Hawkeye Systems Reports FY24 Results, Debt Consolidation & Stock Split

TL;DR

Hawkeye Systems FY24: $5.5M Rev, $8.6M Loss. Debt consolidation & stock split happened. Watch closely.

AI Summary

Hawkeye Systems, Inc. filed its 10-K for the fiscal year ending June 30, 2024, reporting significant financial activities. The company's fiscal year 2024 saw revenues of $5,552,222 and a net loss of $8,661,772. Key events during the period included a debt consolidation agreement and a stock reverse split, with various stock issuances to directors and consultants.

Why It Matters

This filing provides a comprehensive overview of Hawkeye Systems' financial performance and strategic maneuvers, including debt restructuring and stock adjustments, which can impact investor confidence and future growth prospects.

Risk Assessment

Risk Level: high — The company reported a significant net loss of $8,661,772 against revenues of $5,552,222 for the fiscal year 2024, indicating substantial financial challenges.

Key Numbers

• $5.55B — Revenue (Total revenue for the fiscal year ending June 30, 2024.)
• $8.66M — Net Loss (Net loss for the fiscal year ending June 30, 2024.)
• $442,251 — Other Income/Expense (Indicates other financial activities impacting the bottom line for FY2024.)

Key Players & Entities

• Hawkeye Systems, Inc. (company) — Filer of the 10-K report.
• June 30, 2024 (date) — End of the fiscal year for the reported period.
• $5,552,222 (dollar_amount) — Total revenue for the fiscal year ending June 30, 2024.
• $8,661,772 (dollar_amount) — Net loss for the fiscal year ending June 30, 2024.
• Chris Mulgrew (person) — Mentioned in relation to a subsequent event.
• Steve Hall (person) — Mentioned in relation to subsequent events.
• Corby Marshall (person) — Mentioned in relation to stock issuances and agreements.

FAQ

Key Financial Figures

• $0.0001 — section 12(g) of the Act: Common Stock, $0.0001 par value Indicate by check mark if t
• $0.50 — rant's common stock on June 30, 2024 of $0.50 per share. The number of shares of reg
• $0.25 — (i) Eagle shall receive the greater of $0.25 per box of gloves or 33.3% of the net p
• $0 — proceeds. If net proceeds are more than $0.25, but less than $0.75 per box, once t
• $0.75 — eeds are more than $0.25, but less than $0.75 per box, once the first $0.25 is paid t
• $442,251 — to joint venture partner Eagle totaled $442,251, remained unchanged from year 2021. In
• $200,000 — "Original CNTNR Note"). CNTNR borrowed $200,000 from the Company under the Original CNT
• $1,000,000 — rincipal amount of the Restated Note is $1,000,000, accruing annual interest at a rate of
• $200,000 b — he Restated Note takes into account the $200,000 borrowed under the Original CNTNR Note. T
• $5,000 — Restated Note; and a consulting fee of $5,000 per month, beginning on March 1, 2023.
• $1,560,000 — ant to which the outstanding balance of $1,560,000 and the related interest receivable of
• $143,995 — and the related interest receivable of $143,995, for a series of loans provided by Stev

Filing Documents

• hwke_10k.htm (10-K) — 709KB
• hwke_ex311.htm (EX-31.1) — 12KB
• hwke_ex321.htm (EX-32.1) — 4KB
• hwke_10kimg2.jpg (GRAPHIC) — 3KB
• hwke_10kimg3.jpg (GRAPHIC) — 4KB
• 0001477932-24-006059.txt ( ) — 3674KB
• hwke-20240630.xsd (EX-101.SCH) — 47KB
• hwke-20240630_lab.xml (EX-101.LAB) — 248KB
• hwke-20240630_cal.xml (EX-101.CAL) — 41KB
• hwke-20240630_pre.xml (EX-101.PRE) — 213KB
• hwke-20240630_def.xml (EX-101.DEF) — 117KB
• hwke_10k_htm.xml (XML) — 401KB

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS PART I Item 1. Business. 4 Item 1A. Risk Factors. 8 Item 1B. Unresolved Staff Comments. 8 Item 1C. Cybersecurity disclosures. 8 Item 2. Properties. 8 Item 3. Legal Proceedings. 8 Item 4. Mine Safety Disclosures. 8 PART II Item 5. Market For Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. 9 Item 6.

Selected Financial Data

Selected Financial Data 10 Item 7.

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 7A.

Quantitative And Qualitative Disclosures About Market Risk

Quantitative And Qualitative Disclosures About Market Risk. 12 Item 8. Consolidated Financial Statements and Supplemental Data. F-1 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. 13 Item 9A.

Controls and Procedures

Controls and Procedures. 13 Item 9B. Other Information. 13 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. PART III Item 10. Directors, Executive Officers and Corporate Governance. 14 Item 11.

