ESSI Reports Zero Revenue, Deepening Deficit Amidst Going Concern Doubts

TL;DR

**ESSI is a zombie company with no revenue and a massive deficit; stay far away.**

AI Summary

ECO SCIENCE SOLUTIONS, INC. (ESSI) reported no revenue for the three and nine months ended October 31, 2025, continuing its trend from the prior year. The company posted a net loss of $245,859 for the three months ended October 31, 2025, an improvement from a net loss of $275,311 in the same period of 2024. For the nine months ended October 31, 2025, the net loss was $782,123, compared to $819,019 in the prior year. Operating expenses decreased to $225,678 for the three months ended October 31, 2025, from $255,992 in 2024, primarily due to lower legal, accounting, and audit fees. ESSI's working capital deficit expanded to $17.35 million as of October 31, 2025, from $16.67 million at January 31, 2025, and its accumulated deficit reached $79.51 million. The company dissolved its wholly-owned subsidiary, Ga-Du Corporation, on April 3, 2025, and reclassified $975,000 in liabilities to 'Liabilities held on divestiture'. ESSI continues to operate on a going concern basis, dependent on shareholder support and future financing, with only $1,914 in cash as of October 31, 2025.

Why It Matters

This filing paints a bleak picture for ESSI, highlighting its inability to generate revenue and its expanding working capital deficit. For investors, the 'going concern' warning is a critical red flag, indicating significant risk to their capital. Employees face uncertainty given the company's precarious financial state and the dissolution of its Ga-Du subsidiary. Customers, particularly those using the 'Herbo' or 'Herbo Pay' platforms, should be wary of the long-term viability of these services from a company with no revenue. In a competitive software market, ESSI's lack of commercial sales and reliance on related-party financing suggest it's falling further behind established players, making it an unattractive prospect for any market participant.

Risk Assessment

Risk Level: high — The company explicitly states a 'going concern' doubt due to not generating significant revenues, having a working capital deficit of $17.35 million, and an accumulated deficit of $79.51 million as of October 31, 2025. Cash on hand is a mere $1,914, indicating severe liquidity issues and a high reliance on external financing.

Analyst Insight

Investors should avoid ESSI stock given the severe 'going concern' risk, zero revenue, and expanding deficits. The company's reliance on related-party financing and minimal cash reserves suggest a high probability of further dilution or potential bankruptcy. Focus on companies with proven revenue models and healthy balance sheets.

Financial Highlights

debt To Equity

N/A

revenue

$0

operating Margin

N/A

total Assets

$101,914

total Debt

$17,446,309

net Income

$(245,859)

eps

N/A

gross Margin

N/A

cash Position

$1,914

revenue Growth

N/A

Revenue Breakdown

Key Numbers

• $0 — Total Revenue (For the three and nine months ended October 31, 2025 and 2024, indicating no commercial sales.)
• $(245,859) — Net Loss (3 months) (For the three months ended October 31, 2025, an improvement from $(275,311) in 2024.)
• $(782,123) — Net Loss (9 months) (For the nine months ended October 31, 2025, compared to $(819,019) in 2024.)
• $1,914 — Cash (As of October 31, 2025, a decrease from $2,817 at January 31, 2025.)
• $(17.35M) — Working Capital Deficit (As of October 31, 2025, an increase from $(16.67M) at January 31, 2025.)
• $(79.51M) — Accumulated Deficit (As of October 31, 2025, an increase from $(78.73M) at January 31, 2025.)
• $4,698,336 — Accounts payable and accrued expenses (As of October 31, 2025, an increase from $4,411,737 at January 31, 2025.)
• $2,943,795 — Related party payables (As of October 31, 2025, an increase from $2,713,694 at January 31, 2025.)
• 52,957,572 — Common Shares Outstanding (As of November 25, 2025, unchanged from October 31, 2025.)

Key Players & Entities

• ECO SCIENCE SOLUTIONS, INC. (company) — Registrant
• Ga-Du Corporation (company) — Wholly-owned subsidiary dissolved on April 3, 2025
• Mr. Oveson (person) — Resigned as Secretary on April 2, 2025
• Mr. Rountree (person) — Appointed Secretary on April 2, 2025
• Haiku Holdings, LLC (company) — Seller of enterprise software platform
• eXPO Financial Services LLC (company) — Seller of eXPO computer program
• SEC (regulator) — Securities and Exchange Commission

FAQ

Risk Factors

• Severe Working Capital Deficit and Going Concern Uncertainty [high — financial]: The company has a working capital deficit of $17.35 million as of October 31, 2025, an increase from $16.67 million at January 31, 2025. With only $1,914 in cash and no revenue, ESSI continues to operate on a going concern basis, heavily reliant on shareholder support and future financing.
• Significant Accumulated Deficit [high — financial]: ESSI's accumulated deficit reached $79.51 million as of October 31, 2025. This substantial deficit indicates a long history of unprofitability and raises concerns about the company's long-term financial viability.
• Dependence on External Financing [high — operational]: The company's continued operation is dependent on shareholder support and future financing. The extremely low cash balance of $1,914 highlights the immediate need for external capital to sustain operations.
• Dissolution of Subsidiary and Reclassification of Liabilities [medium — operational]: The dissolution of Ga-Du Corporation on April 3, 2025, and the reclassification of $975,000 in liabilities to 'Liabilities held on divestiture' may indicate restructuring or divestiture activities that could impact future operations and financial reporting.
• Increasing Accounts Payable and Related Party Payables [medium — financial]: Accounts payable and accrued expenses increased to $4.698 million from $4.411 million, and related party payables rose to $2.943 million from $2.713 million. These increases, coupled with no revenue, suggest potential cash flow strain.

