New Momentum Posts Profit on Asset Sale, Faces Going Concern Doubt

TL;DR

**NNAX is a speculative bet, as a one-time asset sale masked continued operational losses and severe going concern risks.**

AI Summary

New Momentum Corp. (NNAX) reported no revenue for the three and nine months ended September 30, 2025, a significant decline from $6 in revenue for the nine months ended September 30, 2024. The company posted a net profit of $29,072 for the three months ended September 30, 2025, a substantial improvement from a net loss of $30,460 in the prior year's comparable period, primarily due to a $47,832 gain on disposal of subsidiaries. However, for the nine months ended September 30, 2025, NNAX recorded a net loss of $4,579, a considerable improvement from the $68,026 net loss in the same period of 2024. Operating expenses decreased, with general and administrative expenses falling from $76,504 to $44,968 for the nine months ended September 30, 2025. The company's cash and cash equivalents declined from $7,812 at December 31, 2024, to $4,280 at September 30, 2025. NNAX faces substantial doubt about its ability to continue as a going concern, evidenced by continuous losses and net current liabilities of $727,334 as of September 30, 2025. The strategic outlook hinges on securing additional financing, which is not assured.

Why It Matters

This filing reveals New Momentum Corp.'s precarious financial state, with zero revenue and reliance on asset sales for profitability, which is a major red flag for investors. The 'going concern' warning directly impacts investor confidence and could lead to further stock price volatility, especially given the competitive landscape of online travel booking. For employees, this signals potential instability and job insecurity, while customers might question the long-term viability of the 'Book Now, Pay Later' service. The broader market will view NNAX as a distressed asset, potentially impacting its ability to secure future financing and compete with established players like Expedia or Booking.com.

Risk Assessment

Risk Level: high — The company explicitly states 'substantial doubt about the Company's ability to continue as a going concern' due to 'continuous loss during the reporting period from its inception' and 'net current liabilities of $727,334 as of September 30, 2025.' Cash and cash equivalents are critically low at $4,280, down from $7,812 at December 31, 2024, indicating severe liquidity issues.

Analyst Insight

Investors should avoid NNAX given the severe going concern risk, zero revenue, and reliance on non-recurring gains. Current shareholders should consider divesting, as the company's long-term viability is highly questionable without significant, unassured external financing.

Financial Highlights

debt To Equity

N/A

revenue

$0

operating Margin

N/A

total Assets

$10,812

total Debt

N/A

net Income

$29,072

eps

N/A

gross Margin

N/A

cash Position

$4,280

revenue Growth

-100.0%

Revenue Breakdown

Key Numbers

• $0 — Revenue, net (for the three and nine months ended September 30, 2025, indicating no operational sales)
• $29,072 — Net Profit (for the three months ended September 30, 2025, driven by asset disposal)
• $4,579 — Net Loss (for the nine months ended September 30, 2025, an improvement from prior year but still a loss)
• $47,832 — Gain on disposal of subsidiaries (a non-recurring income source for the nine months ended September 30, 2025)
• $727,334 — Net current liabilities (as of September 30, 2025, highlighting liquidity issues)
• $4,280 — Cash and cash equivalents (as of September 30, 2025, a decrease from $7,812 at December 31, 2024)
• 825,861,858 — Shares of common stock outstanding (as of November 13, 2025)
• $44,968 — General and administrative expenses (for the nine months ended September 30, 2025, a decrease from $76,504 in 2024)

Key Players & Entities

• New Momentum Corp. (company) — registrant
• NNAX (company) — ticker symbol
• Leung Tin Lung David (person) — sole director and majority shareholder
• Gagfare Limited (company) — subsidiary operating travel agency
• Beyond Blue Limited (company) — subsidiary disposed of
• New Momentum Asia Pte. Ltd. (company) — subsidiary disposed of
• SEC (regulator) — Securities and Exchange Commission
• $47,832 (dollar_amount) — gain on disposal of subsidiaries
• $727,334 (dollar_amount) — net current liabilities as of September 30, 2025
• $4,280 (dollar_amount) — cash and cash equivalents as of September 30, 2025

FAQ

Risk Factors

• Going Concern Uncertainty [high — financial]: The company faces substantial doubt about its ability to continue as a going concern due to continuous losses and significant net current liabilities of $727,334 as of September 30, 2025. Cash and cash equivalents have decreased to $4,280 from $7,812 at the end of 2024.
• Dependence on External Financing [high — financial]: The company's strategic outlook is heavily dependent on securing additional financing, which is not assured. This lack of guaranteed funding poses a significant risk to its continued operations and future growth prospects.
• Lack of Revenue Generation [high — operational]: New Momentum Corp. reported zero revenue for the three and nine months ended September 30, 2025. This complete absence of sales indicates a critical operational challenge in generating business and sustaining operations.
• Significant Net Current Liabilities [high — financial]: As of September 30, 2025, the company has net current liabilities of $727,334. This indicates that its short-term obligations exceed its short-term assets, severely impacting liquidity and operational flexibility.
• Declining Cash Position [medium — financial]: Cash and cash equivalents have fallen from $7,812 at December 31, 2024, to $4,280 at September 30, 2025. This dwindling cash reserve exacerbates liquidity concerns and the ability to meet short-term obligations.
• Reliance on Non-Recurring Gains [medium — financial]: The net profit of $29,072 for the three months ended September 30, 2025, was primarily driven by a $47,832 gain on disposal of subsidiaries. This indicates that operational performance is not generating profits, and the company relies on asset sales.

