GHST World Revenue Plunges 92% Amid Mounting Losses, Liquidity Concerns

TL;DR

**GHST World is a zombie company, bleeding cash and relying on related parties; avoid at all costs.**

AI Summary

GHST World Inc. reported a significant decline in revenue and a widening net loss for the three months ended September 30, 2025. Revenue plummeted by 92.3% to $3,485 from $45,732 in the prior year period. Concurrently, the net loss more than doubled, increasing to $34,218 from $12,717 in the same period. The company's total assets decreased to $1,848 as of September 30, 2025, from $2,518 as of June 30, 2025, while total current liabilities rose to $527,188 from $493,640. Advances from related parties, a critical funding source, increased by $33,720 to $451,491. The company continues to operate with a substantial accumulated deficit of $14,099,015 and a stockholders' deficit of $525,340, raising substantial doubt about its ability to continue as a going concern. Management plans to raise capital from existing shareholders and through the possible sale of minority interests in subsidiaries to address liquidity issues.

Why It Matters

GHST World's dramatic revenue decline and escalating losses signal severe operational challenges, directly impacting investor confidence and potentially jeopardizing the company's future. The reliance on related party advances for funding, which increased by $33,720, highlights a precarious financial position, making it difficult for the company to compete effectively in the technology sector. Employees face job insecurity given the 'going concern' warning, and customers may question the long-term viability of a company with such limited cash reserves. The broader market will view this as a cautionary tale of a small-cap technology holding company struggling to monetize its patent portfolio.

Risk Assessment

Risk Level: high — The company explicitly states 'Management believes these conditions raise substantial doubt about the Company's ability to continue as a going concern for the next twelve months.' This is supported by a net loss of $34,218 for the quarter, an accumulated deficit of $14,099,015, and cash of only $1,848 as of September 30, 2025.

Analyst Insight

Investors should immediately divest any holdings in GHST World Inc. given the severe liquidity issues, substantial doubt about its going concern status, and massive revenue decline. The company's reliance on related party funding and minimal cash reserves indicate a high probability of further financial distress or potential bankruptcy.

Financial Highlights

debt To Equity

N/A

revenue

$3,485

operating Margin

N/A

total Assets

$1,848

total Debt

N/A

net Income

$(34,218)

eps

$0.00

gross Margin

N/A

cash Position

$1,848

revenue Growth

-92.3%

Key Numbers

• $3,485 — Revenue (92.3% decrease from $45,732 in Q3 2024)
• $(34,218) — Net Loss (Increased from $(12,717) in Q3 2024)
• $1,848 — Cash (Extremely low cash balance as of September 30, 2025)
• $14,099,015 — Accumulated Deficit (Significant and growing deficit indicating historical losses)
• $525,340 — Stockholders' Deficit (Negative equity position as of September 30, 2025)
• $451,491 — Advances from related parties (Primary source of funding, increased by $33,720 in Q3 2025)
• 130,201,179 — Common Shares Outstanding (Consistent number of shares, but value is negligible)
• 92.3% — Revenue Decrease (Percentage drop in revenue from Q3 2024 to Q3 2025)

Key Players & Entities

• GHST World Inc. (company) — registrant
• Securities and Exchange Commission (regulator) — filing oversight
• $3,485 (dollar_amount) — revenue for Q3 2025
• $45,732 (dollar_amount) — revenue for Q3 2024
• $34,218 (dollar_amount) — net loss for Q3 2025
• $12,717 (dollar_amount) — net loss for Q3 2024
• $1,848 (dollar_amount) — cash balance as of September 30, 2025
• $525,340 (dollar_amount) — total stockholders' deficit as of September 30, 2025
• $14,099,015 (dollar_amount) — accumulated deficit as of September 30, 2025
• Delaware (company) — state of incorporation

FAQ

Risk Factors

• Going Concern Uncertainty [high — financial]: GHST World Inc. faces substantial doubt about its ability to continue as a going concern due to a significant net loss of $34,218 for Q3 2025, a widening deficit of $14,099,015, and a stockholders' deficit of $525,340. The company's cash position is critically low at $1,848.
• Revenue Collapse [high — financial]: Revenue has plummeted by 92.3% to $3,485 in Q3 2025 from $45,732 in the prior year period. This drastic decline indicates a severe operational or market challenge that needs immediate attention.
• Dependence on Related Party Funding [high — financial]: The company relies heavily on advances from related parties, which increased by $33,720 to $451,491. This dependence creates a significant risk if these funding sources become unavailable or are withdrawn.
• Low Asset Base [medium — operational]: Total assets have decreased to $1,848 as of September 30, 2025, from $2,518 as of June 30, 2025. This shrinking asset base limits the company's operational capacity and potential for growth.
• Increasing Liabilities [medium — financial]: Total current liabilities have risen to $527,188 from $493,640 in the prior quarter. This increase, coupled with declining revenue, exacerbates the company's liquidity challenges.
• Customer Concentration [medium — market]: The company receives all its revenues from just a few customers, creating a significant concentration risk. The loss of any one of these key customers could have a material adverse effect on financial results.
• New Business Venture Risks [medium — operational]: The company is undertaking a new business venture that is inherently subject to significant risks and uncertainties, including financial, operational, and technological risks that could lead to business failure.
• Foreign Currency Fluctuations [low — regulatory]: The company is subject to foreign exchange rate fluctuations due to international transactions, including vendor payments and related party advance repayments in foreign currency, which can impact earnings.

