IMA Tech's Losses Widen Amidst Revenue Dip, Cash Improves

TL;DR

**IMA Tech is burning cash and struggling to generate meaningful revenue, making it a speculative bet on future funding, not current performance.**

AI Summary

IMA Tech (IMAA) reported a net loss of $20,862 for the three months ended July 31, 2025, an increase from the $17,120 net loss in the same period of 2024. Revenue decreased slightly to $4,400 from $4,700 year-over-year. Operating expenses rose to $25,262, primarily due to an increase in General & Administrative Expenses to $11,031 from $7,588. The company's cash position improved significantly, increasing to $11,938 as of July 31, 2025, from $4,500 on April 30, 2025, driven by $7,538 in net cash provided by operating activities. Deferred revenue also saw a substantial increase to $15,416 from $4,400, indicating more upfront payments. However, the company continues to operate with an accumulated deficit of $103,799 as of July 31, 2025, raising substantial doubt about its ability to continue as a going concern without further funding. The CEO, Liliia Havrykh, cancelled 2,500,000 of her restricted shares on August 7, 2025, and two new directors were appointed on August 11, 2025.

Why It Matters

For investors, IMA Tech's widening net loss and 'going concern' warning signal significant financial instability, making it a high-risk investment. The slight revenue decrease and increased operating expenses suggest challenges in scaling its AI-driven avatar business profitably. Employees might face job insecurity given the company's precarious financial state and reliance on related-party loans. Customers could experience service disruptions or a lack of future innovation if the company fails to secure additional funding. In the broader market, IMA Tech's struggles highlight the intense capital requirements and competitive pressures within the AI and digital avatar space, where many startups vie for market share.

Risk Assessment

Risk Level: high — IMA Tech explicitly states 'substantial doubt about the Company's ability to operate as a going concern' due to an accumulated deficit of $103,799 as of July 31, 2025, and ongoing net losses, including $20,862 for the quarter. The company's reliance on 'loans from directors and/or a private offering of Common Stock' for future operational expenses further underscores its high financial risk.

Analyst Insight

Investors should exercise extreme caution and consider avoiding IMA Tech (IMAA) given the explicit 'going concern' warning and consistent net losses. Any investment would be highly speculative, contingent on successful future funding rounds or a dramatic turnaround in profitability, neither of which is guaranteed.

Financial Highlights

debt To Equity

N/A

revenue

$4,400

operating Margin

N/A

total Assets

$212,413

total Debt

$278,916

net Income

-$20,862

eps

$0.00

gross Margin

N/A

cash Position

$11,938

revenue Growth

-6.4%

Revenue Breakdown

Key Numbers

• $20,862 — Net Loss (for the three months ended July 31, 2025, an increase from $17,120 in 2024)
• $4,400 — Revenue (for the three months ended July 31, 2025, down from $4,700 in 2024)
• $11,938 — Cash (as of July 31, 2025, up from $4,500 on April 30, 2025)
• $103,799 — Accumulated Deficit (as of July 31, 2025, indicating substantial doubt about going concern)
• $15,416 — Deferred Revenue (as of July 31, 2025, up from $4,400 on April 30, 2025)
• $252,698 — Loan from Related Parties (as of July 31, 2025, indicating reliance on insider funding)
• 2,500,000 — Shares Cancelled (by CEO Liliia Havrykh on August 7, 2025)

Key Players & Entities

• IMA Tech (company) — registrant
• Liliia Havrykh (person) — President, CEO, Treasurer, Secretary, Director
• Mateusz Jakubowski (person) — Director of the Board
• Daniel Jozef Szaruga (person) — Director of the Board
• SEC (regulator) — Securities and Exchange Commission
• Wyoming (company) — State of Incorporation

FAQ

Risk Factors

• Going Concern Uncertainty [high — financial]: The company has an accumulated deficit of $103,799 as of July 31, 2025, and incurred a net loss of $20,862 for the three months ended July 31, 2025. This raises substantial doubt about its ability to continue as a going concern without additional funding.
• Reliance on Related Party Loans [medium — financial]: The company has a significant 'Loan from Related Parties' balance of $252,698 as of July 31, 2025. This indicates a heavy reliance on insider funding, which could pose risks if these parties are unable or unwilling to continue providing financial support.
• Increasing Operating Expenses [medium — operational]: Total operating expenses rose to $25,262 for the three months ended July 31, 2025, from $21,820 in the same period last year. This increase was driven by a significant jump in General & Administrative Expenses to $11,031 from $7,588.
• Evolving Internet and Data Regulations [medium — regulatory]: IMA Tech operates online and handles user data, making it subject to a complex and evolving landscape of federal, state, and international laws concerning privacy, data protection (including minors), blockchain, and online activities. Future regulatory changes could significantly impact operations.
• Declining Revenue [low — financial]: Revenue for the three months ended July 31, 2025, was $4,400, a slight decrease from $4,700 in the comparable period of 2024. Continued revenue decline could exacerbate financial challenges.

