New Momentum Corp. Posts Continued Losses, Faces Going Concern Doubts

TL;DR

**NNAX is a zombie company with no revenue and mounting debt; avoid at all costs.**

AI Summary

New Momentum Corp. (NNAX) reported a net loss of $33,651 for the six months ended June 30, 2025, a slight improvement from the $37,566 net loss in the prior-year period. Revenue remained negligible at $0 for the six months ended June 30, 2025, compared to $6 in the same period of 2024, indicating a continued lack of core business operations. Total operating expenses decreased to $36,860 for the six months ended June 30, 2025, down from $61,179 in the prior year, primarily due to a reduction in general and administrative expenses from $53,253 to $27,715. The company continues to rely heavily on financial support from its director and shareholder, with amounts due to a director increasing to $561,639 as of June 30, 2025, from $536,851 at December 31, 2024. NNAX faces significant going concern uncertainties, evidenced by net current liabilities of $750,321 as of June 30, 2025, and a cash balance of only $7,833. Government subsidies provided $3,208 in income for the six months ended June 30, 2025, a decrease from $15,632 in the same period of 2024. The strategic outlook remains challenging without securing additional financing for operations and future expansion.

Why It Matters

New Momentum Corp.'s persistent losses and minimal revenue raise serious red flags for investors, signaling a company struggling to establish a viable business model in the competitive online travel sector. The heavy reliance on director and shareholder financing, with liabilities exceeding assets by a significant margin, indicates a precarious financial position. For employees, this financial instability could mean job insecurity, while customers might face service disruptions if the company cannot secure additional funding. In the broader market, NNAX's struggles highlight the intense capital requirements and operational challenges in the 'Book Now, Pay Later' flight booking niche, where larger, more established players dominate.

Risk Assessment

Risk Level: high — The company has generated continuous losses since its inception and reported net current liabilities of $750,321 as of June 30, 2025. Its cash and cash equivalents stood at a mere $7,833, while total liabilities were $779,302, significantly exceeding total assets of $28,981. These factors raise substantial doubt about NNAX's ability to continue as a going concern.

Analyst Insight

Investors should avoid NNAX given its severe going concern uncertainties, negligible revenue, and heavy reliance on related-party financing. The company's inability to generate meaningful income and its substantial liabilities make it a high-risk investment with little upside potential.

Financial Highlights

debt To Equity

N/A

revenue

$0

operating Margin

N/A

total Assets

$28,981

total Debt

$779,302

net Income

-$33,651

eps

N/A

gross Margin

N/A

cash Position

$7,833

revenue Growth

-100.0%

Key Numbers

• $33,651 — Net Loss (for the six months ended June 30, 2025, compared to $37,566 in 2024)
• $0 — Revenue (for the six months ended June 30, 2025, down from $6 in 2024)
• $750,321 — Net Current Liabilities (as of June 30, 2025, indicating severe financial distress)
• $7,833 — Cash and Cash Equivalents (as of June 30, 2025, a minimal amount for operations)
• $561,639 — Amount Due to a Director (as of June 30, 2025, up from $536,851 at December 31, 2024)
• $36,860 — Total Operating Expenses (for the six months ended June 30, 2025, a decrease from $61,179 in 2024)
• 825,861,858 — Common Stock Shares Outstanding (as of August 12, 2025)

Key Players & Entities

• New Momentum Corp. (company) — registrant
• NNAX (company) — ticker symbol
• Leung Tin Lung David (person) — sole director and majority shareholder
• SEC (regulator) — Securities and Exchange Commission
• NEMO Holding Company Limited (company) — subsidiary
• Gagfare Limited (company) — subsidiary operating travel agency
• Beyond Blue Limited (company) — subsidiary operating as event organizer
• New Momentum Asia Pte. Ltd. (company) — subsidiary

