10-K: Leopard Energy Shifts to Oil, Faces Going Concern Doubt

Leopard Energy, Inc. (formerly Cyber Apps World Inc.) has transitioned from mobile applications to oil and gas royalty interests, reporting revenues of $5,863 for FY2026, but faces substantial doubt regarding its ability to continue as a going concern.

Summary

• Leopard Energy, Inc. (formerly Cyber Apps World Inc.) has shifted its business focus to acquiring energy production and development opportunities in the U.S., specifically investing in oil royalty interests.
• For the fiscal year ended July 31, 2026, the company generated $5,863 in revenue from its 5% royalty interest in seven producing oil wells in the Eagle Ford Shale.
• The company reported a net loss of $34,150 for FY2026, with an accumulated deficit of $11,727,265 as of July 31, 2026.
• Current liabilities exceed current assets by $118,978, and the independent auditor's report raises substantial doubt about the company's ability to continue as a going concern.
• Zenith Energy Ltd., the controlling stockholder, has provided significant capital ($421,007 in payments and $45,000 in cash) and intends to continue financing operations and acquisitions.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this filing as having a negative sentiment due to the company's ongoing losses, significant accumulated deficit, and the auditor's statement raising substantial doubt about its ability to continue as a going concern, despite a recent strategic shift.

Positives

• Successful acquisition of a 5% royalty interest in seven producing oil wells in the Eagle Ford Shale, marking the company's entry into the U.S. energy sector.
• Revenue generation from the acquired royalty interest, amounting to $5,863 in FY2026.
• A decrease in general and administrative expenses to $34,667 in FY2026 from $64,922 in FY2025, primarily due to reduced consulting and audit expenses.
• The controlling stockholder, Zenith Energy Ltd., has provided substantial financial support and indicated an intention to continue doing so.

Negatives

• The company reported a net loss of $34,150 for the fiscal year ended July 31, 2026.
• An accumulated deficit of $11,727,265 as of July 31, 2026.
• Current liabilities of $136,598 exceed current assets of $17,620, resulting in a working capital deficit of $118,978.
• The independent auditor's report explicitly states that the company's financial condition raises substantial doubt about its ability to continue as a going concern.
• The company has no employees other than its executive officers.

Risks

• Substantial doubt about the company's ability to continue as a going concern due to recurring losses and a working capital deficit.
• The highly competitive U.S. market for energy production and development opportunities.
• Potential for future ownership changes to limit the utilization of Net Operating Loss (NOL) carryforwards under Section 382 of the Internal Revenue Code.
• The limited trading market for the company's Common Stock on the Pink tier of the OTC market, with no assurance a regular trading market will develop.
• Reliance on controlling stockholder Zenith Energy Ltd. for continued financing, with no guarantee of future funding on favorable terms.

Future Outlook

Zenith Energy Ltd., the controlling stockholder, has indicated its intention to continue financing the company and its expansion into the energy sector, including acquiring additional royalties or ownership interests, pending receipt of additional financing. The company expects to require additional capital and plans to raise it through equity or debt securities.

Management Comments

• Management believes that the material weaknesses in internal controls (lack of functioning audit committee, inadequate segregation of duties, ineffective period-end disclosure controls) did not have an effect on financial results for FY2026, but the lack of oversight could lead to future material misstatements.
• Management has prepared a plan to address the substantial doubt about the company's ability to continue as a going concern, which is detailed in Note 1 to the financial statements.

Industry Context

StockSavvy.ai notes that Leopard Energy's strategic pivot to the U.S. energy sector, specifically oil and gas royalty interests, aligns with a broader trend of companies seeking to capitalize on domestic energy production. However, the company's financial precariousness and auditor's going concern warning highlight the significant challenges of entering this capital-intensive industry, especially for a smaller entity with limited operating history in the sector.

Comparison to Industry Standards

• The company's revenue of $5,863 from royalty interests is extremely low compared to established energy producers. For context, major oil and gas companies generate billions in revenue annually.
• The company's operating loss of $33,790 and net loss of $34,150 are significant relative to its revenue, indicating a lack of profitability from its current operations.
• The auditor's statement regarding substantial doubt about the company's ability to continue as a going concern is a critical red flag, rarely seen in filings of financially stable companies within the energy sector.
• The company's lack of employees (other than executive officers) and reliance on external consultants and contractors is atypical for an operational energy company.

Corporate Governance

Legal Proceedings

• No material, active, or pending proceedings against the company or its subsidiaries are known.
• The company is not involved as a plaintiff or defendant in any material proceeding or pending litigation.

Related Party Transactions

• Zenith Energy Ltd., the controlling stockholder, has provided approximately $421,007 in capital through payments made on behalf of the company and $45,000 in cash capital since August 2023.
• Zenith Energy has indicated its intention to continue financing the company and its expansion.

Stakeholder Impact

• Shareholders: The company's financial instability and auditor's going concern warning pose significant risks to shareholder value. Continued reliance on controlling stockholder for funding may dilute existing shareholders.
• Creditors: The company's negative working capital and accumulated deficit raise concerns about its ability to meet its liabilities.
• Management/Employees: The company has no employees other than executive officers, indicating a very lean operational structure.

Next Steps

• Continue to acquire additional royalties and/or ownership interests in the U.S. energy sector.
• Seek additional financing through the sale of equity or debt securities.
• Continue to rely on Zenith Energy Ltd. for working capital and potential acquisitions.
• Address material weaknesses in internal controls over financial reporting.

Key Dates

Recommendation

The company's significant accumulated deficit, ongoing losses, negative working capital, and the auditor's explicit statement of substantial doubt about its ability to continue as a going concern present extreme financial risk. Despite a strategic shift to the energy sector and continued financial support from its controlling stockholder, the fundamental financial health and operational viability remain highly questionable, making it a speculative investment with a high probability of failure.

Keywords

Leopard Energy, Oil and Gas, Royalty Interest, Eagle Ford Shale, SEC Filing, 10-K, Energy Production, Going Concern