Executive Summary
The 12 filings reveal a bifurcated landscape: pre-revenue and early-stage companies (Lexaria, SolarWindow, Lantics, Apex 11, Jubilant Flame) continue to burn cash with widening losses, while a few entities show operational turnarounds (Solitron Devices, Iron Horse Acquisition II) or revenue growth (Onar Holding).
The most striking portfolio-level trend is the severe cash burn and asset depletion across micro-cap names—Crypto Co's assets collapsed 85%, Onar's cash dropped 88%, and multiple companies (Apex 11, Jubilant Flame, Lantics) have near-zero cash positions, signaling imminent financing needs or going-concern risks. On the positive side, Solitron Devices posted a remarkable 101% revenue surge and swung to a $990K profit from a $336K loss, while Iron Horse and XFLH Capital (SPACs) generated substantial trust account interest income. Insider trading activity was notably absent across all filings, which is a neutral signal but warrants monitoring. Capital allocation is minimal—no dividends or buybacks—with most companies relying on equity or debt financing. The forward-looking data is sparse, but the scheduled events (earnings calls for Solitron, BAB, and others) provide near-term catalysts. Overall, the digest highlights extreme risk in pre-revenue micro-caps and selective turnaround opportunities in niche industrials and SPACs.
Materiality, sentiment, and priority are scored by Gunpowder’s analysis pipeline. How we score filings →
Filing types in this digest: 10-Q · 10-K
Tracking the trend? Catch up on the prior US Earnings Financial Results SEC Filings digest from July 06, 2026.
Investment Signals (10)
- Solitron Devices ↓ (BULLISH)▲
Revenue surged 101% YoY to $5.44M, gross profit jumped 532% to $2.47M, and net income swung to $990K from a $336K loss—a clear operational turnaround. Operating cash flow improved 455% to $2.17M.
- Iron Horse Acquisition II ↓ (BULLISH)▲
Net income of $1.3M in Q2 vs. a $23K loss a year ago, driven by $2.07M in trust interest income. IPO proceeds of $226M provide ample firepower for a de-SPAC target.
- XFLH Capital Corp ↓ (BULLISH)▲
Interest earned on trust account of $965.8K (nine months) generated net income of $762.5K, with $101.4M total assets post-IPO—a clean SPAC vehicle with low operating costs ($203.3K).
- Onar Holding Corp ↓ (MIXED)▲
Revenue grew 39% YoY to $1.02M, driven by continuing operations, signaling organic growth. However, gross profit declined 41% due to higher costs—a mixed signal.
- Lexaria Bioscience ↓ (MIXED)▲
Net loss improved 47.4% YoY to $1.99M, with operating expenses down 49.2%—cost discipline is evident. However, zero revenue and reliance on equity financing ($6.5M raised) cap upside.
- Crypto Co ↓ (BEARISH)▲
Net loss improved 72% YoY to $171.8K, and convertible debt fell 96.6%—balance sheet cleanup. But assets collapsed 85% to $33.4K, and cash dropped 85% to $14.9K, signaling extreme distress.
- Royale Energy ↓ (MIXED)▲
Net loss narrowed 42% to $1.25M, and costs fell 27.7%—operational efficiency improving. But revenues declined 13.9% on lower oil/gas prices, and cash used in operations increased to $2.7M.
- BAB, INC. ↓ (MIXED)▲
Revenue held steady at $803.7K (down only 0.6% YoY), with cash up 9.5% to $2.56M—stable franchise model. However, sign shop revenue collapsed 97.6% and settlement revenue fell to $0, signaling revenue mix deterioration.
- SolarWindow Technologies ↓ (BEARISH)▲
Net loss widened 27.6% YoY to $696.4K, with SG&A up 43.3%—costs rising faster than any revenue (still $0). Cash burn rate of ~$232K/month suggests ~20 months of runway.
