E-Smart Revenue Jumps 153% Amid Widening Losses, Internal Control Woes

TL;DR

**E-Smart's revenue surge is overshadowed by ballooning losses and critical internal control failures, making it a high-risk bet for speculative investors.**

AI Summary

E-Smart Corp. (ESMR) reported a significant increase in revenue for the fiscal year ended August 31, 2025, reaching $29,247, up from $11,562 in the prior fiscal year, representing a 152.9% increase. Despite this revenue growth, the company's net loss widened to $68,034 in fiscal year 2025, compared to a net loss of $41,236 in fiscal year 2024. Operating expenses surged to $87,388 in fiscal year 2025 from $45,925 in fiscal year 2024, primarily due to accumulated depreciation, server rental, and professional services. The company, incorporated on June 6, 2023, operates an innovative digital platform connecting tattoo artists and clients, and its monetization strategy includes an API for an AI textual tattoo idea generator offered on a subscription basis. E-Smart Corp. faces a highly competitive landscape and plans to leverage social media marketing and strategic partnerships for promotion. The company has identified material weaknesses in its internal controls, including a lack of adequate segregation of duties and insufficient accounting expertise, and has no independent directors or audit committee. Total assets as of August 31, 2025, were $141,281, including $114,182 in intangible assets.

Why It Matters

E-Smart Corp.'s substantial revenue growth of 152.9% to $29,247 indicates early market traction for its tattoo industry platform and AI-driven tools, which could be a positive signal for investors looking for disruptive technology in niche markets. However, the simultaneous increase in net loss to $68,034 and operating expenses to $87,388 raises concerns about profitability and cost management, suggesting the company is still in a heavy investment phase. The identified material weaknesses in internal controls, particularly the lack of segregation of duties and an independent audit committee, pose significant governance risks that could deter institutional investors and impact employee confidence. In a competitive digital platform landscape, E-Smart's ability to scale efficiently and address these control deficiencies will be crucial for long-term viability and market positioning against established and emerging competitors.

Risk Assessment

Risk Level: high — E-Smart Corp. exhibits a high-risk profile due to significant internal control deficiencies, including a lack of adequate segregation of duties and no independent audit committee, as stated in Item 9A. The company's net loss widened to $68,034 in fiscal year 2025, an increase from $41,236 in fiscal year 2024, indicating a lack of profitability despite revenue growth. Furthermore, the aggregate market value of voting stock held by non-affiliates was $0 as of August 31, 2025, suggesting extremely limited public trading and liquidity.

Analyst Insight

Investors should exercise extreme caution and consider E-Smart Corp. a highly speculative investment due to its early development stage, widening losses, and critical internal control weaknesses. Await evidence of sustained profitability, improved governance, and a clear path to market liquidity before considering any position.

Financial Highlights

debt To Equity

N/A

revenue

$29,247

operating Margin

N/A

total Assets

$141,281

total Debt

N/A

net Income

-$68,034

eps

N/A

gross Margin

N/A

cash Position

N/A

revenue Growth

+152.9%

Revenue Breakdown

Key Numbers

• $29,247 — Revenue (Increased 152.9% from $11,562 in fiscal year 2024 to $29,247 in fiscal year 2025.)
• $68,034 — Net Loss (Widened from $41,236 in fiscal year 2024 to $68,034 in fiscal year 2025.)
• $87,388 — Operating Expenses (Increased from $45,925 in fiscal year 2024 to $87,388 in fiscal year 2025.)
• 5,799,469 — Shares Outstanding (As of August 31, 2025, up from 4,500,000 in fiscal year 2024.)
• $0 — Market Value of Voting Stock (Held by non-affiliates as of August 31, 2025, indicating no public trading.)
• $141,281 — Total Assets (As of August 31, 2025, including $114,182 in intangible assets.)
• $43,452 — Net Cash Used in Operating Activities (For the year ended August 31, 2025, an increase from $10,973 in 2024.)
• $49,731 — Net Cash Provided by Financing Activities (For the year ended August 31, 2025, from director loan and capital stock.)

