Hoops Scouting USA's Losses Mount Amidst Zero Revenue, Going Concern Doubts

TL;DR

**HSCT is a cash-burning shell with no revenue, relying solely on its President to stay afloat; avoid at all costs.**

AI Summary

HOOPS SCOUTING USA (HSCT) reported a net loss of $11,594 for the three months ended September 30, 2023, a significant increase from the $413 net loss in the same period of 2022. The company generated no revenue during either period. Total expenses surged to $11,594 in Q3 2023 from $413 in Q3 2022, primarily driven by an increase in transfer agent and filing fees to $11,430 from $310. Cash balance improved to $220 as of September 30, 2023, from $20 at June 30, 2023, largely due to $20,043 in proceeds from related parties. However, total liabilities increased to $172,859 from $155,172, mainly due to an increase in amounts owed to the President and Director to $156,549. The company continues to operate with a working capital deficit of $(101,385) and an accumulated deficit of $(252,435), raising substantial doubt about its ability to continue as a going concern. Management plans to promote its website, develop a mobile app, and seek partnerships to achieve profitable operations.

Why It Matters

This filing reveals HOOPS SCOUTING USA is in a precarious financial state, operating with zero revenue and increasing losses, which is a critical red flag for investors. The company's heavy reliance on its President for funding, with $156,549 owed to a related party, indicates a lack of independent capital and significant financial instability. For employees and potential partners, the 'going concern' doubt signals high risk regarding job security and the viability of future collaborations. In a competitive sports scouting market, HSCT's inability to generate revenue or secure external financing puts it at a severe disadvantage, making its strategic outlook of website promotion and app development seem aspirational without a clear path to funding or profitability.

Risk Assessment

Risk Level: high — The company reported zero revenue for the three months ended September 30, 2023, and incurred a net loss of $11,594. As of September 30, 2023, HSCT has a working capital deficit of $(101,385) and an accumulated deficit of $(252,435), which 'raise substantial doubt regarding the Company's ability to continue as a going concern.'

Analyst Insight

Investors should avoid HOOPS SCOUTING USA (HSCT) given its complete lack of revenue, increasing losses, and significant 'going concern' risk. The company's reliance on related-party funding for basic operations signals extreme financial instability and a highly speculative investment.

Financial Highlights

debt To Equity

N/A

revenue

$0

operating Margin

N/A

total Assets

$55,474

total Debt

$172,859

net Income

$(11,594)

eps

$0.00

gross Margin

N/A

cash Position

$220

revenue Growth

N/A

Key Numbers

• $11,594 — Net Loss (For the three months ended September 30, 2023, up from $413 in 2022)
• $0 — Revenue (For the three months ended September 30, 2023 and 2022)
• $220 — Cash Balance (As of September 30, 2023, up from $20 at June 30, 2023)
• $172,859 — Total Liabilities (As of September 30, 2023, up from $155,172 at June 30, 2023)
• $156,549 — Due to Related Party (As of September 30, 2023, owed to the President and Director)
• $(101,385) — Working Capital Deficit (As of September 30, 2023, indicating liquidity issues)
• $(252,435) — Accumulated Deficit (As of September 30, 2023, highlighting historical losses)
• $11,430 — Transfer Agent and Filing Fees (For the three months ended September 30, 2023, a significant expense increase)
• 101,250,000 — Common Shares Outstanding (As of October 14, 2025)
• $100,000 — Intangible Asset Impairment (For the year ended June 30, 2023, related to the Grit Mobile Application)

Key Players & Entities

• HOOPS SCOUTING USA (company) — Registrant
• President and Director (person) — Primary source of funding for the company
• Grit Performance Athletics Inc (company) — Seller of the Grit Mobile Application
• SEC (regulator) — Securities and Exchange Commission
• World Health Organization (regulator) — Declared COVID-19 a global pandemic
• Wyoming (regulator) — State of incorporation
• Bloomberg (company) — Financial news organization

FAQ

Risk Factors

• Going Concern Uncertainty [high — financial]: The company has a substantial accumulated deficit of $(252,435) and a working capital deficit of $(101,385) as of September 30, 2023. This, coupled with no revenue generation, raises substantial doubt about its ability to continue as a going concern.
• Dependence on Related Party Financing [high — operational]: The company's cash balance increased significantly due to $20,043 in proceeds from related parties. A substantial portion of liabilities, $156,549, is owed to the President and Director, indicating a heavy reliance on related party funding.
• Lack of Revenue Generation [high — operational]: HOOPS SCOUTING USA generated no revenue in the three months ended September 30, 2023, nor in the same period of 2022. This persistent lack of revenue is a critical operational risk.
• Increasing Expenses [medium — financial]: Total expenses surged to $11,594 for the three months ended September 30, 2023, from $413 in the prior year period. This increase was primarily driven by a sharp rise in transfer agent and filing fees to $11,430.
• Intangible Asset Impairment [medium — financial]: The company recorded a $100,000 intangible asset impairment in the year ended June 30, 2023, related to the Grit Mobile Application. This indicates potential issues with the valuation or performance of its digital assets.

