10-Q: Greenlit Ventures Faces Going Concern Amid Zero Revenue
Quarterly Report
Greenlit Ventures Inc. reported continued net losses and a significant accumulated deficit, raising substantial doubt about its ability to continue as a going concern due to a lack of revenue.
Summary
- Greenlit Ventures Inc. (GLVT) reported a net loss of $29,628 for the six months ended June 30, 2025, a significant reduction from the $211,764 net loss in the same period of 2024.
- The decrease in net loss was primarily due to a reduction in professional fees, including a $175,000 stock-based compensation expense incurred in 2024 that was not present in 2025.
- The company has generated minimal revenue since its inception and holds no cash or assets as of June 30, 2025.
- Total liabilities increased to $218,573 as of June 30, 2025, from $188,945 at December 31, 2024.
- A working capital deficiency of $33,270 was reported as of June 30, 2025, worsening from $25,625 at December 31, 2024.
- The accumulated deficit reached $752,788 as of June 30, 2025.
- Management has concluded that disclosure controls and procedures were not effective as of June 30, 2025.
Sentiment
Score: 2
Explanation: The company is in a highly precarious financial position with no revenue, no cash, increasing liabilities, and an explicit 'going concern' warning. While net loss decreased due to a one-time factor, the underlying financial health remains extremely weak, indicating a very high risk profile.
Positives
- Net loss significantly decreased to $29,628 for the six months ended June 30, 2025, from $211,764 in the prior year period, primarily due to the absence of a large stock-based compensation expense incurred in 2024.
- Net loss per share improved to $(0.01) for the six months ended June 30, 2025, compared to $(0.08) in the same period of 2024.
Negatives
- The company has generated minimal revenue since inception and reported no cash or assets as of June 30, 2025.
- Total liabilities increased to $218,573 as of June 30, 2025, from $188,945 at December 31, 2024.
- Working capital deficiency worsened to $33,270 as of June 30, 2025, from $25,625 at December 31, 2024.
- Accumulated deficit grew to $752,788 as of June 30, 2025.
- Interest expense increased to $6,760 for the six months ended June 30, 2025, from $5,671 in the prior year period.
- Disclosure controls and procedures were deemed not effective as of June 30, 2025.
Risks
- Substantial doubt exists about the company's ability to continue as a going concern due to minimal revenue generation since inception and a significant accumulated deficit of $752,788.
- Continuation as a going concern is dependent on generating sufficient cash flows from operations or obtaining additional financing, with no assurances that funds will be available on acceptable terms.
- The company's disclosure controls and procedures were not effective as of June 30, 2025, which could impact the reliability of financial reporting.
Future Outlook
The company aims to fill the growing demand for services addressing digital privacy by developing and providing a suite of robust, easy-to-use solutions to safeguard consumer private information. Its continuation as a going concern is dependent on generating sufficient cash flows from operations or obtaining additional financing.
Management Comments
- Management believes that the current actions to obtain additional funding and implement its strategic plans provide the opportunity for the Company to continue as a going concern.
- Operating results for the six months ended June 30, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025.
Industry Context
Greenlit Ventures operates in the digital privacy and cybersecurity industry, specifically with its ForceShield Mail (secure email) and ForceShield VPN services, both of which are in beta launch. This industry is experiencing growing demand for solutions that protect private information and combat cyber-related crimes. However, the company's current lack of revenue and assets indicates it is still in a very early development stage, far from commercialization or significant market penetration, despite the industry's growth.
Comparison to Industry Standards
- Greenlit Ventures Inc. is currently in a development stage with no revenue and no cash, which is significantly below the operational and financial benchmarks of established companies in the cybersecurity and digital privacy industry.
- Unlike companies such as Proton Technologies AG (ProtonMail, ProtonVPN) or Nord Security (NordVPN, NordPass), which have established user bases, revenue streams, and significant investments in infrastructure and marketing, Greenlit Ventures is still at the beta launch phase for its products.
- The company's accumulated deficit of $752,788 and working capital deficiency of $33,270, coupled with zero assets, indicate a pre-revenue, pre-commercialization stage, which is not comparable to profitable or even revenue-generating startups in the sector that typically secure significant seed or Series A funding.
