CLEV Swings to Profit on Soaring Sales, Going Concern Looms

TL;DR

**CLEV's Q3 profit is a mirage; the 'going concern' warning and massive deficit mean this stock is still a high-risk gamble.**

AI Summary

Concrete Leveling Systems Inc. (CLEV) reported a significant turnaround for the three months ended October 31, 2025, achieving a net income of $16,679, a substantial improvement from the net loss of $24,803 in the same period of 2024. This positive shift was primarily driven by a dramatic increase in equipment, parts, and service sales, which surged to $55,000 in Q3 2025 from a mere $183 in Q3 2024. Gross margin consequently expanded to $53,950 from $100 year-over-year. Despite increased operating expenses, which rose to $35,020 from $22,331, the company managed to generate income from operations of $18,930, reversing a $22,207 loss in the prior year. Cash on hand also saw a substantial increase, reaching $29,414 as of October 31, 2025, up from $824 on July 31, 2025. However, the company continues to face a significant going concern risk, with current liabilities exceeding current assets by $604,970 as of October 31, 2025, and a substantial accumulated deficit of $1,052,206.

Why It Matters

This 10-Q reveals a critical juncture for Concrete Leveling Systems Inc. While the dramatic revenue increase and swing to net income are positive signals for investors, the persistent 'going concern' warning and substantial accumulated deficit highlight severe underlying financial instability. For employees, the company's long-term viability remains uncertain, despite the recent operational improvements. Customers might see improved product availability due to increased sales, but the company's financial health could impact future service and support. In the broader market, CLEV's struggle to transition from a shell company with a contingent gaming venture to a stable operating entity underscores the high risks associated with micro-cap investments and speculative M&A.

Risk Assessment

Risk Level: high — The company explicitly states a 'going concern' doubt, with current liabilities exceeding current assets by $604,970 as of October 31, 2025. Furthermore, CLEV has an accumulated deficit of $1,052,206, indicating a history of significant losses and a need to generate substantial future revenue or secure financing to sustain operations.

Analyst Insight

Investors should approach CLEV with extreme caution. While the Q3 2025 net income of $16,679 and sales increase to $55,000 are positive, the severe going concern risk and large accumulated deficit of $1,052,206 suggest that this turnaround is highly fragile. Avoid investing unless the company demonstrates a clear, sustainable path to profitability and resolves its liquidity issues.

Financial Highlights

debt To Equity

N/A

revenue

$55,000

operating Margin

34.4%

total Assets

$46,176

total Debt

$651,146

net Income

$16,679

eps

$0.00

gross Margin

98.1%

cash Position

$29,414

revenue Growth

N/A

Revenue Breakdown

Key Numbers

• $16,679 — Net Income (Swung from a $24,803 net loss in Q3 2024 to a net income in Q3 2025.)
• $55,000 — Equipment, parts, and service sales (Increased dramatically from $183 in Q3 2024, driving revenue growth.)
• $53,950 — Gross margin (Significantly improved from $100 in Q3 2024 due to higher sales.)
• $18,930 — Income from operations (Reversed a $22,207 loss in Q3 2024, indicating operational efficiency gains.)
• $29,414 — Cash on hand (Increased substantially from $824 on July 31, 2025, improving short-term liquidity.)
• $604,970 — Current liabilities exceeding current assets (Indicates significant liquidity challenges and raises going concern doubts.)
• $1,052,206 — Accumulated deficit (Reflects historical losses and a need for sustained profitability.)
• 14,027,834 — Common shares outstanding (Consistent number of shares outstanding as of October 31, 2025.)
• $392,039 — Advances - related party (Increased from $369,939 on July 31, 2025, highlighting reliance on related party financing.)
• $186,967 — Notes payable - stockholders (Remained constant, indicating ongoing debt obligations to stockholders.)