FAQ

Risk Factors

• Severe Liquidity Constraints [high — financial]: NNAX faces significant going concern uncertainties with only $7,833 in cash and cash equivalents as of June 30, 2025. This is coupled with net current liabilities of $779,302, indicating a substantial shortfall in the ability to meet short-term obligations.
• Dependence on Director Financing [high — financial]: The company's operations are heavily reliant on financial support from its director, with amounts due to a director increasing to $561,639 as of June 30, 2025. This concentration of funding poses a risk if the director's ability or willingness to provide further support diminishes.
• Lack of Core Business Operations [high — operational]: Revenue remains negligible, reported at $0 for the six months ended June 30, 2025, compared to $6 in the prior year. This indicates a continued absence of a sustainable revenue-generating business model.
• Declining Government Subsidies [medium — financial]: Government subsidies, a source of income, decreased to $3,208 for the six months ended June 30, 2025, down from $15,632 in the same period of 2024. This reduction further strains the company's limited financial resources.
• High General and Administrative Expenses Relative to Assets [medium — operational]: Despite a reduction from $53,253 to $27,715, general and administrative expenses still represent a significant portion of the company's limited operating expenses and are disproportionately high compared to its minimal assets and revenue.

Industry Context

New Momentum Corp. operates in a challenging environment with no discernible revenue-generating business. The company's focus appears to be on managing its expenses and securing financing rather than on product development or market penetration within any specific industry.

Regulatory Implications

The company's financial distress and lack of operational revenue could attract scrutiny from regulatory bodies regarding its status as an active business. Continued reliance on related-party financing may also raise disclosure and compliance concerns.

What Investors Should Do

1. Avoid investment due to severe financial distress and lack of operational revenue.
2. Monitor for any disclosure of new financing or a viable business plan.

Key Dates

• 2025-06-30: Balance Sheet Date — Reflects severe liquidity constraints with $7,833 cash and $779,302 in current liabilities.
• 2025-06-30: Six Months Operations End — Reported $0 revenue and a net loss of $33,651, highlighting the lack of business operations.
• 2024-12-31: Prior Audited Balance Sheet Date — Shows a baseline for comparison of the deteriorating financial position, with $536,851 due to director and $733,680 in current liabilities.

Glossary

Net Current Liabilities

The amount by which a company's current liabilities exceed its current assets. A negative number indicates a shortfall in short-term liquidity. (Indicates NNAX's severe inability to meet its short-term obligations with its current assets, highlighting a significant going concern risk.)

Accumulated Deficit

The cumulative net losses of a company since its inception that have not been offset by net income. (Shows the historical unprofitability of NNAX, with a deficit of $5,611,925 as of June 30, 2025.)

Government Subsidies

Financial assistance provided by the government to support specific industries or activities. (Represents a source of income for NNAX, which has decreased significantly, impacting its limited financial resources.)

Going Concern

The assumption that a company will continue to operate for the foreseeable future, typically at least 12 months. (NNAX faces significant uncertainties regarding its ability to continue as a going concern due to its precarious financial position.)

Year-Over-Year Comparison

For the six months ended June 30, 2025, NNAX reported $0 revenue, a stark decrease from $6 in the prior year, indicating a complete cessation of any prior minimal revenue activity. Total operating expenses decreased from $61,179 to $36,860, primarily due to a reduction in general and administrative expenses. However, net current liabilities increased from $733,680 to $779,302, and the amount due to a director rose from $536,851 to $561,639, underscoring a worsening liquidity position despite cost controls.

Key Financial Figures

• $0.001 — ere 825,861,858 shares of common stock, $0.001 par value, outstanding. NEW MOMENTUM C
• $1 — 0,000 ordinary shares at par value of US$1 100 % Gagfare Limited ("GL") Hong
• $500,000 — agency 500,000 ordinary shares for HK$500,000 100 % Beyond Blue Limited ("BBL")
• $ — rrency is not US$ are translated into US$, in accordance with ASC Topic 830-30, "

