10-Q: Ankam Inc. Reports Significant Revenue Drop, Widening Losses

Ankam, Inc. disclosed a substantial decrease in revenue and a widening net loss for the nine months ended August 31, 2026, alongside a critical liquidity situation.

Summary

• Ankam, Inc. reported zero revenue for the three months ended August 31, 2026, compared to $44,900 for the same period in the prior year.
• For the nine months ended August 31, 2026, revenue decreased to $44,900 from $240,000 in the prior year.
• Total operating expenses increased to $112,767 for the three months ended August 31, 2026, from $55,691 in the prior year.
• For the nine months ended August 31, 2026, total operating expenses rose to $414,344 from $147,584 in the prior year.
• Net loss for the three months ended August 31, 2026, was $112,764, compared to $60,551 in the prior year.
• Net loss for the nine months ended August 31, 2026, was $369,356, compared to $15,445 in the prior year.
• Cash reserves significantly decreased to $8,321 as of August 31, 2026, from $131,710 as of November 30, 2025.
• Total liabilities increased to $783,538 as of August 31, 2026, from $574,813 as of November 30, 2025.
• Stockholders' deficit widened to $760,617 as of August 31, 2026, from $391,261 as of November 30, 2025.

Sentiment

Score: 2

Explanation: StockSavvy.ai views this as a negative sentiment due to significant revenue decline, increasing losses, and a precarious liquidity position, indicating substantial financial challenges.

Positives

• The company has established a new subsidiary, Mei Sheng Corporation Limited, to focus on expanding its presence in the Asian market.
• A software application development agreement was entered into for a health products sales platform.
• The company has no pending or threatened legal actions as of August 31, 2026.

Negatives

• Revenue for the three months ended August 31, 2026, was $0, indicating a complete cessation of revenue generation in the period.
• Revenue for the nine months ended August 31, 2026, saw a drastic decline of 81.3% to $44,900 from $240,000 in the prior year.
• Operating expenses for the nine months ended August 31, 2026, increased by 180.8% to $414,344 from $147,584.
• Net loss for the nine months ended August 31, 2026, surged to $369,356, a significant increase from $15,445 in the prior year.
• Cash balance has dwindled to $8,321 as of August 31, 2026, raising serious liquidity concerns.
• Total liabilities have grown to $783,538, with a substantial portion ($561,706) being advances from a director.
• The company has a significant accumulated deficit of $934,247 as of August 31, 2026.
• Disclosure controls and procedures were found to be not effective.

Risks

• The company has limited working capital and has not completed efforts to establish a stabilized source of revenue sufficient to cover operating costs over an extended period.
• Management anticipates dependence on additional investment capital to fund operating expenses in the near future.
• There are no assurances that the company will be successful in raising additional funds through capital markets or become financially viable.
• If financing is not available on satisfactory terms, the company may be unable to continue, develop, or expand its operations.
• Equity financing could result in additional dilution to existing shareholders.
• Net operating loss carryforwards are subject to annual limitations due to change in ownership provisions of the Tax Reform Act of 1986.
• The company's disclosure controls and procedures were not effective, increasing the risk of material misstatements or omissions.

Future Outlook

The company anticipates continued dependence on additional investment capital to fund operating expenses in the near future and intends to raise funds through capital markets. There is no assurance of success in these endeavors or in achieving financial viability.

Management Comments

• Management believes the financial statements contain all material adjustments necessary for fair presentation.
• Management has determined that it is more likely than not that deferred tax assets will not be realized in future periods, leading to a full valuation allowance.
• Management concluded that disclosure controls and procedures were not effective as of August 31, 2026.

Industry Context

StockSavvy.ai notes that Ankam, Inc. operates in the mobile application development space, focusing on expense management and currency conversion. The current financial performance, characterized by declining revenues and increasing losses, is concerning within an industry that often requires significant upfront investment and faces intense competition. The company's strategy to diversify into the Asian market with Mei Sheng Corporation Limited is a relevant move for growth, but its success is contingent on overcoming current financial and operational challenges.

Comparison to Industry Standards

• The company's revenue decline and increasing net loss are contrary to the growth trajectories of many successful mobile application developers in the expense management and fintech sectors.
• Competitors in the expense management software market, such as Expensify or SAP Concur, typically demonstrate consistent revenue growth and profitability, or are well-funded to sustain development phases.
• The current cash position of $8,321 is significantly below the typical funding levels required for app development and marketing in competitive markets, where seed or Series A funding rounds often range from millions to tens of millions of dollars.
• The company's reliance on director advances for funding is not a sustainable model compared to venture capital or strategic investment common in the industry.

Management Changes

Corporate Governance

Legal Proceedings

• No pending or threatened legal actions against the company as of August 31, 2026.

Related Party Transactions

• The company owed its sole director $561,706 as of August 31, 2026, for unpaid operating advances. This loan is unsecured, non-interest bearing, and due on demand.
• Net cash inflows from financing activities for the nine months ended August 31, 2026, were $114,288, attributable to net proceeds from related party loans advanced by the director.

Stakeholder Impact

• Shareholders face significant dilution risk if equity financing is pursued to address the capital shortfall.
• Existing shareholders are subject to substantial risk due to the company's precarious financial condition and widening losses.
• Creditors and suppliers may face increased risk of non-payment given the company's low cash reserves and high liabilities.
• Employees may experience uncertainty regarding job security due to the company's going concern issues and need for external funding.

Next Steps

• Continue development of Expense Minder and MoneySaverApp.
• Expand presence in the Asian market through Mei Sheng Corporation Limited.
• Seek additional investment capital to fund operations.
• Attempt to raise funds through capital markets.

Key Dates

Recommendation

The company exhibits severe financial distress, including a drastic revenue decline, significantly increased losses, critically low cash reserves, and ineffective disclosure controls. The going concern warning and dependence on external capital without assurance of availability present substantial risks, making it a high-risk investment.

Keywords

Expense Minder, MoneySaverApp, Apex, currency converter, expense reporting, mobile application, software development, startup