Natural Resource Holdings, Inc. SEC 10-K Report
Natural Resource Holdings, Inc., a company that has recently transitioned from the beauty sample subscription business to the mining industry, has released its Form 10-K report. The report provides a comprehensive overview of the company's financial performance, business operations, strategic initiatives, and the challenges it faces as it navigates its new business model.
Financial Highlights
Revenue: $0 million. The company did not earn any revenue during the years ended April 30, 2025, and 2024.
Net Loss: $50,533. The net loss for the year ended April 30, 2025, decreased significantly from $2,047,358 in 2024 due to a reduction in operating expenses.
Net Loss Per Share: $0.01. The net loss per share for the year ended April 30, 2025, was significantly lower compared to $0.41 in 2024, reflecting the decrease in net loss.
Business Highlights
Business Transition: The company transitioned from selling beauty sample subscriptions to focusing on the mining industry, acquiring several gold mining claims in Canada in December 2020. However, due to COVID-19 and economic downturns, exploration was halted, and the mining rights were not extended beyond their original term, leading to a full impairment by April 30, 2023.
Reverse Stock Split: On October 18, 2022, a reverse stock split was approved, consolidating up to twenty old shares into one new share. This was reflected in the financial statements following FINRA's approval on February 21, 2023.
New Agreements: On January 8, 2023, the company entered into an agreement with a surveying consulting firm for mining and mineral exploration services in the Potter County, PA Utica Shale area.
Company Rebranding: The company's name was changed to Natural Resources Holdings, Inc. on February 14, 2023, with a new trading symbol 'NRHI' effective March 21, 2023.
Future Outlook: The company is currently negotiating to acquire additional mining rights in Canada, indicating a continued focus on expanding its mining operations.
Operational Challenges: The company has faced recurring losses and a working capital deficiency, with a substantial doubt expressed by auditors about its ability to continue as a going concern. Management plans to raise additional capital through equity or debt securities to meet long-term operating requirements.
Exploration and Development Plans: The company plans to start drilling tests and commence mining operations once viable, with proposals to drill between 6 to 50 holes currently under evaluation.
Management's Discussion: The company expects to increase operating expenses and capital expenditures related to software acquisition, developmental expenses, and marketing as part of its business plan.
Strategic Initiatives
Strategic Initiatives: Natural Resource Holdings, Inc. is focusing on its mining business, having acquired mining property rights and engaged in exploration activities. The company is in the process of evaluating proposals for drilling and exploration to identify viable mining locations. Additionally, the company has undergone a reverse stock split to maintain a freely traded public float, which is part of its strategic initiative to upgrade its OTC status.
Capital Management: The company has been managing its capital through the issuance of convertible notes to raise funds, with a total of $171,045 issued to an unaffiliated party. It has also issued 5,000,000 shares of common stock to its director as management salaries and converted $175,000 of convertible debt into equity. The company has a working capital deficiency and is reliant on further issuances of securities and debt instruments to fund operations. The company has not paid any dividends and does not foresee declaring any in the near future.
Future Outlook: Natural Resource Holdings, Inc. anticipates that its working capital requirements will continue to be funded through existing funds and further issuances of securities. The company expects to increase operating expenses and capital expenditures related to software acquisition, developmental expenses, and marketing. It plans to finance these through additional securities and debt issuances. The company acknowledges the risk of dilution to current shareholders and the potential difficulty in securing adequate financing on acceptable terms.
Challenges and Risks
Challenges and Risks: The company has shifted its focus from beauty sample subscriptions to the mining industry, which introduces new operational risks associated with mining exploration and development. The inability to proceed with mining property exploration due to COVID-19 and economic downturn highlights the vulnerability to external economic factors.
The company has incurred recurring losses and faces substantial doubt about its ability to continue as a going concern. The financial statements assume the company will continue operations, but this is contingent on securing additional capital. The company plans to raise additional capital through the sale of equity or debt securities, which may result in dilution to current shareholders. The lack of revenue generation and reliance on external financing pose significant financial risks.
The company is also exposed to risks related to its working capital deficiency, which increased due to accrued interest and accounts payable. This financial strain could impact the company's ability to fund operations and pursue new business opportunities.
SEC Filing: Natural Resource Holdings, Inc. [ BXXY ] - 10-K - Jul. 11, 2025