Hoops Scouting USA (HSCT) presents a deeply negative liquidation recovery posture at March 31, 2026. Total assets of $66,677 consist entirely of current assets: cash/bank of $5,563 (recoverable at 100%) and inventory of $61,114 (recoverable at approximately 60%, or ~$36,700). Gross liquidation asset recovery is therefore approximately $42,300. Against this, total liabilities stand at $313,650 at face value, comprising $22,295 accounts payable, $275,355 due to the President/Director (related party, current), and $16,000 in non-interest-bearing loans payable to third parties classified as non-current but contractually due by March 31, 2026 per Note 7, making them effectively current at this filing date. The resulting liquidation shortfall to equity is approximately negative $271,000, consistent with MFFAIS-reported CLV/LLV of -$270,579. No PP&E, no intangibles (the Grit Mobile Application was fully impaired in FY2023), and no operating lease obligations are present. The balance sheet is simple and the negative equity recovery is unambiguous. Relative to the prior filing (10-Q for the six months ended December 31, 2025), the deterioration is incremental but notable: total liabilities grew from $286,775 to $313,650 (+$26,875, or +9.4%), driven almost entirely by the related-party payable increasing from $264,485 to $275,355 (+$10,870) and accounts payable jumping from $6,290 (implied) to $22,295. Inventory declined from $76,869 (June 30, 2025 audited) to $61,114, a $15,755 reduction corresponding directly to cost of goods sold on the single $20,000 revenue transaction recorded in Q3 FY2026. The company recorded its first-ever revenue ($20,000 in Q3 FY2026) but at a gross margin of only 21%; operating expenses for the nine-month period totaled $74,431, yielding a net loss of $70,186. Cash burn is entirely funded by related-party advances from the President ($40,411 in the nine-month period; $10,000 additional post-period per Note 8). Accumulated deficit stands at $382,023. Going concern doubt is explicitly disclosed. The $16,000 third-party loans were contractually due on or before March 31, 2026 per the filing; no extension or repayment is disclosed, constituting a technical default not separately highlighted in the XBRL tagging. The filing does not separately tag working capital deficit (disclosed in MD&A as $230,973) in XBRL; it uses the custom tag hosu:WorkingCapitalDeficit in the notes but this tag does not appear in TAG_CONTEXT as provided.
▼ Community Notes