10-Q: GHST World Inc. Reports Q3 2025 Results, Revenue Increases but Losses Persist Amid Shift to Clean Energy

GHST World Inc. reports increased revenue for Q3 2025 but continues to experience net losses as it transitions towards clean energy production and trading.

Summary

• GHST World Inc. is a holding company transitioning to clean energy production and trading.
• The company's subsidiary, Insside World Inc., is acquiring surface rights for solar plant construction in Italy.
• Insside is partnering with Green Capital SRL, an Italian company responsible for raising capital to build solar plants.
• For the three months ended March 31, 2025, revenue was $4,755 compared to $431 in the same period of 2024.
• Net losses for the three months ended March 31, 2025, were $31,532 compared to $27,915 in 2024.
• For the nine months ended March 31, 2025, revenue was $55,359 compared to $40,126 in the same period of 2024.
• Net losses for the nine months ended March 31, 2025, were $89,963 compared to $464,714 in 2024.
• The company had $144 in available cash as of March 31, 2025.
• Management expresses substantial doubt about the company's ability to continue as a going concern for the next 12 months without additional capital or revenue.
• The company is also seeking a strategic partner for its Smart Shin Guard product.

Sentiment

Score: 3

Explanation: The sentiment is negative due to the company's continued losses, low cash position, going concern warning, and material weakness in internal controls, despite some revenue growth and a shift to a potentially promising sector.

Positives

• Revenue increased for both the three and nine months ended March 31, 2025.
• Net losses decreased for the nine months ended March 31, 2025.
• The company is actively pursuing a new business venture in the clean energy sector.
• The company is seeking a strategic partner for its Smart Shin Guard product.

Negatives

• The company continues to experience net losses.
• There is substantial doubt about the company's ability to continue as a going concern without additional capital or revenue.
• The company is dependent on related parties for short-term funding.
• The company had only $144 in available cash as of March 31, 2025.
• The company did not maintain effective controls to identify and maintain segregation of duties to support the identification, authorization, approval, accounting for, and the disclosure of related-party transactions and non-routine transactions.

Risks

• The company's new business venture in the clean energy sector is subject to significant risks and uncertainties.
• The company may be unable to raise sufficient capital to fund its operations.
• The company's reliance on related parties for funding poses a risk.
• The company's ability to generate material revenue is uncertain.
• The company's internal control over financial reporting has a material weakness.

Future Outlook

The company is focusing on developing its new energy business and seeking to finalize the structure for the purchase and sale of electricity on behalf of third parties; management estimates that Green Capital will need to raise and deploy approximately $7 million to $10 million to construct and commence operations for one solar plant, and that the solar plants will begin operating by approximately nine to 12 months from the date the necessary capital is raised; the Company is also seeking a strategic partner with the goal of integrating the Smart Shin Guard into a complete solution and launching the product to market.

Management Comments

• Management believes that the Company has reached a point where the losses from its existing business are no longer justifiable.
• Management intends to raise money through investors as needed to support its working capital needs.
• Management has expressed substantial doubt about our ability to continue as a going concern for the next 12 months from the date the financial statements were issued, unless we can raise the required capital or generate material revenue to fund our operations.

Industry Context

The company's shift to clean energy production aligns with the growing global trend towards renewable energy sources; the success of this venture will depend on securing financing and establishing profitable energy trading agreements.

Comparison to Industry Standards

• It is difficult to compare GHST World's financial performance directly to industry standards due to its unique transition from technology patents to clean energy.
• Companies in the renewable energy sector, such as First Solar and Enphase Energy, have demonstrated significant revenue growth and profitability, but require substantial capital investment.
• GHST World's success will depend on its ability to secure funding and execute its business plan effectively, similar to other small-cap companies entering the renewable energy market.

Related Party Transactions

• At March 31, 2025 and June 30, 2024, the Company owed related parties a total of $ 387,595 and $ 269,854 , respectively.
• These shareholder loans are unsecured, non-interest bearing and are due on demand.
• Included in the debts is $ 9,559 as of March 31, 2025, of amounts due to related parties that will be converted as described in Note 4.

Stakeholder Impact

• Shareholders face significant risk due to the company's financial instability and going concern warning.
• Employees' jobs may be at risk if the company cannot secure funding and generate revenue.
• The company's ability to meet its obligations to suppliers and creditors is uncertain.

Next Steps

• Secure financing for the clean energy projects.
• Finalize the structure for the purchase and sale of electricity.
• Seek a strategic partner for the Smart Shin Guard product.
• Address the material weakness in internal control over financial reporting.

Key Dates

Keywords

clean energy, solar plants, revenue, net loss, going concern, GHST World Inc., Insside World Inc., Green Capital SRL, Smart Shin Guard, capital raise