10-Q: Ankam Reports Q3 Net Loss, Zero Revenue Amid Growth Efforts

Ankam, Inc. reported a net loss for the quarter ended August 31, 2025, with zero revenue, despite showing revenue growth over the nine-month period.

Summary

• Ankam, Inc. reported a net loss of $60,551 for the three months ended August 31, 2025, compared to a net income of $83,905 for the same period in 2024 (which included $154,308 in debt forgiveness).
• Revenue for the three months ended August 31, 2025, was $0, a decrease from $8,697 in the prior year, attributed to a slowdown in operating activities.
• For the nine months ended August 31, 2025, the company reported a net loss of $15,445, a significant improvement from a $106,636 net loss in the prior year period.
• Revenue for the nine months ended August 31, 2025, increased substantially to $240,000 from $33,842 in the prior year, indicating overall growth in operating activities over the longer term.
• Total operating expenses decreased for both the three-month ($55,691 vs. $79,098) and nine-month ($147,584 vs. $294,785) periods ended August 31, 2025, primarily due to lower director fees and server expenses.
• Cash balance increased to $23,767 as of August 31, 2025, from $57 as of November 30, 2024.
• Total liabilities increased to $620,186 as of August 31, 2025, from $502,817 as of November 30, 2024.
• The accumulated deficit increased to $513,184 as of August 31, 2025, from $497,739 as of November 30, 2024.
• Management concluded that disclosure controls and procedures were not effective as of August 31, 2025.
• The company faces a going concern risk due to limited revenues and accumulated losses, dependent on additional investment capital.

Sentiment

Score: 3

Explanation: The company faces significant financial challenges, including a 'going concern' warning, zero revenue in the most recent quarter, an increasing accumulated deficit, and ineffective internal controls. While there was some revenue growth over the nine-month period, the overall picture is highly concerning, suggesting high risk and poor financial health.

Positives

• Net loss for the nine months ended August 31, 2025, significantly improved to $15,445 from $106,636 in the prior year period.
• Revenue for the nine months ended August 31, 2025, increased substantially to $240,000 from $33,842 in the prior year, indicating overall growth in operating activities.
• Total operating expenses decreased for both the three-month ($55,691 vs. $79,098) and nine-month ($147,584 vs. $294,785) periods ended August 31, 2025.
• Cash balance increased significantly to $23,767 as of August 31, 2025, from $57 as of November 30, 2024.
• Established Mei Sheng Corporation Limited to expand into the Asian market, particularly Hong Kong, Taiwan, and surrounding regions.
• Entered into a software application development agreement for a health products sales platform, diversifying operations.

Negatives

• Reported zero revenue for the three months ended August 31, 2025, a decrease from $8,697 in the prior year, attributed to a slowdown in operating activities.
• Incurred a net loss of $60,551 for the three months ended August 31, 2025, compared to a net income of $83,905 in the prior year period (which was largely due to debt forgiveness).
• Accumulated deficit increased to $513,184 as of August 31, 2025.
• Total liabilities increased to $620,186 as of August 31, 2025.
• Disclosure controls and procedures were deemed not effective as of August 31, 2025.
• The company has a going concern risk due to limited revenues and accumulated losses, dependent on additional investment capital.
• Significant related party loan of $449,338 and amount due to director of $50,932 as of August 31, 2025.

Risks

• The company's ability to continue as a going concern is uncertain due to limited revenues and accumulated losses.
• Dependence on additional investment capital to fund operating expenses, with no assurance of future financing availability on acceptable terms.
• Equity financing could result in additional dilution to existing shareholders.
• Risks inherent in establishing a new business enterprise, including limited capital resources and possible cost overruns.
• Ineffective disclosure controls and procedures pose a risk to financial reporting reliability and investor confidence.

Future Outlook

The company plans to continue developing its mobile applications, Expense Minder and MoneySaverApp, and its currency conversion service, Apex. It intends to build market awareness through digital marketing, targeted campaigns, and app store optimization, with advertising initiatives contingent on fund availability. Ankam also aims to expand its presence in the Asian market via its subsidiary, Mei Sheng Corporation Limited, and is developing a health products sales platform. Management anticipates further losses during business development and intends to raise additional funds through capital markets.