Key Players & Entities

• E-Smart Corp. (company) — registrant
• Diana Vasylenko (person) — President, Treasurer, Secretary, Director, Principal Executive, Financial and Accounting Officer
• $29,247 (dollar_amount) — revenue for fiscal year ended August 31, 2025
• $11,562 (dollar_amount) — revenue for fiscal year ended August 31, 2024
• $68,034 (dollar_amount) — net loss for fiscal year ended August 31, 2025
• $41,236 (dollar_amount) — net loss for fiscal year ended August 31, 2024
• $87,388 (dollar_amount) — operating expenses for fiscal year ended August 31, 2025
• $45,925 (dollar_amount) — operating expenses for fiscal year ended August 31, 2024
• Nevada (regulator) — state of incorporation
• U.S. Securities and Exchange Commission (regulator) — filing authority

FAQ

Risk Factors

• Material Weaknesses in Internal Controls [high — operational]: The company has identified material weaknesses in its internal controls, including a lack of adequate segregation of duties due to having only one director, no audit committee, and insufficient accounting expertise. Additionally, there are inadequate IT controls with no formal backup or off-site storage procedures for financial data.
• Highly Competitive Landscape [medium — market]: E-Smart Corp. operates in a highly competitive tattoo industry where innovation and customer engagement are critical. The company's success depends on its ability to differentiate its digital platform and attract both tattoo artists and clients.
• Widening Net Loss Despite Revenue Growth [high — financial]: Despite a 152.9% increase in revenue to $29,247 in FY2025, the net loss widened to $68,034. This is primarily driven by a significant increase in operating expenses to $87,388, up from $45,925 in FY2024.
• Dependence on Technology and AI Development [medium — operational]: The company's core monetization strategy relies on an API for an AI textual tattoo idea generator. Any issues with the development, performance, or adoption of this AI technology could significantly impact revenue generation.
• Limited Operating History and Development Stage [medium — financial]: E-Smart Corp. was incorporated on June 6, 2023, and is considered a development stage corporation with limited operations and minimal revenues. This implies a higher risk profile associated with unproven business models and market acceptance.

Industry Context

E-Smart Corp. operates within the tattoo industry, a sector characterized by a highly competitive landscape where innovation and efficient customer engagement are paramount. The industry is seeing a trend towards digitalization, with platforms aiming to streamline the connection between clients and artists, and offer enhanced services like AI-driven design tools. Strategic partnerships with tattoo supply companies and equipment manufacturers are also becoming increasingly important for growth and diversification.

Regulatory Implications

As a development stage company with identified material weaknesses in internal controls, E-Smart Corp. faces scrutiny regarding financial reporting accuracy and corporate governance. The lack of an audit committee and independent directors, while not legally mandated for smaller reporting companies, raises concerns about oversight. Future regulatory compliance and the establishment of robust internal controls will be critical for investor confidence.

What Investors Should Do

1. Monitor progress on addressing material weaknesses in internal controls.
2. Evaluate the scalability and adoption rate of the AI textual tattoo idea generator API.
3. Assess the competitive response and market penetration strategies.
4. Analyze future funding needs and sources.

Key Dates

• 2023-06-06: Company Incorporation — Marks the official start of E-Smart Corp. as a legal entity, initiating its journey in the digital tattoo platform space.
• 2024-08-31: Fiscal Year End — Reported revenue of $11,562 and a net loss of $41,236, with operating expenses of $45,925.
• 2025-08-31: Fiscal Year End — Reported significant revenue growth to $29,247 but a widened net loss of $68,034, with operating expenses increasing to $87,388. Total assets reached $141,281, including $114,182 in intangible assets.

Glossary

API

Application Programming Interface. A set of rules and protocols that allows different software applications to communicate with each other. (E-Smart Corp. monetizes its AI textual tattoo idea generator through an API offered on a subscription basis to businesses and developers.)

Material Weakness

A deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company's annual or interim financial statements will not be prevented or detected on a timely basis. (E-Smart Corp. has identified material weaknesses in its internal controls, impacting the reliability of its financial reporting.)

Development Stage Corporation

A company that is developing a product or service and has not yet generated significant revenue or profits. These companies often have limited operations and are focused on research and development. (E-Smart Corp. is identified as a development stage corporation, indicating its business is still in its early phases.)

Intangible Assets

Non-physical assets that have value, such as patents, copyrights, trademarks, goodwill, and software. In this case, it likely includes the value of the platform's technology and intellectual property. (A significant portion of E-Smart Corp.'s total assets ($114,182 out of $141,281) are intangible assets, highlighting the technology-centric nature of the business.)

Year-Over-Year Comparison

E-Smart Corp. has demonstrated impressive revenue growth, increasing by 152.9% from $11,562 in fiscal year 2024 to $29,247 in fiscal year 2025. However, this top-line expansion has been overshadowed by a significant widening of the net loss, which grew from $41,236 to $68,034. Operating expenses more than doubled, rising from $45,925 to $87,388, primarily due to depreciation, server rental, and professional services. The company also saw an increase in shares outstanding from 4,500,000 to 5,799,469. A critical concern remains the identified material weaknesses in internal controls, including a lack of segregation of duties and insufficient accounting expertise, which were present in the prior year and persist.

