10-Q: Ankam, Inc. Reports Q2 2026 Financials with Significant Revenue Drop

Ankam, Inc. filed its Form 10-Q for the quarter ended May 31, 2026, reporting a substantial decrease in revenue and a net loss, while highlighting ongoing development of its mobile applications.

Summary

• Ankam, Inc. reported revenue of $44,900 for the three months ended May 31, 2026, a significant decrease from $165,000 in the same period of 2025.
• For the six months ended May 31, 2026, revenue was $44,900, down from $240,000 in the prior year period.
• The company incurred a net loss of $53,474 for the three-month period and $256,592 for the six-month period ended May 31, 2026.
• Total assets decreased to $31,880 as of May 31, 2026, from $183,552 as of November 30, 2025.
• Total liabilities increased to $679,733 as of May 31, 2026, from $574,813 as of November 30, 2025.
• The company continues to rely on financing activities to fund operations and faces substantial doubt about its ability to continue as a going concern.
• Management plans to seek additional capital through equity financing and increase revenues.

Sentiment

Score: 2

Explanation: StockSavvy.ai views this filing negatively due to the significant revenue decline, increased losses, and substantial doubt cast on the company's ability to continue as a going concern, despite ongoing development efforts.

Positives

• The company is actively developing its mobile applications, Expense Minder and MoneySaverApp, and its currency converter service, Apex.
• A new subsidiary, Mei Sheng Corporation Limited, was established to expand presence in the Asian market.
• The company has no pending or threatened legal actions.
• Management is actively seeking additional capital through equity financing to fund operations.

Negatives

• Revenue for the three months ended May 31, 2026, decreased by 72.8% to $44,900 compared to $165,000 in the prior year period.
• Revenue for the six months ended May 31, 2026, decreased by 81.3% to $44,900 compared to $240,000 in the prior year period.
• The company reported a net loss of $53,474 for the three months ended May 31, 2026, compared to a net profit of $55,687 in the prior year period.
• The net loss for the six months ended May 31, 2026, was $256,592, a significant reversal from a net profit of $45,106 in the prior year period.
• Total assets significantly decreased from $183,552 to $31,880.
• Total liabilities increased from $574,813 to $679,733.
• Stockholders' deficit increased from $391,261 to $647,853.
• The company has accumulated a deficit of $821,483 as of May 31, 2026.
• There is substantial doubt about the company's ability to continue as a going concern.

Risks

• The company has incurred accumulated deficits and its current liabilities exceed its current assets, raising substantial doubt about its ability to continue as a going concern.
• The company is in the start-up stage and has limited capital resources and possible cost overruns.
• There is no assurance that future financing will be available on acceptable terms, which could prevent the company from continuing, developing, or expanding its operations.
• Equity financing could result in additional dilution to existing shareholders.
• Net operating loss carryforwards may be subject to annual limitations due to change in ownership provisions.

Future Outlook

Management anticipates dependence on additional investment capital to fund operating expenses and intends to raise additional funds through the capital markets. There are no assurances of success in these endeavors or of becoming financially viable.

Management Comments

• Management believes the financial statements contain all material adjustments necessary to present fairly the financial condition, results of operations, and cash flows.
• Management has determined that it is more likely than not that deferred tax assets will not be realized in future periods, leading to a full valuation allowance.
• Management concluded that disclosure controls and procedures were not effective as of May 31, 2026.

Industry Context

StockSavvy.ai notes that Ankam, Inc.'s performance in this quarter reflects challenges common to early-stage technology companies, particularly those in app development, where revenue generation can be volatile and significant investment is required before profitability is achieved. The substantial decrease in revenue and increase in operating expenses, especially professional and director fees, are critical points to monitor.

Comparison to Industry Standards

• Many early-stage software and app development companies experience periods of significant revenue decline as they pivot strategies or face market competition, but a drop of over 70% in a single quarter is concerning.
• The increase in operating expenses, particularly professional and director fees, is higher than typically seen in companies with similar revenue levels, suggesting potential inefficiencies or significant strategic investments.
• The company's reliance on future financing is a common characteristic of startups, but the explicit mention of substantial doubt about going concern status is a significant red flag compared to industry norms for companies with a clearer path to profitability.

Management Changes

Corporate Governance

Legal Proceedings

• No pending or threatened legal actions against the company as of May 31, 2026.

Related Party Transactions

• The company owed $489,380 to its director, Mr. Wang Wen Lung, as of May 31, 2026, for unpaid operating advances. This loan is unsecured, non-interest bearing, and due on demand.
• Net cash inflows from related party transactions with the director contributed to financing activities during the six months ended May 31, 2026.

Stakeholder Impact

• Shareholders may experience dilution if the company raises additional capital through equity financing.
• Creditors and suppliers may face increased risk due to the company's going concern issues and increased liabilities.
• Employees may face uncertainty regarding job security due to the company's financial condition.

Next Steps

• Management plans to seek additional capital through equity financing.
• The company intends to raise additional funds through the capital markets.
• Continued development and operation of mobile applications Expense Minder, MoneySaverApp, and Apex service.
• Expansion of presence in the Asian market through Mei Sheng Corporation Limited.

Key Dates

Recommendation

The significant decline in revenue, shift from profit to substantial losses, increased liabilities, and the explicit statement of substantial doubt about the company's ability to continue as a going concern, coupled with the ineffectiveness of disclosure controls, present a highly unfavorable financial outlook. The need for further capital raises the risk of significant dilution for existing shareholders.

Keywords

Expense Minder, MoneySaverApp, Apex, currency converter, mobile application development, expense reporting, startup, Nevada