10-K: Guru App Factory Corp. Reports FY26 Results, Faces Going Concern Doubt

Guru App Factory Corp. filed its annual report for the fiscal year ended July 31, 2026, detailing a decrease in revenue, an increase in operating expenses, and a net loss, while highlighting substantial doubt regarding its ability to continue as a going concern.

Summary

• Guru App Factory Corp. reported its annual results for the fiscal year ended July 31, 2026.
• The company experienced a revenue decline to $52,000 from $94,500 in the prior year, primarily due to a large software development order in FY25 not recurring.
• Cost of revenue decreased to $30,000 from $70,000, in line with lower software development revenue.
• Operating expenses increased to $81,440 from $64,289, mainly due to general and administrative and professional fees.
• The company reported a net loss of $59,440 for FY26, an increase from $43,690 in FY25.
• As of July 31, 2026, the company had total assets of $14,000 and total liabilities of $74,743, resulting in a stockholders deficit of $60,743.
• Substantial doubt exists regarding the company's ability to continue as a going concern due to a working capital deficit of $60,743 and an accumulated deficit of $126,863.
• The company plans to seek third-party equity and/or debt financing to address its financial situation.

Sentiment

Score: 2

Explanation: StockSavvy.ai views this as a negative sentiment due to declining revenues, increasing operating expenses, and a significant net loss, coupled with substantial doubt about the company's ability to continue as a going concern.

Positives

• Cost of revenue decreased in line with lower revenue.
• The major stockholder has undertaken to not demand repayment of outstanding balances until the company's liquid resources permit.
• The major stockholder has committed to providing continuing financial support for at least 12 months.

Negatives

• Revenue decreased by approximately 45% to $52,000 in FY26 from $94,500 in FY25.
• Operating expenses increased by approximately 27% to $81,440 in FY26 from $64,289 in FY25.
• The company incurred a net loss of $59,440 in FY26, an increase from $43,690 in FY25.
• The company has a working capital deficit of $60,743 as of July 31, 2026.
• The company has an accumulated deficit of $126,863 as of July 31, 2026.
• Net cash used in operating activities was $39,222 for FY26.
• Substantial doubt exists regarding the company's ability to continue as a going concern.

Risks

• The company's ability to continue as a going concern is subject to substantial doubt due to its working capital deficit, accumulated deficit, net loss, and negative cash flows from operations.
• The company's plans to obtain additional financing are subject to uncertainty, and there can be no assurance that these plans will be successfully implemented.
• The company relies on third-party service providers for cybersecurity protections, and despite efforts, all risks cannot be eliminated.
• The company does not own any property.

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, as well as through advances or financial support from its shareholder. Management's plans to obtain additional financing are subject to uncertainty.

Management Comments

• The company's financial statements have been prepared assuming that it will continue as a going concern.
• The management of the Company is of the opinion that the use of the going concern basis in the preparation of the Companys financial statements is appropriate, after taking into consideration the undertakings from the major stockholder and plans to seek third party financing.
• Disclosure controls and procedures were not effective as of July 31, 2026.

Industry Context

StockSavvy.ai notes that Guru App Factory Corp. operates in the competitive mobile app development and software services sector. The reported decline in revenue and increased operating expenses, coupled with a going concern warning, suggests significant challenges in scaling operations and achieving profitability within this dynamic industry.

Corporate Governance

Legal Proceedings

• The company is not currently involved in any legal proceedings and is not aware of any pending or potential legal actions.

Related Party Transactions

• As of July 31, 2026, there was $6,000 due from a related party, representing sales proceeds collected by the major stockholder on behalf of the company.
• As of July 31, 2026, there was $40,525 due to a related party, representing an advance from the company's major stockholder.
• The major stockholder, who is also the sole officer and director, has provided financial support and has undertaken not to demand repayment of outstanding balances until the company's liquid resources permit.

Stakeholder Impact

• Shareholders: The declining revenue, increasing losses, and going concern warning suggest a negative impact on shareholder value and potential dilution if new equity is issued.
• Creditors: The company's financial instability and going concern issues may impact its ability to meet its obligations.
• Employees: Uncertainty about the company's future could affect employee morale and job security.
• Suppliers: Potential for delayed payments or non-payment due to the company's financial condition.

Next Steps

• Seek third-party equity and/or debt financing.
• Continue to develop mobile applications and provide software development services.
• Manage cybersecurity risks through third-party providers and internal oversight.

Key Dates

Recommendation

The company exhibits significant financial distress, including declining revenues, increasing losses, a substantial working capital deficit, and a going concern warning. The lack of a clear path to profitability and the reliance on uncertain future financing make it a high-risk investment. The potential for further dilution from capital raises also weighs negatively.

Keywords

mobile applications, software development, consulting services, cybersecurity, data encryption, blockchain, revenue recognition, going concern