NRHI's Losses Widen Amidst Rising Expenses, No Revenue

TL;DR

**NRHI is a cash-burning shell with no revenue, increasing debt, and a growing deficit; avoid at all costs.**

AI Summary

Natural Resource Holdings, Inc. (NRHI) reported a net loss of $10,976 for the three months ended July 31, 2025, an increase from the $9,162 net loss in the same period of 2024, representing a 19.8% deterioration. Operating expenses rose to $9,134 in Q3 2025 from $7,528 in Q3 2024, primarily due to an increase in general and administrative expenses from $7,038 to $8,644. The company has no current assets and total assets decreased slightly from $36,785 on April 30, 2025, to $36,295 on July 31, 2025, mainly due to amortization of mining property rights. Total liabilities increased to $358,486 from $348,000, driven by a rise in convertible note payable to $169,819 (current) and $18,610 (non-current) from $168,958 (current) as of April 30, 2025. NRHI continues to operate at a significant stockholders' deficit, which widened from $(311,215) to $(322,191) during the quarter. The company has not generated any revenue and is still in the exploration stage for its mining business, with all exploration costs expensed as incurred. A significant risk is the $125,000 accrued for income tax interest and penalties for unfiled returns from 2016-2020.

Why It Matters

For investors, NRHI's continued net losses and lack of revenue generation signal a high-risk, speculative investment. The widening stockholders' deficit to $(322,191) and increasing liabilities, particularly convertible notes, suggest ongoing dilution risk and financial instability. Employees face uncertainty given the company's development stage and lack of commercial operations. Customers are not directly impacted as the company has no products or services generating revenue. The broader market sees NRHI as a micro-cap entity struggling to transition from exploration to production, highlighting the inherent challenges and capital intensity in the natural resource sector, especially for smaller players competing against established mining firms.

Risk Assessment

Risk Level: high — The company reported a net loss of $10,976 for the three months ended July 31, 2025, and has no revenue, indicating a lack of sustainable operations. Total liabilities increased to $358,486 while total assets are only $36,295, resulting in a significant stockholders' deficit of $(322,191). Furthermore, NRHI has an accrued $125,000 for income tax interest and penalties for unfiled returns from 2016-2020, highlighting severe financial and regulatory non-compliance risks.

Analyst Insight

Investors should avoid Natural Resource Holdings, Inc. given its consistent losses, lack of revenue, increasing liabilities, and significant accumulated deficit. The company's inability to generate cash from operations and reliance on financing through convertible notes indicates a highly speculative and financially distressed situation.

Financial Highlights

debt To Equity

N/A

revenue

$0

operating Margin

N/A

total Assets

$36,295

total Debt

$358,486

net Income

$(10,976)

eps

$(0.00)

gross Margin

N/A

cash Position

$0

revenue Growth

N/A

Key Numbers

• $10,976 — Net Loss (Increased from $9,162 in prior year, showing worsening financial performance.)
• $0 — Revenue (Company has no revenue, indicating it is still in the exploration stage.)
• $36,295 — Total Assets (Minimal assets compared to liabilities, highlighting financial weakness.)
• $358,486 — Total Liabilities (Significantly exceeds total assets, indicating severe financial distress.)
• $(322,191) — Stockholders' Deficit (Widening deficit reflects accumulated losses and negative equity.)
• $125,000 — Income Tax Penalty (Accrued for unfiled tax returns, indicating regulatory and financial risk.)
• 5,589,891 — Shares Outstanding (As of August 27, 2025.)
• $188,429 — Convertible Notes (Total issued to an unaffiliated party, posing future dilution risk.)
• 19.8% — Net Loss Increase (Percentage increase in net loss from Q3 2024 to Q3 2025.)
• $8,644 — General and Administrative Expenses (Increased from $7,038 in prior year, contributing to higher operating expenses.)

