10-Q: Welsis Corp. Reports Net Loss in Q2 2025, Cites Going Concern Uncertainty

Welsis Corp. reports a net loss of $32,964 for the six months ended March 31, 2025, and expresses substantial doubt about its ability to continue as a going concern.

Summary

• Welsis Corp., a development-stage company, reported its financial results for the quarter ended March 31, 2025.
• The company incurred a net loss of $8,708 for the three months ended March 31, 2025, compared to a net income of $39,975 for the same period in 2024.
• For the six months ended March 31, 2025, the company's net loss was $32,964, compared to a net income of $26,711 for the same period in 2024.
• Revenue remained at $0 for the three months ended March 31, 2025, and was $0 for the six months ended March 31, 2025, compared to $2,000 for the six months ended March 31, 2024.
• The company's operating expenses were $6,507 for the three months ended March 31, 2025, and $28,751 for the six months ended March 31, 2025.
• As of March 31, 2025, the company had a working capital deficiency of $69,502.
• The company's financial statements have been prepared assuming that it will continue as a going concern, but there is substantial doubt about its ability to do so.
• The company is attempting to commence operations and generate sufficient revenue, but its cash position may not be sufficient to support its daily operations.
• Management intends to raise additional funds through equity markets, related party loans, and loans from unaffiliated parties through the issuance of convertible notes.

Sentiment

Score: 3

Explanation: The document presents a negative outlook due to the company's net losses, going concern uncertainty, and ineffective disclosure controls.

Positives

• The company secured $35,158 in financing through the issuance of convertible notes during the six months ended March 31, 2025.
• The company is actively seeking additional funding through various means, including equity markets and loans.

Negatives

• The company reported a net loss of $32,964 for the six months ended March 31, 2025.
• Revenue was $0 for the six months ended March 31, 2025.
• The company has a working capital deficiency of $69,502 as of March 31, 2025.
• The company's auditor has raised substantial doubt about its ability to continue as a going concern.
• The note payable is currently in default.

Risks

• The company's ability to continue as a going concern is dependent on its ability to implement its business plan, generate sufficient revenue, and raise additional funds.
• Additional issuances of equity or convertible debt securities will result in dilution to current shareholders.
• The company may not be able to obtain additional financing on acceptable terms, or at all.
• The company's disclosure controls and procedures were not effective as of the end of the period covered by the report.

Future Outlook

The company expects to require additional capital to meet its long-term operating requirements and intends to raise additional capital through the sale of equity or debt securities.

Management Comments

• Management intends to raise additional funds through equity markets, related party loans and loan from unaffiliated parties through the issuance of convertible notes.
• Any forward-looking statements represent management's best judgment as to what June occur in the future.

Industry Context

The company's shift to the cryptocurrency and blockchain industry reflects a broader trend of companies exploring opportunities in these emerging sectors, but it also introduces new risks and challenges.

Comparison to Industry Standards

• It's difficult to compare Welsis Corp.'s performance directly to industry standards due to its development stage and recent shift in business focus.
• Companies like Coinbase or Binance, which are established crypto-exchanges, have significantly higher revenues and user bases.
• In the teletherapy space, companies like Teladoc or Amwell have established platforms and revenue streams, which Welsis Corp. previously lacked and has now abandoned.

Management Changes

Related Party Transactions

• During the six months ended March 31, 2025 and 2024 the Company incurred consulting fees of $0 and $3,000 to the former Director of the Company, respectively.

Stakeholder Impact

• Shareholders face potential dilution from future equity issuances.
• Employees face uncertainty due to the company's going concern issues.
• Creditors face increased risk of non-payment due to the company's financial difficulties.

Next Steps

• The company needs to implement its business plan and generate sufficient revenue.
• The company needs to raise additional funds through equity markets and loans.
• The company needs to improve its disclosure controls and procedures.

Key Dates

Keywords

financial statements, going concern, net loss, convertible notes, cryptocurrency, blockchain, teletherapy, Welsis Corp