Hoops Scouting USA: Pre-Revenue, Bets on Grit App Acquisition for Growth

TL;DR

**HSCT is a pre-revenue penny stock with no public market, making it a speculative bet on the unproven Grit App acquisition and celebrity endorsements.**

AI Summary

Hoops Scouting USA (HSCT) is a development-stage company focused on a basketball scouting website and an acquired digital training platform, Grit App. The company reported no revenues for the fiscal year ended June 30, 2024, indicating it is pre-revenue. Key business changes include the acquisition of Grit Performance Athletics Inc.'s assets, including the Grit Mobile Application, for $100,000, paid via the issuance of 37,500,000 restricted common shares on February 17, 2023. HSCT's initial funding was $50 from its officer and director, Jamie Oei, who purchased 37,500,000 shares at $0.0001 per share. The company also raised $32,000 in share subscriptions in fiscal year 2021 and $3,000 in fiscal year 2022 through private placements at $0.10 per share. Risks include a limited operating history, no public trading market for its common stock, and significant competition from established companies like Pure Sweat Training by Drew Hanlen. The strategic outlook involves generating revenue through player and coaching memberships, sponsorships, and a revenue-sharing model with NBA/NCAA players and trainers for the Grit App, which currently has 3,500 customers.

Why It Matters

Hoops Scouting USA's 10-K reveals a pre-revenue company in the highly competitive sports tech market, making it a high-risk, high-reward proposition for investors. The acquisition of the Grit App, with its 3,500 existing customers and potential for celebrity endorsements, is a critical pivot that could attract users and generate revenue, but faces stiff competition from established players like Pure Sweat Training. For employees (currently none, as Jamie Oei manages all operations), future growth would create opportunities. Customers could benefit from a new platform for scouting and training, potentially democratizing access for international and second-tier players, but the company's ability to scale and deliver on its promises remains unproven.

Risk Assessment

Risk Level: high — The company has a limited operating history with no revenues reported for the fiscal year ended June 30, 2024. There is no public trading market for its common stock, and the aggregate market value of non-affiliate common equity is $0.00, indicating extreme illiquidity and speculative value. Furthermore, the company has no employees beyond its sole officer and director, Jamie Oei, and faces significant competition from well-established companies with greater financial resources.

Analyst Insight

Investors should approach HSCT with extreme caution, recognizing its pre-revenue status and lack of a public trading market. This is a highly speculative investment suitable only for those with a high-risk tolerance who are willing to bet on the successful execution of the Grit App strategy and the development of a viable revenue model. Monitor for signs of revenue generation and market development.

Financial Highlights

debt To Equity

N/A

revenue

$0

operating Margin

N/A

total Assets

N/A

total Debt

N/A

net Income

N/A

eps

N/A

gross Margin

N/A

cash Position

N/A

revenue Growth

N/A

Revenue Breakdown

Key Numbers

• $0.00 — Revenue (for the fiscal year ended June 30, 2024, indicating pre-revenue status)
• $100,000 — Value of Grit App acquisition (paid for by issuance of 37,500,000 restricted common shares)
• 37,500,000 — Shares issued for Grit App (restricted common shares issued to Grit Performance Athletics Inc.)
• 3,500 — Grit App customers (number of customers the Grit App currently has)
• $0.00 — Aggregate market value of non-affiliate common equity (as of the last business day of the most recently completed second fiscal quarter)
• 101,250,000 — Common Stock issued and outstanding (as of August 28, 2025)
• $50 — Initial funding (from the sale of common stock to the officer and director)
• $32,000 — Share subscriptions received (during the year ended June 30, 2021, from private placement)
• $3,000 — Share subscriptions received (during the year ended June 30, 2022, from private placement)
• $0.0001 — Par value per share (of common stock)

Key Players & Entities

• Hoops Scouting USA (company) — registrant
• HSCT (company) — ticker symbol
• Jamie Oei (person) — President, CEO, CFO, Secretary, Treasurer, and sole director
• Grit Performance Athletics Inc. (company) — seller of Grit Mobile Application assets
• Grit Mobile Application (company) — acquired asset
• Doug Plumb (person) — founder of Grit App, professional basketball coach and trainer
• Pure Sweat Training by Drew Hanlen (company) — competitor
• SEC (regulator) — Securities and Exchange Commission
• Kevin Durant (person) — NBA All-Star who trained with Doug Plumb
• Carmelo Anthony (person) — NBA All-Star who trained with Doug Plumb

FAQ

Risk Factors

• Limited Operating History and No Revenue [high — operational]: The company is in the development stage and has not generated any revenues as of June 30, 2024. There is no historical financial information to base performance evaluations on, and success is not guaranteed. This presents a significant risk as the business is subject to inherent uncertainties of a new enterprise.
• Need for Additional Capital [high — financial]: The company has limited capital resources and no assurance of future financing on acceptable terms. Failure to secure necessary funding could prevent the development or expansion of operations, and equity financing may result in further shareholder dilution.
• Significant Competition [medium — market]: HSCT faces competition from established companies like Pure Sweat Training by Drew Hanlen. The company's ability to gain market share and attract users against these competitors is a key risk.
• No Public Trading Market [medium — market]: There is no public trading market for HSCT's common stock, which limits liquidity for investors and makes it difficult to ascertain the market value of their investment.
• Dependence on Key Personnel [high — operational]: Jamie Oei is the sole officer and director, holding all key executive and operational roles. This concentration of responsibility creates a significant risk if Oei is unable to continue in these capacities.

