T-REX Acquisition Corp. Discloses Going Concern Doubt, Property Foreclosure, and Critical Liquidity Issues

summarizeSummary

T-REX Acquisition Corp.'s latest 10-Q reveals a company in severe financial distress, raising substantial doubt about its ability to continue as a going concern. The company reported a significant net loss and accumulated deficit, coupled with a critically low cash balance of only $1,759. A major concern is the notice of default and pending foreclosure on its primary Orofino facility, with an outstanding balance of approximately $325,000. Furthermore, the company's disclosure controls and procedures were deemed ineffective due to a lack of segregation of duties and insufficient qualified accounting personnel, indicating significant internal control weaknesses. The company also has delinquent tax filings and a high percentage of aged trade payables. Subsequent to the reporting period, T-REX issued 1,250,000 common shares to a consultant for a potential $5 million capital raise, highlighting ongoing efforts to secure funding amidst its liquidity crisis, but also signaling significant potential dilution.

check_boxKey Events

• Substantial Doubt About Going Concern

  The company reported a net loss of $1,410,116 for the six months ended December 31, 2025, an accumulated deficit of $10,969,465, and a working capital deficit of $2,100,806, leading to substantial doubt about its ability to continue operations.

• Foreclosure Proceedings on Primary Facility

  A notice of default was filed on September 24, 2025, by the first mortgage holder on the Orofino facility, with a foreclosure sale scheduled for February 10, 2026, which has since been postponed. The outstanding balance on the defaulted note is approximately $325,000.

• Critical Liquidity Shortage

  As of December 31, 2025, the company held only $1,759 in cash, with net cash used in operating activities totaling $175,395 for the six-month period, indicating severe liquidity issues.

• Ineffective Internal Controls

  Management concluded that disclosure controls and procedures were not effective as of December 31, 2025, citing a lack of segregation of duties and a shortage of qualified accounting personnel.

auto_awesomeAnalysis

T-REX Acquisition Corp.'s latest 10-Q reveals a company in severe financial distress, raising substantial doubt about its ability to continue as a going concern. The company reported a significant net loss and accumulated deficit, coupled with a critically low cash balance of only $1,759. A major concern is the notice of default and pending foreclosure on its primary Orofino facility, with an outstanding balance of approximately $325,000. Furthermore, the company's disclosure controls and procedures were deemed ineffective due to a lack of segregation of duties and insufficient qualified accounting personnel, indicating significant internal control weaknesses. The company also has delinquent tax filings and a high percentage of aged trade payables. Subsequent to the reporting period, T-REX issued 1,250,000 common shares to a consultant for a potential $5 million capital raise, highlighting ongoing efforts to secure funding amidst its liquidity crisis, but also signaling significant potential dilution.