CANNABIS SUISSE Swings to Profit Amidst Zero Revenue, Going Concern Doubts

TL;DR

**CSUI's 'profit' is a mirage; zero revenue and a going concern warning mean this stock is a hard pass for any serious trader.**

AI Summary

CANNABIS SUISSE CORP. (CSUI) reported a net income of $13,907 for the three months ended August 31, 2025, a significant improvement from a net loss of $535,086 in the same period last year. This turnaround was primarily driven by a substantial amortization of debt premium totaling $114,739, coupled with the absence of a $551,677 loss on settlement of debt that occurred in the prior year. However, the company's rental income plummeted from $7,500 in Q3 2024 to $0 in Q3 2025, indicating a complete cessation of its primary revenue stream. Operating expenses increased to $84,535 from $74,983 year-over-year, mainly due to higher general and administrative expenses of $62,474. The company continues to face substantial doubt about its ability to continue as a going concern, with an accumulated deficit of $3,043,139 as of August 31, 2025, and limited revenues. Cash in escrow decreased from $2,850 to $305, and total assets declined from $635,075 to $570,344 over the quarter. The company relies on related party funding, with advances from related parties increasing by $9,000 to $28,400 during the period.

Why It Matters

This filing reveals a critical juncture for CANNABIS SUISSE. While a swing to net income of $13,907 might appear positive, the complete absence of rental revenue, previously its sole income source, is a major red flag for investors. The company's reliance on related party funding and a persistent 'going concern' warning underscore its precarious financial health, suggesting high risk for new investments. Competitors in the cannabis real estate sector, if any, would see CSUI's struggles as a potential market vacuum, while employees face job insecurity given the lack of operational revenue. The broader market should view this as a cautionary tale regarding micro-cap companies with unstable business models.

Risk Assessment

Risk Level: high — The company explicitly states 'substantial doubt about the Company's ability to continue as a going concern' due to 'limited revenues and accumulated deficit of $3,043,139 as of August 31, 2025.' Furthermore, rental income, its only reported revenue, dropped from $7,500 to $0 for the three months ended August 31, 2025, indicating a complete lack of operational income.

Analyst Insight

Investors should exercise extreme caution and likely avoid CANNABIS SUISSE CORP. given the explicit going concern warning and the complete cessation of its only reported revenue stream. The reported net income is not from sustainable operations but from accounting adjustments related to debt, making it a poor indicator of future performance.

Financial Highlights

debt To Equity

N/A

revenue

$0

operating Margin

N/A

total Assets

$570,344

total Debt

$2,358,409

net Income

$13,907

eps

N/A

gross Margin

N/A

cash Position

$305

revenue Growth

-100.0%

Revenue Breakdown

Key Numbers

• $13,907 — Net Income (Swung from a $535,086 net loss in Q3 2024 to a net income in Q3 2025, primarily due to non-operating factors.)
• $0 — Rental Income (Represents a complete cessation of revenue from $7,500 in the prior year, indicating a critical business model failure.)
• $3,043,139 — Accumulated Deficit (Highlights significant historical losses and contributes to the 'going concern' doubt.)
• $305 — Cash at End of Period (A very low cash balance, down from $2,850, further exacerbating liquidity concerns.)
• 70,680,938 — Common Shares Outstanding (Consistent share count, but diluted shares are significantly higher at 203,498,313 due to convertible notes.)
• $84,535 — Total Operating Expenses (Increased from $74,983 in the prior year, despite zero revenue, contributing to operational losses.)
• $114,739 — Amortization of Debt Premium (A key non-cash item that significantly contributed to the reported net income.)
• $551,677 — Loss on Settlement of Debt (2024) (Absence of this one-time loss in 2025 was a major factor in the swing to net income.)
• $28,400 — Advances From Related Parties (Increased from $19,400, indicating continued reliance on insider funding to sustain operations.)
• $1,996,788 — Convertible Note Payable - Related Party (A substantial long-term liability, indicating significant debt owed to related parties.)

