability to continue as a going concern.”see in full comparison
“The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event that the Company cannot continue as a going concern.”see in full comparison
“The Company’s financial statements are prepared in accordance with generally accepted accounting principles applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business.”see in full comparison
“As of October 31, 2023, the Company had working capital of $6,608,501, a decrease of $3,089,176 (-32%) as compared to working capital of $9,697,677 as of October 31, 2022. Additionally, the Company recorded cash and cash equivalents of $5,698,883, a decrease of $137,182 as compared to $5,836,065 in the prior year period ended October 31, 2022, The Company’s comparable liquidity to prior year is derived from increased sales of crypto miners and drone products and the sale of common shares (see Note 12), which balance out increased expenditures in research and development (see Note 10). …”see in full comparison
Full comparison: every changed paragraph (15)
As
of October 31, 20232024 we had cash and cash equivalents in the amount of $5,698,883.$1,634,200. Currently, our cash balance is sufficient to fund our
operations without the need for additional funding.
The decrease in cash from operations
is mainly related to decreased revenue and increased inventory purchases in the year ended October 31, 2024.
We recorded revenues of $25,208,229 for the year ended October 31, 2024. We recorded revenues of $30,986,882 for the year ended October 31, 2023. This decrease in revenues was due mainly to a decrease in the sales of crypto miners. During the year ended October 31, 2024, contracts with crypto miner customers changed to the extent that management changed the Company’s reporting from sales by agent, net of cost of goods sold, to that of gross sales with related cost of goods sold (see Note 8).
We recorded revenues of $30,986,882
for the year ended October 31, 2023. We recorded revenues of $29,440,341 for the year ended October 31, 2022.
We recorded a net loss of $768,431 for the year ended October 31, 2024. We recorded a net loss of $3,416,587 for the year ended October 31, 2023.
We recorded net loss of $3,416,587
for the year ended October 31, 2023. We recorded a net income of $8,908,782 for the year ended October 31, 2022.
For
the year ended October 31, 2023,2024, we had negative cash flows used in operations in the amount of $170,461$16,864,420 as compared to negative cash
flow provided
byused in operations of $4,605,591$170,461 for the year ended October 31, 2022.2023. The decrease in operating cash flow is attributed to thedecreased
crypto netminers operating
lossrevenue and increased inventory purchases during this this period, mainly due to R&D expensesperiod (see Note 108). For the year ended October 31, 2023,2024, we had negative
cash flows
from investing activities in the amount of $1,627,412,$126,427, due mainly to the purchase of investment securities,software, as compared to cash flow used
in investing activities of $227,180$1,627,413 for the year ended October 31, 2022.2023. For the year ended October 31, 2023,2024, we had cash flows provided
by financing activities in the amount of $1,862,361,$13,720,084, due to the sale of common shares and the receipt of funds pending the allotment
of shares (see Note 1213) and deposits received for subscriptions
of shares prior to registration,, as compared to cash flow provided by financing activities of $0$1,862,361 for the year ended October 31, 2022.2023.
Going Concern
The Company’s
financial statements are prepared in accordance with generally accepted accounting principles applicable to a going concern that contemplates
the realization of assets and liquidation of liabilities in the normal course of business.
The Company
demonstrates mixed trends, compared with the previous fiscal years, in our financial statements as in below:
As
of October 31, 2023, the Company had working capital of $6,608,501, a decrease of $3,089,176 (-32%) as compared to working capital of
$9,697,677 as of October 31, 2022. Additionally, the Company recorded cash and cash equivalents of $5,698,883, a decrease of $137,182
as compared to $5,836,065 in the prior year period ended October 31, 2022, The Company’s comparable liquidity to prior year
is derived from increased sales of crypto miners and drone products and the sale of common shares (see Note 12), which balance out increased
expenditures in research and development (see Note 10). As
stated in the consolidated financial statements, the Company, for the year ended October 31, 2023, recorded a net loss of $3,416,587 (-138.35%
y-o-y) and used $170,461 (-101.01% y-o-y) in cash flows from operating activities. The change in net profit(loss), use of cash from
operations, and decrease in working capital is mainly related to a large increase in research and development costs expensed in the year
ended October 31, 2023 (see Note 10).
Having reviewed the above, the Company
realizes that whether we shall be able to continue demonstrating the positive trends demonstrated in our previous financial statements,
lies in our ability to continue to generate revenue and increase revenue going forward. Principally, the Company's consolidated financial
statements are based on going concern assumptions, which assume the realization of assets and offset of liabilities in the normal course
of business. Based on this, the Company also recognizes that it is critical for us to continue to operate and/or perform our obligation(s)
in the future and procure any required funds needed to meet the redemption of its debt during normal business operations.