Key Players & Entities

• Natural Resource Holdings, Inc. (company) — registrant
• $10,976 (dollar_amount) — net loss for Q3 2025
• $9,162 (dollar_amount) — net loss for Q3 2024
• $36,295 (dollar_amount) — total assets as of July 31, 2025
• $358,486 (dollar_amount) — total liabilities as of July 31, 2025
• $322,191 (dollar_amount) — total stockholders' deficit as of July 31, 2025
• $125,000 (dollar_amount) — income tax interest and penalty payable
• July 31, 2025 (date) — end of quarterly period
• Nevada (location) — state of incorporation
• FINRA (regulator) — approved reverse stock split

FAQ

Risk Factors

• Unfiled Tax Returns and Penalties [high — regulatory]: The company has accrued $125,000 for income tax interest and penalties related to unfiled tax returns from 2016-2020. This significant liability indicates potential future financial strain and ongoing regulatory scrutiny.
• Severe Working Capital Deficit [high — financial]: NRHI has no current assets and total liabilities of $358,486 as of July 31, 2025, far exceeding its total assets of $36,295. This creates a substantial working capital deficit, raising concerns about the company's ability to meet short-term obligations.
• Widening Stockholders' Deficit [high — financial]: The stockholders' deficit has widened from $(311,215) to $(322,191) during the quarter, reflecting persistent net losses. This negative equity position highlights the company's ongoing financial struggles and accumulated losses.
• Increasing Net Loss [medium — financial]: The net loss for the three months ended July 31, 2025, increased by 19.8% to $10,976 from $9,162 in the prior year. This deterioration is driven by a rise in operating expenses, particularly general and administrative costs.
• Dependence on Convertible Notes [medium — financial]: The company has significant outstanding convertible notes payable totaling $188,429 ($169,819 current and $18,610 non-current). These notes pose a future dilution risk for existing shareholders upon conversion.
• Exploration Stage Business with No Revenue [medium — operational]: NRHI is still in the exploration stage of its mining business and has generated no revenue. All exploration costs are expensed as incurred, contributing to the ongoing net losses.
• Asset Amortization [low — financial]: Total assets decreased slightly from $36,785 to $36,295 due to the amortization of mining property rights. While a normal course of business, it contributes to the overall low asset base.

Industry Context

The mining exploration industry is capital-intensive and subject to significant geological, environmental, and market risks. Companies in this sector often operate at a loss during exploration phases, relying on external financing. Competition exists from both junior exploration companies and established mining giants, with success dependent on resource discovery and favorable commodity prices.

Regulatory Implications

NRHI faces significant regulatory risk due to unfiled tax returns from 2016-2020, resulting in a $125,000 accrued penalty. Failure to address these tax liabilities could lead to further penalties, interest, and potential legal action, impacting the company's financial stability and operational continuity.

What Investors Should Do

1. Monitor tax compliance and resolution of penalties.
2. Assess the viability of the exploration strategy.
3. Evaluate the impact of convertible note conversion.
4. Scrutinize operating expense increases.

Key Dates

• 2025-07-31: End of Third Quarter 2025 — Financial statements for the three and nine months ended July 31, 2025, were reported, showing a net loss of $10,976 and a widening stockholders' deficit.
• 2025-04-30: End of Second Quarter 2025 — Previous balance sheet date, showing total assets of $36,785 and a stockholders' deficit of $(311,215).
• 2024-07-31: End of Third Quarter 2024 — Prior year comparable period, with a net loss of $9,162, indicating a 19.8% deterioration in performance for Q3 2025.

Glossary

Stockholders' Deficit

A negative amount representing total liabilities exceeding total assets, meaning the company has negative net worth. (NRHI has a significant and widening stockholders' deficit of $(322,191), indicating severe financial distress.)

Amortization of mining property rights

The systematic allocation of the cost of intangible assets (like mining rights) over their useful lives. (This expense contributed to the decrease in total assets from $36,785 to $36,295.)

Convertible note payable

A debt instrument that can be converted into a predetermined amount of the issuer's equity (stock). (NRHI has substantial convertible notes payable ($188,429 total), which represent a future dilution risk for shareholders.)

Operating Expenses

Costs incurred by a company in its normal business operations, excluding interest and taxes. (These expenses increased to $9,134 in Q3 2025, primarily due to higher general and administrative costs, leading to a larger net loss.)