Industry Context

GHST World Inc. operates in the technology sector, focusing on patent acquisition and development. The company's current financial distress and drastic revenue decline suggest significant challenges in commercializing its technology or competing effectively in its chosen markets. The industry is characterized by rapid innovation and high R&D costs, making sustained profitability difficult for smaller players.

Regulatory Implications

The company's financial instability and reliance on related party funding could attract scrutiny from regulators regarding financial reporting and corporate governance. The 'going concern' warning is a significant red flag for investors and could impact future financing opportunities and regulatory compliance.

What Investors Should Do

1. Monitor management's ability to secure additional financing from existing shareholders or through subsidiary sales, as this is critical for survival.
2. Closely track any further revenue trends and operational changes to assess if the drastic Q3 decline was a one-off event or indicative of a deeper problem.
3. Evaluate the long-term viability of the company's technology and business model, given the severe financial deterioration and lack of profitability.

Glossary

Accumulated deficit

The total net losses of a company since its inception that have not been offset by net income. (Indicates the company's historical unprofitability, with a significant and growing deficit of $14,099,015.)

Stockholders' deficit

A negative equity position where a company's liabilities exceed its assets. (GHST World Inc. has a stockholders' deficit of $525,340, highlighting its insolvency.)

Advances from related parties

Funds provided to the company by individuals or entities that have a close relationship with the company, such as officers, directors, or major shareholders. (This is a critical funding source, increasing to $451,491, indicating reliance on internal or closely connected capital.)

Going concern

An assumption that a company will continue to operate for the foreseeable future, able to meet its financial obligations. (Management's assessment raises substantial doubt about GHST World Inc.'s ability to continue as a going concern.)

ASC 606

Accounting Standards Codification Topic 606, Revenue from Contracts with Customers, which provides a single, comprehensive framework for revenue recognition. (The basis for how GHST World Inc. recognizes its revenue, which has seen a dramatic decline.)

ASC 360

Accounting Standards Codification Topic 360, Property, Plant and Equipment, which governs the accounting for impairment of long-lived assets. (Relevant for how GHST World Inc. accounts for its assets, particularly patents, and potential write-downs.)

CODM

Chief Operating Decision Maker, typically a senior executive responsible for resource allocation and performance assessment. (The CODM for GHST World Inc. evaluates the business as a single segment, indicating a lack of diversified operations.)

Fair value hierarchy

A framework for measuring the fair value of assets and liabilities, categorized into three levels based on the observability of inputs. (GHST World Inc. states it has no assets or liabilities measured at fair value on a recurring basis, simplifying its valuation disclosures.)

Year-Over-Year Comparison

Compared to the prior year period, GHST World Inc. has experienced a catastrophic 92.3% decline in revenue, falling from $45,732 to $3,485. This has led to a more than doubling of the net loss to $34,218. The company's financial position has also weakened, with total assets decreasing and current liabilities increasing, further exacerbating the already severe going concern issues.

Key Financial Figures

• $0.001 — 30,201,179 shares of its common stock, $0.001 par value per share, outstanding. TABL
• $14.1 million — has accumulated losses of approximately $14.1 million since its inception. For income tax pur
• $3.6 million — ing loss carryforwards of approximately $3.6 million from tax years beginning in 2007, that

Filing Documents

• ghst_10q.htm (10-Q) — 278KB
• ex31x1.htm (EX-31.1) — 8KB
• ex31x2.htm (EX-31.2) — 8KB
• ex32x1.htm (EX-32.1) — 6KB
• 0001079973-25-001737.txt ( ) — 1950KB
• ghst-20250930.xsd (EX-101.SCH) — 15KB
• ghst-20250930_cal.xml (EX-101.CAL) — 22KB
• ghst-20250930_def.xml (EX-101.DEF) — 42KB
• ghst-20250930_lab.xml (EX-101.LAB) — 174KB
• ghst-20250930_pre.xml (EX-101.PRE) — 135KB
• ghst_10q_htm.xml (XML) — 146KB

