10-Q: GlobalTek Ventures Q1 2026 Financial Update

GlobalTek Ventures reports a shift in focus and significant unrealized gains on investments, alongside ongoing going concern challenges.

Summary

• GlobalTek Ventures, formerly Ameritek Ventures, Inc., has transitioned its business focus from software to solid-state batteries, adaptive manufacturing, aerospace services, and luxury corporate housing.
• The company reported revenue of $5,419 for the three months ended March 31, 2026, a significant decrease from prior periods due to the divestiture of its software operations.
• A substantial unrealized gain of $2,976,458 on investments in ZenaTech, Inc. was recognized in the first quarter of 2026.
• The company continues to face substantial doubt regarding its ability to continue as a going concern, with a working capital deficit of $2,570,261 as of March 31, 2026.
• Management plans to address going concern issues through equity financing, generating lease income from corporate housing, and reducing operating expenditures.
• A 1-for-1,200 reverse stock split was effected on January 20, 2026.

Sentiment

Score: 2

Explanation: StockSavvy.ai views this filing as having a negative sentiment due to significant financial losses, ongoing going concern issues, and material weaknesses in internal controls, despite strategic shifts and investment gains.

Positives

• Recognized an unrealized gain of $2,976,458 from changes in the fair value of investments in ZenaTech, Inc.
• Acquired Galaxy Batteries, Inc. on August 14, 2025, aligning with the new strategic focus on solid-state batteries.
• Established Chicago Real Estate Partners, LLC to pursue corporate housing opportunities, generating rental income.
• Increased cash on hand to $26,883 as of March 31, 2026, from $2,543 as of December 31, 2025.

Negatives

• Reported a net loss of $3,009,928 for the three months ended March 31, 2026.
• Operating revenue for the three months ended March 31, 2026, was $5,419, indicating a significant decline from previous operations.
• Working capital deficit of $2,570,261 as of March 31, 2026, raising substantial doubt about the company's ability to continue as a going concern.
• Significant reliance on related-party financing and operational support from Epazz, Inc. and affiliated entities.
• Material weaknesses in internal controls were identified, including the lack of a functioning audit committee and inadequate segregation of duties.

Risks

• The company's ability to continue as a going concern is subject to substantial doubt due to its working capital deficit and reliance on external financing.
• The company's financial position and results of operations are significantly affected by changes in the market price and financial condition of ZenaTech, Inc., its primary investment.
• The company is involved in ongoing legal proceedings, including derivative claims, which could have an impact on its financial statements.
• The company's success is dependent on its ability to secure additional financing, generate lease income, and reduce operating expenditures.
• The company has identified material weaknesses in its internal control over financial reporting, which could lead to a material misstatement in financial statements.

Future Outlook

Management plans to raise equity capital to finance operating and capital requirements, including product development, marketing, and working capital. The company expects to generate lease income from its corporate housing units and reduce operating expenditures to address going concern issues. The company's financial future is heavily influenced by its investment in ZenaTech, Inc. and its ability to secure additional financing.

Management Comments

• Management's plans to address going concern issues include obtaining additional related-party or third-party financing, generating lease income from furnished corporate housing units, and reducing operating expenditures.
• Management believes that the outcome of current litigations would not have any material impact on the financial statements.
• Management has concluded that it is not more likely than not that deferred tax assets will be realized, and therefore a full valuation allowance is required.

Industry Context

StockSavvy.ai notes that GlobalTek Ventures' strategic pivot towards solid-state batteries and advanced manufacturing aligns with emerging industry trends, but the company's significant going concern issues and reliance on related-party transactions present substantial risks.

Comparison to Industry Standards

• The company's revenue of $5,419 for the quarter is significantly below industry averages for companies in the battery technology, aerospace, or real estate sectors, reflecting its early-stage transition and divestiture of prior operations.
• The substantial net loss of $3,009,928 and working capital deficit of $2,570,261 highlight a financial situation that deviates significantly from industry standards for established companies, necessitating a strong focus on liquidity and capital raising.
• The company's reliance on related-party financing is a deviation from typical industry practices where independent financing is preferred for transparency and broader access to capital.

Corporate Governance

Legal Proceedings

• Meridian Pacific Holdings, LLC filed a lawsuit related to financing for fiber optic assets ($1.6 million), claims against the Company were dismissed in October 2023, but Meridian Pacific has asserted a creditor claim for approximately $396,350 in a Nevada custodianship proceeding which remains unresolved.
• The Company is seeking the cancellation of approximately 19,770,000 shares issued to Clinton L. Stokes in 2017, along with 71,429 shares issued to Meridian Pacific, due to lack of valid consideration.
• Meridian Pacific and Clinton L. Stokes have filed derivative claims against the Company.
• The Company filed a lawsuit in Clark County, Nevada, court against Clinton L. Stokes, III, the former owner of the Company, to settle the matter of shares ownership and if the asset coming from Fiber Optic Assets was purchased free and clear of any encumbrance from Meridian Financial Group, LLC on March 6, 2023. This case is still pending.

Related Party Transactions

• Acquisition of Galaxy Batteries, Inc. from Epazz, Inc. (a related party) on August 14, 2025, for 10,000,000,000 shares of common stock.
• Sale of Ecker Capital, LLC to ZenaTech, Inc. (a related party) on October 14, 2024, with an effective date of October 1, 2024.
• Significant debt obligations are due to Epazz, Inc., a related party.
• The Company is dependent on related-party financing and operational support from Epazz, Inc. and affiliated entities.
• Issuance of common stock to Epazz, Inc. and Shaun Passley, PhD for management services and stock compensation agreements.
• Balances with related parties include notes payable, accrued interest payable, accounts payable, and short-term advances.

Stakeholder Impact

• Shareholders: The company's ongoing financial struggles and going concern issues pose a significant risk to shareholder value. The reverse stock split and potential future equity raises could dilute existing shareholdings.
• Creditors: The company's ability to meet its obligations is uncertain due to its working capital deficit and reliance on financing. Related-party creditors may have priority or preferential terms.
• Employees: The company's financial instability could impact job security and future compensation. The shift in business focus may also require new skill sets.
• Suppliers: The company's ability to pay suppliers may be affected by its liquidity constraints.

Next Steps

• Management plans to obtain additional related-party or third-party financing.
• Generate lease income from furnished corporate housing units.
• Reduce operating expenditures.
• Continue development of the Company's products.
• Provide financing for marketing and promotion.
• Secure additional property and equipment.
• Address material weaknesses in internal controls.

Key Dates

Recommendation

The company is undergoing a significant strategic transformation with new business lines in promising sectors like solid-state batteries. However, the severe going concern issues, material weaknesses in internal controls, and heavy reliance on related-party transactions present substantial risks that outweigh the potential upside in the short term. A 'hold' recommendation allows investors to monitor the company's progress in securing financing, improving its financial stability, and executing its new strategy before considering a more definitive investment decision.

Keywords

GlobalTek Ventures, Form 10-Q, Quarterly Report, SEC Filing, Financial Statements, Solid-state batteries, Galaxy Batteries, Corporate Housing, ZenaTech Investment, Going Concern, Related Party Transactions, Ameritek Ventures