10-Q: Vynleads Reports Q3 Loss Amid Zero Revenue, Going Concern Doubts

Vynleads, Inc. reported a net loss of $58,069 for Q3 2025 with no revenue, facing substantial doubt about its ability to continue as a going concern and requiring $5.5 million in new capital.

Summary

• Vynleads, Inc. reported a net loss of $58,069 for the three months ended September 30, 2025, and $196,120 for the nine months ended September 30, 2025.
• The company generated no revenue for both the three and nine months ended September 30, 2025, and 2024.
• Operating expenses increased, with selling, general, and administrative expenses rising by 20% to $60,584 for the three months and 10% to $188,303 for the nine months, primarily due to third-party software development.
• Cash decreased from $68,988 at December 31, 2024, to $36,322 at September 30, 2025.
• Working capital deficit worsened from $(227,365) at December 31, 2024, to $(325,985) at September 30, 2025.
• The accumulated deficit reached $2,981,650 as of September 30, 2025.
• Management identified substantial doubt about the company's ability to continue as a going concern.
• The company requires approximately $5,500,000 in additional working capital over the next 12 months to fund operations and growth initiatives.
• Disclosure controls and procedures were deemed not effective, and a material weakness in internal control over financial reporting exists due to limited personnel and lack of segregation of duties.
• Two notes payable, totaling $75,000 in principal, are currently in default.

Sentiment

Score: 2

Explanation: The company faces severe financial distress with no revenue, recurring losses, a worsening working capital deficit, and explicit going concern doubts. While net loss slightly improved due to reduced interest expense, the underlying operational issues and need for significant capital without firm commitments indicate a very negative outlook.

Positives

• Net loss for the nine months ended September 30, 2025, slightly improved to $196,120 compared to $197,545 in the prior year, primarily due to a significant decrease in interest expense.
• Net loss per common share improved to $(0.01) for the nine months ended September 30, 2025, from $(0.02) in the prior year, partly due to an increased weighted average share count.
• Interest expense significantly decreased for both the three-month ($1,457 vs $7,253) and nine-month ($3,346 vs $20,909) periods compared to the prior year.
• The company successfully settled a credit card debt with American Express in May 2024, resulting in a one-time gain of $4,716.

Negatives

• The company reported no revenue for the three and nine months ended September 30, 2025, and 2024.
• Recurring operating losses and negative operating cash flows persist, leading to an accumulated deficit of $2,981,650 as of September 30, 2025.
• Working capital deficit worsened from $(227,365) at December 31, 2024, to $(325,985) at September 30, 2025.
• Cash balance significantly decreased from $68,988 at December 31, 2024, to $36,322 at September 30, 2025.
• Two notes payable, totaling $75,000 in principal, are currently in default.
• Disclosure controls and procedures were deemed not effective, and a material weakness in internal control over financial reporting was identified due to limited personnel and lack of segregation of duties.
• Net cash used in operating activities increased to $(82,166) for the nine months ended September 30, 2025, from $(81,419) in the prior year.
• Net cash provided by financing activities decreased to $49,500 for the nine months ended September 30, 2025, from $66,906 in the prior year.
• The company relies on a single supplier for its herbal/natural supplements, posing a risk of supply interruption.

Risks

• **Going Concern**: Substantial doubt exists about the company's ability to continue as a going concern due to recurring operating losses, negative operating cash flows, and a significant accumulated deficit.
• **Liquidity and Capital Requirements**: The company requires approximately $5,500,000 in additional working capital within the next 12 months to fund operations and growth, with no firm commitments for this capital. Failure to raise funds could force curtailment or discontinuation of operations.
• **Operational Dependence**: The company relies on a single supplier for its herbal/natural supplements, which could lead to material business impact if a supply interruption occurs during a transition to a new supplier.
• **Internal Control Weaknesses**: Disclosure controls and procedures were not effective, and a material weakness in internal control over financial reporting exists due to limited personnel and lack of segregation of duties, increasing the risk of material misstatements.
• **Debt Defaults**: Two notes payable, totaling $75,000 in principal, are currently in default, which could lead to further financial and legal complications.
• **Legal Proceedings**: Ongoing dispute with a promoter regarding alleged non-payment of royalties and unauthorized UCC Liens, which could result in adverse outcomes.
• **Revenue Generation**: The company has not generated any revenue in the reported periods, indicating a fundamental challenge in its business model or market penetration.

