Hanryu Holdings Files Q2 2024 10-Q Report

TL;DR

Hanryu Holdings filed its Q2 2024 10-Q. Check financials.

AI Summary

Hanryu Holdings, Inc. filed its quarterly report on Form 10-Q for the period ended June 30, 2024. The company, incorporated in Delaware, is based in Seoul, Republic of Korea, and operates in the computer programming and data processing sector. The filing was made on October 15, 2024, under SEC file number 001-41763.

Why It Matters

This filing provides investors with an update on Hanryu Holdings' financial performance and operational status for the second quarter of 2024, crucial for assessing the company's current health and future prospects.

Risk Assessment

Risk Level: medium — As a 10-Q filing, it represents a standard quarterly update, but the lack of detailed financial data in the provided text necessitates a medium risk assessment for drawing definitive conclusions.

Key Players & Entities

• Hanryu Holdings, Inc. (company) — Registrant
• June 30, 2024 (date) — Quarterly period end date
• October 15, 2024 (date) — Filing date
• 001-41763 (other) — SEC File Number
• Seoul, Republic of Korea (location) — Principal executive offices location

FAQ

Key Financial Figures

• $0.001 — ange on which registered Common Stock, $0.001 par value per share HRYU The Nasdaq Sto

Filing Documents

• ea0217405-10q_hanryu.htm (10-Q) — 763KB
• ea021740501ex31-1_hanryu.htm (EX-31.1) — 9KB
• ea021740501ex31-2_hanryu.htm (EX-31.2) — 9KB
• ea021740501ex32-1_hanryu.htm (EX-32.1) — 3KB
• ea021740501ex32-2_hanryu.htm (EX-32.2) — 3KB
• 0001213900-24-087506.txt ( ) — 5622KB
• hryu-20240630.xsd (EX-101.SCH) — 69KB
• hryu-20240630_cal.xml (EX-101.CAL) — 46KB
• hryu-20240630_def.xml (EX-101.DEF) — 288KB
• hryu-20240630_lab.xml (EX-101.LAB) — 511KB
• hryu-20240630_pre.xml (EX-101.PRE) — 302KB
• ea0217405-10q_hanryu_htm.xml (XML) — 555KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION 1 Item 1. Unaudited Condensed Consolidated Financial Statements 1 Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 1 Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2024 and 2023 2 Condensed Consolidated Statements of Stockholders' Equity (Deficit) for the Six Months Ended June 30, 2024 and 2023 3 Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2024 and 2023 4 Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2024 and 2023 5 Notes to Unaudited Condensed Consolidated Financial Statements 6 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 25 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 33 Item 4.

Controls and Procedures

Controls and Procedures 33

– OTHER INFORMATION

PART II – OTHER INFORMATION 34 Item 1.

Legal Proceedings

Legal Proceedings 34 Item 1A

Risk Factors

Risk Factors 34 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 34 Item 3. Defaults Upon Senior Securities 34 Item 4. Mine Safety Disclosures 34 Item 5. Other Information 34 Item 6. Exhibits 35

Signatures

Signatures 36 i SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking of 1934, as amended, that are based on our management's beliefs and assumptions and on information currently available to management, and which statements involve substantial risk and uncertainties. All statements contained in this Quarterly Report on Form 10-Q other than statements of historical fact, including statements regarding our future operating results and financial position, our business strategy and plans, market growth and trends, and objectives for future operations are forward-looking statements. Forward- looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward- looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," or "continue" or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. These risks and uncertainties include, among other things, the risk that we may not be able to successfully implement our growth strategy due to the following reasons; overall strength and stability of general economic conditions and of the social media platform and content creation industry in the United States and globally; changes in consumer demand for, and acceptance of, our services, including our platform, as well as social media platforms in general; changes in the competitive environment, including adoption of technologies, services and products that compete with our own; our expectations regarding our future operating and financial performance; the accuracy of our esti