Industry Context

HOOPS SCOUTING USA operates in the sports technology and scouting sector, which is increasingly reliant on digital platforms and data analytics. The industry is competitive, with established players and emerging startups vying for market share. Trends include the development of advanced scouting software, AI-driven performance analysis, and direct-to-consumer engagement platforms.

Regulatory Implications

As a publicly traded company, HOOPS SCOUTING USA is subject to SEC regulations and reporting requirements. The company's financial condition, including its going concern status and reliance on related party transactions, may attract increased scrutiny from regulators and investors.

What Investors Should Do

1. Monitor revenue generation strategies
2. Assess related party transaction risks
3. Evaluate expense management
4. Consider the going concern warning

Key Dates

• 2023-09-30: Balance Sheet Date — Shows a cash balance of $220, total liabilities of $172,859, and an accumulated deficit of $(252,435).
• 2023-09-30: End of Q3 2023 — Reported a net loss of $11,594 on zero revenue, with expenses driven by transfer agent and filing fees.
• 2023-06-30: Balance Sheet Date — Previous period balance sheet showing $20 cash and total liabilities of $155,172.
• 2022-09-30: End of Q3 2022 — Reported a net loss of $413 on zero revenue, with expenses of $413.

Glossary

Accumulated deficit

The total cumulative net losses of a company that have not been offset by net income or additional paid-in capital. (Indicates the company's history of unprofitability, standing at $(252,435) as of September 30, 2023.)

Working capital deficit

Occurs when a company's current liabilities exceed its current assets, indicating potential short-term liquidity issues. (The company has a working capital deficit of $(101,385) as of September 30, 2023, highlighting liquidity concerns.)

Going concern

An assumption that a company will continue to operate for the foreseeable future, typically at least 12 months. (Management's discussion raises substantial doubt about the company's ability to continue as a going concern due to its financial condition.)

Transfer agent and filing fees

Costs associated with maintaining shareholder records and submitting required documents to regulatory bodies like the SEC. (These fees significantly increased to $11,430 in Q3 2023, driving the overall expense increase.)

Related party

A person or entity that has the ability to control or significantly influence the operating decisions of another entity. (The company received $20,043 from related parties and owes $156,549 to its President and Director, showing significant related party transactions.)

Year-Over-Year Comparison

Compared to the three months ended September 30, 2022, HOOPS SCOUTING USA reported a significantly wider net loss of $11,594 versus $413, with zero revenue in both periods. Total expenses increased dramatically from $413 to $11,594, primarily due to a surge in transfer agent and filing fees. While the cash position improved from $20 to $220, this was largely due to related party funding, and total liabilities also increased from $155,172 to $172,859, with a growing amount owed to the President and Director.

Key Financial Figures

• $0.0001 — he Registrant's common stock, par value $0.0001 per share, outstanding as of October 14
• $220 — mber 30, 2023, we had a cash balance of $220 and total assets of $55,474 compared to
• $55,474 — ash balance of $220 and total assets of $55,474 compared to cash and total assets of $4
• $49,381 — 74 compared to cash and total assets of $49,381 as at June 30, 2023. The decrease in to
• $172,859 — ne 30, 2023 we had total liabilities of $172,859 and $155,172 respectively. The increase
• $155,172 — e had total liabilities of $172,859 and $155,172 respectively. The increase in liabiliti
• $16,000 — oans payable to non-related parties for $16,000, which are unsecured, non-interest bear
• $101,385 — 2023. Our working capital deficit was $101,385 as at September 30, 2023 compared to $8
• $89,791 — 85 as at September 30, 2023 compared to $89,791 as at June 30, 2023 respectively. Duri
• $11,594 — s ended September 30, 2023, we incurred $11,594 of operating expenditures comprised of
• $413 — es, and transfer agent fees compared to $413 for general and administrative, profess
• $20,043 — 3 our financial activities consisted of $20,043 in proceeds from a related party, compa
• $4,000 — ceeds from a related party, compared to $4,000 in proceeds from a related party during
• $252,435 — $ 101,385 and an accumulated deficit of $252,435. The continuation of the Company as a g