- Lantics Corp. ↓ (BEARISH)▲
Zero revenue, net loss of $19.1K, and accumulated deficit of $31K—early-stage shell with minimal activity. Cash of $14.9K provides negligible runway.
Risk Flags (10)
- Crypto Co / Liquidity Crisis↓ [HIGH RISK]▼
Cash dropped 85% to $14.9K, total assets collapsed 85% to $33.4K, and stockholders' deficit is $6.12M—imminent going-concern risk.
- Onar Holding / Working Capital Deficit↓ [HIGH RISK]▼
Current liabilities of $10.6M exceed total assets of $3.96M, with cash of only $11.2K—severe liquidity strain.
- Lexaria Bioscience / Pre-Revenue Dependency↓ [HIGH RISK]▼
Zero revenue for Q2 2026, down from $174K a year ago. The company relies entirely on equity financing ($6.5M raised) and has no path to profitability disclosed.
- Jubilant Flame / Deteriorating Cash Position↓ [HIGH RISK]▼
Cash fell 59% to $1,715, working capital deficit widened to $1.45M, and net loss increased 55% YoY—near-zero runway.
- Apex 11 / Shell Company with No Assets↓ [HIGH RISK]▼
Zero revenue, $419 in total assets, no cash, and accumulated deficit of $312.7K—effectively a non-operating shell with no path to revenue.
- Lantics Corp. / Minimal Activity↓ [MODERATE RISK]▼
Zero revenue, $14.9K cash, $72.5K liabilities, and accumulated deficit of $31K—early-stage with no clear business model.
- SolarWindow Technologies / Rising Costs, No Revenue↓ [MODERATE RISK]▼
SG&A up 43.3% YoY, R&D up 3.8%, yet revenue remains $0. Cash burn rate of ~$232K/month with $4.79M cash gives ~20 months runway—needs funding soon.
- Royale Energy / Negative Operating Cash Flow↓ [MODERATE RISK]▼
Cash used in operations increased 14.4% to $2.7M, while revenues fell 13.9%—cash burn accelerating despite cost cuts.
- BAB, INC. / Revenue Mix Deterioration↓ [MODERATE RISK]▼
Sign shop revenue collapsed 97.6% to $192, settlement revenue fell to $0, and license fees dropped 43.5%—core revenue streams weakening despite stable total revenue.
- Iron Horse Acquisition II / Rising Operating Costs↓ [MODERATE RISK]▼
Operating losses widened to $773.5K in Q2 from $23.2K a year ago, driven by formation and operational costs as a public entity—SPACs face pressure to find a target quickly.
Opportunities (8)
- Solitron Devices / Turnaround Play↓ (OPPORTUNITY)◆
Revenue up 101% YoY, gross margin expanded from 14.4% to 45.3%, and net income swung positive. With $2.17M operating cash flow, the company is self-funding—potential for re-rating if growth sustains.
- Iron Horse Acquisition II / SPAC Arbitrage↓ (OPPORTUNITY)◆
$226M trust account generating $2.07M quarterly interest income, with low operating costs. If a high-quality target is announced, shares could re-rate significantly.
- XFLH Capital Corp / Clean SPAC with Low Burn↓ (OPPORTUNITY)◆
$101.4M in assets, $965.8K interest income, and only $203.3K in operating costs—efficient SPAC with high probability of finding a target.
- Royale Energy / Cost Restructuring Play↓ (OPPORTUNITY)◆
Operating costs down 27.7% YoY, net loss narrowed 42%—if oil/gas prices recover, the company could swing to profitability. Texas gas prices up 10.1% YoY is a positive signal.
- Onar Holding Corp / Revenue Growth Story↓ (OPPORTUNITY)◆
Revenue up 39% YoY to $1.02M, driven by continuing operations. If gross margin improves (currently 5.5% vs 12.9% a year ago), the stock could re-rate.
- BAB, INC. / Stable Cash Generator↓ (OPPORTUNITY)◆
Cash up 9.5% to $2.56M, royalty revenue growing, and franchise fees increasing—stable business model with potential for dividend initiation.
