Cloudweb, Inc. SEC 10-K Report

Cloudweb, Inc., a company exploring opportunities in the web hosting and data storage services industry, has released its Form 10-K report for the fiscal year ended December 31, 2024. The report provides a comprehensive overview of the company's financial performance, business operations, strategic initiatives, and the challenges it faces as it seeks to stabilize and grow its business.

Financial Highlights

• Net Loss: $72,960, a decrease from $77,418 in 2023, primarily due to a reduction in professional fees.
• Net Loss Per Share (Basic and Diluted): $0.00, with the weighted average number of shares outstanding remaining constant at 27,819,385.

Business Highlights

• Corporate History: Cloudweb, Inc. has undergone several name changes and business model shifts since its incorporation in 2014. Initially focused on distributing custom handmade Italian road bikes, the company transitioned into the web hosting industry in 2016 after acquiring Data Cloud Inc. and its subsidiary, Web Hosting Solutions Ltd. The company has since discontinued its web hosting business and is exploring new opportunities in web hosting and data storage services.
• Current Business Focus: The company is currently exploring options to further develop and market its web hosting and data storage services through platforms like Hostwizer.com, W8hosting.com, and JeyCloud.com. Plans include offering free hosting supported by advertiser content and considering white labeling its services for other brands.
• Operational Challenges: Cloudweb, Inc. has faced continued consolidated losses, leading to the discontinuation of its web hosting business in 2017. The company is currently operating with no employees, relying on its officers and directors to furnish their time at no cost.
• Future Outlook: The company is seeking new business opportunities with established entities for potential mergers or acquisitions. However, it acknowledges substantial doubt about its ability to continue as a going concern due to its financial condition and is actively seeking additional working capital funding.

Strategic Initiatives

• Strategic Initiatives: Cloudweb, Inc. is exploring options to further develop and market its web hosting and data storage services, including plans to offer free hosting supported by advertiser content and white labeling its services for other brands.
• Capital Management: The company has a significant working capital deficiency, which increased from $570,534 in 2023 to $643,494 in 2024, primarily due to increased liabilities related to related party advances and accrued interest on convertible and promissory notes. The company did not generate any revenue in 2024 and 2023, and it has not paid any cash dividends. The company received advancements from a related party amounting to $33,250 in 2024 and $43,049 in 2023 to cover operating expenses. The company has not engaged in any equity repurchases or issued any new shares, maintaining 27,819,385 shares outstanding.
• Future Outlook: Cloudweb, Inc. faces substantial doubt about its ability to continue as a going concern due to its accumulated deficit of $233,460,907 and lack of revenue generation. The company is seeking new business opportunities for mergers or acquisitions to improve its financial position. It plans to rely on additional funding from related and unaffiliated parties to support its operations and strategic initiatives. The company is also evaluating the impact of new accounting standards on its financial statements.

Challenges and Risks

• Operational Risks: Cloudweb, Inc. is currently exploring options to develop and market its web hosting and data storage services. The company plans to offer free hosting supported by advertiser content and is considering white labeling its services. However, the company has no employees, and its officers and directors contribute their time at no cost, which may impact operational efficiency and scalability.
• Financial Risks: The company has not generated any revenue for the years ended December 31, 2024, and 2023, indicating a significant operational risk related to its ability to monetize its services. The net loss decreased slightly due to reduced professional fees, but the company continues to face a working capital deficiency, which increased from $570,534 in 2023 to $643,494 in 2024. This increase is primarily due to related party liabilities and accrued interest on convertible and promissory notes, highlighting financial risks.
• Going Concern: The company has an accumulated deficit of $233,460,907 as of December 31, 2024, raising substantial doubt about its ability to continue as a going concern. Management is seeking new business opportunities for mergers or acquisitions, but failure to generate positive cash flow or secure additional financing could force the company to modify, delay, or abandon its business plans.
• Market Risks: The company did not provide specific quantitative and qualitative disclosures about market risk, indicating a potential lack of comprehensive risk management strategies. This absence of detailed market risk analysis could pose a challenge in effectively addressing and mitigating market-related risks.

SEC Filing: Cloudweb, Inc. [ CLOW ] - 10-K - Feb. 27, 2025