Executive Compensation

Executive Compensation. 16 Item 12.

Security Ownership Of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership Of Certain Beneficial Owners and Management and Related Stockholder Matters. 18 Item 13. Certain Relationships and Related Transactions, and Director Independence. 19 Item 14. Principal Accountant Fees and Services. 20 PART IV Item 15. Exhibit and Financial Statement Schedules. 21 Item 16. Form 10-K Summary. 21 2 Table of Contents CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS AND INFORMATION This annual report on Form 10-K, the other reports, statements, and information that we have previously filed or that we may subsequently file with the Securities and Exchange Commission, or SEC, and public announcements that we have previously made or may subsequently make include, may include, incorporate by reference or may incorporate by reference certain statements that may be deemed to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are intended to enjoy the benefits of that act. Unless the context is otherwise, the forward-looking statements included or incorporated by reference in this Form 10-K and those reports, statements, information and announcements address activities, events or developments that Hawkeye Systems, Inc. (hereinafter referred to as "we," "us," "our," "our Company" or "Hawkeye") expects or anticipates, will or may occur in the future. Any statements in this document about expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and are forward-looking statements. These statements are often, but not always, made through the use of words or phrases such as "may," "should," "could," "predict," "potential," "believe," "will likely result," "expect," "will continue," "anticipate," "seek," "estimate," "intend," "plan," "projection," "would" and "outlook," and similar expressions. Accordingly, these statements involve estimates, assumptions, and uncertainties, which could cause actua

Description of Business

Item 1. Description of Business General We were incorporated on May 15, 2018 in the State of Nevada. We are currently pursuing opportunities to invest in, acquire, merge or consolidate with a target business participating in diversified industries. Our previous focus was on pandemic management products and services. Our business office is located at 6605 Abercorn, Suite 204, Savannah, GA 31405. Our telephone number is 912-388-6720 and our website is www.hawkeyesystemsinc.com. Business Description From inception and until July of 2021, the Company focused on selling personal protective equipment ("PPE"). In July 2021, the Company's management determined to cease the Company's operations as a seller of PPE, deeming that continuing operations in that sector was not a productive use of the Company's resources. Our current business plan is to acquire, merge or consolidate with another company (a "target business"). We intend to use capital stock, debt or a combination of these to effect a business combination with a target business with significant growth potential. We will not restrict our search for target businesses to any particular industry. Rather, we may investigate businesses of essentially any kind or nature and participate in any type of industry that may, in our management's opinion, meet our business objectives as described in this annual report. We emphasize that the description in this report of our business objectives is extremely general and is not meant to restrict the discretion of our management to search for and enter into potential business opportunities. To the extent we enter into a business combination with a financially unstable company or an entity in its early stage of development or growth, including entities without established records of sales or earnings, we will become subject to numerous risks inherent in the business and operations of financially unstable and early stage or potential emerging growth companies. In addition, to t

Legal Proceedings

Legal Proceedings The Company is not currently a party to any material legal proceedings and is not aware of any material threatened litigation. 7 Table of Contents Offices Our current executive offices are provided by the management of the Company. We do not pay any rent, and there is no agreement to pay any rent in the future.

Risk Factors

Item 1A. Risk Factors. We are a smaller reporting company as defined in Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item.

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments We are a smaller reporting company as defined in Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item.

Cybersecurity Disclosures

Item 1C. Cybersecurity Disclosures. We rely upon internally and externally managed information technology systems and networks for the collection and storage of sensitive data and business information. We approach cybersecurity risks with a comprehensive risk management and governance strategy designed to assess, identify, and manage cybersecurity risks to our business. Risk Management and Strategy Our cybersecurity program is designed to detect cybersecurity threats and vulnerabilities, protect our information systems from such threats, and ensure the confidentiality, integrity, and availability of systems and information used, owned or managed by us. Our focus is on protecting sensitive information, such as personal information of our customers and employees, and confidential business information that could be leveraged by a competitor or a malicious actor. Our cybersecurity program has several components, including the adoption of information security protocols, standards, and guidelines consistent with best industry practices; engaging third-party service providers to conduct security assessments and penetration testing; and performing periodic internal audits of our cybersecurity protocols. We employ a risk-based process designed to manage cybersecurity risks presented by third-party vendors that may have access to our sensitive information and/or information technology ("IT") systems. This process may consider the nature of the services provided, the sensitivity and quantity of information processed, the criticality of any potentially impacted IT systems, and/or the strength of the vendor's cybersecurity practices. We monitor potential cybersecurity risks through tracking. These key risks are characterized by various factors such as the likelihood of us experiencing a particular type of cybersecurity incident, the speed at which each type of cybersecurity incident could impact the Company, and management's assessment of the Company's ability to respond

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View this 10-K filing on SEC EDGAR