- Financial Information

PART I - Financial Information Item 1

Financial Statements

Financial Statements 1 Consolidated Balance Sheets – As of September 30, 2025 (Unaudited) and June 30, 2025 1 Consolidated Statements of Operations (Unaudited) – For the Three Months Ended September 30, 2025 and 2024 2 Consolidated Statements of Changes in Stockholders' Deficit (Unaudited) – For the Three Months Ended September 30, 2025 and 2024 3 Consolidated Statements of Cash Flows (Unaudited) – For the Three Months Ended September 30, 2025 and 2024 4 Condensed Notes to Consolidated Financial Statements (Unaudited) 5 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 10 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 12 Item 4

Controls and Procedures

Controls and Procedures 12

- Other Information

Part II - Other Information Item 1

Legal Proceedings

Legal Proceedings 12 Item 1A

Risk Factors

Risk Factors 12 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 12 Item 3 Defaults Upon Senior Securities 12 Item 4 Mine Safety Disclosures 12 Item 5 Other Information 12 Item 6 Exhibits 13

: FINANCIAL INFORMATION

PART I: FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS GHST World Inc. Consolidated Balance Sheets September 30, 2025 June 30, 2025 (Unaudited) Assets Current Assets Cash $ 1,848 $ 2,518 Total Current Assets 1,848 2,518 Total Assets $ 1,848 $ 2,518 Liabilities and Stockholders' Deficit Current Liabilities Accounts payable and accrued expenses $ 21,663 $ 28,804 Advances from related parties 451,491 417,771 Common stock payable 9,559 9,559 Deferred revenue 44,475 37,506 Total Current Liabilities 527,188 493,640 Commitments and Contingencies (Note 7) — — Stockholders' Deficit Preferred stock, $ 0.001 par value; 10,000,000 shares authorized; Series A, 6,000 shares issued and outstanding at September 30, 2025 and June 30, 2025 6 6 Series B, 2,200 shares issued and outstanding at September 30, 2025 and June 30, 2025 2 2 Common stock, $ 0.001 par value, 300,000,000 shares authorized; 130,201,179 shares issued at September 30,2025 and June 30, 2025 130,201 130,201 Additional paid-in-capital 13,443,466 13,443,466 Accumulated deficit ( 14,099,015 ) ( 14,064,797 ) Total Stockholders' Deficit ( 525,340 ) ( 491,122 ) Total Liabilities and Stockholders' Deficit $ 1,848 $ 2,518 The accompanying notes are an integral part of these consolidated financial statements. 1 GHST World Inc. Consolidated (Unaudited) For the Three Months Ended September 30, 2025 2024 Revenues $ 3,485 $ 45,732 Operating expenses: General and administrative expenses 35,047 51,766 Patent development costs 3,476 6,683 Total operating expenses 38,523 58,449 Other Income(expense): Other income 846 — Other expense ( 26 ) — Total Other Income (expense) 820 — Loss Before Income taxes ( 34,218 ) ( 12,717 ) Provision for Income taxes — — Net loss $ ( 34,218 ) $ ( 12,717 ) Net loss per common share - Basic $ ( 0.00 ) $ ( 0.00 ) Diluted $ ( 0.00 ) $ ( 0.00 ) Weight av

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements September 30, 2025 (Unaudited) NOTE 1- ORGANIZATION, DESCRIPTION OF BUSINESS Background GHST World Inc. ("the Company"), is a Delaware corporation that was incorporated on November 12, 1999. The Company is a holding company for various technology and other activities. The Company has acquired and is developing several patents in the technology sector. Basis of Presentation The interim unaudited financial statements included herein have been prepared by the Company, pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). In management's opinion, all adjustments (consisting of normal recurring adjustments and reclassifications) necessary to present fairly our results of operations and cash flows for the three months ended September 30, 2025 and 2024, and our financial position as of September 30, 2025, have been made. The results of operations for such interim periods are not necessarily indicative of the operating results to be expected for the full year. Certain information and disclosures normally included in the notes to the annual financial statements have been condensed or omitted from these interim financial statements. Accordingly, these interim unaudited financial statements should be read in conjunction with the financial statements and notes thereto for the year ended June 30, 2025. NOTE 2- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION Liquidity and Going Concern The financial statements have been prepared on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company had net losses of $ 34,218 and $ 12,717 for the three months ended September 30, 2025 and 2024. The Company has an accumulated deficit of $ 14,099,015 and $ 14,064,797 for the three months ended September 30, 2025 and the year ended June 30, 2025,

