Apple iSports' Net Loss Quadruples Amid Soaring Equity, Consulting Costs

TL;DR

**AAPI is a cash-burning machine with no revenue and a 'going concern' warning; stay far away.**

AI Summary

Apple iSports Group, Inc. (AAPI) reported a significant increase in net loss for the nine months ended September 30, 2025, reaching $8,251,741, a substantial rise from the $2,012,474 net loss in the same period of 2024. This was primarily driven by a $2,295,042 issuance cost related to an equity contract in 2025, which was not present in 2024. Consulting and professional fees also surged to $5,561,355 for the nine months ended September 30, 2025, up from $1,528,580 in 2024. The company continues to report no net revenues for both periods. AAPI's cash and cash equivalents decreased to $9,304 as of September 30, 2025, from $42,167 at December 31, 2024. Total liabilities decreased to $6,107,706 from $6,641,364, primarily due to a reduction in loans payable to related parties from $3,597,442 to $2,022,993. The company also reported a negative working capital of $6,073,549 and an accumulated deficit of $21,510,690, raising substantial doubt about its ability to continue as a going concern.

Why It Matters

AAPI's escalating net losses and persistent lack of revenue signal severe operational challenges, making it a high-risk investment. The substantial increase in consulting and professional fees, coupled with a significant equity issuance cost, suggests a company struggling to establish its core business while incurring heavy expenses. For investors, this indicates a highly speculative venture with no clear path to profitability, potentially diluting existing shareholder value as more equity is issued to cover losses. Employees and customers face uncertainty given the 'going concern' warning, while the broader market sees a cautionary tale of a pre-revenue company burning through capital without tangible results in the competitive online sports betting sector.

Risk Assessment

Risk Level: high — The company reported a net loss of $8,251,741 for the nine months ended September 30, 2025, and has an accumulated deficit of $21,510,690. Furthermore, AAPI has not established an ongoing source of revenues and cash flows, and its negative working capital of $6,073,549 raises substantial doubt about its ability to continue as a going concern.

Analyst Insight

Investors should avoid AAPI given its 'going concern' warning, lack of revenue, and rapidly increasing net losses. The company's reliance on related-party financing and equity issuance to cover operational costs suggests a highly speculative investment with significant downside risk.

Financial Highlights

debt To Equity

N/A

revenue

$0

operating Margin

N/A

total Assets

$360,303

total Debt

$6,107,706

net Income

-$8.25M

eps

N/A

gross Margin

N/A

cash Position

$9,304

revenue Growth

N/A

Key Numbers

• $8.25M — Net Loss (for nine months ended Sept 30, 2025, up from $2.01M in 2024)
• $0 — Net Revenues (for nine months ended Sept 30, 2025 and 2024)
• $2.30M — Issuance cost related to equity contract (for nine months ended Sept 30, 2025, not present in 2024)
• $5.56M — Consulting and professional fees (for nine months ended Sept 30, 2025, up from $1.53M in 2024)
• $9,304 — Cash and cash equivalents (as of Sept 30, 2025, down from $42,167 at Dec 31, 2024)
• $6.07M — Negative working capital (as of Sept 30, 2025)
• $21.51M — Accumulated deficit (as of Sept 30, 2025)
• 219,785,477 — Shares of common stock outstanding (as of Nov 14, 2025)
• $2.02M — Loans payable - related parties (as of Sept 30, 2025, down from $3.60M at Dec 31, 2024)
• $2.81M — Non Cash increase in Additional Paid in capital (due to conversion of related party loan)

Key Players & Entities

• Apple iSports Group, Inc. (company) — registrant
• Apple iSports, Inc. (company) — wholly-owned subsidiary
• AIS Australia (company) — wholly-owned subsidiary
• AiSportsTek, Inc. (company) — wholly-owned subsidiary
• Securities and Exchange Commission (regulator) — filing oversight
• Nevada (state) — state of incorporation
• Delaware (state) — state of incorporation for subsidiary
• Wyoming (state) — state of incorporation for subsidiary
• Paramount Capital Inc. (company) — former name of AiSportsTek, Inc.
• Vita Plus Industries, Inc. (company) — original name of registrant

