10-Q: Guru App Factory Corp. Q3 2026 10-Q Filing

Guru App Factory Corp. reports a significant revenue decline and increased net loss for the nine months ended April 30, 2026, raising substantial doubt about its ability to continue as a going concern.

Summary

• Guru App Factory Corp. filed its Form 10-Q for the quarterly period ended April 30, 2026.
• The company experienced a substantial revenue decrease to $39,000 for the nine months ended April 30, 2026, down from $94,500 in the prior year period, primarily due to the non-recurrence of a large software development order.
• Cost of revenue decreased to $22,500 from $70,000, aligning with the lower revenue.
• Operating expenses were $51,722 for the nine months ended April 30, 2026, a slight decrease from $55,715 in the prior year.
• The net loss widened to $35,222 for the nine months ended April 30, 2026, compared to $31,215 for the same period in 2025.
• As of April 30, 2026, the company had a working capital deficit of $36,525 and an accumulated deficit of $102,645.
• Cash used in operating activities was $23,678 for the nine months ended April 30, 2026.
• Financing activities provided $27,178 through advances from the company's sole officer and director.
• The company's ability to continue as a going concern is dependent on financial support from its major shareholder and seeking third-party financing, with substantial doubt remaining.
• Disclosure controls and procedures were found to be not effective.

Sentiment

Score: 2

Explanation: StockSavvy.ai views this filing negatively due to the significant revenue decline, increased net loss, and persistent going concern doubts, despite some related party financial support.

Positives

• The company received $27,178 in advances from its sole officer and director, providing some financial support.
• Cost of revenue decreased, reflecting a reduction in expenses aligned with lower revenue.
• Accounts receivable of $8,000 as of April 30, 2026, were subsequently collected in April 2026.

Negatives

• Revenue for the nine months ended April 30, 2026, decreased by 59% to $39,000 from $94,500 in the prior year period.
• Net loss increased to $35,222 for the nine months ended April 30, 2026, from $31,215 in the prior year period.
• The company has a working capital deficit of $36,525 as of April 30, 2026.
• The company has an accumulated deficit of $102,645 as of April 30, 2026.
• Net cash used in operating activities was $23,678 for the nine months ended April 30, 2026.
• Disclosure controls and procedures were determined to be not effective.

Risks

• Substantial doubt exists about the company's ability to continue as a going concern due to insufficient revenue to cover operating costs, a working capital deficit, accumulated deficit, and negative cash flows from operations.
• The company's ability to continue as a going concern is dependent on financial support from its major shareholder and the successful acquisition of third-party equity and/or debt financing, with no assurance of success.
• The company's disclosure controls and procedures were not effective, potentially leading to misstatements or omissions in timely reporting.
• All of the company's revenue for the nine-month period ended April 30, 2026, was generated from a single customer, indicating significant customer concentration risk.

Future Outlook

The company expects to require additional capital to meet its long-term operating requirements and plans to raise this capital through the sale of equity or debt securities. The company does not intend to purchase any significant equipment in the next three months.

Management Comments

• Management believes that there are no critical accounting estimates in these condensed consolidated financial statements.
• Management concluded that it is more likely than not that the deferred tax assets will not be realized, based on the Company's cumulative losses since inception, the absence of a demonstrated history of taxable income, and insufficient positive evidence to support realization.
• Management has reviewed the effectiveness of disclosure controls and procedures and concluded they were not effective to ensure that material information relating to the Company is recorded, processed, summarized, and reported in a timely manner.

Industry Context

StockSavvy.ai notes that Guru App Factory Corp. operates in the competitive mobile application development and software consulting sector. The significant revenue decline and widening net loss highlight the challenges faced by early-stage companies in this industry, particularly those reliant on a few large projects or customers, and the critical need for ongoing capital infusion to sustain operations.

Corporate Governance

Legal Proceedings

• Management is not aware of any legal proceedings contemplated by any governmental authority or any other party involving the company or its properties.
• No director, officer, or affiliate is a party adverse to the company in any legal proceeding or has an adverse interest.

Related Party Transactions

• Advances from the company's sole officer and director totaled $28,481 as of April 30, 2026. These advances are unsecured, non-interest bearing, and due upon demand.

Stakeholder Impact

• Shareholders: The widening net loss and going concern issues negatively impact shareholder value and confidence. The need for future capital raises could lead to dilution.
• Creditors: The company's financial instability and working capital deficit pose risks to creditors.
• Employees: Uncertainty about the company's future could affect employee morale and job security.
• Suppliers: Potential payment delays or defaults could impact suppliers.

Next Steps

• The company plans to seek third-party equity and/or debt financing to address its going concern issues.
• Management will continue to rely on financial support from its major shareholder to meet minimal operating expenses.

Key Dates

Recommendation

The company exhibits a deteriorating financial performance with a significant revenue decline, increased net loss, and persistent going concern issues. The lack of effective disclosure controls and reliance on related party financing without clear third-party funding prospects present substantial risks, warranting a sell recommendation.

Keywords

Guru App Factory Corp., 10-Q Filing, Quarterly Report, Mobile Application Development, Software Development, Revenue Decline, Net Loss, Going Concern, Financial Statements, Nevada, SEC Filings