OTC:GRHI
GOLD ROCK HOLDINGS, INC.
A high-risk OTC-listed entity showing substantial net losses and negative cash flow from operations despite recent equity financing.
Key Metrics
Investment Thesis
Bull Case
The recent issuance of $425,000 in capital suggests potential for turnaround or new venture initiation; the balance sheet is liquid with $209,614 in cash equivalents providing runway if operational efficiency improves quickly.
Bear Case
Investors should avoid this stock due to a massive negative net income of -$240,694 and zero revenue trend over the last five years; the company lacks tangible long-term assets and is reliant on continuous equity issuance to survive.
About GOLD ROCK HOLDINGS, INC.
Gold Rock Holdings Inc. reports minimal revenue of $0.1M and significant operating expenses, suggesting a company potentially in early development or restructuring phases with limited current market traction.
Analysis
Management Discussion
Management has secured $425,000 in new financing to offset a -$216,194 cash burn from operations, but the company remains unprofitable with a net loss of -$240,694 and no significant long-term assets to support future growth.
Industry Overview
The OTC market often hosts companies in pre-revenue or turnaround stages where traditional valuation metrics like P/E are irrelevant; this sector requires careful scrutiny of cash burn rates rather than historical profitability.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2024 |
|---|---|
| Revenue | $138.5K |
| Cost of Revenue | $0 |
| Gross Profit | $138.5K |
| Operating Expenses | $379.2K |
| Operating Income | $-240.7K |
| G&A | $108.8K |
| Other OpEx | $270.4K |
| Non-Operating Income | $0 |
| Pre-Tax Income | $-240.7K |
| Income Tax | $0 |
| Continuing Ops | $-240.7K |
| Discontinued Ops | $0 |
| Net Income | $-240.7K |
| Minority Interest | $0 |
| Net to Common | $-240.7K |
| Metric | 2024 |
|---|---|
| Current Assets | $253.6K |
| Cash & Equivalents | $209.6K |
| Accounts Receivable | $44.0K |
| Other Current Assets | $0 |
| Long-Term Assets | $0 |
| Total Assets | $253.6K |
| Current Liabilities | $78.4K |
| Long-Term Liabilities | $0 |
| Total Liabilities | $78.4K |
| Shareholders' Equity | $175.2K |
| Paid-In Capital | $1.0M |
| Retained Earnings | $-1.1M |
| Total L&E | $253.6K |
| Metric | 2024 |
|---|---|
| Net Income (CFO) | $-240.7K |
| Non-Cash Adjustments | $-11.0K |
| Working Capital Changes | $35.5K |
| Cash from Operations | $-216.2K |
| Cash from Investing | $0 |
| Cash from Financing | $425.7K |
| FX Effect | $0 |
| Net Change in Cash | $209.5K |
| Beginning Cash | $108 |
| Ending Cash | $209.6K |
Frequently Asked Questions
How does GOLD ROCK HOLDINGS, INC. make money?
Primary revenue appears to stem from a single small-scale operation yielding $138,500 in gross profit, while the remainder of financial activity is driven by significant general and administrative expenses and non-operating adjustments rather than diversified product lines.
What are the main risks for GRHI?
The company is currently burning cash with operating cash flows of -$216,194 and a net loss of -$240,694; revenue is negligible at $0.1M indicating no scalable business model yet; retained earnings deficit exceeds $1.1M signaling long-term solvency concerns.
What is GRHI's competitive advantage?
Recent capital raising of approximately $425,000 provides liquidity for potential future expansion; low current liabilities relative to total assets offer a clean balance sheet structure post-financing.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.