PreAxia Restates Q1: Equity Swings to $606K Deficit, 23.7M New Shares Surface
PAXH filed a Corporate Governance and Compliance on light trading volume (0.1× avg).
Summary
PreAxia's restated Q1 FY2026 filing shows equity swung to a $606K deficit and 23.7M additional shares were recognized, deepening the company's financial distress.
Key Events · Corporate Governance and Compliance · PAXH
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Equity Swings to $606K Deficit
Restated total shareholder equity fell from a previously reported positive $427,322 to a deficit of ($605,757) as of Aug 31, 2025.
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23.7M Additional Shares Recognized
The restatement moved 23,747,084 shares from stock subscriptions to outstanding common stock, including 15,255,770 shares issued for debt and 7,200,000 from warrant/option exercises.
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New $169K Loss on Debt Settlement
A loss on settlement of debt of $169,143 was recognized in the restated quarter, reflecting debt conversions at below-market prices.
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Total Assets Reduced to $130K
Restated total assets fell from $1,150,285 to $130,285, primarily from removing $1.02M in prepaid expenses that were reclassified as warrants.
Analysis · PAXH · Trade & Services
The second amendment to PreAxia's Q1 FY2026 10-Q materially rewrites the quarter. Total assets collapse from $1.15M to $130K, and shareholder equity flips from a positive $427K to a $606K deficit. The restatement also recognizes 23.7 million additional shares outstanding — previously parked as stock subscriptions — including 15.3M shares issued to convert debt and 7.2M from warrant exercises. A new $169K loss on debt settlement is booked. This follows the 10-K filed a week ago that already flagged going-concern risk, ineffective controls, and 17 years of unfiled tax returns. The restatement deepens the distress picture: the company has almost no assets, a negative equity position, and a share count that has more than doubled in a single quarter through insider debt conversions.
How filings like this one have moved
In the 30 days to Sep 11, 2026, 35.8% of the 1706 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.10%. 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.