PreAxia Q1 FY2027: Going Concern Reaffirmed, Deficit Widens to $543K
PAXH filed a Earnings and Guidance on light trading volume (0.1× avg).
Summary
PreAxia's first-quarter FY2027 report shows a smaller $206,876 net loss but a reaffirmed going-concern warning, a $543,336 shareholders' deficit, and cash that exists only because of $228,000 in new convertible borrowing.
Key Events · Earnings and Guidance · PAXH
-
Going Concern Doubt Reaffirmed
Management states substantial doubt about the ability to continue as a going concern within one year, citing a $220,616 comprehensive loss, a $543,336 shareholders' deficit, and a $6,578,737 accumulated deficit.
-
Cash Funded Entirely by New Debt
Cash rose to $141,579 from $1,003, driven by $228,000 of new convertible notes; operating activities contributed only $22,096 and $100,311 went to software and equipment purchases.
-
Convertible Notes Add Future Dilution
New notes of $71,200 and $106,800 convert at $0.25 (10% interest, due June 2027) and $50,000 converts at $0.15 (12% interest, due July 2029) — roughly 1.0M shares if all convert, versus 48,314,782 shares outstanding.
-
Deficit and Working Capital Gap Widen
Shareholders' deficit grew to $543,336 from $383,567 and the working capital deficit to $1,187,960 from $966,177; the company projects needing about $1,000,000 over the next twelve months with no committed funding.
Analysis · PAXH · Trade & Services
PreAxia remains a pre-revenue development-stage company with no sales and a going-concern warning. The quarter's $206,876 net loss was smaller than last year's $745,208, but that improvement came mostly from cutting research and development to zero and capitalizing $128,930 of software costs rather than from any business progress. Cash of $141,579 exists only because the company borrowed $228,000 in new convertible notes during the quarter, and the shareholders' deficit deepened to $543,336 while the working capital deficit grew to $1,187,960. Management also concluded disclosure controls were not effective. The company says it needs roughly $1,000,000 over the next twelve months and has no committed source for it, so further equity or convertible issuance — and the dilution that comes with it — is the likely path.
How filings like this one have moved
In the 30 days to Nov 1, 2026, 39.9% of the 1106 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.34%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, PAXH was trading at $0.22 on OTC in the Trade & Services sector, with a market capitalization of approximately $447.1K. The 52-week trading range was $0.01 to $2.50. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.