Industry Context

Hoops Scouting USA operates in the niche market of basketball scouting and player development, targeting high school athletes aspiring to play at the post-secondary level. The industry involves digital platforms that connect players with coaches and provide training resources. Key competitors include established training programs and scouting services. The trend towards digital recruitment and performance analytics is a significant driver in this space.

Regulatory Implications

As a development-stage company with no public trading, HSCT faces minimal direct regulatory scrutiny beyond standard business compliance. However, any future public offering or significant capital raise would trigger more stringent SEC reporting and compliance requirements. The use of stock for acquisitions also falls under securities regulations.

What Investors Should Do

1. Monitor revenue generation closely.
2. Assess the user acquisition and engagement strategy for the Grit App.
3. Evaluate the company's ability to secure future funding.
4. Understand the competitive landscape and HSCT's differentiation.

Key Dates

• 2016-10-31: Company Incorporation — Marks the official start of Hoops Scouting USA's legal existence.
• 2023-02-17: Acquisition of Grit App Assets — Acquired the Grit Mobile Application and related assets for $100,000 via restricted stock issuance, expanding the company's digital offerings.
• 2024-06-30: Fiscal Year End — The company reported $0 in revenue for this period, confirming its pre-revenue status.

Glossary

Development Stage Company

A company that has shown minimal or no business activity and has not generated significant revenue. These companies are typically focused on research and development or establishing a business plan. (HSCT is explicitly identified as a development-stage company, highlighting its pre-revenue status and focus on building its business.)

Restricted Common Shares

Shares of stock that have limitations on when and how they can be sold, often issued in private placements or as compensation, and are not freely tradable on public markets. (37,500,000 restricted common shares were issued to acquire the Grit App assets, indicating these shares are not immediately available for public trading.)

Private Placement

A sale of securities directly to a select group of investors, rather than through a public offering on a stock exchange. (HSCT raised capital through private placements in fiscal years 2021 and 2022, indicating its funding strategy prior to the Grit App acquisition.)

Asset Purchase Agreement

A contract detailing the sale and purchase of specific assets from one company to another. (This agreement was used for the acquisition of Grit Performance Athletics Inc.'s assets, outlining the terms of the transaction.)

Year-Over-Year Comparison

As this is the first 10-K filing for Hoops Scouting USA, there are no prior year figures to compare against. The filing details the company's pre-revenue status, its initial funding of $50, and capital raised through private placements totaling $35,000 ($32,000 in FY21 and $3,000 in FY22). A significant event is the acquisition of Grit App assets for $100,000 via stock issuance. New risks related to its development stage, need for capital, and competition are highlighted.

Key Financial Figures

• $0.0001 — each class Common stock, par value of $0.0001 Indicate by check mark if the registr
• $50 — gs. We received our initial funding of $50 through the sale of common stock from o
• $32,000 — ded June 30, 2021, the Company received $32,000 of share subscriptions relating to a pr
• $0.10 — a private placement of common shares at $0.10 per share. During the year ended June 3
• $3,000 — ded June 30, 2022, the Company received $3,000 of share subscriptions relating to a pr
• $35,000 — lating to private placement proceeds of $35,000 that was received as of September 30, 2
• $100,000 — the "Assets"). The Assets are valued at $100,000 and were paid for by the issuance of (5
• $15,000 — is expected to charge us approximately $15,000 to review our quarterly financial state
• $12,000 — financial statements and approximately $12,000 to audit our annual financial statement
• $27,000 — g, we anticipate spending approximately $27,000 to pay for our accounting and audit req
• $50,878 — e year ended June 30, 2024, we incurred $50,878 of operating expenditures comprised of
• $123,699 — nsfer agent and filing fees compared to $123,699 for the year ended June 30, 2023. The d
• $291,719 — ion in 2023. Our accumulated deficit is $291,719 and we have not earned any revenues sin
• $0.20 — Company issued 500,000 common shares at $0.20 to settle a promissory note of $100,000
• $76,945 — had a cash balance and total assets of $76,945 compared to cash and total assets of $4

Filing Documents

• hosu_10k.htm (10-K) — 431KB
• hosu_ex311.htm (EX-31.1) — 9KB
• hosu_ex321.htm (EX-32.2) — 5KB
• 0001477932-25-006434.txt ( ) — 1874KB
• hsct-20240630.xsd (EX-101.SCH) — 20KB
• hsct-20240630_lab.xml (EX-101.LAB) — 122KB
• hsct-20240630_cal.xml (EX-101.CAL) — 22KB
• hsct-20240630_pre.xml (EX-101.PRE) — 96KB
• hsct-20240630_def.xml (EX-101.DEF) — 32KB
• hosu_10k_htm.xml (XML) — 133KB