Key Players & Entities

• CANNABIS SUISSE CORP. (company) — registrant
• SEC (regulator) — United States Securities and Exchange Commission
• $13,907 (dollar_amount) — net income for the three months ended August 31, 2025
• $535,086 (dollar_amount) — net loss for the three months ended August 31, 2024
• $0 (dollar_amount) — rental income for the three months ended August 31, 2025
• $7,500 (dollar_amount) — rental income for the three months ended August 31, 2024
• $3,043,139 (dollar_amount) — accumulated deficit as of August 31, 2025
• $305 (dollar_amount) — cash in escrow account as of August 31, 2025
• $2,850 (dollar_amount) — cash in escrow account as of May 31, 2025
• Nevada (company) — state of incorporation

FAQ

Risk Factors

• Going Concern Uncertainty [high — financial]: The company has an accumulated deficit of $3,043,139 as of August 31, 2025, and has reported zero rental income in the latest quarter. This, coupled with limited revenues and a substantial increase in operating expenses, raises substantial doubt about its ability to continue as a going concern.
• Dependence on Related Party Funding [high — financial]: Advances from related parties increased by $9,000 to $28,400, and a significant Convertible Note Payable - Related Party of $1,996,788 exists. This reliance on related parties for funding introduces potential conflicts of interest and financial instability.
• Cessation of Primary Revenue Stream [high — operational]: Rental income, the company's primary revenue source, has completely ceased, dropping from $7,500 in Q3 2024 to $0 in Q3 2025. This indicates a critical failure in the business model and a severe lack of sustainable income generation.
• Declining Cash Position [high — financial]: Cash in escrow has decreased significantly from $2,850 to $305. This extremely low cash balance, alongside a decline in total assets from $635,075 to $570,344, highlights severe liquidity constraints.
• Increasing Operating Expenses [medium — financial]: Total operating expenses rose to $84,535 from $74,983 year-over-year, driven by higher general and administrative expenses of $62,474. This increase occurred despite a complete drop in revenue, exacerbating operational losses.
• Substantial Accumulated Deficit [high — financial]: The company's accumulated deficit stands at $3,043,139 as of August 31, 2025. This substantial historical loss underscores persistent unprofitability and contributes to the going concern doubt.

Industry Context

The cannabis industry continues to navigate a complex regulatory landscape, with evolving state-by-state legalization and federal uncertainty impacting market access and operational costs. Companies face intense competition, pressure on pricing, and challenges in securing traditional financing due to the industry's legal status.

Regulatory Implications

The cannabis sector is subject to stringent and varied regulations across different jurisdictions, impacting product development, marketing, and distribution. Compliance with these evolving rules is critical and can lead to significant penalties or operational disruptions if not managed effectively.

What Investors Should Do

1. Scrutinize the sustainability of reported net income, given its reliance on non-operational factors like debt premium amortization and the absence of prior-year debt settlement losses.
2. Assess the viability of the business model given the complete cessation of rental income, the company's primary revenue source.
3. Evaluate the risks associated with the company's heavy reliance on related party funding and the substantial accumulated deficit.
4. Monitor any future disclosures regarding the company's ability to address its going concern status and secure sustainable revenue streams.

Glossary

Accumulated Deficit

The total net losses of a company that have not been offset by net income since its inception. (Indicates the company's history of unprofitability and contributes to the going concern assessment.)

Amortization of Debt Premium

The process of gradually writing off the premium paid on a debt instrument over its remaining life. This is a non-cash expense. (A significant non-cash item that artificially boosted net income in the current period, masking underlying operational issues.)

Going Concern

An accounting assumption that a business will continue to operate for the foreseeable future. (The company's financial condition raises substantial doubt about its ability to continue as a going concern, a critical warning for investors.)

Advances From Related Parties

Funds provided to the company by individuals or entities closely connected to the company's management or ownership. (Highlights the company's reliance on insider financing, which can carry specific risks and potential conflicts of interest.)

Convertible Notes Payable - Related Party

Debt instruments that can be converted into equity, owed to parties related to the company. (Represents a significant liability owed to insiders, with potential future dilution if converted.)

