10-Q: ANVI Global Holdings Faces Going Concern Doubt, No Revenue

ANVI Global Holdings, Inc. reported no revenue, an increasing accumulated deficit, and significant going concern doubts in its latest quarterly filing.

Summary

• ANVI Global Holdings, Inc. (AGH) reported no revenue for the three and six months ended August 31, 2025, continuing its pre-operational status.
• The company incurred a net loss of $57,022 for the three months ended August 31, 2025, compared to $51,012 for the same period in 2024.
• For the six months ended August 31, 2025, the net loss was $105,270, a slight decrease from $106,109 in the prior year period.
• As of August 31, 2025, the accumulated deficit reached $2,327,736, up from $2,222,466 as of February 28, 2025.
• Total current assets decreased to $7,504 as of August 31, 2025, from $14,863 as of February 28, 2025.
• Total current liabilities increased to $2,276,740 as of August 31, 2025, from $2,178,829 as of February 28, 2025.
• The company's cash balance was $2,194 as of August 31, 2025, an increase from $1,543 as of February 28, 2025, but still critically low.
• Net cash used in operating activities for the six months ended August 31, 2025, was $39,569, an increase from $27,508 in the prior year period.
• The company continues to rely on advances from its CEO, Rama Mohan R. Busa, which totaled $40,220 for the six months ended August 31, 2025.
• Management concluded that disclosure controls and procedures were ineffective as of August 31, 2025, due to material weaknesses in internal control over financial reporting.

Sentiment

Score: 1

Explanation: The company has no revenue, a significant and growing accumulated deficit, substantial doubt about its ability to continue as a going concern, ineffective internal controls, and heavy reliance on related-party funding. These factors indicate an extremely poor financial and operational position.

Positives

• Net loss for the six months ended August 31, 2025, slightly decreased to $105,270 from $106,109 in the prior year period.
• General and administrative expenses for the six-month period decreased by 0.8% to $105,270.
• The CEO continues to provide financial support through advances, totaling $40,220 for the six months ended August 31, 2025.

Negatives

• The company has generated no revenue since its inception and has an accumulated deficit of $2,327,736 as of August 31, 2025.
• A substantial doubt exists about the company's ability to continue as a going concern due to lack of revenue and need for capital.
• Total current assets significantly decreased to $7,504, while total current liabilities increased to $2,276,740, worsening the liquidity position.
• Net cash used in operating activities increased to $39,569 for the six months ended August 31, 2025, indicating higher cash burn.
• Disclosure controls and procedures were deemed ineffective due to material weaknesses in internal control over financial reporting.
• Material weaknesses include inadequate segregation of duties and insufficient written policies and procedures for accounting and financial reporting.
• Remediation efforts for internal control weaknesses are dependent on securing additional financing, which is not assured.
• Significant related party liabilities exist, including $900,000 in accrued liabilities and $720,000 in accounts payable to Anvi Global Inc. (owned by the CEO), and $643,825 due to the officer.

Risks

• The company's ability to continue as a going concern is in substantial doubt due to no revenue and an accumulated deficit.
• Dependence on raising additional capital through future issuances of common stock, which may not be available on acceptable terms or at all.
• Future equity or convertible debt issuances will result in dilution to current shareholders.
• Inability to take advantage of prospective new business endeavors or opportunities if adequate funds are not available.
• Material weaknesses in internal control over financial reporting, specifically inadequate segregation of duties and insufficient written policies, pose risks to financial reporting reliability.
• Remediation of internal control weaknesses is contingent upon securing additional financing, which may not be successful, potentially adversely affecting remediation efforts.

Future Outlook

The company intends to become a diversified, global holdings company with interests in mining, infrastructure, heavy earthworks, health services, and aerospace engineering, focusing on emerging markets like India, South America, and Africa. The objective is to maximize shareholder value by investing in or acquiring companies with strategic market positions, strong cash flows, and robust future growth potential. However, as of the filing date, the company has not invested in or acquired any assets or companies. Management anticipates incurring costs related to Exchange Act reports and developing its business plan over the next twelve months, and plans to remediate internal control weaknesses, contingent on securing additional financing.

Management Comments

• "The Company has had no revenue and has accumulated a deficit of $2,327,736 as of August 31, 2025."
• "The Companys ability to raise additional capital through the future issuances of common stock is unknown."
• "These conditions and the ability to successfully resolve these factors raise substantial doubt about the Companys ability to continue as a going concern."
• "The Company shall pursue financing plans to raise funds to judiciously spend towards operational expenses."
• "The Company shall continue to employ low cost measures to operate its business and analyze any unnecessary cost or expense."
• "The Company will seek to avoid unnecessary expenditures, travel, and lodging costs that are not mission critical to its business."
• "As of the date of this Report, the Company has not invested in or acquired any assets or company."
• "We have concluded that our disclosure controls and procedures were ineffective as of the end of the period covered by this report due to a material weakness in our internal control over financial reporting."
• "Our management identified the following material weaknesses in our internal control over financial reporting, which are indicative of many small companies with small staff: (i) inadequate segregation of duties and effective risk assessment; and (ii) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of both US GAAP and SEC guidelines."
• "The remediation efforts set out in (i) and (ii) are largely dependent upon our securing additional financing to cover the costs of implementing the changes required. If we are unsuccessful in securing such funds, remediation efforts may be adversely affected in a material manner."

