T-REX Acquisition Corp. Discloses Going Concern Doubt, Property Foreclosure, and Critical Liquidity Issues
TRXA has more than doubled off its 52-week low of $0.05.
Summary
T-REX Acquisition Corp. filed its 10-Q, revealing substantial doubt about its ability to continue as a going concern, a notice of default and pending foreclosure on its primary facility, and critically low cash reserves, alongside internal control weaknesses.
Key Events · Legal and Risk Events · TRXA
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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.
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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.
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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.
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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.
Analysis · TRXA · Crypto Assets
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.
How filings like this one have moved
In the 30 days to Oct 3, 2026, 40.9% of the 320 measured filings Wiseek scored 9 moved their stock by 5% or more by the next session's close. The median move was -0.38%. 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, TRXA was trading at $1.00 on OTC in the Crypto Assets sector, with a market capitalization of approximately $26.5M. The 52-week trading range was $0.05 to $4.94. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.