Hestia Insight 10-Q: Going Concern, $500K CEO Payable, and Ineffective Controls
HSTA sits 83% above its 52-week low of $0.021 on light trading volume (0.2× avg).
Summary
Hestia Insight's 10-Q reveals a going concern warning, a $500,000 CEO payable, ineffective controls, and a cash balance of just $19,141 against $835,682 in liabilities.
Key Events · Earnings and Guidance · HSTA
-
Going Concern Warning Reiterated
The company has an accumulated deficit of $(1,536,740) and cash of only $19,141 as of May 31, 2026, raising substantial doubt about its ability to continue as a going concern.
-
Liabilities Surge on $500K CEO Payable
Total liabilities jumped to $835,682 from $278,245, primarily due to a $500,000 officer payable to CEO Edward Lee for six years of unpaid compensation, approved by the board on April 20, 2026.
-
Minimal Revenue, Deep Losses
Revenue was just $16,000 for the six months ended May 31, 2026, while the net loss was $478,971, driven by $576,401 in operating expenses, including the CEO compensation.
-
Ineffective Disclosure Controls
Management concluded that disclosure controls and procedures were ineffective as of May 31, 2026, due to limited resources and a small number of employees.
Analysis · HSTA · Trade & Services
Hestia Insight's latest quarterly report paints a dire picture. The company has just $19,141 in cash against $835,682 in liabilities, a going concern warning, and a newly recognized $500,000 payable to its CEO for six years of unpaid salary. With only $16,000 in revenue and a net loss of $478,971, the company is surviving on related-party loans. Management also admits its disclosure controls are ineffective. The subsequent event extends the divestiture of its subsidiary to July 31, 2026, which may provide some relief but adds uncertainty.
At the time of this filing, HSTA was trading at $0.04 on OTC in the Trade & Services sector, with a market capitalization of approximately $1M. The 52-week trading range was $0.02 to $5.03. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.