General and administrative expenses

Costs associated with the overall management and administration of a business, not directly tied to production or sales. (These expenses rose significantly from $7,038 to $8,644, driving the increase in total operating expenses and net loss.)

Year-Over-Year Comparison

Compared to the prior year's third quarter, Natural Resource Holdings, Inc. has experienced a 19.8% increase in its net loss, rising to $10,976 from $9,162. This deterioration is primarily driven by a significant increase in operating expenses, specifically general and administrative costs, which grew from $7,038 to $8,644. The company continues to operate with no revenue and a substantial stockholders' deficit, which has widened further. A notable constant risk is the $125,000 accrued for income tax interest and penalties.

Filing Documents

• boxxy_10q.htm (10-Q) — 416KB
• boxxy_ex311.htm (EX-31.1) — 11KB
• boxxy_ex321.htm (EX-32.1) — 4KB
• 0001640334-25-001650.txt ( ) — 2357KB
• boxxy-20250731.xsd (EX-101.SCH) — 26KB
• boxxy-20250731_lab.xml (EX-101.LAB) — 153KB
• boxxy-20250731_cal.xml (EX-101.CAL) — 25KB
• boxxy-20250731_pre.xml (EX-101.PRE) — 123KB
• boxxy-20250731_def.xml (EX-101.DEF) — 58KB
• boxxy_10q_htm.xml (XML) — 280KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Item 1. Unaudited Condensed Financial Statements 3 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 15 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 18 Item 4.

Controls and Procedures

Controls and Procedures 18

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 19 Item 1A.

Risk Factors

Risk Factors 19 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 19 Item 3. Defaults Upon Senior Securities 19 Item 4. Mine Safety Disclosures 19 Item 5. Other Information 19 Item 6. Exhibits 20

SIGNATURES

SIGNATURES 21 2 Table of Contents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements NATURAL RESOURCE HOLDINGS, INC. CONDENSED BALANCE SHEETS July 31, 2025 April 30, 2025 (Unaudited) (Audited) ASSETS Current Assets Total Current Assets $ - $ - Non-current Assets Mining property rights, net 36,295 36,785 TOTAL ASSETS $ 36,295 $ 36,785 LIABILITIES AND STOCKHOLDERS' DEFICIT Current Liabilities Accounts payable and accrued liabilities $ 21,548 $ 31,514 Accrued interest 16,536 15,555 Convertible note payable, net of note discount of $ 1,432 and $ 2,293 , respectively 169,819 168,958 Loan payable - 6,973 Income tax interest and penalty payable 125,000 125,000 Total Current Liabilities 332,903 348,000 Non-current Liabilities Loan payable 6,973 - Convertible note payable, non-current 18,610 - TOTAL LIABILITIES 358,486 348,000 Stockholders' Deficit Common stock, par value $ 0.001 ; 75,000,000 shares authorized, 5,589,891 shares issued and outstanding, respectively 5,590 5,590 Additional paid-in capital 2,196,210 2,196,210 Accumulated deficit ( 2,523,991 ) ( 2,513,015 ) Total Stockholders' Deficit ( 322,191 ) ( 311,215 ) TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 36,295 $ 36,785 The accompanying notes are an integral part of these unaudited condensed financial statements. 3 Table of Contents NATURAL RESOURCE HOLDINGS, INC. CONDENSED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended July 31, 2025 2024 OPERATING EXPENSES General and administrative expenses $ 8,644 $ 7,038 Amortization on mining property rights 490 490 Total Operating Expenses 9,134 7,528 Loss from operations ( 9,134 ) ( 7,528 ) OTHER EXPENSES Interest expense ( 1,842 ) ( 1,634 ) Other expenses, net ( 1,842 ) ( 1,634 ) Loss before income taxes ( 10,976 ) ( 9,162 ) Provision for income taxes - - NET LOSS $ ( 10,976 ) $ ( 9,162 ) NET LOSS PER SHARE: BASIC AND DILUTED $ ( 0.00 )

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