Future Outlook

Management estimates a requirement of approximately $5,500,000 in additional working capital over the next 12 months to expand service and product offerings, market and promote services, develop infrastructure, and cover operating expenses. The company expects to raise this capital primarily through the sale of equity securities, but there are no assurances of success in securing these funds.

Management Comments

• Management believes that there is substantial doubt about our ability to continue as a going concern.
• We will require substantial funds to expand service and product offerings into additional areas, market and promote our services and product offerings; and develop and grow our infrastructure and corporate organization.
• There can be no assurances that we will achieve our forecasted financial results or that we will be able to raise additional capital to operate our business.
• Any such failure would have a material adverse impact on our liquidity and financial condition and could force us to curtail or discontinue operations entirely and could require us to file for protection under bankruptcy laws.
• Management notes that upon subsequent funding, the Company expects to have the available resources in order to hire additional personnel to expand the finance and accounting department in order to mitigate the material weakness noted above.

Industry Context

The filing does not provide sufficient information to analyze how Vynleads' performance relates to broader industry trends or competitors. The company operates in the health and wellness information and nutritional supplements sector, which is generally competitive, but specific market positioning or comparative performance data is absent.

Corporate Governance

Legal Proceedings

• Ongoing dispute with a consultant (the Promoter) regarding alleged non-payment of royalty amounts under a Promotion and Royalty Agreement from April 2016.
• The Promoter initiated informal claims and filed unauthorized Uniform Commercial Code (UCC) financing statements (UCC Liens) against the company and its officers, directors, and founders.
• The company disputes the claims, believes all amounts due have been paid, and is no longer selling the book authored by the Promoter.
• The company has succeeded in removing some UCC Liens and is pursuing actions to remove the remaining unauthorized UCC Liens.

Related Party Transactions

• Mr. Sergei Stetsenko, a Board member, had two notes payable ($15,000 and $25,000 principal) converted to 177,246 and 267,020 shares of common stock, respectively, effective October 31, 2024.
• Mr. Mannine (CEO) provided in-kind contributions of service valued at $32,500 for the three months and $97,500 for the nine months ended September 30, 2025 and 2024, following his voluntary cancellation of an employment agreement in September 2020 where he waived cash due.
• Notes payable associated with Christos Livadas, Director of Weiser Global Capital, became related party debt effective January 23, 2024, after Mr. Sergei Stetsenko sold 1,250,000 shares to Mr. Livadas.

Stakeholder Impact

• **Shareholders**: Face significant dilution risk from potential future equity raises. The value of existing shares is impacted by recurring losses, going concern doubts, and ineffective internal controls.
• **Creditors**: Two notes payable are in default, indicating increased risk for lenders. The PPP loan forgiveness is pending, adding uncertainty.
• **Employees**: Limited personnel and lack of segregation of duties could lead to increased workload or operational inefficiencies. Future funding is critical for continued operations.
• **Customers**: The company's ability to expand product offerings and marketing depends on securing significant additional capital, which could impact future service availability and quality if not obtained.
• **Suppliers**: Reliance on a single supplier for supplements poses a risk of supply chain disruption, potentially affecting product availability.

Next Steps

• Raise approximately $5,500,000 in additional working capital over the next 12 months.
• Develop new indicators for the Lifestyle Blueprint platform.
• Add print versions of the DWD Protocol.
• Expand the nutritional supplement product line.
• Develop additional subscription content offerings for customers.
• Increase advertising and marketing efforts.
• Develop and grow infrastructure and corporate organization.
• Hire additional personnel to expand the finance and accounting department to mitigate internal control weaknesses, upon subsequent funding.
• Continue pursuing actions to remove remaining unauthorized UCC Liens.

Key Dates

Recommendation

Vynleads, Inc. presents a highly concerning financial picture. The company has zero revenue, persistent and substantial net losses, a worsening working capital deficit, and a critically low cash balance. Management explicitly states 'substantial doubt' about its ability to continue as a going concern and requires $5.5 million in new capital with no firm commitments. Furthermore, two notes payable are in default, and significant internal control weaknesses have been identified. These factors collectively indicate severe financial distress and a high probability of further value erosion or potential bankruptcy, making it a strong sell for any investor.

Keywords

Vynleads, 10-Q, SEC Filing, Financial Report, Health and Wellness, Digital Guide, Nutritional Supplements, Going Concern, Net Loss, Working Capital Deficit, Capital Raise, Corporate Governance, Internal Controls, Debt Default, Related Party Transactions