Galaxy Enterprises Posts Q3 Loss, Faces Going Concern Doubts

TL;DR

**GLEI is a pre-revenue development-stage company with a 'going concern' warning; avoid until they prove a viable business model and secure funding.**

AI Summary

Galaxy Enterprises Inc. (GLEI) reported a net loss of $1,580 for the three months ended October 31, 2025, a significant improvement from the $2,955 net loss in the same period of 2024. The company generated no revenue during either period, with all expenses attributed to general and administrative fees. Current assets slightly decreased from $15,185 on July 31, 2025, to $15,105 on October 31, 2025, primarily due to cash usage for ordinary business expenses. Liabilities increased from $48,447 to $49,947, driven by accruing accounting and professional fees. GLEI remains a development stage company, incorporated on March 24, 2021, with an accumulated deficit of $118,241 as of October 31, 2025. The company's ability to continue as a going concern is in substantial doubt, as it relies on future capital raises and profitable operations, with no current commitments for additional funding. Management intends to finance operations with existing cash and proceeds from a public offering, but has not yet commenced its core real estate management and consulting business plan.

Why It Matters

For investors, GLEI's continued net losses and lack of revenue, coupled with the 'going concern' warning, signal extreme risk. The company's reliance on future capital raises without any firm commitments means its ability to execute its real estate management and consulting business plan in the competitive Las Vegas market is highly uncertain. Employees, if any beyond management, face job insecurity given the company's precarious financial state. Customers, or potential clients for real estate services, should be wary of engaging with a company that has not yet commenced operations and has significant financial instability. The broader market impact is minimal due to GLEI's small size and development stage, but it highlights the challenges new ventures face in securing funding and establishing operations.

Risk Assessment

Risk Level: high — The company has incurred an accumulated deficit of $118,241 as of October 31, 2025, and a net loss of $1,580 for the quarter, with negative operating cash outflows of $80. Management explicitly states 'substantial doubt about the Company's ability to continue as a going concern' and notes the need to raise capital in the next twelve months without any 'written or verbal commitments' for funding.

Analyst Insight

Investors should exercise extreme caution and avoid investing in GLEI at this stage. The company is pre-revenue, has a significant accumulated deficit, and faces substantial doubt about its ability to continue as a going concern. Wait for clear evidence of successful capital raises, commencement of business operations, and consistent revenue generation before considering any investment.

Financial Highlights

debt To Equity

N/A

revenue

$0

operating Margin

N/A

total Assets

$15,105

total Debt

$49,946

net Income

-$1,580

eps

$0.00

gross Margin

N/A

cash Position

$105

revenue Growth

N/A

Key Numbers

• $1,580 — Net Loss (Net loss for the three months ended October 31, 2025, an improvement from $2,955 in 2024.)
• $118,241 — Accumulated Deficit (Total accumulated deficit as of October 31, 2025, indicating significant historical losses.)
• $105 — Cash Balance (Cash on hand as of October 31, 2025, down from $185 on July 31, 2025.)
• $80 — Negative Operating Cash Flow (Net cash used in operating activities for the three months ended October 31, 2025.)
• 4,170,000 — Shares Outstanding (Common shares issued and outstanding as of October 31, 2025, and July 31, 2025.)
• $49,946 — Total Liabilities (Total liabilities as of October 31, 2025, an increase from $48,447 on July 31, 2025.)
• $83,400 — Capital Raised (Aggregate capital raised through common stock sales to date.)
• 5.4% — Projected Residential Construction Growth (Forecasted increase in residential construction in Q3 2025 in Clark County by Cumming Corporation.)

Key Players & Entities

• Galaxy Enterprises Inc. (company) — Registrant in 10-Q filing
• Wyoming (regulator) — State of incorporation for Galaxy Enterprises Inc.
• Las Vegas, Nevada (location) — Intended primary market for real estate services
• Gregory Navone (person) — Director and anticipated provider of property consulting services
• James C. Shaw (person) — Director and anticipated provider of property consulting services
• University of Nevada – Las Vegas Center for Business and Economic Research (company) — Source of Clark County population forecast
• Cumming Corporation (company) — Source of construction trend forecasts
• October 31, 2025 (date) — End of the reported quarterly period
• July 31, 2025 (date) — Previous fiscal year-end for comparison
• March 24, 2021 (date) — Incorporation date of Galaxy Enterprises Inc.