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. HANRYU HOLDINGS, INC. AND ITS SUBSIDIARIES Condensed Consolidated Balance Sheets June 30, 2024 and December 31, 2023 (Unaudited) (Unaudited) June 30, 2024 December 31, 2023 ASSETS CURRENT ASSETS: Cash and Cash Equivalents $ 946 $ 5,427,830 Short-term loans receivable 8,589,615 3,789,900 Accounts receivable, net of allowance 300,913 324,413 Non-trade receivables 22,230 171,892 Prepaid expenses and other receivable 7,477,905 7,903,035 Total current assets 16,391,609 17,617,070 PROPERTY PLANT AND EQUIPMENT, NET 367,815 629,185 OPERATING LEASE RIGHT-OF-USE ASSET 1,662,367 1,918,966 OTHER ASSETS 336,813 379,735 Total Assets $ 18,758,604 $ 20,544,956 LIABILITIES AND STOCKHOLDER'S DEFICIT CURRENT LIABILITIES: Short-term loans payable $ 1,893,680 $ 1,589,887 Short-term loans payable from related parties 15,647 — Non-trade accounts payable 2,953,386 2,312,669 Bonds with warrants, net 3,239,274 3,489,995 Accrued expenses and other current liabilities 89,979 83,940 Total current liabilities 8,191,966 7,476,491 Total Liabilities 8,191,966 7,476,491 Commitments and contingencies (Note 13) STOCKHOLDER'S EQUITY: Common Stock, $ 0.001 par value Authorized 110,000,000 (common: 100,000,000 , preferred: 10,000,000 ) shares; Issued and outstanding 52,808,589 common shares as of June 30, 2024 and December 31, 2023 52,809 52,809 Additional paid-in capital 51,415,476 51,415,476 Accumulated deficit ( 40,502,733 ) ( 38,893,762 ) Accumulated other comprehensive income(loss) ( 398,914 ) 493,942 Total Stockholders' Equity 10,566,638 13,068,465 Total Liabilities and Stockholders' Equity $ 18,758,604 $ 20,544,956 The accompanying footnotes are an integral part of these unaudited consolidated financial statements 1 HANRYU HOLDINGS, INC. AND ITS SUBSIDIARIES Condensed Consolidated Statements of Operations For the Three and Six Months Ended June

Business

Business Hanryu Holdings, Inc., a Delaware corporation (" Hanryu Holdings "), together with its wholly owned subsidiaries Hanryu Bank Co., Ltd (" HBC "), FNS Co., Ltd. (" FNS "), , and Marine Island Co., Ltd (" Marine Island "), all incorporated under the laws of the Republic of Korea (" Korea " or " ROK ") (collectively, the " Company ", " we ", or " us "), aims to be the leader in the global Korean entertainment market, also known as " Hanryu " or " K-Culture ", through its engaging social-media platform, FANTOO. The FANTOO platform is an all-inclusive global playground for fans, where they can consume, create, and get rewarded for all things related to their interests, and interact with other like-minded fans. Corporate History Since the inception of HBC in 2018, we have accomplished a number of key objectives, as follows: Date Event/Milestone October 18, 2018 HBC is incorporated under the laws of the ROK with the idea of creating an all-in-one product to capture the growing global momentum and popularity of K-Culture. October 29, 2020 HBC establishes FNS and begins the initial stages of designing and implementing a platform that can create a fandom networking system. March 11, 2021 HBC establishes Hanryu Times Co., Ltd ("Hanryu Times"). Hanryu Times begins operations as HBC's media outlet, reporting on and providing up-to-date K-Culture news within the FANTOO platform, across a number of languages, including English, Japanese, Chinese (simplified/traditional), Indonesian, Spanish, Russian, and Portuguese. March 31, 2021 HBC consummates an agreement and plan of merger (the " Merger Agreement ") with RnDeep, Co., Ltd, a Korean corporation (" RnDeep "), pursuant to which RnDeep merged with and into HBC, with HBC continuing as the surviving corporation (the " RnDeep Acquisition "). As consideration for the RnDeep Acquisition, HBC ratably issued a total 4,150,000 HBC common shares, par value $ 0.45 per share (" Common Shares "), to the former shareholder

View Full Filing

View this 10-Q filing on SEC EDGAR