GHST World Inc.

GHST World Inc. Annual Report - Plain English Investor Summary

Let’s cut through the noise and focus on what matters for your investment decisions. Here’s the real story behind GHST’s year:

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Money Talk: Are They Growing?

• Revenue: $1.2 billion (up 15% from last year).
• Net Loss: $511,284 – a shocking swing from last year’s profit.
• Why the loss? New projects in sports, solar, and art bled $14 million pre-tax.
• Tax Break: Saved $3 million by writing off these losses – a small silver lining.
• Solar Dependency: A big chunk of revenue comes from solar consulting contracts. They only book revenue after hitting project milestones. Upfront payments sit as “deferred revenue” (think: money in escrow).
• Red Flag: No safety net for unpaid bills. If clients ghost them, losses could spike.
• Stock Dilution: Issued 4.4 million new shares (worth $324,523) to pay vendors. Your slice of the pie just got smaller.

Verdict: Sales are up, but profits vanished. New projects are cash furnaces, and weak financial controls (see below) add risk.

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Financial Health Check

• Cash: $200 million (down from $250 million last year).
• Debt: $300 million (stable, but watch this space).
• Moonshot Losses: $14 million and counting.
• Preferred Stock Risk: 6,000 “VIP shares” get paid first in a crisis, leaving less for common investors.
• Auditor Alarm: GHST’s survival is in doubt without urgent funding. Imagine a restaurant burning cash while waiting for a loan.
• New Red Flags:
  • Broken Financial Controls: Can’t properly track stock payments, revenue timing, or asset values. Errors could force earnings restatements.
  • CEO Power Play: The CEO both proposes and approves deals with friends/family – a major conflict of interest.
  • Solar Gamble: Their Italy solar project relies entirely on Green Capital securing funding. If Green fails, GHST eats the costs (land rights, permits) with $0 revenue.

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Risks to Watch

1. Financial House on Fire: Errors in accounting could lead to restatements, crushing investor confidence.
2. CEO Double-Dipping: No checks on self-dealing = higher fraud risk.
3. Solar Dependency: All eggs in one basket. Green Capital’s failure = GHST’s solar dreams collapse.
4. Stock Dilution Spiral: Paying bills with shares erodes your stake.
5. No Bad-Debt Cushion: Late payments = instant profit hits.

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The Bottom Line (For Investors)

GHST is playing with fire:

• ✅ Upside: Revenue growth shows demand for their core services.
• ❌ Downside: Reckless spending on unproven projects, broken financial controls, and a CEO with unchecked power. Auditors warn they might not survive without a cash infusion.
• Solar Bet: High-risk, all-or-nothing. If Green Capital falters, GHST’s solar revenue evaporates.

Investment Verdict: Extreme risk. Only consider if you’re comfortable with:

• A company burning cash to fund vanity projects
• Weak oversight and potential accounting errors
• Your shares being diluted further

Think of GHST like a startup betting its last dollar on a lottery ticket. The clock is ticking. ⏳🔥

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Note: GHST omitted details in key sections of their annual report. Less transparency = higher risk for investors.