- Lexaria Bioscience / Cost Discipline↓ (OPPORTUNITY)◆
Operating expenses down 49.2% YoY, net loss improved 47.4%—if the company can secure a revenue-generating partnership, the reduced cost base could accelerate profitability.
- Crypto Co / Debt Reduction↓ (SPECULATIVE OPPORTUNITY)◆
Convertible debt down 96.6% to $38.8K—balance sheet cleanup complete. If crypto markets recover, the company's remaining holdings ($18.5K) could appreciate, but the asset base is tiny.
Sector Themes (6)
- Micro-Cap Cash Burn Crisis◆
5 of 12 companies (Crypto Co, Onar, Jubilant Flame, Apex 11, Lantics) have cash positions below $15K, with combined cash of ~$32K—extreme liquidity risk across the micro-cap space. Investors should demand proof of funding before investing.
- Pre-Revenue Companies Struggling to Monetize◆
Lexaria, SolarWindow, Lantics, and Apex 11 all report zero revenue, with combined net losses of $2.7M in their latest quarters. The lack of forward-looking guidance on revenue timelines is a red flag.
- SPACs Generating Solid Returns from Trust Interest◆
Iron Horse and XFLH Capital collectively earned $3.03M in interest income in their latest quarters, benefiting from higher rates. With $327.4M in combined trust assets, these SPACs offer a low-risk yield while awaiting targets.
- Operational Turnaround in Niche Industrials◆
Solitron Devices stands out with 101% revenue growth and a swing to profitability—a rare bright spot. This contrasts with the broader trend of revenue declines (Royale -13.9%, BAB -0.6%) and suggests niche demand recovery.
- Revenue Mix Deterioration in Franchise Models◆
BAB's sign shop revenue collapsed 97.6% and settlement revenue fell to $0, while franchise fees grew—indicating a shift away from high-margin ancillary services. This could compress overall margins if not addressed.
- Absence of Insider Activity Across All Filings◆
No insider transactions (buys or sells) were reported in any of the 12 filings—unusual for micro-caps. This could indicate management uncertainty or a lack of conviction, warranting caution.
Watch List (8)
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Earnings call expected in August 2026—watch for sustained revenue growth and margin expansion. If Q2 trends continue, the stock could re-rate significantly.
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De-SPAC announcement timeline—with $226M in trust, the company must find a target within 24 months of IPO (Dec 2025). Any target announcement could trigger a 20-30% move.
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Similar to Iron Horse, watch for de-SPAC target announcement. With $101.4M in assets and low burn, the company is well-positioned for a quality merger.
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Watch for any financing or going-concern disclosure—cash of $14.9K is unsustainable. A reverse split or bankruptcy filing is possible within 6 months.
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Watch for gross margin improvement or additional financing—current cash of $11.2K and working capital deficit of $6.65M suggest imminent capital raise or restructuring.
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Cash burn of ~$232K/month with $4.79M remaining gives ~20 months runway—watch for partnership announcements or funding rounds to extend runway.
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Watch for oil/gas price movements and Q1 2026 production updates—if prices recover, the cost restructuring could drive profitability.
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Watch for sign shop revenue recovery and contract liability trends—rising contract liabilities ($682.8K vs $486K) suggest future revenue growth, but sign shop decline needs monitoring.
Filing Analyses
(12)
13-07-2026
Lexaria Bioscience Corp. reported a net loss of $1,992,981 for the three months ended May 31, 2026, compared to a net loss of $3,790,606 in the same period last year, a significant improvement of 47.4%. However, revenue for the quarter was zero, down from $174,000 in the prior-year quarter, and for the nine-month period revenue fell 96.2% to $20,000 from $531,923. Operating expenses decreased 49.2% for the quarter to $1,993,804, driven by lower R&D and G&A costs, but the company remains pre-revenue and dependent on equity financing, having raised $6.5M in the nine-month period.
