GPOX Widens Losses to $694K Despite Revenue Growth

TL;DR

**GPOX is burning cash and losing money, making it a risky bet despite revenue growth.**

AI Summary

GPO Plus, Inc. (GPOX) reported a net loss of $694,843 for the three months ended July 31, 2025, a 18.43% increase from the $586,709 net loss in the same period last year. Despite this, revenues increased by 7.82% to $1,302,172 from $1,207,741, and gross profit rose significantly by 43.70% to $376,298 from $261,747. However, operating expenses climbed to $800,148, up from $746,949, driven by increased general and administrative costs and professional fees. The company's cash position deteriorated, falling to $138,135 as of July 31, 2025, from $336,249 on April 30, 2025, primarily due to $434,234 in cash used in operating activities. GPOX continues to face a 'going concern' doubt, with a cumulative deficit of $44,470,209, and relies on obtaining additional capital from management, significant shareholders, or third-party financing to cover operating costs. The company issued 7,995,888 shares of common stock for various financing activities, including loan inducement, extension, repayment, and note conversion, significantly increasing its outstanding shares.

Why It Matters

GPOX's widening net loss and significant cash burn raise red flags for investors, despite a modest revenue increase. The 'going concern' warning signals substantial financial instability, indicating that the company may struggle to meet its obligations without external capital. This precarious financial position could impact employees through job insecurity, customers through potential service disruptions, and the broader market by highlighting the challenges faced by smaller, growth-stage distribution companies. Competitively, GPOX's DSD distribution model, while innovative, is capital-intensive, and its inability to achieve profitability could leave it vulnerable to more financially robust competitors.

Risk Assessment

Risk Level: high — The company explicitly states a 'going concern' doubt due to a cumulative deficit of $44,470,209 and insufficient revenue to cover operating costs. Cash decreased by $198,114 in the quarter, with $434,234 used in operating activities, indicating a rapid depletion of liquidity without external funding.

Analyst Insight

Investors should exercise extreme caution and consider GPOX a highly speculative investment due to its 'going concern' warning and consistent net losses. Potential investors should await clear evidence of sustained profitability and a strengthened balance sheet before considering a position. Existing shareholders should monitor cash flow and financing activities closely for signs of stabilization or further deterioration.

Financial Highlights

debt To Equity

N/A

revenue

$1,302,172

operating Margin

N/A

total Assets

$894,399

total Debt

$6,045,628

net Income

-$694,843

eps

N/A

gross Margin

28.90%

cash Position

$138,135

revenue Growth

+7.82%

Key Numbers

• $694,843 — Net Loss (Increased by 18.43% from $586,709 year-over-year.)
• $1,302,172 — Revenues (Increased by 7.82% from $1,207,741 year-over-year.)
• $376,298 — Gross Profit (Increased by 43.70% from $261,747 year-over-year.)
• $44,470,209 — Cumulative Deficit (Indicates significant accumulated losses and 'going concern' doubt.)
• $138,135 — Cash Balance (Decreased from $336,249 on April 30, 2025, showing significant cash burn.)
• $434,234 — Net Cash Used in Operating Activities (Increased from $164,788 year-over-year, highlighting operational cash drain.)
• 84,683,256 — Common Shares Outstanding (Increased from 76,657,368 on April 30, 2025, due to stock issuances for financing.)
• 18.43% — Net Loss Increase (Percentage increase in net loss from prior year quarter.)
• 7.82% — Revenue Increase (Percentage increase in revenue from prior year quarter.)
• 43.70% — Gross Profit Increase (Percentage increase in gross profit from prior year quarter.)

