10-K: Ankam Reports Reduced Net Loss, Revenue Growth Amid Governance Concerns

Ankam, Inc. reported a significant increase in revenue and a reduced net loss for fiscal year 2025, driven by Asian market expansion, despite ongoing going concern issues and material weaknesses in internal controls.

Summary

• Ankam, Inc. is a technology company developing mobile applications, Expense Minder and MoneySaverApp, and operates a currency converter service, Apex.
• Revenue for the fiscal year ended November 30, 2025, increased to $325,000 from $104,450 in 2024, primarily due to the expansion of its subsidiary Mei Sheng Corporation Limited in the Asia Pacific market.
• Net loss significantly decreased to $67,152 in 2025 from $136,846 in 2024, attributed to increased revenue and reduced operating expenses.
• Operating expenses decreased to $242,292 in 2025 from $395,604 in 2024, mainly due to reductions in director fees, server expenses, professional fees, and software development expenses.
• The company faces substantial doubt about its ability to continue as a going concern, with an accumulated deficit of $564,891 and a net loss of $67,152 for the period ended November 30, 2025.
• Management identified material weaknesses in internal control over financial reporting and disclosure controls, citing a lack of adequate oversight, segregation of duties, an independent audit committee, and appropriate IT controls.
• Cash balance increased substantially to $131,710 as of November 30, 2025, from $57 in the prior year, with $109,446 provided by operating activities.
• All revenue was generated by the Hong Kong-based subsidiary, Mei Sheng Corporation Limited, from software product marketing and sales agency services.
• The company is dependent on additional investment capital to fund operating expenses and anticipates further losses.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this filing with low sentiment due to the explicit 'going concern' warning, significant internal control weaknesses, and a history of failed capital raise attempts, which overshadow the reported revenue growth and reduced net loss.

Positives

• Revenue increased significantly to $325,000 in 2025 from $104,450 in 2024, a 211% increase.
• Net loss decreased by 50.9% to $67,152 in 2025 from $136,846 in 2024.
• Operating expenses decreased by 38.7% to $242,292 in 2025 from $395,604 in 2024.
• Cash balance increased substantially to $131,710 as of November 30, 2025, from $57 as of November 30, 2024.
• Net cash provided by operating activities was $109,446 in 2025, a significant improvement from net cash used in operating activities of $157,541 in 2024.
• Successful expansion into the Asian market through the Mei Sheng Corporation Limited subsidiary, which generated 100% of the company's revenue.

Negatives

• Substantial doubt exists about the company's ability to continue as a going concern due to an accumulated deficit of $564,891 and ongoing net losses.
• Management identified material weaknesses in internal control over financial reporting and disclosure controls, including a lack of segregation of duties, an independent audit committee, and sufficient accounting expertise.
• The company lacks appropriate information technology controls, specifically formal procedures for data backup and off-site storage.
• Total liabilities increased to $574,813 in 2025 from $502,817 in 2024.
• Stockholders' deficit increased to $391,261 in 2025 from $324,109 in 2024.
• The company is in a start-up stage with limited operating history and is dependent on additional investment capital.
• The convertible note MOU for $500,000 was cancelled in November 2024, indicating a failed capital raise attempt.

Risks

• Inability to continue as a going concern due to accumulated deficit and anticipated future losses.
• Dependence on additional investment capital, with no assurance of availability on acceptable terms.
• Potential for dilution to existing shareholders if equity financing is pursued.
• Risks inherent in establishing a new business enterprise, including limited capital resources and possible cost overruns.
• Inability to eliminate all risks from cybersecurity threats or provide assurances against undetected cybersecurity incidents.
• Lack of adequate internal control structure and oversight over financial reporting, including insufficient segregation of duties and absence of an independent audit committee.
• Lack of appropriate information technology controls, specifically regarding data backup and off-site storage.
• Potential limitations on net operating loss carryforwards due to change in ownership provisions of the Tax Reform Act of 1986.

Future Outlook

The company anticipates further losses in the development of its business and is dependent on additional investment capital to fund operating expenses. It intends to position itself to raise additional funds through capital markets, but there are no assurances of success or financial viability. Advertising initiatives are contingent upon the availability of funds, with the budget increasing commensurately as more funds become available.

Management Comments

• "Our focus extends to designing and developing a mobile application designed to streamline and automate the tracking, and submission of users expenses."
• "This marketing approach aligns with Ankam, Inc.s commitment to innovation and user-centric solutions, laying the groundwork for future client acquisition and sustained growth."
• "Ankam, Inc. envisions a future where strategic advertising initiatives play a significant role in establishing a robust market presence for its mobile applications, Expense Minder and MoneySaverApp."
• "It is important to note that the implementation of these advertising initiatives will be contingent upon the availability of funds, and as more funds become available, the advertising budget will increase in a commensurate manner."
• "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."

