10-Q: GHST World Inc. Q3 2026: Continued Losses and Capital Concerns

GHST World Inc. reports a net loss for the nine months ended March 31, 2026, with significantly reduced revenues and ongoing concerns about its ability to continue as a going concern.

Summary

• GHST World Inc. reported a net loss of $75,740 for the nine months ended March 31, 2026, compared to a net loss of $89,963 for the same period in 2025.
• Revenues for the nine months ended March 31, 2026, were $13,852, a decrease from $55,359 in the prior year period.
• Total operating expenses decreased to $90,412 for the nine months ended March 31, 2026, from $145,322 in the prior year period, primarily due to lower general and administrative expenses.
• The company has $968 in cash as of March 31, 2026, and management has expressed substantial doubt about its ability to continue as a going concern without additional financing.
• Management estimates a need to raise at least $250,000 to meet working capital needs for the next 12 months.
• A preliminary agreement with a customer for two power generation plants in Italy was terminated on April 9, 2026, resulting in the forfeiture of $34,109 in deferred revenue.

Sentiment

Score: 2

Explanation: StockSavvy.ai views this as a very negative filing due to continued losses, declining revenues, a critical going concern warning, and a very low cash balance, indicating significant financial distress.

Positives

• Decrease in total operating expenses by approximately 37.8% for the nine months ended March 31, 2026, compared to the same period in 2025, driven by reduced general and administrative costs.
• The company has a patent for a protection device used in sporting activity with monitoring capabilities, with European and Hong Kong patents also secured.
• Management is actively seeking additional financing and exploring options such as sales of common stock, debt securities, or convertible securities.

Negatives

• Significant decline in revenues, with $13,852 for the nine months ended March 31, 2026, down from $55,359 in the prior year.
• Continued net losses, with $75,740 for the nine months ended March 31, 2026.
• Substantial doubt expressed by management regarding the company's ability to continue as a going concern.
• Low cash balance of $968 as of March 31, 2026.
• Termination of a preliminary agreement for solar energy projects in Italy, resulting in the forfeiture of $34,109 in deferred revenue.

Risks

• The company's ability to continue as a going concern is dependent on profitable future operations, positive cash flows, and additional financing.
• Management cannot provide assurances that efforts to raise capital will be successful.
• The company has not generated revenue on a consistent basis or in amounts necessary to offset operating losses.
• Delays in developing a business and monetizing the Smart Shin Guard business, as well as continuing losses, necessitate a focus on other ventures like solar energy production.
• The company is reliant on the ability to raise necessary capital to exploit patents for the Smart Shin Guard.
• The company is dependent on related parties for short-term funding.
• There is a material weakness in internal control over financial reporting related to the identification, authorization, approval, accounting for, and disclosure of related-party and non-routine transactions.
• The company's operating loss carryforwards of approximately $3.6 million may expire unused, with a valuation allowance of $913,000 offsetting potential tax benefits.

Future Outlook

The company expects to generate revenue from the purchase or sale of electricity to third parties and from existing arrangements with Green Capital, contingent on Green Capital raising necessary capital. However, there are no assurances that these efforts will result in material revenue. The company needs to complete the development of a functional Smart Shin Guard product and establish a sufficient market for it, as well as establish sufficient resources for clean energy operations. Access to sufficient capital, strategic alliances, and market development are crucial for achieving business objectives.

Management Comments

• Management believes that the company's conditions raise substantial doubt about its ability to continue as a going concern for the next twelve months.
• Management intends to raise money in the future through investors as needed to support its working capital needs, currently intending to raise capital from existing shareholders and through the possible sale of a minority interest in its subsidiaries.
• Management cannot provide any assurances that the company will be successful in completing these undertakings and accomplishing any of its plans.
• Management has expressed substantial doubt about our ability to continue as a going concern for the next 12 months from the date the financial statements were issued, unless we can raise the required capital or generate material revenue to fund our operations.

Industry Context

StockSavvy.ai notes that GHST World Inc. is operating in a challenging environment, with a significant decline in revenues and ongoing net losses. The company's pivot to clean energy projects in Italy, alongside its original Smart Shin Guard technology, reflects a strategy to diversify revenue streams amidst development delays and capital constraints. The need for substantial additional financing highlights the inherent risks in early-stage technology and energy ventures.

Corporate Governance

Legal Proceedings

• No pending or threatened lawsuits that could reasonably be expected to have a material effect on the results of operations.

Related Party Transactions

• The company owed related parties a total of $514,912 as of March 31, 2026, and $417,771 as of June 30, 2025. These are unsecured, non-interest-bearing loans due on demand.
• $9,559 of amounts due to related parties as of March 31, 2026, and June 30, 2025, are committed to be converted to equity.
• The company invoiced a shareholder for consulting services totaling $846 during the nine months ended March 31, 2026, recorded as other income.

Stakeholder Impact

• Shareholders: Potential for further dilution if capital is raised through the issuance of new equity or convertible securities. Continued financial distress poses a risk to investment value.
• Creditors: The company's going concern status and reliance on related party loans may impact the security and repayment of outstanding debts.
• Employees: Uncertainty regarding the company's future operations could affect job security.
• Suppliers: Potential for delayed payments or reduced orders due to the company's liquidity constraints.

Next Steps

• Continue efforts to raise necessary capital from investors, existing shareholders, or through the sale of minority interests in subsidiaries.
• Complete the development of a functional Smart Shin Guard product.
• Establish a sufficient market for the Smart Shin Guard product.
• Pursue material operations in the clean energy space.
• Negotiate and structure separate arrangements for the purchase or sale of electricity to third parties.
• Monitor macro-economic factors affecting working capital requirements and ability to raise funding.

Key Dates

Recommendation

The filing indicates severe financial distress with a going concern warning, declining revenues, and minimal cash. The company's ability to continue operations is highly uncertain without significant new financing, which is not guaranteed. The material weakness in internal controls also raises concerns about financial reporting reliability. These factors suggest a high risk for investors.

Keywords

GHST World Inc., Form 10-Q, Quarterly Report, Financial Statements, Net Loss, Going Concern, Capital Raise, Smart Shin Guard, Solar Energy, Related Party Transactions, SEC Filing