Hoops Scouting USA 10-K: Going Concern Warning, $71,064 Net Loss, Material Weaknesses

summarizeSummary

Hoops Scouting USA's fiscal 2026 annual report shows a $71,064 net loss on $20,000 of revenue, a going concern opinion, $8,013 of cash and material weaknesses in internal controls, with the sole officer/director funding operations through personal advances now totaling $287,019.

check_boxKey Events · Earnings and Guidance · HSCT

• Going Concern Opinion Issued

  Auditor Boladale Lawal & Co. flagged substantial doubt about the company's ability to continue, citing a $382,901 accumulated deficit, a $247,851 working capital deficit and a $71,064 net loss for fiscal 2026.

• First Revenue, But Losses Widen

  Fiscal 2026 sales were $20,000 from basketball merchandise sold to a single customer, with $15,755 cost of goods sold for $4,245 gross profit; operating expenses of $79,538 (including $44,169 of transfer agent and filing fees) drove the net loss to $71,064 versus $20,118 in fiscal 2025.

• Cash Position Near Zero

  The company held $8,013 of cash at June 30, 2026 and used $44,082 in operating activities during the year; the sole officer/director advanced $52,075 to keep it running and is owed $287,019, unsecured and due on demand.

• Material Weaknesses in Controls

  Management concluded disclosure controls and internal control over financial reporting were not effective, citing the lack of formal accounting review policies and the absence of an audit committee or financial expert.

auto_awesomeAnalysis · HSCT · Technology

There is essentially no business here to fund itself: $20,000 of merchandise revenue against $79,538 of operating expenses produced a $71,064 net loss, and the auditor attached a going concern opinion because the accumulated deficit reached $382,901 and working capital is negative $247,851. Cash stood at just $8,013 at June 30, 2026, and the only funding source is the sole officer/director, who is owed $287,019 and advanced $52,075 during the year. Management also concluded internal controls were not effective, citing the absence of formal accounting policies and of any audit committee or financial expert. With no public trading market for the stock, any future equity raise would be sold privately at whatever terms the single insider and a handful of holders accept.