Key Financial Figures

• $0.001 — as of November 26, 2025 Common Stock: $0.001 5,799,469 TABLE OF CONTENTS PART I
• $29,247 — ust 31, 2025 and 2024 we have generated $29,247 and $11,562 in revenues, respectively.
• $11,562 — and 2024 we have generated $29,247 and $11,562 in revenues, respectively. Our net los
• $68,034 — e fiscal year ended August 31, 2025 was $68,034 compared to a net loss of $41,236 durin
• $41,236 — 5 was $68,034 compared to a net loss of $41,236 during the fiscal year ended August 31,
• $87,388 — 2024. Operating expenses incurred were $87,388 during fiscal year ended August 31, 202
• $45,925 — year ended August 31, 2025 compared to $45,925 during fiscal year ended August 31, 202
• $141,281 — August 31, 2025, our total assets were $141,281 consisting of $6,825 current assets, $2
• $6,825 — otal assets were $141,281 consisting of $6,825 current assets, $20,274 other current a
• $20,274 — 81 consisting of $6,825 current assets, $20,274 other current assets and $114,182 intan
• $114,182 — ssets, $20,274 other current assets and $114,182 intangible assets. As of August 31, 202
• $149,488 — August 31, 2024, our total assets were $149,488 consisting of $546 cash and $148,942 in
• $546 — otal assets were $149,488 consisting of $546 cash and $148,942 intangible assets.
• $148,942 — re $149,488 consisting of $546 cash and $148,942 intangible assets. Cash Flows from Op
• $43,452 — flows used in operating activities was $43,452. For the year ended August 31, 2024, ne

Filing Documents

• esmart_10k2025.htm (10-K) — 294KB
• ex19.htm (EX-19) — 12KB
• ex31.htm (EX-31.1) — 8KB
• ex32.htm (EX-32.1) — 4KB
• image_001.jpg (GRAPHIC) — 5KB
• 0001995920-25-000021.txt ( ) — 1490KB
• none-20250831.xsd (EX-101.SCH) — 12KB
• none-20250831_cal.xml (EX-101.CAL) — 23KB
• none-20250831_def.xml (EX-101.DEF) — 14KB
• none-20250831_lab.xml (EX-101.LAB) — 111KB
• none-20250831_pre.xml (EX-101.PRE) — 79KB
• esmart_10k2025_htm.xml (XML) — 111KB

Risk Factors

Risk Factors 6 ITEM 1B Unresolved Staff comments 6 ITEM 2

Properties

Properties 6 ITEM 3

Legal Proceedings

Legal Proceedings 6 ITEM 4 Mine Safety Disclosures 6 PART II ITEM 5 Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities 7 ITEM 6

Selected Financial Data

Selected Financial Data 7 ITEM 7

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 8 ITEM 7A

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 10 ITEM 8

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 10 ITEM 9 Changes In and Disagreements with Accountants on Accounting and Financial Disclosure 10 ITEM 9A

Controls and Procedures

Controls and Procedures 10 ITEM 9B Other Information 12 ITEM 9C Disclosure Regarding foreign Jurisdictions that Prevent Inspections 12 PART III ITEM 10 Directors, Executive Officers, Promoters and Control Persons of the Company 13 ITEM 11

Executive Compensation

Executive Compensation 14 ITEM 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 14 ITEM 13 Certain Relationships and Related Transactions 15 ITEM 14 Principal Accountant Fees and Services 15 PART IV ITEM 15 Exhibits 16 ITEM 16 Form 10-K Summary 16 3 Forward-Looking This annual report contains forward-looking statements. These statements relate to future events or our future financial performance. These statements often can be identified by the use of terms such as "may," "will," "expect," "believe," "anticipate," "estimate," "approximate" or "continue," or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events. 4 PART I

