10-Q: Yuenglings Ice Cream Corp. Reports Q1 2025 Results, Navigates Strategic Shift to Technology Holding Company

Yuenglings Ice Cream Corporation reports a net profit for Q1 2025 amidst a strategic transition to a technology holding company model, marked by the assignment of ReachOut Technology Corp. and a focus on high-growth technology subsidiaries.

Summary

• Yuenglings Ice Cream Corporation, currently undergoing a name and symbol change, reported its Q1 2025 financial results.
• The company is transitioning into a diversified technology holding company, drawing inspiration from Berkshire Hathaway and Alphabet.
• The company's flagship operating company, ReachOut, is a leader in cybersecurity solutions for small to medium-sized businesses (SMBs).
• ReachOut offers services including 24/7 threat monitoring, compliance support, and AI-driven automation through a subscription-based model.
• Post-acquisition, ReachOut has shifted its growth strategy to targeting smaller, high-potential firms for faster integration and scalability.
• The company is expanding its portfolio beyond traditional IT services with ventures like TRUSTLESS, a blockchain-based identity management platform.
• The company aims to emulate the customer-centric approach of companies like T-Mobile, offering accessible, high-quality cybersecurity services to underserved SMBs.
• For the three months ended March 31, 2025, the company reported revenue of $413,312, compared to $2,097,229 for the same period in 2024.
• The company incurred $8,171 in costs of goods sold for the three months ended March 31, 2025, compared to $1,045,439 for the same period in 2024.
• The company incurred an impairment loss of $3,505,069 for the three months ended March 31, 2025, compared to $2,117,502 for the same period in 2024.
• The company had $21,588 of general and administrative expenses for the three months ended March 31, 2025, compared to $308,612 for the same period in 2024.
• The company had $832,121 in compensation for the three months ended March 31, 2025, compared to $900,474 for the same period in 2024.
• The company incurred $260,275 of professional fees for the three months ended March 31, 2025, compared to $335,258 for the same period in 2024.
• For the three months ended March 31, 2025, the company had total other income of $10,755,088, compared to total other expenses of $6,412,653 for the same period in 2024.
• The company reported a net profit of $6,541,177 for the three months ended March 31, 2025, compared to a net loss of $9,022,709 for the same period in 2024.
• Cash used in operating activities for the three months ended March 31, 2025 was $426,292, compared to $168,231 for the same period in 2024.
• The company netted $151,000 from financing activities for the three months ended March 31, 2025.
• The company's ability to continue as a going concern is dependent on generating sufficient cash flows from operations or obtaining financing.

Sentiment

Score: 5

Explanation: The document presents a mixed sentiment. While the company reports a net profit for the quarter, there are significant concerns about its long-term financial stability and ability to continue as a going concern. The strategic shift to a technology holding company model could be a positive development, but it also introduces new risks and uncertainties.

Positives

• The company reported a net profit of $6,541,177 for the three months ended March 31, 2025.
• The company is transitioning into a diversified technology holding company, which could lead to new revenue streams and growth opportunities.
• The company is negotiating an agreement to exchange its customer base with a private corporation owned by the CEO, expecting revenues of approximately $750,000 per quarter.

Negatives

• Revenue decreased to $413,312 for the three months ended March 31, 2025, compared to $2,097,229 for the same period in 2024.
• The company incurred an impairment loss of $3,505,069 for the three months ended March 31, 2025.
• The company has a working capital deficit of $8,046,460 and an accumulated deficit of $14,419,225 as of March 31, 2025.
• The company's auditors have raised substantial doubt about its ability to continue as a going concern.

Risks

• The company's ability to continue as a going concern is dependent on generating sufficient cash flows from operations or obtaining financing.
• The company's transition into a technology holding company may not be successful.
• The company faces risks related to integration, cultural alignment, and operational scalability with its acquisitions.
• The technology landscape evolves rapidly, requiring continuous innovation and investment to maintain service relevance.
• Market volatility, macroeconomic fluctuations, and capital availability may impact the pace of acquisitions and expansion.

Future Outlook

The company is transitioning into a diversified technology holding company, aiming to build a portfolio of synergistic, high-growth technology subsidiaries and achieve a successful uplisting to NASDAQ.

Management Comments

• The company is transitioning into a diversified technology holding company.
• The company is building the 'T-Mobile of Cybersecurity & IT' by establishing a nationally recognized brand for SMBs.
• The company is executing a strategic shift into a modern holding company structure modeled after Berkshire Hathaway's capital efficiency and Alphabet's innovation strategy.

Industry Context

The cybersecurity and IT services industry serving SMBs is highly fragmented, with many regional providers lacking specialization in advanced cybersecurity. ReachOut is positioning itself to fill this gap by offering enterprise-grade cybersecurity tailored for SMBs.

Comparison to Industry Standards

• The company aims to emulate the customer-centric approach of companies like T-Mobile in the cybersecurity and IT services industry.
• The company's holding company structure is modeled after Berkshire Hathaway's capital efficiency and Alphabet's innovation strategy.
• ReachOut is differentiating itself from traditional Managed Service Providers (MSPs) by offering enterprise-grade cybersecurity tailored for SMBs, a market segment often overlooked by larger firms.

Related Party Transactions

• During the three months ended March 31, 2025, the Company and a private company controlled by the CEO shared services and customer responsibilities.
• During the three months ended March 31, 2025, an entity controlled by the CEO advanced the Company $35,806.

Stakeholder Impact

• Shareholders face uncertainty due to the company's financial instability and transition to a new business model.
• Employees may be affected by the company's restructuring and potential need to reduce expenses.
• Customers may experience changes in service offerings as the company transitions to a technology holding company.

Next Steps

• The company is negotiating an agreement to exchange its customer base with a private corporation owned by the CEO.
• The company is working to transition into a diversified technology holding company.
• The company is aiming for a successful uplisting to NASDAQ.

Key Dates

Keywords

technology holding company, cybersecurity, ReachOut, TRUSTLESS, SMBs, financial results, acquisitions, convertible notes, going concern, impairment loss