- The reliance on convertible notes for operating expenses, rather than equity financing or revenue, is a common characteristic of early-stage ventures but highlights a precarious financial position compared to peers that have successfully raised substantial capital or achieved product-market fit.
Corporate Governance
| Change Type | Description | Effective Date | Impact Assessment |
|---|---|---|---|
| Disclosure Controls and Procedures Effectiveness | Management concluded that disclosure controls and procedures were not effective as of June 30, 2025. | 2025-06-30 | This indicates a weakness in the company's ability to ensure that material information is recorded, processed, summarized, and reported in a timely and accurate manner, potentially affecting investor confidence and regulatory compliance. |
Related Party Transactions
- During the six months ended June 30, 2024, $175,000 in stock-based compensation was incurred from 3,500,000 common shares issued to the Director of the Company for services.
Stakeholder Impact
- Shareholders: Face significant risk of capital loss due to the company's 'going concern' status, lack of revenue, and increasing liabilities. Dilution is a potential risk if future capital raises involve equity issuance.
- Creditors (Convertible Note Holders): Face risk of non-payment given the company's lack of cash and reliance on future financing. The notes mature on December 31, 2027.
- Employees/Management: Job security and compensation are highly dependent on the company's ability to secure additional funding and achieve commercial viability.
Next Steps
- Management intends to obtain additional funding to support operations.
- Management plans to implement strategic plans to continue as a going concern.
- The company is still in the development stage for its encryption products (ForceShield Mail and ForceShield VPN).
Key Dates
| Date | Description |
|---|---|
| 2016-12-07 | Company incorporated under the laws of Delaware. |
| 2017-11-13 | Company name changed to AllyMe Holding Inc. |
| 2019-08-06 | Company name changed to Ms Young Adventure Enterprise, Inc. |
| 2021-03-10 | New management acquired control; Mr. Fu Yong Nan appointed CEO, CFO, Secretary, and sole Director. |
| 2021-11-02 | Entered encryption industry with beta launch of ForceShield Mail. |
| 2021-11-22 | Announced beta launch of ForceShield VPN. |
| 2023-07-03 | Company adopted ASU 2020-06 regarding convertible debt instruments. |
| 2023-07-09 | Replaced promissory notes with convertible notes totaling $119,526. |
| 2023-09-30 | Issued a convertible note of $9,619 for operating expenses. |
| 2023-12-31 | Issued a convertible note of $11,327 for operating expenses. |
| 2024-02-01 | Company name changed to Greenlit Ventures Inc. and trading symbol changed to GLVT; FINRA approved 1:30 reverse stock split. |
| 2024-03-10 | 3,500,000 shares of common stock issued to the Director for services, valued at $175,000. |
| 2024-03-31 | Issued a convertible note of $16,040 for operating expenses. |
| 2024-06-30 | Issued a convertible note of $15,303 for operating expenses. |
| 2024-09-30 | Issued a convertible note of $3,476 for operating expenses. |
| 2024-12-31 | Issued a convertible note of $5,674 for operating expenses. |
| 2025-03-27 | Company's Form 10-K for fiscal year ended December 31, 2024, filed with the SEC. |
| 2025-03-31 | Issued a convertible note of $9,426 for operating expenses. |
| 2025-06-30 | End of the quarterly reporting period. |
| 2025-06-30 | Issued a convertible note of $12,557 for operating expenses. |
| 2025-08-02 | 4,082,479 common shares issued and outstanding. |
| 2025-08-12 | Date of signing for the Form 10-Q. |
| 2027-12-31 | Maturity date for all outstanding convertible notes. |
Recommendation
strong sellGreenlit Ventures Inc. is a pre-revenue company with no cash, no assets, and a significant accumulated deficit. The explicit 'going concern' warning, coupled with ineffective disclosure controls, indicates severe financial distress and operational instability. While the net loss decreased, this was largely due to a one-time accounting factor rather than improved operations. The company's reliance on convertible notes to cover operating expenses is unsustainable without a clear path to revenue generation. This represents an extremely high-risk investment with a high probability of further value erosion or business failure.
Keywords
Encryption, Digital Privacy, Secure Email, VPN, Cybersecurity, Consulting Services, Going Concern, SEC Filing, GLVT
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