Filing Documents

• hsct_10qa.htm (10-Q/A) — 262KB
• hsct_ex311.htm (EX-31.1) — 11KB
• hsct_ex321.htm (EX-32.1) — 7KB
• 0001477932-25-007509.txt ( ) — 1492KB
• hosu-20230930.xsd (EX-101.SCH) — 18KB
• hosu-20230930_lab.xml (EX-101.LAB) — 110KB
• hosu-20230930_cal.xml (EX-101.CAL) — 20KB
• hosu-20230930_pre.xml (EX-101.PRE) — 87KB
• hosu-20230930_def.xml (EX-101.DEF) — 30KB
• hsct_10qa_htm.xml (XML) — 107KB

Financial Statements

Financial Statements 3 Unaudited Balance Sheets as of September 30, 2023 and June 30, 2023 4 Unaudited Statements of Operations for the three months ended September 30, 2023, and 2022 5 Unaudited Statements of Stockholders' Deficit for the three months ended September 30, 2023, and 2022 6 Unaudited Statements of Cash Flows for the three months ended September 30, 2023, and 2022 7 Notes to the Financial Statements 8 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 13 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 16 Item 4.

Controls and Procedures

Controls and Procedures 16 PART II OTHER INFORMATION: 17 Item 1.

Legal Proceedings

Legal Proceedings 17 Item 1A.

Risk Factors

Risk Factors 17 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 17 Item 3. Defaults Upon Senior Securities 17 Item 4. Mine Safety Disclosures 17 Item 5. Other Information 17 Item 6. Exhibits 18

Signatures

Signatures 19 2 Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements The accompanying interim financial statements of Hoops Scouting USA. ("the Company", "we", "us" or "our"), have been prepared without audit pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with United States generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. The interim financial statements should be read in conjunction with the Company's latest annual financial statements. In the opinion of management, the financial statements contain all material adjustments, consisting only of normal adjustments considered necessary to present fairly the financial condition, results of operations, and cash flows of the Company for the interim periods presented. 3 Table of Contents HOOPS SCOUTING USA Condensed Balance Sheets (Unaudited) September 30, 2023 June 30, 2023 (Unaudited) (Audited) Assets Current assets Cash $ 220 $ 20 Inventory net 55,254 47,241 Advances - 2,120 Total current assets 55,474 49,381 Total assets $ 55,474 $ 49,381 Liabilities and stockholders' deficit Current liabilities Accounts payable and accrued liabilities $ 310 $ 2,666 Due to related party (Note 3) 156,549 136,506 Total current liabilities 156,859 139,172 Non-current liabilities Loans payable (Note 7) 16,000 16,000 Total liabilities $ 172,859 $ 155,172 Stockholders' deficit Common stock authorized: 10,000,000,000 common shares, $ 0.0001 par value 101,250,000 shares issued and outstanding as of September 30, 2023 and June 30, 2023 $ 10,125 $ 10,125 Additional paid-in capital 124,925 124,925 Accumulated deficit ( 252,435 ) ( 240,841 ) Total stockholders' deficit $ ( 117,385 ) $ ( 105,791 ) Total liabilities and stockholders' deficit $ 55,474 $ 49,381 (The accompanying notes are an

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

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) contains forward-looking statements that involve known and unknown risks, significant uncertainties and other factors that may cause our 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 those forward-looking statements. You can identify forward-looking statements by the use of the words may, will, should, could, expects, plans, anticipates, believes, estimates, predicts, intends, potential, proposed, or continue or the negative of those terms. These statements are only predictions. In evaluating these statements, you should consider various factors which may cause our actual results to differ materially from any forward-looking statements. Although we believe that the exceptions reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Therefore, actual results may differ materially and adversely from those expressed in any forward- looking statements. We undertake no obligation to revise or update publicly any forward-looking statements for any reason. Liquidity and Capital Resources As of September 30, 2023, we had a cash balance of $220 and total assets of $55,474 compared to cash and total assets of $49,381 as at June 30, 2023. The decrease in total assets was due to inventory impairment. As at September 30, 2023, and June 30, 2023 we had total liabilities of $172,859 and $155,172 respectively. The increase in liabilities was because of amounts due to a related party for operating costs and the purchase of inventory. Our liabilities at September30, 2023 and June 30, 2023 were comprised of amounts due to our President and Director and for two loans payable to non-related parties for $16,000, which are unsecure

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