Quarterly ResultMay 14, 2026, 12:13 PM
Free Flow USA Reports Q1 Net Loss $21K; Going Concern Doubt
AI Summary
Free Flow USA, Inc. reported a net loss of $21,109 for the three months ended March 31, 2026, a slight increase from $20,723 in the prior year, despite generating $8,000 in sales compared to zero previously. The company faces substantial doubt about its ability to continue as a going concern due to cumulative losses and limited revenues. Its auto parts division has ceased operations, and other subsidiaries are inactive, while management actively seeks new acquisition opportunities and acknowledges weaknesses in internal controls due to limited resources.
Key Highlights
- Substantial doubt exists about Free Flow USA's ability to continue as a going concern.
- Net loss for Q1 2026 was $21,109, a slight increase from $20,723 in Q1 2025.
- Q1 2026 sales were $8,000, up from zero in Q1 2025.
- Operating expenses rose to $29,109 in Q1 2026 from $27,475 in Q1 2025.
- Cash and cash equivalents totaled $12,847 as of March 31, 2026.
- Net cash provided by operating activities was $1,525 in Q1 2026, an improvement from a $24,830 use in Q1 2025.
- Cumulative net book losses since inception reached $1,727,899.
- The company is actively considering merger and acquisition proposals.