Key Players & Entities

• GPO Plus, Inc. (company) — registrant
• Brett H. Pojunis (person) — acquired 5,000,000 common shares and had voting control
• Jian Han Chen (person) — former equity holder
• SEC (regulator) — U.S. Securities and Exchange Commission
• $694,843 (dollar_amount) — net loss for three months ended July 31, 2025
• $586,709 (dollar_amount) — net loss for three months ended July 31, 2024
• $1,302,172 (dollar_amount) — revenues for three months ended July 31, 2025
• $1,207,741 (dollar_amount) — revenues for three months ended July 31, 2024
• $44,470,209 (dollar_amount) — cumulative deficit as of July 31, 2025
• $138,135 (dollar_amount) — cash at July 31, 2025

FAQ

Risk Factors

• Going Concern and Need for Additional Capital [high — financial]: The company has a cumulative deficit of $44,470,209 and a significant net loss of $694,843 for the three months ended July 31, 2025. GPOX relies on obtaining additional capital from management, significant shareholders, or third-party financing to cover operating costs, indicating substantial financial instability.
• Deteriorating Cash Position [high — financial]: The cash balance decreased to $138,135 as of July 31, 2025, from $336,249 on April 30, 2025. This significant burn is primarily due to $434,234 in cash used in operating activities, highlighting an inability to generate sufficient cash from core operations.
• Increased Operating Expenses [medium — financial]: Operating expenses climbed to $800,148 from $746,949 year-over-year, driven by increased general and administrative costs and professional fees. This rise outpaces revenue growth and contributes to the widening net loss.
• Significant Increase in Shares Outstanding [medium — financial]: The company issued 7,995,888 shares of common stock for financing activities, increasing outstanding shares to 84,683,256 from 76,657,368. This dilution can negatively impact existing shareholders and may signal ongoing capital needs.
• High Levels of Current Liabilities [high — financial]: Total current liabilities stand at $5,729,392 as of July 31, 2025, significantly exceeding total current assets of $333,237. This liquidity gap, coupled with substantial debt, poses a short-term financial risk.

Industry Context

GPO Plus, Inc. operates in a competitive landscape where companies often struggle with profitability and rely on financing. The broader industry may see consolidation and a focus on sustainable revenue models. Companies in this sector often face challenges in scaling operations while managing costs effectively.

Regulatory Implications

The 'going concern' disclosure is a significant regulatory flag, requiring management to assess and disclose uncertainties about the company's ability to continue operations. Failure to address these issues could lead to increased scrutiny from regulators and investors.

What Investors Should Do

1. Monitor cash burn and future financing activities closely.
2. Evaluate the sustainability of revenue growth against rising costs.
3. Assess the impact of increased share count on potential future returns.

Key Dates

• 2025-07-31: End of Q2 2025 Reporting Period — The period for which the unaudited condensed financial statements are presented, showing increased net loss despite revenue growth.
• 2025-04-30: End of Q1 2025 Reporting Period — Previous reporting period used for comparison, showing a higher cash balance and fewer shares outstanding.

Glossary

Cumulative Deficit

The total accumulated losses of a company over its lifetime, representing the excess of expenses and losses over revenues and gains. (Indicates GPOX's long-standing history of unprofitability and contributes to the 'going concern' doubt.)

Going Concern

An accounting assumption that a company will continue to operate for the foreseeable future, typically at least 12 months from the reporting date. (Management's disclosure of 'going concern' doubt highlights significant uncertainties about the company's ability to meet its obligations.)

Stockholders' Deficit

Occurs when a company's liabilities exceed its assets, resulting in a negative net worth for shareholders. (GPOX has a stockholders' deficit, reinforcing the precarious financial position and 'going concern' issues.)

Finance lease right-of-use assets

Assets recognized under lease accounting standards for leases that transfer substantially all the risks and rewards of ownership to the lessee. (The significant increase in these assets ($486,846 as of July 31, 2025) suggests increased long-term leasing obligations impacting the balance sheet.)

Promissory note payable

A written promise to pay a specific sum of money to another party, either on demand or at a specified future date. (GPOX has a substantial promissory note payable of $2,862,303, representing a significant debt obligation.)