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements September 30, 2025 (Unaudited) Concentration The Company's financial instruments that are exposed to concentrations of credit risk primarily consist of its cash. The Company places its cash with financial institutions of high credit worthiness. At times, its cash with a particular financial institution may exceed any applicable government insurance limits. The Company's management plans to assess the financial strength and credit worthiness of any parties to which it is a credit counterparty, and as such, it believes that any associated credit risk exposures are limited. For the three months ended September 30, 2025 and 2024, the Company receives all its revenues and deferred revenues from just a few customers. The Company is dependent on related parties for short term funding, who have provided a significant portion of the funding through September 30, 2025. Foreign Currency Transaction gains and losses are recognized in earnings. The Company is subject to foreign exchange rate fluctuations in connection with the Company's international transactions as certain vendor payments and repayments of related party advances are done in foreign currency. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial Such estimates and assumptions impact, among others, the following: fair value of share-based payments and deferred taxes. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements September 30, 2025 (Unaudited) Fair Value The carrying value of cash, other assets, accounts and other payable approximate their fair value based on the liquidity or the short-term maturities of these instruments. The fair value hierarchy promulgated by GAAP consists of three levels: Level one — Quoted market prices in active markets for identical assets or liabilities. Level two — Inputs other than level one inputs that are either directly or indirectly observable; and Level three — Unobservable inputs developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use. Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter. The Company has no assets or liabilities that are measured at fair value on a recurring and/or non-recurring during the three months ended September 30, 2025 and 2024. Impairment of Long-Lived Assets The Company accounts for impairment of long-lived assets in accordance with Accounting Standards Codification ("ASC") 360, Property, Plant and Equipment, ("ASC 360"). Long-lived assets for the Company consist primarily of other assets and patents. In accordance with ASC 360, the Company periodically evaluates long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When triggering event indicators are present, the Company obtains appraisals on an asset-by-asset basis and will recognize an impairment loss when the sum of the appraised values is less than the carrying amounts of such assets. The appraised values, based on reasonable and supportable assumptions and projections, require subjective judgments. Depending on the assumptions and estimates used, the appraised values projected in the evaluation of long-lived assets

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements September 30, 2025 (Unaudited) Net Loss Per Share Basic net loss per share is computed by dividing the net loss by the weighted average number of shares of common stock outstanding during the periods presented. Diluted net loss per common share is computed using the weighted average number of common shares outstanding for the period, and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the incremental common shares issuable upon the exercise of stock options, stock warrants, convertible debt instruments or other common stock equivalents. Potentially dilutive securities are excluded from the computation if their effect is anti-dilutive. The Company had no potentially dilutive securities outstanding for the three months ended September 30, 2025 or 2024. Recent Accounting Pronouncements In November 2023, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The ASU requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss. All disclosure requirements under ASU 2023-07 are required for public entities with a single reportable segment. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, on a retrospective basis, with early adoption permitted. The Company implemented this new guidance during the year ended September 30, 2025 with no impact on the Company's consolidated financial statements. In December 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires disaggregated information about a company's effective tax rate

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements September 30, 2025 (Unaudited) NOTE 5- RELATED PARTY TRANSACTIONS At September 30, 2025 and June 30, 2025, the Company owed related parties a total of $ 451,491 and $ 417,771 , respectively. These shareholder loans are unsecured, non-interest bearing and are due on demand. As shown in Note 4, the Company has committed to converting certain debts to equity. Included in the debts is $ 9,559 as of September 30, 2025 and 2024, of amounts due to related parties that will be converted as described in Note 4. As of September 30, 2025, the Company incurred travel expenses to assist a shareholder establishing a bank account for a future share exchange. The $ 846 reimbursement was recorded as other income. NOTE 6- STOCKHOLDERS' DEFICIT Preferred Stock Series A and B The Company is authorized to issue a total 10,000,000 shares of any class of Preferred stock. There are currently 6,000 shares of Series A Preferred Stock and 2,200 shares of Preferred Series B Stock issued and outstanding, Series A Preferred Stock is entitled to 25,000 votes per share and Series B Preferred Stock has a special liquidation preference equal to $ 27.50 per share. NOTE 7- COMMITMENTS AND CONTINGENCIES Legal Matters From time to time, we may be involved in litigation relating to claims arising out of our operations in the normal course of business. There are no pending or threatened lawsuits that could reasonably be expected to have a material effect on the results of our operations. NOTE 8- INCOME TAXES The Company accounts for income taxes under ASC 740, Income Taxes, which requires the recognition of deferred tax assets and liabilities based on the difference between the financial statement basis and tax basis of assets and liabilities by using enacted tax rates in effect for the year. The company had no unrecognized tax benefits at September 30, 2025 or 2024. The Company has accumulated losses of approximately $14.1 million since

MANAGEMENT'S DISCUSSION AND ANALYSIS

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