FAQ

Risk Factors

• Deteriorating Financial Condition and Going Concern Uncertainty [high — financial]: The company reported a net loss of $8.25 million for the nine months ended September 30, 2025, a significant increase from $2.01 million in the prior year period. This deterioration is exacerbated by a $2.30 million issuance cost related to an equity contract and a substantial rise in consulting and professional fees to $5.56 million. With cash and cash equivalents dwindling to $9,304 and a negative working capital of $6.07 million, substantial doubt exists about Apple iSports Group's ability to continue as a going concern.
• Significant Increase in Operating Expenses [high — financial]: Consulting and professional fees more than tripled, increasing from $1.53 million in the nine months ended September 30, 2024, to $5.56 million for the same period in 2025. This surge, along with a $2.30 million issuance cost for an equity contract, significantly contributed to the widening net loss, indicating potential inefficiencies or increased reliance on external services.
• Erosion of Cash Reserves [high — financial]: Cash and cash equivalents have drastically decreased from $42,167 at December 31, 2024, to a mere $9,304 as of September 30, 2025. This sharp decline, coupled with a lack of revenue generation, highlights the company's precarious liquidity position and its dependence on financing activities.
• Accumulated Deficit [high — financial]: The company has accumulated a deficit of $21.51 million as of September 30, 2025. This substantial deficit, growing from $13.26 million at the end of the previous fiscal year, reflects a history of unprofitability and raises concerns about the long-term viability of the business model.
• Reliance on Related Party Financing [medium — financial]: While loans payable to related parties decreased from $3.60 million to $2.02 million, they still represent a significant portion of the company's liabilities. The conversion of a related party loan into additional paid-in capital ($2.81 million) indicates a restructuring of debt, but the underlying reliance on related parties for funding remains a point of concern.
• Absence of Revenue Generation [high — operational]: Apple iSports Group, Inc. continues to report zero net revenues for both the nine-month periods ended September 30, 2025, and 2024. This persistent lack of revenue generation is a fundamental business risk, suggesting a failure to establish a viable product or service in the market.

Industry Context

The iSports industry is characterized by rapid technological advancement, increasing consumer engagement with digital platforms, and a growing demand for interactive and data-driven sports experiences. Companies in this space often face intense competition from established tech giants and specialized startups, requiring significant investment in R&D, content creation, and user acquisition. Regulatory landscapes can also be complex, particularly concerning data privacy and online gaming.

Regulatory Implications

As a company operating in the digital and potentially gaming-related space, Apple iSports Group may be subject to evolving regulations concerning data privacy, consumer protection, and online advertising. Failure to comply with these regulations could result in fines, legal challenges, and reputational damage, impacting its ability to operate and attract investment.

What Investors Should Do

1. Monitor cash burn rate and future financing activities
2. Scrutinize the sustainability of the business model
3. Assess the impact of increased operating expenses
4. Evaluate the going concern risk

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Reported a net loss of $8.25 million, a significant increase from the prior year, with substantial increases in issuance costs and professional fees. Cash position fell to $9,304.
• 2024-09-30: Nine months ended September 30, 2024 — Reported a net loss of $2.01 million, with lower consulting and professional fees compared to 2025.
• 2024-12-31: As of December 31, 2024 — Cash and cash equivalents stood at $42,167, and total liabilities were $6.64 million.

Glossary

Accumulated deficit

The cumulative net losses of a company that have not been offset by net income or other gains. (Indicates the company's historical unprofitability, with a significant deficit of $21.51 million as of September 30, 2025.)

Going concern

The assumption that a company will continue to operate for the foreseeable future, typically at least 12 months. (The company's financial condition, including its low cash balance and significant losses, raises substantial doubt about its ability to continue as a going concern.)

Issuance cost related to equity contract

Costs incurred by a company when issuing new equity, such as legal, accounting, and underwriting fees. (A significant $2.30 million issuance cost in 2025 heavily impacted the net loss, a factor not present in the prior year.)

Working capital

The difference between a company's current assets and current liabilities. Positive working capital indicates a company can meet its short-term obligations. (Apple iSports Group has a negative working capital of $6.07 million as of September 30, 2025, signaling potential short-term liquidity issues.)