Year-Over-Year Comparison

Compared to the prior year's three-month period, CANNABIS SUISSE CORP. (CSUI) reported a significant swing from a net loss of $535,086 to a net income of $13,907. This improvement was driven by non-operational factors, specifically a $114,739 amortization of debt premium and the absence of a $551,677 loss on settlement of debt. However, the company's rental income has completely disappeared ($0 vs. $7,500), and operating expenses have increased, further highlighting the precarious financial situation despite the reported profit.

Key Financial Figures

• $3,043,139 — ted revenues and accumulated deficit of $3,043,139 as of August 31, 2025. The Company has
• $83,159 — ompany $ 7,500 , was repaid $ 5,000 and $83,159 of advances was settled with a converti
• $60,000 — onversion feature was $ 60,000 . Of the $60,000, $ 30,000 was converted to equity in De
• $30,000 — quity in December 2021, and the rest of $30,000 was assigned to Okie LLC. In November 2
• $375,704 — ments for the remaining four years were $375,704 and the landlord offered a 50% discount
• $93,926 — ayment, along with a forgiveness of the $93,926 in unpaid rent to that point. The Compa
• $580,344 — the note was $ 768,196 (inclusive of a $580,344 premium balance) as of August 31, 2025.
• $203,520 — e total payments for the five years was $203,520, none of which had been paid, and the l

Filing Documents

• csui-20250831_10q.htm (10-Q) — 352KB
• csui_ex311.htm (EX-31.1) — 8KB
• csui_ex312.htm (EX-31.2) — 8KB
• csui_ex321.htm (EX-32.1) — 5KB
• csui_ex322.htm (EX-32.2) — 5KB
• 0001680132-25-000006.txt ( ) — 2502KB
• csui-20250831_cal.xml (EX-101.CAL) — 23KB
• csui-20250831_def.xml (EX-101.DEF) — 74KB
• csui-20250831_lab.xml (EX-101.LAB) — 150KB
• csui-20250831_pre.xml (EX-101.PRE) — 150KB
• csui-20250831.xsd (EX-101.SCH) — 34KB
• csui-20250831_10q_htm.xml (XML) — 221KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION 1

Financial statements

Item 1. Financial statements. 1

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. 14

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk. 16

Controls and Procedures

Item 4. Controls and Procedures. 17

- OTHER INFORMATION

PART II - OTHER INFORMATION 18

Legal Proceedings

Item 1. Legal Proceedings. 18

Risk Factors

Item 1A. Risk Factors. 18

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 18

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities. 18

Mine Safety Disclosure

Item 4. Mine Safety Disclosure. 18

Other Information

Item 5. Other Information. 18

Exhibits

Item 6. Exhibits. 18

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial statements

Item 1. Financial statements. The accompanying condensed interim financial statements of Cannabis Suisse Corp. (the "Company") should be read in conjunction with the 10-K that was filed with the United States Securities and Exchange Commission (the "SEC"). The accompanying condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, since they are interim statements, the accompanying condensed financial statements do not include all the information and notes required by GAAP for complete financial statement presentation. In the opinion of management, the condensed interim financial statements reflect all adjustments (consisting of normal, recurring adjustments) that are necessary for a fair presentation of the financial position, results of operations, and cash flows for the interim periods presented. Interim results are not necessarily indicative of results for a full year. In the opinion of management, the condensed financial statements contain all material adjustments, consisting only of normal adjustments considered necessary to present fairly the financial condition, results of operations, and cash flows of the Company for the interim periods presented. 1 CANNABIS SUISSE CORP. CONDENSED BALANCE SHEETS August 31, 2025 May 31, 2025 (Unaudited) ASSETS Current Assets Cash in Escrow Account $ 305 $ 2,850 Prepaid Expenses 88,115 103,991 Total Current Assets 88,420 106,841 Property and Equipment, net 19,307 20,368 Operating Leases Right of Use Assets 462,617 507,866 TOTAL ASSETS $ 570,344 $ 635,075 LIABILITIES & STOCKHOLDERS' DEFICIT Current Liabilities Accounts Payable $ 17,500 $ 7,775 Accrued Interest - Related Parties 74,505 58,208 Advances From Related Parties 28,400 19,4

View Full Filing

View this 10-Q filing on SEC EDGAR