Filing Documents

• nnax_10q.htm (10-Q) — 619KB
• nnax_ex311.htm (EX-31.1) — 10KB
• nnax_ex312.htm (EX-31.2) — 10KB
• nnax_ex321.htm (EX-32.1) — 4KB
• 0001477932-25-005809.txt ( ) — 2899KB
• nnax-20250630.xsd (EX-101.SCH) — 28KB
• nnax-20250630_lab.xml (EX-101.LAB) — 163KB
• nnax-20250630_cal.xml (EX-101.CAL) — 34KB
• nnax-20250630_pre.xml (EX-101.PRE) — 144KB
• nnax-20250630_def.xml (EX-101.DEF) — 74KB
• nnax_10q_htm.xml (XML) — 373KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements. F-1 Unaudited Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024 (audited). F-1 Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three Months Ended June 30, 2025 and 2024 F-2 Unaudited Condensed Consolidated Statements of Cash Flows for the Three Months ended June 30, 2025 and 2024. F-3 Unaudited Condensed Consolidated Statements of Shareholders' Deficit for Three Months ended June 30, 2025 and 2024. F-4 Notes to Unaudited Condensed Consolidated Financial Statements. F-5 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. 4 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk. 9 Item 4.

Controls and Procedures

Controls and Procedures. 9

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1. Legal Proceedings. 10 Item 1A. Risk Factors. 10 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 10 Item 3. Defaults Upon Senior Securities. 10 Item 4. Mine Safety Disclosures. 10 Item 5. Other Information. 10 Item 6. Exhibits. 11

Signatures

Signatures 12 2 Table of Contents CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q of New Momentum Corporation, a Nevada corporation (the "Company"), contains "forward-looking statements," as defined in the United States Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as "may", "will", "should", "could", "expects", "plans", "intends", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of such terms and other comparable terminology. These forward-looking statements include, without limitation, statements about our market opportunity, our strategies, competition, expected activities and expenditures as we pursue our business plan, and the adequacy of our available cash resources. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Actual results may differ materially from the predictions discussed in these forward-looking statements. The economic environment within which we operate could materially affect our actual results. Additional factors that could materially affect these forward-looking statements and/or predictions include, among other things to product demand, market and customer acceptance, competition, pricing, the exercise of the control over us by Leung Tin Lung David, the Company's sole director and majority shareholder, and development difficulties, as well as general industry and market conditions and growth rates and general economic conditions; and other factors discussed in the Company's filings with the Securities and Exchange Commission ("SEC"). Our management has included projections and estimates in this Form 10-Q, which are based primarily on management's experience in the industry, assessments of our results of operations, discussions and ne

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS. NEW MOMENTUM CORPORATION UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2025 AND DECEMBER 31, 2024 (Currency expressed in United States Dollars ("US$"), except for number of shares) As of June 30, As of December 31, 2025 2024 (Audited) ASSETS Current assets: Cash and cash equivalents $ 7,833 $ 7,812 Deposits, prepayments and other receivables 21,148 3,889 Total current assets 28,981 11,701 TOTAL ASSETS $ 28,981 $ 11,701 LIABILTIES AND SHAREHOLDERS' DEFICIT Current liabilities: Accounts payable $ 11,138 $ 5,465 Accrued liabilities and other payables 172,695 161,459 Amount due to a director 561,639 536,851 Amount due to a shareholder 33,830 29,905 Total current liabilities 779,302 733,680 TOTAL LIABILITIES 779,302 733,680 Commitments and contingencies - - SHAREHOLDERS' DEFICIT Preferred stock, Class A, $ 0.001 par value; 175,000,000 shares authorized; 1 share issued and outstanding as at June 30, 2025 and December 31, 2024, respectively - - Common Stock, $ 0.001 par value; 1,000,000,000 shares authorized; 825,861,858 shares issued and outstanding as at June 30, 2025 and December 31, 2024, respectively 825,862 825,862 Additional paid in capital 4,034,709 4,034,709 Accumulated other comprehensive income (loss) 1,033 ( 4,276 ) Accumulated deficit ( 5,611,925 ) ( 5,578,274 ) Shareholders' deficit ( 750,321 ) ( 721,979 ) TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT $ 28,981 $ 11,701 See accompanying notes to unaudited condensed consolidated financial statements. F-1 Table of Contents NEW MOMENTUM CORPORATION UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars ("US$")) Three Months ended June 30, Six Months ended June 30, 202 5 202 4 202 5 202 4 Revenue, net $ -

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