You're reading that wrong. The loss isn'n closer to 300k just because the companys total liability is close to 300k. Assets have a value for a reason. Loss is NOT offset by assets. Loss is loss. Assets are value.
Loss IS -£-211,588
Total Assets - £75,589
Total Liabilities - £287,177
Net Assets - £-211,588
The balance sheet states that £287,177 is owed to trade creditors. Hereunder suppliers. Now mind you this was back in January 2019. JLingz must manufacture in Britain I suppose they may have gotten short term credit by the factory, typical this is a 30-60 day period (60 days is rare though, I can't fathom why a manufacturer would do that for a small startup, but Jesses status certainly would help). I manufacture products in Pakistan, Thailand, China, India and Vietnam and they all want a minimum of a portion of the total cost upfront. The next balance sheet is due October 2020. Since JLingz LTD is still operating I expect a few things:
- Jesse being the majority shareholder and obvious moneybank will have had to put more money into the company to offset the creditor debt.
- Total Assets will be WAY up
- Total Liabilities will be more than doubled. (Contingent on the company still having a outstanding manufacturers debt at the time of filing)
- Gross sales will be extremely underwhelming compared to total assets
JLingz is operating in a market that is wildly oversaturated, where every influencer can have their own clothing brand, and paying for advertisement is more expensive than ever. Starting a clothing company today is as easy as emailing a factory and ask if they can make a logo and some sample designs for you, they have designer staff just for that purpose.
The problem i'm seeing for Jesse is very obvious. He's selling a brand that is entirely connected to his person. if he's not popular, his sales are going to drop like a rock.
There are currently over 150 items stocked in the JLingz.com website, most of which are not sold out. The obvious takeaway from that is that they are not selling a lot of products.
The frontpage features the NHS proceed donated facemasks, as well as the AW19 line. We're deep into SS20, going on AW20 in August so that is not a good look at all.
JLingz LTD is a typical small time startup company that's trying to breach ground, their advantage is that they have a wealthy owner and backer with a strong financial backbone to help the company get up and going and offset any early-days operational losses. When Jesse inevitably (and he already must have since the company is still operating) puts in more money, that will be included in a investors bond that is added to the companys Total Liability. It's a loan to the company that a investor expects back.
Is Jesse likely going to see any return on his investment? No, very likely no. If his current career trajectory continues he won't become what he needs to be to have a personal brand take off: Popular. Sure he still has fans and people that like him, but they aren't enough to offset the company losses. He needs thousands of customers.
Clothing is a hard business for many reasons: Competition is beyond hard, returns are a constant nightmare (For some absurd reason there is no size chart under the products so that's going to increase his losses simply because return% will increase), and lots of other small things to go into running a small company.
The takeaway from all of this is that it's time to start looking at this as a hobby of Jesse's, not a time consuming engagement. There is noting in the companys profile that indicates this takes up a lot of Jesse's time.
This is a very small company. Most companies ARE small so that is not an insult, it's just the reality of owning a business. To say that Jesse is profiting from this is just an outright lie, he does not earn anything on this brand, he's losing money. Not more than he can afford, but unless he becomes a England regular again he's never going to see a return on his investment.