Apple iSports Group, Inc. (AAPI) is a pre-revenue, development-stage sports betting and gaming platform operator with zero operating revenue for the year ended December 31, 2025. Under a liquidation lens, equity recovery is deeply negative. Total assets of $2.47M face total liabilities of $6.53M at face value, producing a stated stockholders' deficit of ($4.06M). Applying standard liquidation haircuts confirms the MFFAIS CLV/LLV/OLV estimate of approximately ($6.47M): cash of $56K recovers at par; the $81K convertible note receivable from SeaPort, Inc. (a private entity with no disclosed liquidity) warrants a steep haircut toward zero; deferred financing costs of $2.30M ($555K current plus $1.74M non-current warrants) receive 0% recovery as they are pure intangibles tied to an undrawn equity facility; all other intangible and deferred cost balances are zero in liquidation. On the liability side, $6.53M of current liabilities — comprising $2.26M related-party loans payable (all unsecured, payable on demand), $207K third-party loan payable from PhilBook Pty at 18% (unsecured, payable on demand), $3.03M accounts payable and accrued liabilities, $131K accrued payroll, $80K interest payable, and a $75K litigation reserve — all remain at face value. The liability stack is entirely current, creating a working capital deficit of $5.90M per management's own disclosure. Compared to the prior Q3 2025 10-Q filing (period end September 30, 2025), the annual filing reflects the following material changes: (1) the Cres Discretionary Trust No. 2 related-party loan of $2.68M principal plus $125K accrued interest was converted to equity on January 9, 2025, reducing the related-party loan balance from $3.60M at December 31, 2024 to $2.26M at December 31, 2025 — the reduction is partially offset by $1.46M of new related-party borrowing during 2025; (2) a new third-party unsecured note payable of $207K (PhilBook Pty, 18% interest, demand) was added in Q4 2025; (3) stock-based compensation of $4.35M, warrant issuance costs of $1.74M, and $278K of common stock proceeds were recorded, all equity items with zero liquidation value; (4) two nonrefundable acquisition deposits totaling $237K (Australian customer database and AmeriCrew) were written off as SG&A during 2025, eliminating those asset balances; and (5) an unresolved contingent liability of $250K arose post-period-end from a demand by the LDA Capital equity facility purchaser, not reflected on the December 31, 2025 balance sheet. The filing discusses $4.35M of non-cash stock compensation expense ($2.57M US plan, $1.77M Australian plan) as a driver of the $6.41M net loss, but no separate XBRL tag for the deferred financing cost asset reclassification from the warrant issuance was tagged in the XBRL — the $1.74M warrant fair value is captured under DeferredFinanceCostsNoncurrentNet. Accumulated deficit stands at ($19.67M). No revenue has ever been generated. Going concern doubt is explicitly stated.
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