KeyStar Corp reported a challenging QQ3 2024, characterized by continued operating losses, negative revenue alignment, and sustained balance sheet liquidity pressures. The quarter yielded net income of -$3.8146 million on revenue of -$0.1878 million, with EBITDA of -$2.3642 million and free cash flow of -$3.0895 million, underscoring a high fixed-cost structure and weak top-line efficiency. Liquidity metrics deteriorate the investment case: current ratio of 0.0903 and cash balance of $0.622 million against total current liabilities of $10.051 million and total debt of $6.200 million, leaving minimal runway without additional financing.
Sequentially, revenue improved QoQ by approximately 69.2%, but profitability remained deeply negative. The gross profit figure of -$1.6989 million, coupled with substantial other expenses, drove a negative net income despite a reported gross margin around 9.05%. The balance sheet shows substantial intangible assets (~$7.1039 million) and a negative stockholders’ equity position (~-$0.514 million), with total liabilities exceeding assets by a wide margin. Financing activities contributed $3.4368 million in the quarter, masking ongoing cash burn in operations. Given the absence of explicit forward guidance in the provided data, the near-term investment case hinges on tangible improvements in revenue quality, cost containment, and access to additional liquidity.
Overall, while there are potential multi-year upside drivers from expanding e-commerce and convention-related services, the QQ3 2024 results signal a high-risk, liquidity-constrained environment. Investors should closely monitor working capital dynamics, revenue mix evolution (online vs. convention services), and any management-driven actions to restore profitability and solvency.