Hanryu Holdings Files Q3 2024 10-Q

TL;DR

Hanryu Holdings filed its Q3 10-Q. Financials are in.

AI Summary

Hanryu Holdings, Inc. filed its 10-Q for the quarterly period ended September 30, 2024. The company, incorporated in Delaware, is based in Seoul, Republic of Korea, and operates in the computer programming and data processing sector. Its principal executive offices are located at 160, Yeouiseo-ro, Yeongdeungpo-gu, Seoul, 07231.

Why It Matters

This filing provides investors with the latest financial performance and operational details for Hanryu Holdings, Inc. for the third quarter of 2024.

Risk Assessment

Risk Level: low — This is a standard quarterly filing with no immediate red flags or significant new information presented.

Key Players & Entities

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

FAQ

Key Financial Figures

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

Filing Documents

• ea0221576-10q_hanryu.htm (10-Q) — 790KB
• ea022157601ex31-1_hanryu.htm (EX-31.1) — 9KB
• ea022157601ex31-2_hanryu.htm (EX-31.2) — 9KB
• ea022157601ex32-1_hanryu.htm (EX-32.1) — 3KB
• ea022157601ex32-2_hanryu.htm (EX-32.2) — 3KB
• 0001213900-24-100296.txt ( ) — 5616KB
• hryu-20240930.xsd (EX-101.SCH) — 64KB
• hryu-20240930_cal.xml (EX-101.CAL) — 47KB
• hryu-20240930_def.xml (EX-101.DEF) — 285KB
• hryu-20240930_lab.xml (EX-101.LAB) — 489KB
• hryu-20240930_pre.xml (EX-101.PRE) — 300KB
• ea0221576-10q_hanryu_htm.xml (XML) — 561KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION 1 Item 1. Unaudited Condensed Consolidated Financial Statements 1 Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 1 Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2024 and 2023 2 Condensed Consolidated Statements of Stockholders' Equity (Deficit) for the Nine Months Ended September 30, 2024 and 2023 3 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023 4 Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 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 24 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 32 Item 4.

Controls and Procedures

Controls and Procedures 32

– OTHER INFORMATION

PART II – OTHER INFORMATION 33 Item 1.

Legal Proceedings

Legal Proceedings 33 Item 1A

Risk Factors

Risk Factors 33 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 33 Item 3. Defaults Upon Senior Securities 33 Item 4. Mine Safety Disclosures 33 Item 5. Other Information 33 Item 6. Exhibits 34

Signatures

Signatures 35 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 September 30, 2024 and December 31, 2023 (Unaudited) (Unaudited) September 30, 2024 December 31, 2023 ASSETS CURRENT ASSETS: Cash and Cash Equivalents $ 6,975 $ 5,427,830 Short-term loans receivable 8,923,661 3,789,900 Accounts receivable, net of allowance 316,766 324,413 Non-trade receivables 26,756 171,892 Prepaid expenses and other receivable 7,881,734 7,903,035 Total current assets 17,155,892 17,617,070 PROPERTY PLANT AND EQUIPMENT, NET 331,332 629,185 OPERATING LEASE RIGHT-OF-USE ASSET 1,687,544 1,918,966 OTHER ASSETS 240,907 379,735 Total Assets $ 19,415,675 $ 20,544,956 LIABILITIES AND STOCKHOLDER'S DEFICIT CURRENT LIABILITIES: Short-term loans payable $ 2,214,681 $ 1,589,887 Short-term loans payable from related parties 15,438 — Non-trade accounts payable 3,051,844 2,312,669 Bonds with warrants, net 3,410,124 3,489,995 Accrued expenses and other current liabilities 107,814 83,940 Total current liabilities 8,799,901 7,476,491 Total Liabilities 8,799,901 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 September 30, 2024 and December 31, 2023 52,809 52,809 Additional paid-in capital 51,415,476 51,415,476 Accumulated deficit ( 40,994,441 ) ( 38,893,762 ) Accumulated other comprehensive income(loss) 141,930 493,942 Total Stockholders' Equity 10,615,774 13,068,465 Total Liabilities and Stockholders' Equity $ 19,415,675 $ 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 Nine Mo

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

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