Year-Over-Year Comparison

Compared to the previous period, GPO Plus, Inc. has seen a revenue increase of 7.82% to $1,302,172, and a substantial gross profit increase of 43.70% to $376,298. However, the net loss has widened by 18.43% to $694,843, driven by a significant increase in operating expenses. The company's cash position has deteriorated sharply, and the number of outstanding common shares has increased due to financing activities, exacerbating dilution concerns.

Key Financial Figures

• $85,225 — (including stock-based compensation of $85,225 and $7,110, respectively) 190,789 19
• $7,110 — stock-based compensation of $85,225 and $7,110, respectively) 190,789 190,122 Pro
• $8,788 — (including stock-based compensation of $8,788 and $7,308, respectively) 8,788 7,30
• $7,308 — stock-based compensation of $8,788 and $7,308, respectively) 8,788 7,308 Managem

Filing Documents

• gpox_10q.htm (10-Q) — 1097KB
• gpox_ex311.htm (EX-31.1) — 15KB
• gpox_ex321.htm (EX-32.1) — 8KB
• 0001640334-25-001819.txt ( ) — 6425KB
• gpox-20250731.xsd (EX-101.SCH) — 72KB
• gpox-20250731_lab.xml (EX-101.LAB) — 381KB
• gpox-20250731_cal.xml (EX-101.CAL) — 49KB
• gpox-20250731_pre.xml (EX-101.PRE) — 340KB
• gpox-20250731_def.xml (EX-101.DEF) — 240KB
• gpox_10q_htm.xml (XML) — 1128KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Page No. Item 1. Unaudited Condensed Financial Statements 4 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 26 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 29 Item 4.

Controls and Procedures

Controls and Procedures 29

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 31 Item 1A.

Risk Factors

Risk Factors 31 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 31 Item 3. Defaults Upon Senior Securities 31 Item 4. Mine Safety Disclosures 31 Item 5. Other Information 31 Item 6. Exhibits 32

SIGNATURES

SIGNATURES 33 2 Table of Contents CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS Except for historical information, this report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Such forward-looking statements include, among others, those statements including the words "believes", "anticipates", "expects", "intends", "estimates", "plans" and words of similar import. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are based on our current expectations and assumptions regarding our business, potential target businesses, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you therefore that you should not rely on any of these forward-looking statements as statements of historical fact or as guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include changes in local, regional, national, or global political, economic, business, competitive, market (supply and demand) and regulatory conditions. A description of these and other risks and uncertainties that could affect our business appears in the section captioned "Risk Factors" in our Annual Report on Form 10-K which we filed with the Securities an

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States and the rules of the SEC and should be read in conjunction with the audited consolidated financial statements and notes thereto contained in our Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the periods presented have been reflected herein. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year. GPO PLUS, INC. CONDENSED BALANCE SHEETS (Unaudited) July 31, April 30, 2025 2025 ASSETS Current Assets: Cash $ 138,135 $ 336,249 Accounts receivable 53,982 55,012 Prepaid expenses 58,092 3,665 Inventory, net 83,028 83,299 Total Current Assets 333,237 478,225 Finance lease right-of-use assets, net 486,846 206,031 Property and equipment, net 74,316 96,968 Intangible assets, net - 5,254 TOTAL ASSETS $ 894,399 $ 786,478 LIABILITIES AND STOCKHOLDERS' DEFICIT Current Liabilities: Accounts payable and accrued liabilities 1,415,792 1,511,492 Accrued interest 453,845 504,811 Accrued liabilities - related parties 329,302 338,502 Deposits 11,585 8,213 Convertible note payable, net of debt discount of $ 0 - 28,000 Promissory note payable, net of debt discount of $ 116,992 and $ 104,248 , respectively 2,862,303 2,630,844 Finance lease liabilities 152,764 63,027 Stock payable - related parties 21,183 12,395 Stock payable 482,618 937,907 Total Current Liabilities 5,729,392 6,035,191 Finance lease liabilities - non-current 316,236 126,446 Total Liabilities 6,045,628 6,161,637 Commitments and Contingencies (Note 11) - - Founders Series A Non-V

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