FAQ

Risk Factors

• Going Concern Uncertainty [high — financial]: The company has an accumulated deficit of $118,241 as of October 31, 2025, and reported a net loss of $1,580 for the three months ended October 31, 2025. With no revenue generated and reliance on future capital raises, the ability to continue as a going concern is in substantial doubt.
• Development Stage Operations [high — operational]: Galaxy Enterprises Inc. is a development stage company incorporated on March 24, 2021, and has not yet commenced its core real estate management and consulting business plan. This indicates a lack of operational history and revenue-generating activities.
• Negative Operating Cash Flow [medium — financial]: The company used $80 in operating activities for the three months ended October 31, 2025, and $155 for the same period in 2024. This negative cash flow from operations, coupled with declining cash reserves, highlights the need for external funding.
• Increasing Liabilities [medium — financial]: Total liabilities increased from $48,447 on July 31, 2025, to $49,947 on October 31, 2025, primarily due to accruing accounting and professional fees. This trend, without corresponding revenue, strains financial resources.
• Declining Cash Position [medium — financial]: The cash balance decreased from $185 on July 31, 2025, to $105 on October 31, 2025. This reduction is attributed to cash usage for ordinary business expenses, further emphasizing the reliance on external financing.

Industry Context

Galaxy Enterprises Inc. is positioned within the real estate management and consulting sector, which typically involves property oversight, tenant relations, and advisory services. This industry is sensitive to economic cycles, interest rates, and local market conditions. The company has not yet commenced its planned operations, placing it at the very nascent stage of market entry.

Regulatory Implications

As a publicly traded entity, Galaxy Enterprises Inc. is subject to SEC regulations and reporting requirements. The company's development stage and lack of revenue may attract scrutiny regarding its business plan viability and future prospects. Compliance with financial reporting standards is critical, especially given the going concern warnings.

What Investors Should Do

1. Monitor future capital raises closely.
2. Evaluate the commencement of core business operations.
3. Assess the trend of operating expenses.
4. Review any updates on public offering progress.

Key Dates

• 2021-03-24: Company Incorporation — Marks the beginning of Galaxy Enterprises Inc. as a legal entity, initiating its status as a development stage company.
• 2025-10-31: Balance Sheet Date — Represents the end of the reporting period for the current 10-Q, showing assets of $15,105 and liabilities of $49,946.
• 2025-10-31: End of Three-Month Period — The period for which the Statement of Operations shows a net loss of $1,580, an improvement from the prior year's loss.
• 2025-07-31: Previous Balance Sheet Date — Provides a comparative point for asset and liability changes, showing total assets of $15,185 and liabilities of $48,447.

Glossary

Development Stage Company

A company that is still in the process of developing a business plan, product, or service and has not yet generated significant revenue. (Galaxy Enterprises Inc. is explicitly identified as a development stage company, meaning it has not yet launched its core business operations.)

Accumulated Deficit

The cumulative net losses of a company since its inception, representing the total amount by which expenses have exceeded revenues. (Galaxy Enterprises Inc. has an accumulated deficit of $118,241 as of October 31, 2025, indicating significant historical unprofitability.)

Going Concern

The assumption that a company will continue to operate for the foreseeable future without the threat of liquidation. (Management's assessment indicates substantial doubt about Galaxy Enterprises Inc.'s ability to continue as a going concern due to its financial condition.)

General and Administrative Expenses

Costs incurred for the overall management and administration of a business, not directly tied to the production of goods or services. (All expenses reported by Galaxy Enterprises Inc. for the period were classified as general and administrative, as the company has no revenue-generating activities.)

Year-Over-Year Comparison

Compared to the three months ended October 31, 2024, Galaxy Enterprises Inc. reported a reduced net loss of $1,580 versus $2,955, indicating improved cost management or timing of expenses, despite generating no revenue in either period. Total assets saw a slight decrease from $15,185 to $15,105, primarily due to cash reduction. Liabilities increased from $48,447 to $49,946, driven by accrued professional fees. The company remains in the development stage with no new risks identified, but the going concern uncertainty persists.

