10-K: Greenlit Ventures Inc. 2025 Annual Report: Focus on Encryption

Greenlit Ventures Inc. filed its 2025 10-K, detailing its ongoing development in the encryption sector and its financial status, which remains dependent on future financing.

Summary

• Greenlit Ventures Inc. (formerly MS Young Adventure Enterprise, Inc.) has filed its annual report for the fiscal year ended December 31, 2025.
• The company's primary business activities are in consulting services and the development of encryption products, including ForceShield Mail and ForceShield VPN.
• As an early-stage company, Greenlit Ventures Inc. reported a net loss of $48,501 for the year ended December 31, 2025, a significant improvement from the $227,487 net loss in 2024.
• The company has no revenue and an accumulated deficit of $771,661 as of December 31, 2025.
• The continuation of the company as a going concern is dependent on its ability to raise additional equity or debt financing and achieve profitable operations.
• There is currently no public market for the company's securities, and it has no plans to pay dividends.
• The company has identified material weaknesses in its internal controls over financial reporting, including the lack of a functioning audit committee and inadequate segregation of duties.

Sentiment

Score: 2

Explanation: StockSavvy.ai views this filing as negative due to the continued lack of revenue, increasing working capital deficiency, and identified material weaknesses in internal controls, despite a reduced net loss.

Positives

• The net loss decreased by 79% from $227,487 in 2024 to $48,501 in 2025, indicating improved cost management.
• The company has developed and launched beta versions of its encryption products, ForceShield Mail and ForceShield VPN, targeting the growing demand for digital privacy.
• The company has a net operating loss carryforward of approximately $597,000 that can offset future taxable income.

Negatives

• The company has no revenue and an accumulated deficit of $771,661 as of December 31, 2025.
• The company has a working capital deficiency of $43,998 as of December 31, 2025, an increase from $25,625 in the prior year.
• The company's continuation as a going concern is uncertain and dependent on obtaining additional financing.
• The company has identified material weaknesses in its internal controls over financial reporting, including the lack of a functioning audit committee and inadequate segregation of duties.
• There is no public market for the company's securities, and no liquidity for its common shares.

Risks

• The company's ability to continue as a going concern is dependent on its ability to raise equity or debt financing and attain profitable operations.
• The company expects to experience losses in the near term and needs to generate revenue or secure additional financing to continue its developmental plans.
• There is no guarantee that the company will be able to identify sufficient customers to generate enough revenue to continue operations.
• Securing adequate capital to fund operations and hiring service providers is a major challenge.
• Implementing effective sales and marketing strategies to reach intended end customers is a significant challenge.
• The company is subject to risks associated with the cybersecurity industry, including potential cybersecurity incidents.
• The company faces intense competition in both the consulting and encryption industries from larger firms with greater resources.
• The company's net operating loss carryforwards may be subject to annual limitations following ownership changes.

Future Outlook

The company's future outlook is heavily dependent on its ability to secure additional financing and achieve profitability in its encryption services. Management believes current actions to obtain funding and implement strategic plans provide an opportunity to continue as a going concern, but there are no assurances of success or availability of funds on acceptable terms.

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.
• Management believes that the material weaknesses set forth in items (2) and (3) above did not have an effect on our financial results.
• Management believes that the lack of a functioning audit committee and the lack of a majority of outside directors on our board of directors results in ineffective oversight in the establishment and monitoring of required internal controls and procedures, which could result in a material misstatement in our financial statements in future periods.

Industry Context

StockSavvy.ai notes that Greenlit Ventures Inc. is operating in the highly competitive encryption and consulting sectors. The company's focus on digital privacy solutions like ForceShield Mail and VPN aligns with growing market demand, but its early-stage status and lack of revenue present significant hurdles against established players.

Comparison to Industry Standards

• The company's net loss of $48,501 for 2025, while substantial for a company with no revenue, is a reduction from the previous year's loss of $227,487, indicating a potential improvement in cost control.
• The company's working capital deficiency of $43,998 is a concern, especially when compared to companies in the cybersecurity sector that typically maintain strong liquidity to fund R&D and market expansion.
• The identified material weaknesses in internal controls, particularly the absence of a functioning audit committee, fall below the standards expected of publicly traded companies, even smaller reporting companies, which typically have robust governance structures.

Corporate Governance

Legal Proceedings

• The company is not involved in any pending legal proceedings or litigation, and to the best of its knowledge, no governmental authority is contemplating any proceeding that would likely have a material adverse effect.

Related Party Transactions

• Professional fees - related party were $0 for the year ended December 31, 2025, and $175,000 for the year ended December 31, 2024, which included stock-based compensation.

Stakeholder Impact

• Shareholders: The lack of a public market and liquidity, combined with the company's financial precariousness and governance concerns, may negatively impact shareholder value and investment prospects.
• Creditors: The company's working capital deficiency and reliance on future financing could pose risks to creditors.
• Employees: With only one employee (Fu Yong Nan), the impact on employees is minimal, but the company's going concern status creates job security uncertainty.

Next Steps

• Secure additional equity or debt financing to continue operations.
• Achieve profitable operations from its encryption services.
• Implement effective sales and marketing strategies to acquire customers.
• Address and remediate identified material weaknesses in internal controls over financial reporting once financial resources are available.

Key Dates

Keywords

Greenlit Ventures Inc., 10-K, Annual Report, Encryption, Cybersecurity, Consulting Services, ForceShield Mail, ForceShield VPN, Going Concern, Financial Statements, Net Loss, Working Capital Deficiency, Internal Controls