- · Basic and diluted loss per share improved to $(0.08) for the quarter vs $(0.21) a year ago.
- · Weighted average shares outstanding increased to 24,805,924 (three months) from 18,298,309.
- · Stock-based compensation fell to $242,734 for the nine-month period from $736,770.
- · Net cash used in operating activities improved to $4,782,990 from $7,807,889.
- · The company had $3.48M in cash at May 31, 2026, down from $4.59M a year earlier.
- · Total stockholders' equity decreased to $4.34M from $5.17M.
- · Outstanding warrants increased to 11,093,099 from 7,298,171, indicating potential future dilution.
13-07-2026
Onar Holding Corp reported revenue of $1,021,085 for Q1 2026, a 39% increase from $734,515 in Q1 2025, driven by growth in continuing operations. However, gross profit declined 41% to $56,239 from $94,656 due to a higher cost of revenues, and the net loss narrowed slightly to $1,128,066 from $1,287,502. The company's cash position dropped sharply to $11,213 from $94,420 at year-end 2025, and total stockholders' deficit widened to $6,652,712 from $5,859,225.
- · Total current liabilities of $10,616,250 exceed total assets of $3,963,538, indicating a working capital deficit.
- · Goodwill increased to $2,669,875 from $2,509,875, likely due to an acquisition.
- · Convertible notes payable, net rose to $2,441,608 from $2,067,997.
- · Operating loss improved to $325,643 from $1,017,226, a 68% reduction.
- · General and administrative expenses fell sharply to $344,876 from $1,002,556, a 66% decrease.
- · Depreciation and amortization declined to $37,006 from $109,326.
- · Net cash used in operating activities from continuing operations improved to $205,094 from $344,264.
- · The company issued 41,407,781 common shares upon conversion of notes payable and accrued interest during Q1 2026.
- · Series E Preferred Stock was issued for acquisition consideration (100 shares, $100,000).
- · Notes payable of $85,000 were issued as acquisition consideration.
13-07-2026
Royale Energy, Inc. filed its 10-K annual report for the year ended December 31, 2025, reporting a net loss of $1.25 million, a significant improvement from the $2.16 million net loss in 2024. Total revenues declined 13.9% to $1.95 million, driven by lower oil and gas sales prices, while total costs and expenses decreased 27.7% to $4.18 million, primarily due to lower lease operating expenses and impairment charges. The company's stockholders' deficit widened to $13.39 million from $12.14 million, and cash used in operations increased to $2.70 million from $2.36 million.
- · Total oil production declined 2.2% YoY to 25,976 BBL in 2025, while gas production increased 0.7% to 117,219 MCF.
- · Average oil prices fell sharply: California -15.4% to $65.87/BBL, Texas -15.2% to $60.87/BBL.
- · Average gas prices were mixed: California -7.9% to $2.58/MCF, Texas +10.1% to $1.75/MCF.
- · Lifting costs in Texas improved dramatically, falling 51.2% to $27.62/BOE, while California lifting costs rose 5.8% to $41.03/BOE.
- · Cash used in operating activities increased 14.3% to $2.70 million, despite a narrower net loss.
- · Capital expenditures on oil and gas properties dropped 69.7% to $1.49 million, and the company spent $1.50 million on property acquisition.
- · Proceeds from turnkey drilling programs fell 32.5% to $5.58 million.
- · Deferred drilling obligations rose 24.6% to $14.28 million.
- · The company reported a material weakness: severance taxes were inappropriately netted against oil and gas revenue in 2024, understating revenue and lease operating expense by $81,000.
- · No stock was issued in lieu of cash compensation in 2025, compared to 1,299,641 shares in 2024.
- · Interest expense increased 32.5% to $404,051, while interest income rose 42.0% to $66,079.
13-07-2026
Apex 11 Inc. filed its 10-K annual report for the year ended December 31, 2025, reporting zero revenue and a net loss of $46,213, widening from a $32,715 loss in 2024. The company remains a shell company with no cash, no current liabilities, and total assets of only $419, funded entirely by stock issuances to settle accrued liabilities. Accumulated deficit grew to $312,659, and the company has no operating or investing cash flows.
