Video River Networks, Inc. SEC 10-K Report

Video River Networks, Inc., a technology holding firm specializing in Electric Vehicles (EVs), Artificial Intelligence (AI), Machine Learning (ML), and Robotics, has released its 2024 10-K report. The report provides a comprehensive overview of the company's financial performance, business operations, strategic initiatives, and the challenges it faces as it transitions back to its technology roots.

Financial Highlights

• Total Revenue: $0 million. The company reported no revenue for the year ended December 31, 2024, compared to $664,613 for the year ended December 31, 2023.
• Gross Profit: $379,157. The gross profit for the year ended December 31, 2023, was $379,157, reflecting the company's previous operations before the sale of its main subsidiary.
• Income (loss) from operations: $(99,239). Operating expenses were significantly reduced to $99,239 in 2024 from $379,844 in 2023, indicating cost control measures.
• Net Income: $1,462,828. The net income for 2024 was primarily due to a one-time income of $1,562,067 from the disposition of an operating unit.
• Earnings (loss) per Share: Basic and Diluted: $0.0080. Reflects the net income per share for the year ended December 31, 2024.

Business Highlights

• Business Overview: Video River Networks, Inc. is a technology holding firm managing a portfolio of Electric Vehicles, Artificial Intelligence, Machine Learning, and Robotics assets in North America. The company focuses on designing, developing, manufacturing, and selling high-performance fully electric vehicles and related technologies.
• Corporate History: The company transitioned from a specialty real estate firm back to its technology roots in 2020, focusing on Power Controls, Battery Technology, Wireless Technology, and Residential utility meters.
• Electric Vehicles Business Model: Established in Q3 2020, the EV business model aims to merge with or acquire EV manufacturers. The company has not yet selected a specific acquisition target.
• Management Team: Comprised of experienced professionals with backgrounds in executive leadership, strategy development, and financial policy, the team is positioned to identify acquisition opportunities and implement value creation initiatives.
• Real Estate Operations: The company has two lines of business in real estate: promoting affordable housing and managing specialized assets. It focuses on acquiring, owning, and managing industrial and commercial real estate, as well as multifamily properties.
• Future Outlook: The company plans to focus on operating and managing a portfolio of EV, AI, ML, and Robotics assets, alongside its existing technology-focused businesses. It aims to acquire or partner with EV manufacturers to expand its operations.

Strategic Initiatives

• Strategic Initiatives: Video River Networks, Inc. has pivoted back to its original technology-focused business model, emphasizing Electric Vehicles, Artificial Intelligence, Machine Learning, and Robotics (EV-AI-ML-R) sectors. The company plans to acquire and manage a portfolio of businesses in these areas, leveraging its management team's expertise to identify and implement value creation initiatives. The strategic focus includes sourcing, designing, developing, manufacturing, and distributing high-performance, affordable electric vehicles, as well as related technologies.
• Capital Management: The company has been primarily financed through advances from a company controlled by its president and CEO. It has a line of credit agreement with Los Angeles Community Capital, controlled by the CEO, with a balance of $43,849 as of December 31, 2024. The company sold its main operating subsidiary, Alpharidge Capital LLC, to simplify its balance sheet and improve its market profile. The sale was structured as a cash payment of $1,560,992, payable in monthly installments. The company has not engaged in any equity repurchases, dividends, or stock splits during the reported period.
• Future Outlook: Video River Networks, Inc. intends to focus on expanding its presence in the EV-AI-ML-R sectors, with plans to acquire businesses that align with its strategic goals. The company aims to enhance shareholder value through strategic acquisitions and operational improvements. It also plans to continue evaluating its capital resources and may seek additional financing to support its growth initiatives. The company is committed to maintaining a flexible financial position to respond to growth opportunities and market conditions.

Challenges and Risks

• Challenges and Risks: Video River Networks, Inc. is transitioning back to a technology-focused business model, which includes the development and management of Electric Vehicles (EVs) and related technologies. This pivot presents challenges due to the company's limited operating history in the technology sector, particularly in EVs, Artificial Intelligence, Machine Learning, and Robotics. The company has not yet generated significant revenue from these operations and faces uncertainties in achieving market acceptance and commercial success.
• Going Concern: The company faces substantial risks related to its ability to continue as a going concern, as indicated by its independent registered public accounting firm's report. With no revenue reported as of December 31, 2024, and an accumulated deficit, the company is heavily reliant on raising additional capital to pursue its EV acquisition plans. The success of these plans is uncertain, and failure to secure necessary funding could severely impact the company's operations.
• Industry-Specific Risks: The company is exposed to industry-specific risks, including the volatility of demand in the automobile industry, the dependency on consumer adoption of electric vehicles, and the potential for increased costs or supply disruptions of raw materials, particularly lithium-ion cells. Additionally, the company must navigate the challenges of designing and achieving market acceptance for new electric vehicle models, which requires significant investment and carries no assurance of success.
• Operational Risks: The company faces risks related to its limited experience in simultaneously designing, testing, manufacturing, and selling electric vehicles, which could lead to production delays or failures. The company also faces risks related to the development and commercialization of new technologies, which may not meet consumer expectations or regulatory standards.
• Regulatory Risks: Regulatory risks are significant, as changes in government policies, regulations, or laws could adversely affect the company's operations. The company must comply with various federal, state, and local laws, including those related to environmental standards and vehicle safety, which could impose additional costs or operational constraints.
• Management's Discussion and Analysis: Management acknowledges the challenges of transitioning to a technology-focused business model and the need for substantial additional funding to support its operations and growth strategies. The company plans to raise capital through equity offerings and strategic partnerships, but there is no guarantee of success. Management is focused on building a portfolio of EV-related businesses and assets to drive future growth and shareholder value.
• Market Risks: The company is exposed to market risks, including fluctuations in raw material prices and potential disruptions in supply chains. These risks could impact the cost structure and profitability of the company's operations. Additionally, the company faces risks related to interest rate changes, which could affect its ability to finance future acquisitions or operations.

SEC Filing: Video River Networks, Inc. [ NIHK ] - 10-K - Apr. 15, 2025