Key Financial Figures

• $118,241 — have incurred an accumulated deficit of $118,241. To date, we have raised an aggregate o
• $83,400 — To date, we have raised an aggregate of $83,400 through the sale of our common stock. P
• $1,580 — iod ended October 31, 2025 and 2024 was $1,580 and $2,955, respectively, which consist
• $2,955 — ctober 31, 2025 and 2024 was $1,580 and $2,955, respectively, which consisted entirely
• $15,105 — tober 31, 2025, our current assets were $15,105 compared to $15,185 as of July 31, 2025
• $15,185 — current assets were $15,105 compared to $15,185 as of July 31, 2025. The slight decreas
• $49,947 — October 31, 2025, our liabilities were $49,947 compared to $48,447 at July 31, 2025, w
• $48,447 — ur liabilities were $49,947 compared to $48,447 at July 31, 2025, which comprised entir
• $1,500 — unts payable and accrued liabilities of $1,500 from the accrual of the accounting and

Filing Documents

• glei-20251031_10q.htm (10-Q) — 188KB
• glei_ex311.htm (EX-31.1) — 8KB
• glei_ex321.htm (EX-32.1) — 3KB
• 0001871890-25-000011.txt ( ) — 916KB
• glei-20251031_cal.xml (EX-101.CAL) — 10KB
• glei-20251031_def.xml (EX-101.DEF) — 10KB
• glei-20251031_lab.xml (EX-101.LAB) — 58KB
• glei-20251031_pre.xml (EX-101.PRE) — 46KB
• glei-20251031.xsd (EX-101.SCH) — 8KB
• glei-20251031_10q_htm.xml (XML) — 41KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION 1

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited). 1 BALANCE SHEETS as of October 31, 2025 and July 31, 2025 F-1 F-2 F-3 F-4 NOTES TO THE UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS F-5

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. 2

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk. 5

Controls and Procedures

Item 4. Controls and Procedures. 5

- OTHER INFORMATION

PART II - OTHER INFORMATION 6

Legal Proceedings

Item 1. Legal Proceedings. 6

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 6

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities. 6

Mine Safety Disclosures

Item 4. Mine Safety Disclosures . 6

Other Information

Item 5. Other Information. 6

Exhibits

Item 6. Exhibits. 6

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Certain information and footnote disclosures required under accounting principles generally accepted in the United States of America have been condensed or omitted from the following financial statements pursuant to the rules and regulations of the Securities and Exchange Commission. It is suggested that the following financial statements be read in conjunction with the year-end financial statements and notes thereto included in the Company's Annual Report on Form 10K for the year ended July 31, 2025. In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included and all such adjustments are of a normal recurring nature. The results of operations for the three months ended October 31, 2025 are not necessarily indicative of the results for the entire fiscal year or for any other period. 1

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited) GALAXY ENTERPRISES INC. BALANCE SHEET (Unaudited) October 31, 2025 July 31, 2025 $ $ ASSETS Current assets: Cash 105 185 Prepayment & deposits 15,000 15,000 Total current assets: 15,105 15,185 Total Assets: 15,105 15,185 LIABILITIES AND STOCKHOLDER'S EQUITY Current liabilities: Accounts payable and accrued liabilities 49,946 48,447 Total current liabilities: 49,946 48,447 Total Liabilities: 49,946 48,447 Stockholder's Equity Common stock: $ 0.0001 par value, 100,000,000 authorized, 4,170,000 issued and outstanding as of October 31, 2025 and July 31, 2025, respectively. 417 417 Additional paid in capital 82,983 82,983 Accumulated deficit ( 118,241 ) ( 116,662 ) Total Stockholder's Equity: ( 34,841 ) ( 33,262 ) Total Liabilities and Stockholder's Equity: 15,105 15,185 (The accompanying notes are an integral part of these condensed financial statements) F-1 GALAXY ENTERPRISES INC. (Unaudited) For the three months ended October 31, 2025 2024 $ $ Expenses: General and administrative 1,580 2,955 Net Loss: ( 1,580 ) ( 2,955 ) Net loss per share - basic and diluted 0.00 0.00 Weighted average shares outstanding - basic and diluted 4,170,000 4,170,000 (The accompanying notes are an integral part of these condensed financial statements) F-2 GALAXY ENTERPRISES INC. For the three month periods ended October 31, 2025 and 2024 (Unaudited) Common Stock Number Par Value Paid in Capital Accumulated Deficit Total $ $ $ $ Opening Balance, July 31, 2024 4,170,000 417 82,983 ( 106,914 ) ( 23,514 ) Issuance of common stock - - - - - Net Loss - - - ( 2,955 ) ( 2,955 ) Closing Balance, October 31, 2024 4,170,000 417 82,983 ( 109,869 ) ( 26,469 ) Opening Balance, July 31, 2025 4,170,000