Industry Context

StockSavvy.ai notes that Ankam Inc. operates in the highly competitive mobile application and FinTech sectors, with its expense management and currency converter tools. The company's strategy to expand into the Asian market through Mei Sheng Corporation Limited aligns with a broader trend of technology companies seeking growth in emerging markets. However, its "start-up stage" and reliance on external funding, coupled with internal control weaknesses, contrast with more mature, well-capitalized players in the FinTech space that typically demonstrate robust governance and established revenue streams. The focus on health products sales platform development through Mei Sheng also indicates a diversification beyond its core FinTech offerings, which could be a strategic move or a sign of struggling core business.

Comparison to Industry Standards

• Ankam's revenue growth of 211% from $104,450 to $325,000 is substantial for a small company, but the absolute figures remain very low compared to established FinTech companies like Expensify (annual revenue often in hundreds of millions) or currency exchange services like Wise (formerly TransferWise, with billions in annual revenue).
• The reported net loss of $67,152, while an improvement, still indicates unprofitability, which is common for early-stage tech companies but raises concerns given the "going concern" warning. Larger, more mature competitors typically achieve profitability or have clear paths to it with significant market share.
• The identified material weaknesses in internal controls, including a lack of segregation of duties and an independent audit committee, fall significantly below corporate governance standards expected of publicly traded companies, even smaller reporting companies. This contrasts sharply with the robust governance frameworks of industry leaders.
• The reliance on a single director (Wen Lung, WANG) for multiple key executive and board roles, and the absence of independent directors, is a governance red flag compared to best practices in the industry which emphasize independent oversight.
• The cancellation of a $500,000 convertible note MOU suggests challenges in securing external financing, which is a critical aspect for growth-stage companies, especially when compared to the ease with which well-established or high-potential startups can attract capital.

Management Changes

Corporate Governance

Legal Proceedings

• No known legal proceedings to which the company is a party or to which any of its property is the subject which are pending, threatened or contemplated.
• No unsatisfied judgments against the company.

Related Party Transactions

• The company owed its director, Wen Lung, WANG, $447,418 as of November 30, 2025, for unpaid operating advances. This payable is unsecured, non-interest bearing, and due on demand.
• The company's current office space is provided by its President, Wen Lung, WANG, for no consideration, and is a home office.
• In 2024, the company had an amount due from director Wen Lung, WANG of $74,128, which was collected on behalf of the subsidiary Mei Sheng Corporation. This amount was $0 as of November 30, 2025.

Stakeholder Impact

• Shareholders: Face significant risk of dilution if future equity financing occurs. The "going concern" warning and material weaknesses in internal controls pose substantial risks to investment value. The lack of independent oversight may also impact shareholder confidence.
• Employees: The company's "start-up stage" and dependence on additional capital may create uncertainty regarding job security and long-term stability.
• Customers: Continued development of mobile applications (Expense Minder, MoneySaverApp, Apex) suggests ongoing service, but the company's financial instability could impact future product development and support.
• Creditors: The substantial amount due to the director ($447,418) and the "going concern" uncertainty indicate elevated credit risk.
• Regulatory Authorities: The identified material weaknesses in internal controls and disclosure controls will likely draw scrutiny and require significant remediation efforts to ensure compliance with SEC regulations.

Next Steps

• Expand office space as research and development efforts increase.
• Implement strategic advertising initiatives for Expense Minder and MoneySaverApp, contingent on fund availability.
• Raise additional funds through capital markets to fund operating expenses.
• Address material weaknesses in internal control over financial reporting and disclosure controls.
• Continue development and operation of mobile applications.
• Mei Sheng Corporation Limited to continue expanding market share in Asia Pacific and developing the health products sales platform.

Key Dates

Recommendation

The "going concern" warning from the auditor, coupled with management's explicit acknowledgment of material weaknesses in internal controls and disclosure controls, presents severe fundamental risks. The lack of independent board oversight, a failed capital raise attempt, and the company's early-stage nature with anticipated future losses, despite some revenue growth, indicate a highly precarious financial position. These factors collectively suggest a high probability of further value erosion and significant operational challenges, making the stock a strong sell for any seasoned investor or institution.

Keywords

Ankam Inc, ANKM, 10-K, Annual Report, Mobile Applications, Expense Minder, MoneySaverApp, Apex Intelligence, Currency Converter, Financial Technology, FinTech, Startup, Going Concern, Internal Controls, Cybersecurity, Asia Pacific Market, Mei Sheng Corporation, Software Development, Financial Results, Revenue Growth, Net Loss Reduction, Corporate Governance, Related Party Transactions