Description of Business

Item 1. Description of Business E-Smart Corp. ("the Company", "we", "us" or "our") was incorporated on June 6, 2023 under the laws of the State of Nevada United States of America. E-Smart Corp. is an innovative digital platform that aims to revolutionize the tattoo industry by efficiently connecting tattoo artists and clients. Our platform is designed to enhance efficiency, simplifying the client-artist interaction process to meet the requirements of both clients and tattoo studios. Our platform ensures a seamless experience for all users, providing a comprehensive database of skilled tattoo artists. Artists can easily showcase their exceptional work, and expand their client base. By including essential information and direct links to their social media profiles, we facilitate convenient access for users to view portfolios and initiate contact with their preferred artists. Masters interested in joining our platform shall contact us through our designated contacts and apply for inclusion in the database. Our primary executive office is located at 7311 Oxford Ave Philadelphia, PA 19111, and we can be reached via phone at +16203079197. Our Web Site Our website is located at https://e-smart.io. Monetization Strategy Our monetization strategy includes offering an API - AI textual tattoo idea generator, enabling businesses and developers to leverage our technology to enhance their own products and services. Businesses and developers can integrate this technology into their products and services by subscribing to the API. This API is provided on a subscription basis, offering different tiers such as a 14-day pass and a 30-day pass. To obtain an AI key for API access, users can choose a pricing plan on our website and initiate contact by using the designated button, submitting their request. Additionally, we are exploring other revenue avenues, including premium features, and strategic partnerships with tattoo-related businesses. Exploring collaborations with tat

Risk Factors

Risk Factors Not required for smaller reporting companies. Item 1B. Unresolved Staff Comments Not required for smaller reporting companies. Item 2.

Properties

Properties We maintain our statutory registered agent's office at, USA and current location is at 7311 Oxford Ave, Philadelphia, PA 19111. Our phone number is +16203079197. Item 3.

Legal Proceedings

Legal Proceedings We are not currently a party to any legal proceedings, and we are not aware of any pending or potential legal actions. Item 4. Mine Safety Disclosures Not Applicable. 6 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities The company stock is not trading at the moment. Registered Holders of our Common Stock As of August 31, 2025, the 5,799,469 issued and outstanding shares of common stock were held by a total of 32 shareholder of record. Dividends The Company has never declared or paid cash dividends on its common stock and does not anticipate paying cash dividends in the foreseeable future. Recent Sales of Unregistered Securities During our fiscal years ended August 31, 2025 and 2024, we had no sales of unregistered shares. Issuer Purchases of Equity Securities During the fiscal year ended August 31, 2025 and 2024, the Company did not repurchase any shares of its Common Stock. Item 6.

Selected Financial Data

Selected Financial Data Not applicable to smaller reporting companies. 7 Item 7.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations We are a development stage corporation with limited operations and minimal revenues from our business operations. The following discussion of our financial condition and results of operations should be read in conjunction with (i) our audited financial statements as of August 31, 2025, that appear elsewhere in this filing. This filing contains certain forward-looking statements and our future operating results could differ materially from those discussed herein. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward- looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. We disclaim any obligation to update any such factors or to announce publicly the results of any revisions of the forward -looking statements contained herein to reflect future events or developments. In General E-Smart Corp. ("Company") was incorporated on June 06, 2023 under the laws of Nevada. We are a Nevada-incorporated Company focused on creating a platform that facilitates interaction between tattoo artists and enthusiasts. Our product serves as a combined professional profile and artistic showcase for tattoo artists, enabling them to present their expertise and history in an aesthetically pleasing format. This platform simplifies the process for employers to identify and locate skilled artists within their vicinity. Moreover, our service offers users the capability to generate preliminary tattoo sketches through an AI-driven tattoo design tool. E-Smart is a dynamic and forward-thinking digital platform that connects tattoo artists and clients seamlessly. By leveraging advanced technologies, offering compr

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk Not applicable to smaller reporting companies. Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data The Company's Financial Statements required by Item 8, together with the reports thereon of the Independent Registered Public Accounting Firm are set forth on pages F-1 through F-11 of this report and are incorporated by reference in this Item 8. Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure We have had no changes in or disagreements with our independent registered public accountant. Item 9A.

Controls and Procedures. Disclosure Controls and Procedures

Controls and Procedures. Disclosure Controls and Procedures Disclosure controls and procedures are designed to ensure that information required to be disclosed in the reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported, within the time period specified in the SEC's rules and forms, and that such information is accumulated and communicated to management, including the CEO and CFO, as appropriate, to allow timely decisions regarding required disclosures. Our management necessarily applied its judgment in assessing the costs and benefits of such controls and procedures, which, by their nature, can provide only reasonable assurance regarding management's control objectives. 10 Our management, with the participation of our CEO, evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this Report. Based upon this evaluation, our CEO concluded that our disclosure controls and procedures were not effective because of the identification of a material weakness in our internal control over financial reporting which is described below. Management's Report on Internal Control Over Financial Reporting Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Rule 13a-15(f). Our internal control over financial reporting is a process designed to provide reasonable assurance to our management and board of directors regarding the reliability of financial reporting and the preparation of the financial statements for external purposes in accordance with U.S. GAAP. Our internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets; (ii) provide reasonable assurance that transactions are recorded