Management Comments

• "In the opinion of management, the financial statements contain all material adjustments, consisting only of normal adjustments considered necessary to present fairly the financial condition, results of operations, and cash flows of the Company for the interim periods presented."
• "Management anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses."
• "The Company intends to position itself so that it will be able to raise additional funds through the capital markets."
• "Our principal executive officer and principal financial officer concluded that, as of the end of the period covered in this report, our disclosure controls and procedures were not effective to ensure that information required to be disclosed in reports filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the required time periods and is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure."

Industry Context

Ankam, Inc. operates in the competitive FinTech and mobile application development sectors, focusing on expense management and currency conversion. Its strategic expansion into the Asian market and development of a health products sales platform suggest diversification efforts to capture new growth opportunities. The company's reliance on digital marketing and app store optimization aligns with standard practices for technology companies in this space. However, its status as a development-stage company with limited revenues and a need for additional capital is common for startups but highlights the inherent challenges in a rapidly evolving industry.

Comparison to Industry Standards

• As a development-stage company with limited revenues and accumulated losses, Ankam's financial profile is typical for early-stage technology ventures, but its significant reliance on related-party debt is a deviation from robust, diversified financing standards.
• The acquisition of Apex Intelligence LLC and the establishment of Mei Sheng Corporation Limited demonstrate strategic initiatives to expand product offerings and market reach, which are common growth strategies in the technology industry.
• The conclusion that disclosure controls and procedures were 'not effective' is a significant concern and falls below industry best practices for publicly traded companies, potentially impacting investor confidence and regulatory compliance.
• The zero revenue in the most recent quarter, despite nine-month revenue growth, indicates inconsistent operational performance, which could be a red flag compared to more stable industry peers like Intuit (Mint, QuickBooks) or other established FinTech platforms that demonstrate consistent revenue streams.

Management Changes

Corporate Governance

Legal Proceedings

• No pending or threatened legal actions against the company were reported during the period ending August 31, 2025.

Related Party Transactions

• The company owed its sole director $500,270 as of August 31, 2025, and $499,338 as of November 30, 2024, for unsecured, non-interest bearing operating advances due on demand.
• An amount of $50,932 was due to the director as of August 31, 2025.
• The company's current office space is provided by its President, Wang Wen Lun, for no consideration.

Stakeholder Impact

• **Shareholders:** Face significant risk of dilution if the company pursues equity financing to address its capital needs. The 'going concern' warning and increasing accumulated deficit indicate substantial financial risk to their investment.
• **Employees:** The company's financial instability and dependence on external capital could pose risks to job security and operational continuity.
• **Customers:** While product development continues, the company's financial health could impact the long-term viability and support for its applications and services.
• **Creditors:** The substantial related-party loan, which is unsecured and non-interest bearing, suggests a high-risk profile for other potential creditors, as the company's ability to repay debt is uncertain given its financial condition.

Next Steps

• Continue development of Expense Minder, MoneySaverApp, and Apex service.
• Implement digital marketing strategies to enhance online visibility and user acquisition.
• Expand presence in the Asian market through the newly incorporated Mei Sheng Corporation Limited.
• Develop a health products sales platform via Mei Sheng Corporation Limited.
• Seek additional investment capital through capital markets to fund operating expenses.

Key Dates

Recommendation

The company exhibits severe financial distress, marked by a 'going concern' warning, an increasing accumulated deficit, and zero revenue in the most recent quarter. The disclosure controls and procedures are deemed ineffective, which is a major red flag for corporate governance and investor confidence. While nine-month revenue showed growth, the immediate quarter's performance and the heavy reliance on related-party debt highlight unsustainable operations. These factors collectively point to a high-risk investment with significant downside potential, warranting a 'sell' recommendation.

Keywords

Mobile applications, Expense Minder, MoneySaverApp, Apex Intelligence, currency converter, software development, technology, FinTech, expense management, startup, SEC filing, 10-Q, ANKAM, INC., Asian market expansion, health products platform