0001493152-26-006571
SEC filingAddentax Group Corp. reported a net loss of $4.2 million for Q3 2026, primarily driven by a $4.1 million fair value loss, despite generating $976K in revenue. The company's operations resulted in a modest operating loss of $69K, with gross profit of $295K from $976K in revenue. Cash flow from operations was negative $1.1 million, though financing activities provided $1.3 million in cash. The balance sheet shows total assets of $28.2 million with significant holdings in debt securities ($17.5M) and operating lease assets ($18.7M), while liabilities total $6.6 million including substantial derivative liabilities ($5.3M). The company maintains $238K in cash and equivalents with total equity of $21.6 million.
Addentax Group Corp. reported a net loss of $4.2 million for Q3 2026 ending December 31, 2025, with revenue of $976K and cost of revenues of $681K resulting in gross profit of $295K. The company's operating loss was $69K, primarily due to $364K in operating expenses ($9K selling and marketing, $355K general and administrative). A significant $4.1 million fair value loss drove the overall net loss, despite $24K in other income and $288 in interest income. The company reported a comprehensive loss of $4.2 million including a $46K foreign currency translation loss. Basic and diluted loss per share from continuing operations were both -$0, with 9.3 million weighted average shares outstanding.
Revenue of $976K was generated during the quarter, though no segment breakdown or geographic mix was provided in the filing. The cost of revenues was $681K, resulting in gross profit of $295K. No specific growth drivers or segment performance details were disclosed in the available data. The company's revenue generation appears modest relative to its asset base and operating structure.
The company achieved a gross margin of 30.2% ($295K gross profit on $976K revenue). Operating margin was negative 7.1% due to $364K in operating expenses exceeding the $295K gross profit. The operating loss of $69K was significantly impacted by the $4.1 million fair value loss, which drove the overall net loss position. Operating expenses consisted primarily of general and administrative costs ($355K) with minimal selling and marketing expenses ($9K).
Operating activities used $1.1 million in cash, with net loss of $4.2M adjusted for non-cash items including $501K depreciation and $572K non-cash financial cost. Investing activities used $281K primarily for property purchases ($149K). Financing activities provided $1.3M from net borrowings and related party transactions. The balance sheet shows $28.2M in total assets including $27.9M current assets (notably $17.5M debt securities, $5.3M due from related party) and $376K non-current assets. Liabilities total $6.6M with $5.3M in non-current liabilities including derivative liabilities. Equity stands at $21.6M with accumulated deficit of $18.4M.
No specific management guidance, strategic priorities, or forward-looking statements were provided in the available filing data. The company's financial position shows significant derivative liabilities ($5.3M) and operating lease commitments ($18.7M asset, $17.8M liability) that represent ongoing obligations. The negative cash flow from operations and reliance on financing activities for liquidity may present challenges if sustained.