- · Entity is a shell company (Entity Shell Company = true).
- · Entity public float is $0.
- · No deferred income tax asset recognized due to full valuation allowance of $80,634 (2025) and $69,010 (2024).
- · General and administrative expenses increased 41.3% to $46,213 in 2025 from $32,715 in 2024.
- · Stockholders' equity improved from a deficiency of $(7,387) at end of 2024 to positive $419 at end of 2025, entirely due to stock issuances for liability settlements.
- · No cash was used or provided by operating, investing, or financing activities in either year.
13-07-2026
Jubilant Flame International, Ltd reported zero revenue for the three months ended May 31, 2026, consistent with the same period in 2025. The company's net loss increased 55% YoY to $29,731 from $19,190, driven by higher operating expenses. Cash and cash equivalents declined 59% from $4,175 to $1,715, and the working capital deficit widened to $1,449,823, reflecting ongoing liquidity challenges.
- · Professional fees increased 68% YoY to $25,686 from $15,290.
- · OTC service expense and others increased to $4,045 from $3,900 YoY.
- · Accounts payable and accrued liabilities rose to $42,180 from $37,504.
- · Loan payable - related parties increased to $834,225 from $815,635.
- · Accrued officer compensation remained unchanged at $535,500.
- · No officer stock compensation was recorded in either period.
- · The company had no cash paid for interest or income taxes in either period.
- · Total stockholders' deficit worsened to $1,449,823 from $1,420,092.
13-07-2026
Iron Horse Acquisition II Corp. (IRHO) filed its 10-Q for the quarter ended May 31, 2026, reporting a net income of $1.3M for Q2 and $2.66M for the six-month period, compared to net losses of $23,187 and $95,857 in the prior-year periods. The company completed its IPO in December 2025, raising $226M in net proceeds and placing $233.5M in a trust account, which generated $2.07M in interest income for the quarter. However, operating losses widened sharply to $773,493 (Q2) and $1.05M (six months) from $23,187 and $95,857 a year earlier, reflecting higher formation and operational costs as a public entity.
- · The company completed its IPO in December 2025, including full exercise of the underwriters' over-allotment option, eliminating forfeiture of 750,000 Founder Shares.
- · On May 8, 2025, through a share recapitalization, the Sponsor surrendered 6,571,429 ordinary shares, retaining 5,750,000 shares.
- · Net cash used in operating activities was $1.14M for the six months ended May 31, 2026, compared to $72,100 in the prior year.
- · Non-cash accretion of Class A ordinary shares to redemption value totaled $22.28M for the six months.
- · The company is a shell company and an emerging growth company with a non-accelerated filer status.
13-07-2026
Crypto Co (CRCW) reported a net loss of $171,822 for Q1 2026, a significant improvement from a net loss of $611,582 in Q1 2025. Revenue from services grew 42% to $4,047, but total assets collapsed 85% from $220,999 to $33,436, driven by a massive 85% decline in cryptocurrency holdings to $18,519. The company's cash position also deteriorated sharply, falling 85% to $14,917, while total liabilities remained high at $6.15 million, resulting in a stockholders' deficit of $6.12 million.
- · The company's net loss per share remained at $0.00 for both Q1 2026 and Q1 2025.
- · Weighted average common shares outstanding increased 56.4% to 5,071,780,645 from 3,243,246,640.
- · Convertible debt decreased 96.6% from $1,125,673 to $38,772.
- · Derivative liability decreased 99.6% from $563,417 to $2,487.
- · Notes payable increased 181.9% from $533,670 to $1,504,141.
- · Accounts payable and accrued expenses increased 13.2% from $3,876,849 to $4,386,896.
- · The company had a gain on change in fair value of derivative liability of $560,930 in Q1 2026, compared to no such gain in Q1 2025.