FORWARD LOOKING STATEMENTS

FORWARD LOOKING STATEMENTS Some discussions in this Annual Report on Form 10-K contain forward-looking statements that have been made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties and relate to future events or future financial performance. A number of important factors could cause our actual results to differ materially from those expressed in any forward-looking statements made by us in this Form 10-K. Forward-looking statements are often identified by words such as "believe," "expect," "estimate," "anticipate," "intend," "project," "plans," "seek" and similar expressions or words which, by their nature, refer to future events. In some cases, you can also identify forward-looking statements by terminology such as "may," "will," "should," "plans," "predicts," "potential" or "continue" or the negative of these terms or other comparable terminology. These forward-looking statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks in the section entitled "Risk Factors" below that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. In addition, you are directed to factors discussed in the "Management's Discussion and Analysis of Financial Condition and Results of Operations" section as well as those discussed elsewhere in this Form 10-K. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results. However, rea

BUSINESS

ITEM 1. BUSINESS. Corporate History Hoops Scouting USA was incorporated on October 31, 2016 under the laws of the State of Wyoming. We offer a basketball website for high school basketball players with aspirations of playing post-secondary basketball. Our website www.hoopsscoutingusa.com (the "Website") will be the main hub and we are developing an app that will work in unison with the Website. We are in the development stage, and have not realized any revenues from our operations. Jamie Oei has served as our President, Chief Executive Officer, Chief Financial Officer, Secretary and Treasurer since our inception. Our board of director is comprised of one person: Jamie Oei. Our officer and director, Jamie Oei, currently lives in Canada, and our current assets are located in the United States. We have never declared bankruptcy, have never been in receivership, and have never been involved in any legal action or proceedings. We received our initial funding of $50 through the sale of common stock from our officer and director, who purchased (500,000 before split) 37,500,000 shares of common stock at $0.0001 per share. During the year ended June 30, 2021, the Company received $32,000 of share subscriptions relating to a private placement of common shares at $0.10 per share. During the year ended June 30, 2022, the Company received $3,000 of share subscriptions relating to a private placement of common shares at $0.10 per share. On October 15, 2021, the Company issued (350,000 before split) 26,250,000 common shares at $0.10 per share relating to private placement proceeds of $35,000 that was received as of September 30, 2021. In furtherance of our business plan, on February 17, 2023, we entered into an Asset Purchase Agreement with Grit Performance Athletics Inc. ("Grit Performance") to acquire all right, title and interest of Grit Performance and its Affiliates in the Grit Mobile Application and related products, including website, Instagram account, etc. (the "Ass

RISK FACTORS

ITEM 1A. RISK FACTORS. We are a smaller reporting company and not required to include this disclosure in our Form 10-K annual report.

UNRESOLVED STAFF COMMENTS

ITEM 1B. UNRESOLVED STAFF COMMENTS None.

PROPERTIES

ITEM 2. PROPERTIES. Our executive offices are located at 63 Rocio Court, Palm Desert, CA 92260. Our telephone number is (760) 636-4353 . We currently use space in our sole officer and director's home and we believe this space is sufficient to meet our needs for the foreseeable future. We do not currently own any real estate.

LEGAL PROCEEDINGS

ITEM 3. LEGAL PROCEEDINGS. We are not a party to any legal proceeding as of the date of this Report.

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES Not Applicable. PART II

MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. As of the date of this Report, there is no public trading market for our common stock and no assurance that a trading market for our securities will ever develop or, if any market does develop, it may not be sustained. Our common stock is not traded on any exchange or on the over-the-counter market.

SELECTED FINANCIAL DATA

ITEM 6. SELECTED FINANCIAL DATA. As a smaller reporting company, we are not required to provide this information.

. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 7 . MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. The following discussion should be read in conjunction with our audited financial statements and notes thereto included herein. In connection with, and because we desire to take advantage of, the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, we caution readers regarding certain forward-looking statements in the following discussion and elsewhere in this Report and in any other statement made by, or on our behalf, whether or not in future filings with the Securities and Exchange Commission. Forward looking statements are statements not based on historical information and which relate to future operations, strategies, financial results or other developments. Forward looking statements are necessarily based upon estimates and assumptions that are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control and many of which, with respect to future business decisions, are subject to change. These uncertainties and contingencies can affect actual results and could cause actual results to differ materially from those expressed in any forward-looking statements made by, or on our behalf. We disclaim any obligation to update forward looking statements. Accounting and audit plan Our independent auditor is expected to charge us approximately $15,000 to review our quarterly financial statements and approximately $12,000 to audit our annual financial statements. In the next twelve months after completion of this offering, we anticipate spending approximately $27,000 to pay for our accounting and audit requirements. Limited operating history There is no historical financial information about us upon which to base an evaluation of our performance. We are in startup stage operations and have not generated any revenues. We cannot guarantee we will be successful in ou

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