Industry Context

New Momentum Corp. operates in a challenging environment, characterized by intense competition and the need for significant capital investment. Companies in this sector often face pressure to innovate and scale rapidly, making consistent revenue generation and efficient cost management critical for survival and growth.

Regulatory Implications

The company's financial distress and going concern issues may attract increased scrutiny from regulatory bodies. Failure to secure financing or demonstrate a path to profitability could lead to delisting or other enforcement actions.

What Investors Should Do

1. Monitor financing developments closely.
2. Assess the sustainability of operational improvements.
3. Evaluate the impact of non-recurring gains.
4. Consider the high liquidity risk.

Key Dates

• 2025-09-30: End of Q3 2025 — Reported $0 revenue, $29,072 net profit (driven by asset disposal), and net current liabilities of $727,334. Cash reserves stood at $4,280.
• 2024-09-30: End of Q3 2024 — Reported $6 revenue, a net loss of $30,460 for the quarter, and $76,504 in G&A expenses for the nine-month period.
• 2024-12-31: End of Fiscal Year 2024 — Company had $7,812 in cash and cash equivalents.

Glossary

Going Concern

An assumption that a company will continue to operate for the foreseeable future, typically at least 12 months. If there is substantial doubt about this, it must be disclosed. (The company's financial condition raises substantial doubt about its ability to continue as a going concern.)

Net current liabilities

The amount by which current liabilities exceed current assets. It indicates a short-term liquidity shortfall. (NNAX has significant net current liabilities of $727,334, highlighting severe liquidity issues.)

Gain on disposal of subsidiaries

Profit realized from selling off a part or all of a subsidiary company. (This non-recurring gain significantly boosted the company's net profit for the quarter, masking operational losses.)

Accumulated deficit

The total cumulative net losses of a company since its inception, less any net profits. It represents a negative retained earnings balance. (The large accumulated deficit of $5,582,853 reflects the company's history of unprofitability.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, New Momentum Corp. has seen a drastic decline in revenue, from $6 to $0. While operating expenses, particularly general and administrative costs, have been reduced from $76,504 to $44,968, this has not offset the complete loss of revenue. The company has shifted from a net loss of $68,026 to a loss of $4,579 for the nine months, but this improvement is largely due to a significant gain on disposal of subsidiaries in the current period, which is a non-recurring event. Liquidity has worsened, with cash decreasing and net current liabilities increasing.

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) — 676KB
• nnax_ex311.htm (EX-31.1) — 10KB
• nnax_ex312.htm (EX-31.2) — 11KB
• nnax_ex321.htm (EX-32.1) — 5KB
• 0001477932-25-008154.txt ( ) — 2895KB
• nnax-20250930.xsd (EX-101.SCH) — 28KB
• nnax-20250930_lab.xml (EX-101.LAB) — 165KB
• nnax-20250930_cal.xml (EX-101.CAL) — 36KB
• nnax-20250930_pre.xml (EX-101.PRE) — 138KB
• nnax-20250930_def.xml (EX-101.DEF) — 66KB
• nnax_10q_htm.xml (XML) — 368KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

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

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS. NEW MOMENTUM CORPORATION UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2025 AND DECEMBER 31, 2024 (Currency expressed in United States Dollars ("US$"), except for number of shares) As of September 30, As of December 31, 2025 2024 (Audited) ASSETS Current assets: Cash and cash equivalents $ 4,280 $ 7,812 Deposits, prepayments and other receivables 6,542 3,889 Total current assets 10,812 11,701 TOTAL ASSETS $ 10,812 $ 11,701 LIABILTIES AND SHAREHOLDERS' DEFICIT Current liabilities: Accounts payable $ 1,598 $ 5,465 Accrued liabilities and other payables 172,977 161,459 Amount due to a director 529,679 536,851 Amount due to a shareholder 33,892 29,905 Total current liabilities 738,146 733,680 TOTAL LIABILITIES 738,146 733,680 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 September 30, 2025 and December 31, 2024, respectively 727,334 - Common Stock, $ 0.001 par value; 1,000,000,000 shares authorized; 825,861,858 shares issued and outstanding as at September 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) ( 5,052 ) ( 4,276 ) Accumulated deficit ( 5,582,853 ) ( 5,578,274 ) Shareholders' deficit ( 727,334 ) ( 721,979 ) TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT $ 10,812 $ 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 THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 (Currency expressed in United States Dollars ("US$"), except for number of shares) Three Months ended September 30, N

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View this 10-Q filing on SEC EDGAR