- · The company had a realized loss on sale of cryptocurrency of $17,752 in Q1 2026, compared to a gain of $10,000 in Q1 2025.
- · Interest expense decreased 92.8% from $117,251 to $8,408.
- · Cash provided by operating activities was $34,318 in Q1 2026, compared to cash used of $152,824 in Q1 2025.
- · The company issued 151,748,756 shares of common stock to reduce accrued liabilities in Q1 2026.
- · Stockholders' deficit worsened slightly from $6,098,523 to $6,118,598.
- · The company had no share-based compensation expense in Q1 2026, compared to $158,800 in Q1 2025.
- · Stock options outstanding remained unchanged at 2,281,349 with a weighted average exercise price of $2.26.
13-07-2026
SolarWindow Technologies, Inc. reported a net loss of $696,406 for the three months ended May 31, 2026, compared to a net loss of $545,719 in the same period last year, representing a 27.6% increase in losses. For the nine-month period, the net loss widened to $1,856,583 from $1,751,869, a 6.0% increase. The company continues to generate zero revenue, while operating expenses rose 31.4% in the quarter to $727,008, driven by higher selling, general and administrative costs. Cash reserves declined 27.0% to $4,789,312 from $6,555,642 at August 31, 2025, and the accumulated deficit grew to $82,947,146.
- · Revenue remained at $0 for all periods presented.
- · Selling, general and administrative expenses increased 43.3% YoY in Q3 to $552,995 and 9.8% YoY for the nine months to $1,470,643.
- · Research and development expenses increased modestly: 3.8% YoY in Q3 to $174,013 and 3.2% YoY for the nine months to $493,500.
- · Interest income more than doubled in Q3 to $30,602 (up 131.5% YoY) and increased 11.8% for the nine months to $107,560.
- · Cash used in operating activities surged 72.9% to $1,734,980 for the nine months ended May 31, 2026.
- · No stock-based compensation expense was recorded in FY2026, compared to $103,125 in the prior year period.
- · Total liabilities increased 57.8% from $194,175 to $306,365, driven by higher accounts payable and related party payables.
- · The company has 29,247,313 warrants outstanding (unchanged from August 31, 2025) with exercise prices ranging from $0.47 to $1.70, and 5,206,000 stock options outstanding with a weighted average exercise price of $2.37.
- · All stock options are fully vested and exercisable with a weighted average remaining contractual term of 2.79 years and zero aggregate intrinsic value.
- · No shares were issued or repurchased during the nine months ended May 31, 2026.
13-07-2026
XFLH Capital Corp filed its 10-Q for the quarter ended May 31, 2026, reporting net income of $757,749 for the three months and $762,505 for the nine months, driven by $965,813 in interest earned on cash held in trust. The company completed its IPO and private placement, raising $99.5 million net from public units and $1.55 million from private placement shares, with total assets of $101.4 million as of May 31, 2026. However, the company continues to incur formation and operating costs ($203,308 for the nine months) and has an accumulated deficit of $236,819, reflecting the early-stage nature of the SPAC.
- · The company's accumulated deficit increased from $33,511 (Aug 31, 2025) to $236,819 (May 31, 2026), reflecting ongoing operating losses.
- · Formation and operating costs for the nine months were $203,308, with $95,564 incurred in the most recent quarter alone.
- · Interest earned on trust account was $965,813 for the nine months, of which $853,313 was earned in the three months ended May 31, 2026.
- · Net cash used in operating activities was $346,658 for the nine months.
- · The company had $246,742 in cash outside the trust account as of May 31, 2026.
- · 500,000 Founder Shares were forfeited due to the over-allotment option expiring unexercised on March 30, 2026.
13-07-2026
Lantics Corp. filed its 10-Q for the quarter ended June 30, 2026, reporting zero revenue and a net loss of $19,054 for the first six months of 2026. The company's accumulated deficit widened to $30,993 from $11,939 at year-end 2025, while total liabilities increased to $72,454 from $60,854. Cash and cash equivalents rose to $14,905 from $6,765, supported by $12,000 in proceeds from a related-party loan and $12,000 from a common stock issuance.
