10-Q: My City Builders Q3 2026 Financial Update

My City Builders reports no revenue for the quarter as it pivots to multifamily housing development in Glencoe, Alabama.

Summary

• The company reported zero revenue for the three and nine months ended April 30, 2026.
• Net loss for the quarter was $23,265, compared to $62,267 in the same period last year.
• Operating expenses for the nine-month period totaled $100,792, primarily driven by professional fees.
• The company acquired 4 acres of land in Glencoe, Alabama, for $350,000, financed via a secured promissory note.
• A working capital deficit of $30,540 was reported as of April 30, 2026.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a high-risk situation due to the lack of revenue, significant accumulated deficit, and reliance on related-party funding to avoid insolvency.

Positives

• Successfully acquired 4 acres of land in Glencoe, Alabama, for future development.
• Received rezoning approval from the City of Glencoe on December 16, 2025.
• Raised $82,500 in cash through a private offering of common stock in December 2025.

Negatives

• The company has no revenue-generating operations following the sale of its previous subsidiary.
• Reported a net loss of $117,509 for the nine months ended April 30, 2026.
• Accumulated deficit stands at $5,010,841.
• Management identified material weaknesses in internal controls over financial reporting.

Risks

• Substantial doubt exists regarding the company's ability to continue as a going concern.
• Failure to commence construction on the Glencoe property within one year of October 31, 2025, could trigger a default on the $350,000 promissory note.
• Dependence on related-party advances for operational funding, which are unsecured and repayable on demand.
• Requirement to raise approximately $1,250,000 in additional equity to qualify for construction financing.

Future Outlook

The company plans to develop up to 25 multifamily units in three phases, starting with an 8-unit duplex. Success depends on securing construction financing and raising $1.25 million in equity.

Management Comments

• Management expects construction efforts for Phase I to begin prior to July 31, 2026.
• Management believes that successful execution of the development plan will result in future revenue.

Industry Context

StockSavvy.ai notes that the company is currently a shell-like entity transitioning into a real estate developer, a high-risk pivot common in micro-cap stocks that lack established revenue streams.

Comparison to Industry Standards

• The company lacks the scale and operational history of established homebuilders like D.R. Horton or Lennar.
• The reliance on related-party financing is significantly higher than industry standards for publicly traded real estate firms.

Corporate Governance

Related Party Transactions

• Promissory note of $350,000 issued to RAC Gadsden, LLC, an affiliate of the majority shareholder.
• Ongoing reliance on unsecured, non-interest-bearing advances from related parties for operating expenses.

Stakeholder Impact

• Shareholders face significant dilution risk if the company proceeds with the required $1.25 million equity raise.
• Creditors face risk due to the company's working capital deficit and reliance on related-party support.

Next Steps

• Secure construction financing for the Glencoe project.
• Raise $1.25 million in equity capital.
• Commence Phase I construction (8-unit duplex) before July 31, 2026.

Key Dates

Recommendation

The company is a pre-revenue entity with substantial going concern doubts, material weaknesses in internal controls, and a high dependency on related-party financing, making it an extremely speculative and risky investment.

Keywords

real estate development, multifamily housing, Glencoe Alabama, going concern, SEC filing, My City Builders