Key Players & Entities

• Concrete Leveling Systems Inc. (company) — registrant
• Jericho Associates, Inc. (company) — start-up company with contingent acquisition agreement
• $16,679 (dollar_amount) — net income for three months ended October 31, 2025
• $24,803 (dollar_amount) — net loss for three months ended October 31, 2024
• $55,000 (dollar_amount) — equipment, parts, and service sales for three months ended October 31, 2025
• $183 (dollar_amount) — equipment, parts, and service sales for three months ended October 31, 2024
• $604,970 (dollar_amount) — amount by which current liabilities exceed current assets as of October 31, 2025
• $1,052,206 (dollar_amount) — accumulated deficit as of October 31, 2025
• Nevada (regulator) — state of incorporation
• SEC (regulator) — filing authority

FAQ

Risk Factors

• Significant Liquidity Shortfall [high — financial]: As of October 31, 2025, current liabilities of $651,146 exceeded current assets of $46,176 by $604,970. This substantial working capital deficit indicates a high risk of inability to meet short-term obligations.
• Substantial Accumulated Deficit [high — financial]: The company has an accumulated deficit of $1,052,206 as of October 31, 2025. This reflects a history of losses and highlights the need for sustained profitability to achieve financial stability.
• Reliance on Related Party Financing [medium — financial]: Advances from related parties increased to $392,039 as of October 31, 2025, up from $369,939 on July 31, 2025. This continued reliance suggests potential challenges in securing external financing.
• Dependence on Equipment Sales Turnaround [medium — operational]: The recent net income was heavily reliant on a surge in equipment, parts, and service sales to $55,000 from $183 year-over-year. The sustainability of this dramatic increase is a key operational risk.
• Increased Operating Expenses [medium — financial]: Operating expenses rose to $35,020 for the three months ended October 31, 2025, from $22,331 in the prior year. While income from operations was positive, this increase in costs needs to be managed to maintain profitability.

Industry Context

The concrete leveling industry involves specialized services and equipment. Companies in this sector often face competition from both local service providers and larger franchises. Trends may include demand driven by infrastructure repair, new construction, and homeowner maintenance. Profitability can be sensitive to material costs, labor availability, and the efficiency of equipment utilization.

Regulatory Implications

As a publicly traded entity, Concrete Leveling Systems Inc. must comply with SEC reporting requirements, including timely filing of 10-Q and 10-K reports. Failure to maintain adequate financial controls or address going concern risks could lead to increased scrutiny from regulators and potential delisting from exchanges.

What Investors Should Do

1. Monitor sustainability of revenue growth
2. Evaluate liquidity management
3. Assess operating expense control
4. Analyze reliance on related party financing

Key Dates

• 2025-10-31: End of Q3 2025 — Reported net income of $16,679, a significant turnaround from a loss, driven by a surge in equipment sales. However, liquidity remains a major concern with current liabilities far exceeding current assets.
• 2025-07-31: End of Q2 2025 — Cash on hand was $824, and current liabilities exceeded current assets by a substantial margin, indicating ongoing financial distress prior to the Q3 turnaround.
• 2024-10-31: End of Q3 2024 — Reported a net loss of $24,803 and a loss from operations of $22,207, with minimal equipment sales ($183) and gross margin ($100).

Glossary

Accumulated deficit

The total cumulative net losses of a company that have not been offset by net income or other gains since its inception. (Indicates the company's historical unprofitability and the significant earnings required to reach a positive equity position.)

Current liabilities

Obligations that are expected to be paid or settled within one year or the operating cycle, whichever is longer. (Crucial for assessing short-term financial health; a high level relative to current assets signals liquidity risk.)

Current assets

Assets that are expected to be converted into cash, sold, or consumed within one year or the operating cycle. (Represents the company's short-term resources available to meet its immediate obligations.)

Gross margin

The difference between revenue and cost of goods sold, expressed as a percentage or dollar amount. (Measures the profitability of a company's core operations before accounting for operating expenses.)

Income (loss) from operations

Profit or loss generated from a company's core business activities before considering interest and taxes. (Shows the operational efficiency and profitability of the business itself, excluding financing and tax impacts.)

Advances - related party

Funds provided by individuals or entities that have a close relationship with the company, such as owners or affiliated companies. (Highlights reliance on internal or closely connected sources for funding, which can be a sign of difficulty in obtaining external capital.)

Year-Over-Year Comparison

Compared to the three months ended October 31, 2024, Concrete Leveling Systems Inc. has shown a remarkable financial turnaround. Revenue from equipment, parts, and service sales surged from $183 to $55,000, leading to a gross margin of $53,950 from $100. This drove a net income of $16,679, a significant improvement from a net loss of $24,803. Operating expenses also increased, but the company achieved income from operations of $18,930, reversing a prior year loss of $22,207. Despite these operational improvements, the going concern risk remains high due to a substantial current liabilities to current assets deficit.