- · The company had zero revenue for both the three and six months ended June 30, 2026.
- · General and administrative expenses totaled $14,812 for the six months ended June 30, 2026.
- · Depreciation expense was $4,242 for the six months ended June 30, 2026.
- · Net cash used in operating activities was $15,860 for the six months ended June 30, 2026.
- · Financing activities provided $24,000 in cash, consisting of $12,000 from a related-party loan and $12,000 from stock issuance.
- · The company's accumulated deficit increased from $11,939 at December 31, 2025 to $30,993 at June 30, 2026.
- · Total stockholders' deficit worsened from $11,689 to $18,743 over the same period.
- · Accounts payable – related party surged from $1,600 to $11,200, a 600% increase.
- · The loan – related party grew from $49,254 to $61,254, a 24.4% increase.
- · Intangible asset, net decreased by 10.0% from $42,400 to $38,158.
- · The company qualifies as an emerging growth company under the JOBS Act.
- · No income tax expense or benefit was recorded due to a full valuation allowance against deferred tax assets.
13-07-2026
Solitron Devices reported a strong turnaround for the three months ended May 31, 2026, with net income of $990,000 ($0.46 per share) compared to a net loss of $336,000 ($0.16 per share) in the same period last year. Net sales surged 101% to $5.436 million from $2.700 million, and gross profit jumped to $2.465 million from $390,000. However, the company recorded a contingent consideration expense of $331,000 and an unrealized loss on investments of $2,000, while cash flow from operations improved dramatically to $2.171 million from $391,000.
- · Selling, general and administrative expenses increased 21.1% to $930,000 from $768,000.
- · Contingent consideration expense of $331,000 was recorded in the current period vs. $0 in the prior period.
- · Unrealized loss on investments was $2,000, compared to a loss of $127,000 in the prior year.
- · The company sold 5,000 treasury shares for proceeds of $107,000 during the quarter.
- · Marketable securities in common stocks had a fair value of $0 at May 31, 2026 (cost $81,000) vs. $2,000 at February 28, 2026.
- · No income taxes were paid in either period.
13-07-2026
BAB, INC. (BABB) filed its 10-Q for the quarter ended May 31, 2026, reporting total revenue of $803,689 for the three-month period, a slight decrease from $808,486 in the same quarter last year. For the six-month period, revenue was $1,527,352, down from $1,565,687 in the prior year. While royalty revenue grew modestly and franchise fees increased, declines in sign shop revenue, settlement revenue, license fees, and marketing fund revenue contributed to the overall revenue drop. Total cash and restricted cash increased to $2,556,454 from $2,334,782 a year earlier, but total contract liabilities rose sharply to $682,806 from $486,015 at November 30, 2025.
- · Sign shop revenue dropped sharply from $8,033 to $192 in the three-month comparison.
- · Settlement revenue fell to $0 from $7,625 in the three-month period and to $700 from $12,500 in the six-month period.
- · License fees declined to $3,378 from $5,978 (three months) and to $6,756 from $11,956 (six months).
- · Marketing fund revenue decreased to $207,441 from $227,049 (three months) and to $405,372 from $444,095 (six months).
- · Nontraditional revenue increased to $47,964 from $43,700 (three months) but decreased to $82,244 from $93,667 (six months).
- · Gift card revenue surged to $17,577 from $639 (three months) and to $30,739 from $14,197 (six months).
- · Franchise fees increased to $7,117 from $3,583 (three months) and to $15,200 from $12,166 (six months).
- · Royalty revenue grew modestly to $520,020 from $511,879 (three months) and to $985,908 from $969,073 (six months).
- · Allowance for credit losses remained unchanged at $49,350.
- · Notes receivable aging shows $31,995 over 90 days past due out of $48,767 total.
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