FNGRHIGH SIGNALFINANCIAL10-K

FNGR shows dramatic balance sheet expansion with total liabilities surging 420% to $35.2M while operating losses deepened 56% to $5.9M.

The massive liability increase of over $28M combined with worsening operational performance creates significant financial stress for this holding company. The substantial growth in accounts receivable alongside deteriorating profitability suggests potential collection issues or aggressive revenue recognition that may not convert to cash.

Comparing 2025-05-29 vs 2024-05-29View on EDGAR →
FINANCIAL ANALYSIS

FNGR experienced explosive balance sheet growth with total assets increasing 160% to $48.8M, driven primarily by accounts receivable expanding 257% to $32.7M, while total liabilities skyrocketed 421% to $35.2M. However, operational performance deteriorated significantly with operating losses widening 56% to $5.9M despite the asset growth, suggesting the company is struggling to monetize its expanded operations. The combination of massive liability growth, worsening losses, and questionable receivables quality creates a precarious financial position that warrants immediate investor attention.

FINANCIAL STATEMENT CHANGES
Inventory
Balance Sheet
+9567.4%
$1K$136K

Inventory surged 9567.4% — growing significantly faster than typical sales pace; potential demand softening or supply chain overcorrection.

Capital Expenditure
Cash Flow
+994.4%
376$4K

Capital expenditure jumped 994.4% — major investment cycle underway; assess returns on deployment.

Total Liabilities
Balance Sheet
+420.6%
$6.8M$35.2M

Liabilities grew 420.6% — significant increase in debt or obligations, assess impact on financial flexibility.

Current Liabilities
Balance Sheet
+420.2%
$6.8M$35.1M

Current liabilities surged 420.2% — significant near-term obligations; verify ability to meet short-term debt.

Accounts Receivable
Balance Sheet
+256.8%
$9.2M$32.7M

Receivables surged 256.8% — revenue recognized but not yet collected; watch for collection issues or channel stuffing.

Total Assets
Balance Sheet
+159.5%
$18.8M$48.8M

Asset base grew 159.5% — expansion through organic growth, acquisitions, or capital deployment.

Current Assets
Balance Sheet
+124.5%
$18.7M$42.0M

Current assets grew 124.5% — improving short-term liquidity or inventory/receivables build.

Interest Expense
P&L
-78.5%
$566K$121K

Interest expense declined — debt repayment or refinancing at lower rates improving earnings quality.

Operating Income
P&L
-55.8%
-$3.8M-$5.9M

Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.

Net Income
P&L
-36.1%
-$3.8M-$5.1M

Net income declined 36.1% — review whether driven by operations, interest costs, or non-recurring items.

LANGUAGE CHANGES
NEW — 2025-05-29
PRIOR — 2024-05-29
ADDED
The registrant had 57,581,186 common shares outstanding as of May 23, 2025.
INTRODUCTORY COMMENTS We are a holding company incorporated in Delaware.
As a holding company, we conduct a significant part of our operations through our subsidiaries and through contractual arrangements with Shanghai JiuGe Information Technology Co., Ltd.
( JiuGe Technology , our VIE or the VIE ), a variable interest entity ( VIE ) based in the People s Republic of China ( PRC or China ).
JiuGe Technology s sole shareholder, Ms Li Li, is also its legal representative and general manager.
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REMOVED
The registrant had 52,712,850 common shares outstanding as of May 23, 2024.
INTRODUCTORY COMMENTS We are a holding company incorporated in Delaware and not a Chinese operating company.
As a holding company, we conduct a significant part of our operations through our subsidiaries and through contractual arrangements with a variable interest entity ( VIE ) based in the People s Republic of China ( PRC or China ).
We own 100% of the equity of a wholly foreign owned enterprise ( WFOE ), which has entered into contractual arrangements with the VIE (the VIE Agreements ), which is owned by Ms.
Li Li the legal representative and general manager, and also the shareholder of the VIE.
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