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

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

Forward Looking Statements

Forward Looking Statements This quarterly report contains forward-looking statements that involve risks and uncertainties. We use words such as anticipate, believe, plan, expect, future, intend and similar expressions to identify such forward-looking statements. You should not place too much reliance on these forward-looking statements. Our actual results are likely to differ materially from those anticipated in these forward-looking statements for many reasons, including the risks faced by us described in this section. Overview We intend to commence business operations by offering real estate management services for clients that focus on cost-efficient operations and tenant retention on a range of properties including residential housing and Class A, B, and C office space, as well as industrial, manufacturing, retail, and warehousing facilities. We also intend to provide our clients with real estate consulting services, including market analysis and modeling, market forecasts, lease and asset management, site selection, feasibility studies, sales and exit strategies, strategic planning, organizational design, capital management, and research services. We intend to commence operations in the Las Vegas, Nevada area due to the significant demand for real estate management services there and the proximity of our management team to that city. We were only incorporated on March 24, 2021 and have not commenced pursuing our business plan because we have been focused on raising the initial capital to fund our business operations. As of October 31, 2025, we have incurred an accumulated deficit of $118,241. To date, we have raised an aggregate of $83,400 through the sale of our common stock. Proceeds from these sales were used to fund the filing of this registration statement and will be used for future working capital requirements. Further losses are anticipated in the development of our business. As a result, our auditor has expressed substantial doubt about our abili

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk During the three months ended October 31, 2025, there were no material changes in the market risks described in the "Quantitative and Qualitative Disclosures About Market Risk" section of our Annual Report on Form 10-K.

Controls and Procedures

Item 4. Controls and Procedures. As supervised by our board of directors and our principal executive and principal financial officer, management has established a system of disclosure, controls and procedures and has evaluated the effectiveness of that system. The system and its evaluation are reported on in the below Management's Annual Report on Internal Control over Financial Reporting. Our principal executive and financial officer has concluded that our disclosure, controls and procedures (as defined in Securities Exchange Act of 1934 ("Exchange Act") Rule 13a-15(e)) as of October 31, 2025, were not effective, based on the evaluation of these controls and procedures required by paragraph (b) of Rule 13a-15. Management's Annual Report on Internal Control over Financial Reporting Management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rule 13a-15(f) of the Exchange Act. Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles. Management assessed the effectiveness of internal control over financial reporting as of October 31, 2025. We carried out this assessment using the criteria of the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control—Integrated Framework. This annual report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by our registered public accounting firm, pursuant to rules of the Securities and Exchange Commission that permit us to provide only management's report in this annual report. Management concluded in this assessment that as of October 31, 2025, our internal control ov

- OTHER INFORMATION

PART II - OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings. None

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. None

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities. None.

Mine Safety

Item 4. Mine Safety Not Applicable.

Other Information

Item 5. Other Information None.

Exhibits

Item 6. Exhibits. Exhibit Number Description 31.1 Section 302 Certification by Principal Executive and Financial Officer 32.1 Section 906 Certification by Principal Executive and Financial Officer Copies of the following documents are included as exhibits to this report pursuant to Item 601 of Regulation S-K. SEC Ref. No. Title of Document 101. INS XBRL Instance Document 101. SCH XBRL Taxonomy Extension Schema Document 101. CAL XBRL Taxonomy Calculation Linkbase Document 101. DEF XBRL Taxonomy Extension Definition Linkbase Document 101. LAB XBRL Taxonomy Label Linkbase Document 101. PRE XBRL Taxonomy Presentation Linkbase Document 6

SIGNATURES

SIGNATURES In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Galaxy Enterprises Inc. Dated: December 11, 2025 By: /s/ Gregory Navone Gregory Navone President, Chief Executive Officer, Chief Financial Officer and Director 7

View Full Filing

View this 10-Q filing on SEC EDGAR