ESSI Reports Zero Revenue, Deepening Losses Amid Going Concern Doubts

TL;DR

**ESSI is a cash-burning shell with no revenue and a massive deficit; avoid at all costs.**

AI Summary

ECO SCIENCE SOLUTIONS, INC. (ESSI) reported no revenue for the three and six months ended July 31, 2025, and 2024, continuing its pre-revenue status. The company posted a net loss of $262,843 for the three months ended July 31, 2025, an increase from a net loss of $249,095 in the prior-year period. For the six months ended July 31, 2025, the net loss was $536,264, a slight improvement from $543,708 in the same period last year. Total operating expenses for the six months ended July 31, 2025, were $497,193, down from $505,987 in the prior year, primarily due to reduced legal, accounting, and audit fees. Key business changes include the dissolution of its wholly-owned subsidiary, Ga-Du Corporation, on April 3, 2025, and the reclassification of $975,000 in liabilities to 'Liabilities held on divestiture'. The company faces substantial doubt about its ability to continue as a going concern, with a working capital deficit of $17.20 million and an accumulated deficit of $79.26 million as of July 31, 2025. Strategic outlook remains dependent on securing additional financing and achieving profitable operations from its Herbo software platforms.

Why It Matters

ESSI's continued lack of revenue and significant accumulated deficit of $79.26 million as of July 31, 2025, signals extreme risk for investors, highlighting a company struggling to commercialize its software platforms, Herbo and Herbo Pay. The dissolution of Ga-Du Corporation and reclassification of $975,000 in liabilities indicates a restructuring effort, but without revenue, its competitive position in the enterprise software market remains nonexistent. Employees face uncertainty given the 'going concern' warning, and customers have no tangible product to evaluate. The broader market impact is minimal due to ESSI's small scale, but it serves as a cautionary tale for micro-cap investments in pre-revenue tech ventures.

Risk Assessment

Risk Level: high — The company explicitly states 'These factors raise substantial doubt regarding the Company's ability to continue as a going concern' due to a working capital deficit of $17.20 million and an accumulated deficit of $79.26 million as of July 31, 2025. Furthermore, ESSI has generated $0 in revenue for the three and six months ended July 31, 2025, indicating a complete lack of operational income.

Analyst Insight

Investors should avoid ECO SCIENCE SOLUTIONS, INC. (ESSI) given its explicit 'going concern' warning, zero revenue, and substantial accumulated deficit of $79.26 million. The company's future is highly speculative, dependent on uncertain financing and the attainment of profitable operations, making it an extremely high-risk investment.

Financial Highlights

debt To Equity

N/A

revenue

$0

operating Margin

N/A

total Assets

$104,583

total Debt

$17,203,119

net Income

$(262,843)

eps

N/A

gross Margin

N/A

cash Position

$3,098

revenue Growth

N/A

Key Numbers

• $0 — Total Revenue (No revenue generated for the three and six months ended July 31, 2025 and 2024.)
• $(262,843) — Net Loss (3 months) (Increased from $(249,095) in the prior-year period.)
• $(536,264) — Net Loss (6 months) (Slightly improved from $(543,708) in the prior-year period.)
• $(17,098,536) — Total Stockholders' Deficit (As of July 31, 2025, indicating severe financial distress.)
• $17.20 million — Working Capital Deficit (As of July 31, 2025, contributing to going concern doubts.)
• $79.26 million — Accumulated Deficit (As of July 31, 2025, highlighting historical losses.)
• $3,098 — Cash (Extremely low cash balance as of July 31, 2025.)
• 52,957,572 — Common Shares Outstanding (As of September 11, 2025.)
• $975,000 — Liabilities held on divestiture (Reclassified due to Ga-Du Corporation dissolution.)
• $4,627,482 — Accounts payable and accrued expenses (As of July 31, 2025, a significant current liability.)

Key Players & Entities

• ECO SCIENCE SOLUTIONS, INC. (company) — registrant
• Ga-Du Corporation (company) — wholly-owned subsidiary dissolved on April 3, 2025
• Haiku Holdings, LLC (company) — seller of enterprise software platform
• eXPO Financial Services LLC (company) — seller of eXPO computer program
• Mr. Oveson (person) — resigned as Secretary on April 2, 2025
• Mr. Rountree (person) — appointed Secretary on April 2, 2025
• $17.20 million (dollar_amount) — working capital deficit as of July 31, 2025
• $79.26 million (dollar_amount) — accumulated deficit as of July 31, 2025
• $0 (dollar_amount) — revenue for the three and six months ended July 31, 2025
• $100,000 (dollar_amount) — purchase price for eXPO software

FAQ

Risk Factors

• Going Concern Uncertainty [high — financial]: The company faces substantial doubt about its ability to continue as a going concern due to a significant working capital deficit of $17.20 million and an accumulated deficit of $79.26 million as of July 31, 2025. The extremely low cash balance of $3,098 further exacerbates this risk.
• Pre-Revenue Status [high — financial]: ECO SCIENCE SOLUTIONS, INC. reported no revenue for the three and six months ended July 31, 2025, and 2024. This continued pre-revenue status poses a significant risk to future operations and the ability to generate income.
• Increasing Net Loss [medium — financial]: The net loss for the three months ended July 31, 2025, increased to $262,843 from $249,095 in the prior-year period. While the six-month net loss slightly improved to $536,264 from $543,708, the overall trend indicates ongoing financial strain.
• Subsidiary Dissolution [medium — operational]: The dissolution of its wholly-owned subsidiary, Ga-Du Corporation, on April 3, 2025, and the reclassification of $975,000 in liabilities to 'Liabilities held on divestiture' indicate significant structural changes that could impact future operations and financial reporting.
• High Accounts Payable [medium — financial]: As of July 31, 2025, accounts payable and accrued expenses stood at $4,627,482, representing a substantial current liability that requires careful management and potential future funding.