Filing Documents

• clev_10q.htm (10-Q) — 309KB
• clev_ex311.htm (EX-31.1) — 11KB
• clev_ex312.htm (EX-31.2) — 10KB
• clev_ex32.htm (EX-32) — 5KB
• 0001477932-25-008945.txt ( ) — 1600KB
• clev-20251031.xsd (EX-101.SCH) — 16KB
• clev-20251031_lab.xml (EX-101.LAB) — 114KB
• clev-20251031_cal.xml (EX-101.CAL) — 22KB
• clev-20251031_pre.xml (EX-101.PRE) — 86KB
• clev-20251031_def.xml (EX-101.DEF) — 32KB
• clev_10q_htm.xml (XML) — 119KB

– FINANCIAL INFORMATION

Part I – FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 3 Condensed Balance Sheets as of October 31, 2025 (unaudited) and July 31, 2025 3 Condensed Statements of Operations for the three months ended October 31, 2025 and 2024 (unaudited) 4 Condensed Statements of Changes in Stockholders' Deficit for the three months ended October 31, 2025 and 2024 (unaudited) 5 Condensed Statements of Cash Flows for the three months ended October 31, 2025 and 2024 (unaudited) 6 Notes to Condensed Financial Statements (unaudited) 7 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 14 Item 3. Quantitative and Qualitative Disclosure About Market Risk 18 Item 4.

Controls and Procedures

Controls and Procedures 18

- OTHER INFORMATION

Part II - OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 19 Item 1A.

Risk Factors

Risk Factors 19 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 19 Item 3. Defaults Upon Senior Securities 19 Item 4. Mine Safety Disclosures 19 Item 5. Other Information 19 Item 6. Exhibits 20

SIGNATURES

SIGNATURES 21 2 Table of Contents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

- FINANCIAL STATEMENTS

ITEM 1 - FINANCIAL STATEMENTS Concrete Leveling Systems, Inc. Condensed Balance Sheets October 31, 2025 July 31, (Unaudited) 2025 Assets Current Assets Cash $ 29,414 $ 824 Inventory 16,762 17,811 Prepaid expenses - 844 Total Current Assets 46,176 19,479 Property, Plant and Equipment Equipment 700 700 Less: Accumulated depreciation ( 700 ) ( 700 ) Total Property, Plant and Equipment, net - - Total Assets $ 46,176 $ 19,479 Liabilities and Stockholders' Deficit Current Liabilities Accounts payable and accrued expenses $ 13,473 $ 27,806 Accrued interest - stockholders 58,667 56,416 Advances - related party 392,039 369,939 Notes payable - stockholders 186,967 186,967 Total Current Liabilities 651,146 641,128 Commitments and Contingencies (Note 4) Stockholders' Deficit Common stock (par value $ 0.001 ) 100,000,000 shares authorized: 14,027,834 shares issued and outstanding 14,027 14,027 Additional paid-in capital 433,209 433,209 Accumulated deficit ( 1,052,206 ) ( 1,068,885 ) Total Stockholders' Deficit ( 604,970 ) ( 621,649 ) Total Liabilities and Stockholders' Deficit $ 46,176 $ 19,479 See the accompanying notes to these condensed financial statements. 3 Table of Contents Concrete Leveling Systems, Inc. Condensed Statements of Operations For the Three Months Ended October 31, 2025 and 2024 (Unaudited) 2025 2024 Equipment, parts, and service sales $ 55,000 $ 183 Cost of sales 1,050 59 Gross margin 53,950 100 Operating expenses Legal and professional fees 28,510 19,954 Selling, general and administration 6,510 2,377 Total operating expenses 35,020 22,331 Income (loss) from operations 18,930 ( 22,207 ) Other income (expense) Interest expense 2,251 ( 2,596 ) Total other expense 2,251 ( 2,596 ) Net income (loss) before income taxes 16,679 ( 24,803 ) Provision for income taxes - - Net income (loss) $ 16,679 $ ( 24,803 ) Net income (lo

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