10-Q: Sharing Economy International Q1 2026 Financial Update

Sharing Economy International Inc. reports a net loss of $97,330 for Q1 2026, with no revenues and increased operating expenses.

Summary

• The company reported a net loss of $97,330 for the three months ended March 31, 2026, compared to a net loss of $5,224 for the same period in 2025.
• Revenues for both periods were $0.
• Operating expenses increased significantly to $89,955 in Q1 2026 from $5,224 in Q1 2025.
• Total assets were $18,163,567 as of March 31, 2026, a slight decrease from $18,320,261 as of December 31, 2025.
• Total liabilities were $4,201,448 as of March 31, 2026, a decrease from $4,260,812 as of December 31, 2025.
• Stockholders' equity decreased to $13,962,119 from $14,059,449.
• Cash and cash equivalents decreased to $111,273 from $263,147.
• The company has substantial doubt about its ability to continue as a going concern due to its accumulated deficit and net cash used in operations.

Sentiment

Score: 2

Explanation: StockSavvy.ai views this filing as highly negative due to the lack of revenue, increasing losses, and explicit statements about the company's going concern status and potential need to cease operations.

Positives

• Total liabilities decreased slightly from December 31, 2025, to March 31, 2026.
• The company has a significant amount due from related parties ($18,046,943), which could potentially be a source of future funding or settlement.

Negatives

• The company reported zero revenue for the first quarter of 2026 and 2025.
• Net loss increased significantly to $97,330 in Q1 2026 from $5,224 in Q1 2025.
• Operating expenses saw a substantial increase of 1621.96% to $89,955 in Q1 2026 compared to $5,224 in Q1 2025.
• Cash and cash equivalents decreased by over 57% to $111,273 from $263,147.
• The company has an accumulated deficit of $55,632,476 as of March 31, 2026.
• Management believes capital resources are not adequate to continue operations for the next twelve months, raising substantial doubt about the company's ability to continue as a going concern.
• The company is in default under a Pyram Note with an outstanding balance of $1,008,565 as of March 31, 2026.

Risks

• Substantial doubt exists regarding the company's ability to continue as a going concern due to insufficient capital resources and ongoing losses.
• The company may need to curtail or cease operations if it cannot raise additional capital or secure additional lending.
• The company is in default on a Pyram Note, which could lead to further legal or financial repercussions.
• The company faces potential legal proceedings related to a claim filed by ECPower (HK) Company Limited and a writ of summon from former executives of Ecrent subsidiaries.

Future Outlook

Management believes that its capital resources are not currently adequate to continue operating and maintaining its business strategy for twelve months from the date of this report. The Company may seek to raise capital through additional debt and/or equity financings to fund its operations in the future. If the Company is unable to raise additional capital or secure additional lending in the near future, management expects that the Company will need to curtail or cease operations.

Management Comments

• Management believes that its capital resources are not currently adequate to continue operating and maintaining its business strategy for twelve months from the date of this report.
• The Company may seek to raise capital through additional debt and/or equity financings to fund its operations in the future.
• If the Company is unable to raise additional capital or secure additional lending in the near future, management expects that the Company will need to curtail or cease operations.
• Management does not believe, based upon information available at this time that these matters [contingencies] will have a material adverse effect on the Companys financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Companys business, financial position, and results of operations or cash flows.

Industry Context

StockSavvy.ai notes that Sharing Economy International Inc.'s Q1 2026 results reflect a company struggling with operational viability, characterized by a lack of revenue, increasing expenses, and a significant net loss, which is a common challenge for early-stage or struggling companies in the technology and sharing economy sectors attempting to scale without a clear path to profitability.

Comparison to Industry Standards

• Companies in the sharing economy sector typically aim for rapid revenue growth and user acquisition, often subsidized by venture capital. Sharing Economy International Inc.'s reported zero revenue and increasing operating expenses deviate significantly from industry norms for companies seeking growth.
• Many successful sharing economy platforms (e.g., Airbnb, Uber, Lyft) demonstrate substantial revenue generation and focus on market share expansion. The financial performance presented here is not comparable to these established players.
• The significant accumulated deficit and going concern warnings are critical indicators that the company's financial structure and operational model are not aligned with industry standards for sustainable businesses.

Legal Proceedings

• ECPower (HK) Company Limited, a subsidiary, filed a claim against The Dairy Farm Limited for HK$1,395,000 (approximately $178,846) related to a cooperation agreement for a battery rental business.
• Ecrent Worldwide Company Limited received a writ of summon demanding settlement of approximately $241,706 and $103,841 to former executives (Mr. Michael Andrew Berman and Mr. Eric Hans Israel) for unpaid salary, benefits, expenses, and incentive bonus, based on a US Judgement. SEII intends to dispute the enforceability of this judgment in Hong Kong.

Related Party Transactions

• The Company receives advances from Chan Tin Chi Family Company Limited, a major shareholder, for working capital. These advances are non-interest bearing and payable on demand.
• As of March 31, 2026, amounts due from related companies were $18,046,943.
• As of March 31, 2026, amounts due to Chan Tin Chi Family Company Limited were $1,363,803.

Stakeholder Impact

• Shareholders face significant risk due to the company's going concern issues, increasing losses, and lack of revenue, potentially leading to a complete loss of investment.
• Creditors and noteholders face increased risk of non-payment, especially given the default on the Pyram Note and the company's stated need for capital.
• Employees may face job insecurity if the company is forced to curtail or cease operations.
• Suppliers may face delayed or non-payment for services rendered.

Next Steps

• The company may seek to raise capital through additional debt and/or equity financings.
• If additional capital cannot be raised, the company may need to curtail or cease operations.

Key Dates

Recommendation

The company exhibits severe financial distress with no revenue, increasing losses, a significant accumulated deficit, and explicit statements of doubt regarding its ability to continue as a going concern. The default on a note and ongoing legal proceedings further heighten the risk. Without a clear path to profitability or significant capital infusion, the investment is highly speculative and carries a substantial risk of total loss.

Keywords

Sharing Economy International, Form 10-Q, Quarterly Report, Financial Statements, Net Loss, Operating Expenses, Going Concern, Related Party Transactions, Convertible Notes