Industry Context

ANVI Global Holdings, Inc. operates as a pre-revenue shell company with stated intentions to become a diversified global holdings company. Currently, it lacks any operational business segments, making direct comparison to established industry players difficult. Its strategy to acquire companies in emerging markets across diverse sectors (mining, infrastructure, health, aerospace) is broad and ambitious for a company with no current assets or revenue. The significant reliance on related-party funding and the identified internal control weaknesses are atypical for a publicly traded entity, even a smaller reporting company, and would generally raise red flags compared to industry peers with active operations and robust governance structures.

Comparison to Industry Standards

• The company's lack of revenue and significant accumulated deficit of over $2.3 million places it far below industry standards for operational companies, resembling a pre-seed or seed-stage startup rather than a public entity.
• The cash balance of $2,194 is extremely low and insufficient for any meaningful operational activity, contrasting sharply with the liquidity typically maintained by even small-cap companies in any of its stated target industries (mining, infrastructure, health services, aerospace engineering).
• The identified material weaknesses in internal control over financial reporting, including inadequate segregation of duties and insufficient written policies, fall significantly short of corporate governance best practices and regulatory expectations for public companies, regardless of size.
• The high proportion of related-party liabilities (over $2.2 million in total related party debt) is a red flag for corporate governance and financial independence, a situation rarely seen in well-governed public companies.
• Unlike comparable pre-revenue companies that might be actively developing a specific product or technology, ANVI Global Holdings, Inc. has not yet acquired any assets or companies, making its 'holdings company' strategy purely aspirational at this stage, without any tangible progress to report.

Corporate Governance

Legal Proceedings

• There are no material pending legal proceedings to which the Registrant is a party, nor are any such proceedings known to be threatened or contemplated against it.

Related Party Transactions

• Service agreement with Anvi Global Inc. (owned by CEO Rama Mohan R. Busa) for $12,000 per month for office space, IT, business consulting, and investor relations.
• Accrued, unpaid balance due to Anvi Global Inc. of $900,000 as of August 31, 2025.
• Accounts payable due to Anvi Global Inc. of $720,000 as of August 31, 2025, up from $648,000 on February 28, 2025.
• Advances from CEO Rama Mohan R. Busa totaling $643,825 as of August 31, 2025, up from $603,605 on February 28, 2025. These advances are unsecured, non-interest bearing, and due on demand.

Stakeholder Impact

• **Shareholders:** Face significant dilution risk from potential future capital raises, substantial doubt about the company's going concern, and a lack of operational progress or revenue generation. The stock currently holds little to no intrinsic value.
• **Creditors (Related Party):** The CEO and his related company are significant creditors, indicating a high level of financial dependence and potential conflicts of interest. Repayment is uncertain given the company's financial state.
• **Potential Investors:** Would face high risk due to the company's pre-revenue status, accumulated deficit, going concern issues, and internal control weaknesses. The investment thesis relies entirely on future, unproven acquisitions and financing.

Next Steps

• Pursue financing plans to raise funds for operational expenses.
• Continue to employ low-cost measures to operate the business and analyze unnecessary costs.
• Seek to avoid unnecessary expenditures, travel, and lodging costs not critical to the business.
• Appoint additional qualified personnel to address inadequate segregation of duties and ineffective risk management (contingent on financing).
• Adopt sufficient written policies and procedures for accounting and financial reporting (contingent on financing).
• Develop its business plan over the next twelve months.

Key Dates

Recommendation

The company presents an extremely high-risk profile with no revenue, a substantial and growing accumulated deficit, and explicit 'going concern' doubt. Its liquidity is critically low, and it relies heavily on related-party funding. Furthermore, management has identified material weaknesses in internal controls, which are fundamental to reliable financial reporting and operational integrity. The stated business plan to acquire companies in diverse sectors is purely aspirational with no tangible progress. Given these severe financial and operational deficiencies, a seasoned investor would likely recommend a strong sell or avoid the stock entirely, as the risk of total capital loss is exceptionally high.

Keywords

Global Holdings, SEC Filing, 10-Q, Financial Report, Going Concern, Accumulated Deficit, Internal Controls, Related Party Transactions, Capital Raise, Pre-revenue