Management has evaluated the estimated
impact of COVID-19, which has become a significant factor impacting operations of businesses globally, one of which we believe we will
need to continue to monitor as to the potential effects it may have on our own business.
The Company assessed the impact of
COVID-19 and believes there to be minimal impact of COVID-19 on the Company’s crypto miner sales, which is currently the Company’s
primary source of revenue. The Company will need to continue to monitor COVID-19 and the effects it may have, socially and economically,
as it is possible that such developments may in fact impact our operations going forward or more specifically, our sales results. At this
time, the Company believes that it will not affect our assumptions as a going concern.
Based on the
Company’s evaluation and considering the positive financials trends the Company has experienced for many previous quarters, management
believes that the one-time R&D expense this quarter will not adversely impact the Company’s ability to continue as a going concern.
The financial
statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification
of liabilities that might be necessary in the event that the Company cannot continue as a going concern.
What changed in the latest 10-Q
Risk Factors
As a smaller reporting company, as defined in Rule 12b-2 of the Exchange Act, we are not required to provide the information called for by this Item.
No wording changes found in this section.
Full comparison: every changed paragraph (0)
Management's Discussion & Analysis (MD&A)
Largest changes
For thesee in full comparisonsixnine months endedAprilJuly30,31, 2025, we had negative cash flows used in operations in the amount of$6,749,870.$2,635,333. The decrease in operating cash flow is attributed to a decrease in accounts payable andaccrualsaccruals, partially offset by a decrease in advance payments and prepaid expenses, during this period. For thesixnine months endedAprilJuly30,31, 2025, we hadnocash flows used in investingactivities.activities in the amount of $4,021,282 due to the purchase of fixed assets. For thesixnine months endedAprilJuly30,31, 2025, we had cash flows from financing activities, totaling $5,244,000, from cash received from the sales of common shares.
We recorded netsee in full comparisonincomeloss of$314,359$196,673 for thesixnine months endedAprilJuly30,31, 2025. We recordedanet loss of$197,986$1,057,883 for thesixnine months endedAprilJuly30,31, 2024. Thisincreasedecrease in netincomeloss was due mainly to a decrease in the cost of goods sold and a decrease in general and administrative expenses.
We recorded revenues ofsee in full comparison$8,671,654$10,257,153 for thesixnine months endedAprilJuly30,31, 2025. We recorded revenues of$10,856,066$12,956,465 for thesixnine months ended JulyApril 30,31, 2024. This decrease in revenues was due mainly to a decrease in the sales of crypto miners.
Full comparison: every changed paragraph (4)
As of AprilJuly 30,31, 2025 we had
cash and cash balance in the amount of $120,263.$211,684. Currently, our cash balance is sufficient to fund our operations without the need for
additional funding.
We
recorded revenues of $8,671,654$10,257,153 for the sixnine months ended AprilJuly 30,31, 2025. We recorded revenues of
$10,856,066 $12,956,465 for the sixnine months ended
July April 30,31, 2024. This decrease in revenues was due mainly to a decrease in the sales of crypto miners.
We
recorded net incomeloss of $314,359$196,673 for the sixnine months ended AprilJuly 30,31, 2025. We recorded a net loss of $197,986$1,057,883 for the sixnine months ended AprilJuly
30,31, 2024. This increasedecrease in net incomeloss was due mainly to a decrease in the cost of goods sold and a decrease in general and administrative
expenses.
For
the sixnine months ended AprilJuly 30,31, 2025, we had negative cash flows used in operations in the amount of $6,749,870.$2,635,333. The decrease in operating
cash flow is attributed to a decrease in accounts payable and accrualsaccruals, partially offset by a decrease in advance payments and prepaid
expenses, during this period. For the sixnine months ended AprilJuly 30,31, 2025, we
had no cash flows used in investing activities.activities in the amount of
$4,021,282 due to the purchase of fixed assets. For the sixnine months ended AprilJuly 30,31, 2025, we had cash flows from financing activities,
totaling $5,244,000, from cash received from the sales of common shares.
WDSP insider buying and selling (Form 4)
Since 2026-04-11, insiders reported open-market purchases in 0 Form 4 filings and open-market sales in 0 filings. Totals add up every open-market (code P and S) line in those filings, using the prices reported in the filings. Awards, option exercises, tax withholding and gifts are listed below but not counted.
No Form 4 stock transactions in this period.
Well-known investors holding WDSP (13F)
None of the 59 investors we track reported a position in their latest 13F.