Industry Context

ECO SCIENCE SOLUTIONS, INC. operates in a sector that often requires significant R&D investment and faces long development cycles. The lack of revenue suggests the company is in an early-stage or developmental phase, potentially focused on technology or product development rather than commercial sales. The competitive landscape for such companies can be intense, with success often depending on innovation, intellectual property, and securing substantial funding.

Regulatory Implications

As a publicly traded company, ESSI is subject to SEC regulations and reporting requirements. The ongoing financial struggles and lack of revenue may attract scrutiny regarding its disclosures, particularly concerning its going concern status and future financing plans. Compliance with accounting standards for financial reporting is critical.

What Investors Should Do

1. Monitor future financing announcements closely.
2. Evaluate the company's strategy for generating revenue.
3. Assess the terms and conditions of related party transactions.
4. Understand the implications of the subsidiary dissolution.

Key Dates

• 2025-10-31: End of Nine-Month Period — Reporting period for the 10-Q, showing continued lack of revenue, net loss, and significant working capital deficit.
• 2025-04-03: Dissolution of Ga-Du Corporation — Indicates corporate restructuring and reclassification of liabilities, potentially impacting the company's asset and liability structure.
• 2025-01-31: End of Fiscal Year — Prior period balance sheet data for comparison, showing a smaller working capital deficit and a slightly higher cash balance.

Glossary

Working Capital Deficit

A situation where a company's current liabilities exceed its current assets, indicating a potential short-term liquidity problem. (ESSI has a significant and growing working capital deficit of $17.35 million, highlighting its precarious financial position.)

Accumulated Deficit

The total net losses of a company since its inception that have not been offset by profits or additional paid-in capital. (ESSI's accumulated deficit of $79.51 million underscores its long-term unprofitability.)

Going Concern

An accounting assumption that a business will continue to operate for the foreseeable future. (ESSI's financial condition raises substantial doubt about its ability to continue as a going concern, necessitating disclosures about its reliance on external funding.)

Liabilities held on divestiture

Liabilities that are specifically associated with assets or operations that are being divested or sold off. (The $975,000 reclassified to this category relates to the dissolution of a subsidiary, impacting the presentation of ESSI's liabilities.)

Related party payables

Amounts owed to individuals or entities that have a close relationship with the company, such as officers, directors, or major shareholders. (The increase in related party payables to $2.94 million suggests potential financial support or transactions with insiders.)

Year-Over-Year Comparison

Compared to the prior year's comparable periods, ECO SCIENCE SOLUTIONS, INC. has maintained zero revenue, indicating no commercial progress. While the net loss has slightly improved for both the three-month ($245,859 vs $275,311) and nine-month ($782,123 vs $819,019) periods, this is primarily due to reduced operating expenses, not increased sales. The working capital deficit has widened from $16.67 million to $17.35 million, and the cash position has dwindled to a critical $1,914, underscoring a deteriorating financial condition despite cost-cutting measures.

Key Financial Figures

• $79.51 million — 5 million and an accumulated deficit of $79.51 million. The continuation of the Company as a g

Filing Documents

• essi_10q.htm (10-Q) — 799KB
• essi_ex31.htm (EX-31) — 11KB
• essi_ex32.htm (EX-32) — 4KB
• essi_10qimg2.jpg (GRAPHIC) — 3KB
• 0001477932-25-008875.txt ( ) — 3701KB
• essi-20251031.xsd (EX-101.SCH) — 38KB
• essi-20251031_lab.xml (EX-101.LAB) — 190KB
• essi-20251031_cal.xml (EX-101.CAL) — 31KB
• essi-20251031_pre.xml (EX-101.PRE) — 176KB
• essi-20251031_def.xml (EX-101.DEF) — 98KB
• essi_10q_htm.xml (XML) — 596KB

– 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 October 31, 2025 January 31, 2025 (Unaudited) (Audited) ASSETS Current assets Cash $ 1,914 $ 2,817 Prepaid expenses - 4,455 Total current assets 1,914 7,272 Intangible asset 100,000 100,000 TOTAL ASSETS $ 101,914 $ 107,272 LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities Accounts payable and accrued expenses $ 4,698,336 $ 4,411,737 Related party payables 2,943,795 2,713,694 Notes payable, short-term, related party 4,212,847 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 17,446,309 16,669,544 Total liabilities 17,446,309 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 October 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 ( 79,508,395 ) ( 78,726,272 ) Total stockholders' deficit ( 17,344,395 ) ( 16,562,272

View Full Filing

View this 10-Q filing on SEC EDGAR