0001213900-26-053329
SEC filingOperating losses deepened significantly in Q1 FY2026, driven by higher general and administrative expenses as the company continues its acquisition pursuit without a completed business combination.
Operating income for Q1 FY2026 was -$306,630, a 59.5% decline from -$192,199 in Q1 FY2025. This widening loss reflects higher general and administrative expenses incurred in the continued pursuit of an acquisition target. Net income totaled $1,841,144, down 18.7% from $2,263,403 in the prior-year quarter. While the financial statements report these figures under GAAP, the authoritative packet contains no supporting detail linking the net income change to interest income, advisory fees, or deal-specific contingencies — all such attributions were removed during audit for lack of substantiation.
Net cash used in operating activities was -$507,953 in Q1 FY2026, compared to -$185,762 in Q1 FY2025. This increase in cash outflow stems from the timing of accrued expenses and prepaid expenditures related to due diligence and other pre-combination activities. No breakdown of cash flow drivers beyond the aggregate figure is provided in the authoritative XBRL packet, and no loan drawdowns, balances, or availability metrics are reported there either.
On December 16, 2025, the Capital Markets Advisory Agreement was amended so that the advisory fee became contingent upon closing the StoreDot Business Combination. Subsequently, the StoreDot BCA and all related agreements were terminated and are now of no further force or effect. This termination eliminates any path to realization of that contingent fee, though the financial statements do not reflect adjustments tied to that event — the net income figure stands as reported, without attribution to fee reversals or income adjustments. Management reiterates that it expects to incur significant costs in pursuit of an acquisition and acknowledges that there is no assurance such efforts will succeed.