Industry Context

ECO SCIENCE SOLUTIONS, INC. operates in a sector that is highly dependent on innovation and market adoption of new technologies, particularly in software platforms like Herbo. The competitive landscape likely involves established players and emerging startups, making the company's pre-revenue status a significant hurdle.

Regulatory Implications

As a pre-revenue company, ESSI is subject to heightened scrutiny regarding its financial disclosures and its ability to meet ongoing operational and reporting requirements. Any missteps in financial management or disclosure could lead to regulatory action.

What Investors Should Do

1. Monitor future financing rounds closely.
2. Evaluate the commercial viability of Herbo software platforms.
3. Assess management's ability to control operating expenses.

Key Dates

• 2025-04-03: Dissolution of Ga-Du Corporation — Indicates a significant restructuring event and potential shift in business focus or asset disposition.
• 2025-07-31: End of Q2 2025 reporting period — Period for which the 10-Q financial statements are reported, highlighting pre-revenue status and significant deficits.

Glossary

Accumulated deficit

The cumulative net losses of a company that have not been offset by net income. (Indicates the company's historical unprofitability, with a substantial $79.26 million deficit as of July 31, 2025.)

Working capital deficit

Occurs when a company's current liabilities exceed its current assets, indicating a short-term liquidity shortage. (The company has a significant working capital deficit of $17.20 million as of July 31, 2025, raising concerns about its ability to meet short-term obligations.)

Liabilities held on divestiture

Liabilities that are specifically earmarked and segregated for transfer or sale as part of a divestiture or disposal of a business unit or asset. (The reclassification of $975,000 in liabilities to this category is a result of the Ga-Du Corporation dissolution.)

Going concern

An assumption that a company will continue to operate for the foreseeable future, typically at least 12 months. (The company faces substantial doubt about its ability to continue as a going concern, a critical indicator of financial distress.)

Year-Over-Year Comparison

Compared to the prior year, ECO SCIENCE SOLUTIONS, INC. continues to report zero revenue for the periods ended July 31, 2025. While total operating expenses for the six months decreased slightly to $497,193 from $505,987, the net loss for the three-month period widened to $262,843 from $249,095. The company's financial position has deteriorated, with a larger stockholders' deficit of $(17,098,536) and a working capital deficit of $17.20 million, underscoring increased financial risk.

Filing Documents

• essi_10q.htm (10-Q) — 775KB
• essi_ex31.htm (EX-31) — 10KB
• essi_ex32.htm (EX-32) — 5KB
• essi_10qimg1.jpg (GRAPHIC) — 3KB
• 0001477932-25-006747.txt ( ) — 3672KB
• essi-20250731.xsd (EX-101.SCH) — 38KB
• essi-20250731_lab.xml (EX-101.LAB) — 185KB
• essi-20250731_cal.xml (EX-101.CAL) — 32KB
• essi-20250731_pre.xml (EX-101.PRE) — 178KB
• essi-20250731_def.xml (EX-101.DEF) — 102KB
• essi_10q_htm.xml (XML) — 577KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION 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 10 Item 4.

Controls and Procedures

Controls and Procedures 10

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 11 Item 1A.

Risk Factors

Risk Factors 13 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 13 Item 3. Defaults Upon Senior Securities 13 Item 4. Mine Safety Disclosures 13 Item 5. Other Information 13 Item 6. Exhibits 13

SIGNATURES

SIGNATURES 14 2 Table of Contents

-- FINANCIAL INFORMATION

PART I -- FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS ECO SCIENCE SOLUTIONS, INC. NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Page Unaudited Condensed Consolidated Balance Sheets F-1 Unaudited Condensed Consolidated Statements of Operations F-2 Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity (Deficit) F-3 Unaudited Condensed Consolidated Statements of Cash Flows F-4 Notes to Unaudited Condensed Consolidated Financial Statements F-5 3 Table of Contents ECO SCIENCE SOLUTIONS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS July 31, 2025 January 31, 2025 (Unaudited) (Audited) ASSETS Current assets Cash $ 3,098 $ 2,817 Prepaid expenses 1,485 4,455 Total current assets 4,583 7,272 Intangible asset 100,000 100,000 TOTAL ASSETS $ 104,583 $ 107,272 LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities Accounts payable and accrued expenses $ 4,627,482 $ 4,411,737 Related party payables 2,868,761 2,713,694 Notes payable, short-term, related party 4,115,545 3,952,782 Notes payable 2,960,118 2,960,118 Convertible note, net 1,656,213 1,656,213 Liabilities held on divestiture 975,000 975,000 Total current liabilities 17,203,119 16,669,544 Total liabilities 17,203,119 16,669,544 Commitments and contingencies - - Stockholders' deficit Preferred stock, $ 0.001 par, 50,000,000 shares authorized of which 1,000 shares are designated Series A Voting Preferred, none issued and outstanding - - Common stock, $ 0.0001 par, 650,000,000 shares authorized, 53,957,572 shares issued and 52,957,572 shares outstanding as at July 31, 2025 and January 31, 2025 5,396 5,396 Treasury stock ( 1,000,000 shares issued at a cost of $ 0.0075 per share) ( 7,500 ) ( 7,500 ) Additional paid in capital 62,166,104 62,166,104 Accumulated deficit ( 79,262,536 ) ( 78,726,272 ) Total stockholders' deficit ( 17,098,536 ) ( 16,562,272 )

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View this 10-Q filing on SEC EDGAR