Loans payable - related parties

Money borrowed by the company from individuals or entities that have a close relationship with the company, such as officers, directors, or major shareholders. (These loans decreased from $3.60 million to $2.02 million, but still represent a notable source of financing.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, Apple iSports Group, Inc. has experienced a significant deterioration in its financial performance. Net losses have widened dramatically from $2.01 million to $8.25 million, primarily due to a substantial increase in consulting and professional fees and new issuance costs related to an equity contract. While total liabilities have decreased slightly, this is largely due to a reduction in related party loans, not an improvement in operational cash flow. The company's cash position has also sharply declined, raising serious concerns about its short-term liquidity and long-term viability.

Key Financial Figures

• $0.0001 — ere 219,785,477 shares of common stock, $0.0001 par value per share, outstanding. TABL

Filing Documents

• aapi_10q.htm (10-Q) — 734KB
• aapi_ex311.htm (EX-31.1) — 21KB
• aapi_ex321.htm (EX-32.1) — 5KB
• aapi_10qimg2.jpg (GRAPHIC) — 15KB
• 0001477932-25-008337.txt ( ) — 3392KB
• aapi-20250930.xsd (EX-101.SCH) — 33KB
• aapi-20250930_lab.xml (EX-101.LAB) — 206KB
• aapi-20250930_cal.xml (EX-101.CAL) — 41KB
• aapi-20250930_pre.xml (EX-101.PRE) — 179KB
• aapi-20250930_def.xml (EX-101.DEF) — 90KB
• aapi_10q_htm.xml (XML) — 414KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION 3 Item 1.

Financial Statements

Financial Statements 3 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 4 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 9 Item 4.

Controls and Procedures

Controls and Procedures 10

– OTHER INFORMATION

PART II – OTHER INFORMATION 11 Item 1. Legal Proceedings. 11 Item 1A. Risk Factors. 11 Item 2. Unregistered Sale of Equity Securities and Use of Proceeds. 11 Item 3. Defaults Upon Senior Securities. 11 Item 4. Mine Safety Disclosures. 11 Item 5. Other Information. 11 Item 6. Exhibits 12

SIGNATURES

SIGNATURES 13 2 Table of Contents Part I

Financial Statements

Item 1. Financial Statements APPLE iSPORTS GROUP, INC. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 (UNAUDITED) APPLE iSPORTS GROUP, INC. INDEX TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Condensed Consolidated Balance Sheets as of September 30, 2025 (unaudited) and December 31, 2024 F-1 Condensed Consolidated Statements of Comprehensive Loss for the three and nine months ended September 30, 2025 and 2024 (unaudited) F-2 Condensed Consolidated Statements of Stockholders' Deficit for the three and nine months ended September 30, 2025 and 2024 (unaudited) F-3 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2025 and 2024 (unaudited) F-4 Notes to Condensed Consolidated Financial Statements (unaudited) F-5 3 Table of Contents APPLE iSPORTS GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS September 30, December 31, 2025 2024 Assets (UNAUDITED) Current assets: Cash and cash equivalents $ 9,304 $ 42,167 Goods and service tax receivable 9,253 48,073 Marketable security 100 100 Prepaid and other assets 15,500 11,440 Total current assets 34,157 101,780 Deposits 239,390 87,313 Notes receivable 80,600 80,000 Accrued interest income 5,990 2,998 Total assets $ 360,303 $ 272,091 Liabilities and Stockholders' Deficit Current liabilities: Accounts payable and accrued expenses $ 2,975,907 $ 2,024,108 Accounts payable and accrued expenses – related parties 722,637 458,525 Due to related party 4,999 4,999 Loans payable - related parties 2,022,993 3,597,442 Accrued interest - related parties 64,409 154,160 Accrued payroll 316,761 402,130 Total current liabilities 6,107,706 6,641,364 Total liabilities 6,107,706 6,641,364 Commitments and contingencies - - Stockholders' deficit: Common stock, $ 0.0001 par value, 500,000,000 shares authorized, 219

View Full Filing

View this 10-Q filing on SEC EDGAR