financial statements

financial statements. A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company's annual or interim financial statements will not be prevented or detected on a timely basis. In its assessment of the effectiveness of internal control over financial reporting as of August 31, 2025, the Company determined that there were control deficiencies that constituted material weaknesses, as described below. The Company does not have an adequate internal control structure or adequate oversight over financial reporting – The Company has only one member of management whom is also the Company's sole director, therefore the Company lacks adequate segregation of duties. Further, the Company currently has no Audit Committee. While not being legally obligated to have an audit committee, it is management's view that such a committee, including a financial expert member, is an utmost important entity level control over the Company's financial to be independent of management to provide the necessary oversight over management's activities. Lastly, due to the minimal operations and small size of the Company we have not employed individuals that have the necessary accounting knowledge and expertise to ensure accurate financial reporting under US GAAP. The Company lacks appropriate information technology controls - As of August 31, 2025, the Company retains copies of all financial data and material agreements; however, there is no formal procedure or evidence of normal backup of the Company's data or off-site storage of data in the event of theft, misplacement, or loss due to unmitigated factors. 11 Accordingly, the Company concluded that these control deficiencies resulted in a reasonable possibility that a m

Executive Compensation

Executive Compensation The table below summarizes the total compensation earned by each of our named executive Officers ("NEOs") for each of the fiscal years listed. Summary Compensation Table Name Position Year Salary ($) Bonus ($) Stock Awards ($) Option Awards ($) Non-Equity Incentive Plan Compensation ($) All Other Compensation Total Compensation ($) Diana Vasylenko President, Treasurer, Secretary and Director 2025 -0- -0- -0- -0- -0- -0- -0- 2024 -0- -0- -0- -0- -0- -0- -0- Since Inception on June 6, 2023, Diana Vasylenko only member of our Board of Director was not compensated for her services. Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matter

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matter Directors and Executive Officers The following table sets forth the beneficial ownership (and the percentages of outstanding shares represented by such beneficial ownership) as of August 31, 2025 of (i) each director, (ii) the current NEOs named in the "Summary Compensation Table" contained in this Form 10-K and (iii) all current directors and executive officers as a group. Except as otherwise indicated, we believe that the beneficial owners of the common stock listed below, based on information provided by such owners, have sole investment and voting power with respect to such shares, subject to community property laws where applicable. Persons, who have the power to vote or dispose of common stock of the Company, either alone or jointly with others, are deemed to be beneficial owners of such common stock. Beneficial Owner* Number of Shares Owned Percent of Class** Diana Vasylenko 4,500,000 77.59% (*) Beneficial ownership is determined in accordance with the rules of the SEC which generally attribute beneficial ownership of securities to persons who possess sole or shared voting power and/or investment power with respect to those securities. (**) Percent of class is calculated on the basis of the number of fully diluted shares outstanding on November 26, 2025 - 5,799,469. 14 Item 13. Certain Relationships and Related Transactions, and Director Independence Certain Relationships and Related Transactions It is our practice and policy to comply with all applicable laws, rules and regulations regarding related person transactions, including the Sarbanes-Oxley Act of 2002. A related person is an executive officer, director or more than 5% stockholder of E-Smart Corp. , including any immediate family members, and any entity owned or controlled by such persons. Our Board of Directors (excluding any interested director) is charged with reviewing and approving

financial statements and schedules listed below are included in this Form 10-K

financial statements and schedules listed below are included in this Form 10-K. 1)Financial Report of Independent Registered Public Accounting Firm (PCAOB Firm ID 6771) F-1 Balance Sheets as of August 31, 2025 and 2024 F-2 F-3 Equity (Deficit) for the years ended August 31, 2025 and 2024 F-4 F-6

Notes to Financial Statements

Notes to Financial Statements F-6 to F-11 2)Financial Statement Schedules: Not applicable. 3) Exhibits # 19 Insider Trading Policy # 31.1 Certification of the Chief Executive Officer pursuant to Section 302 of Sarbanes-Oxley Act of 2002. # 31.2 Certification of the Chief Financial Officer pursuant to Section 302 of Sarbanes-Oxley Act of 2002. Item 16. Form 10-K Summary None.

SIGNATURES

SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on November 26, 2025

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