Industry Context

IMA Tech operates in the digital avatar and AI-driven customer service space. This sector is characterized by rapid technological advancement, particularly in AI and natural language processing. Companies in this field compete on the sophistication of their AI, customization options, multilingual support, and integration capabilities. The market is growing as businesses seek to automate customer interactions and enhance user experiences.

Regulatory Implications

As an internet-based company handling user data and potentially virtual currencies, IMA Tech faces a complex web of regulations. Key areas include data privacy (like GDPR or CCPA), protection of minors' data, and compliance with evolving laws regarding online content and advertising. Failure to comply could result in significant fines and operational restrictions.

What Investors Should Do

1. Monitor cash burn and funding sources.
2. Analyze the increase in General & Administrative Expenses.
3. Evaluate the impact of deferred revenue growth.
4. Assess the implications of the CEO's share cancellation.
5. Observe the impact of new director appointments.

Key Dates

• 2025-07-31: End of Q2 2025 reporting period — The company reported a net loss of $20,862 and revenue of $4,400 for the quarter, with cash increasing to $11,938.
• 2025-08-07: CEO Liliia Havrykh cancelled 2,500,000 restricted shares — This action by the CEO could signal a shift in strategy or a response to financial pressures, impacting share structure and potentially investor confidence.
• 2025-08-11: Appointment of two new directors — The addition of new board members may indicate a move towards strengthening governance or bringing in new expertise, potentially influencing future strategic decisions.

Glossary

Accumulated Deficit

The total net losses of a company over its lifetime that have not been offset by net income. (Indicates the company has consistently lost money, raising concerns about its long-term viability.)

Deferred Revenue

Revenue that has been received by a company for goods or services that have not yet been delivered or rendered. (A significant increase suggests more customers are paying upfront, which improves near-term cash flow but doesn't guarantee future revenue realization.)

Going Concern

An accounting assumption that a business will continue to operate for the foreseeable future. (The company's financial state casts doubt on this assumption, meaning it might not be able to meet its obligations.)

Amortization

The systematic allocation of the cost of an intangible asset over its useful life. (A significant non-cash expense ($14,231 in the quarter) that contributes to the reported operating loss.)

Loan from Related Parties

Debt owed to individuals or entities closely associated with the company, such as executives or major shareholders. (Highlights the company's dependence on insider financing, which can be a source of risk.)

Year-Over-Year Comparison

Compared to the prior year's comparable period, IMA Tech reported a wider net loss of $20,862 versus $17,120, and a slight decrease in revenue from $4,700 to $4,400. Operating expenses increased significantly, primarily due to higher General & Administrative costs. While the cash position improved substantially to $11,938, driven by positive operating cash flow in the current quarter, the company's accumulated deficit remains substantial, continuing to raise going concern issues. A notable positive development is the significant increase in deferred revenue to $15,416, indicating stronger upfront customer payments.

Key Financial Figures

• $11,938 — nd April 30, 2025, our cash balance was $11,938 and $4,500, respectively. The Company r
• $4,500 — 2025, our cash balance was $11,938 and $4,500, respectively. The Company reported def
• $15,416 — he Company reported deferred revenue of $15,416 and $4,400 respectively as of July 31,
• $4,400 — eported deferred revenue of $15,416 and $4,400 respectively as of July 31, 2025 and Ap
• $0 — April 30, 2025. Accounts receivable was $0 as of July 31, 2025 and April 30, 2025.
• $284,638 — he development of our website, totaling $284,638. These costs are being amortized over a
• $14,232 — 5, we recorded amortization expenses of $14,232. We expect to recognize amortization ex
• $42,696 — ct to recognize amortization expense of $42,696 for the remainder of the fiscal year en
• $56,928 — the fiscal year ending April 30, 2026, $56,928 for each of the fiscal years ending Apr
• $41,473 — ending April 30, 2026 through 2028, and $41,473 for the fiscal year ending April 30, 20
• $4,700 — Company recorded revenue of $4,400 and $4,700, respectively. As of July 31, 2025 and
• $0.001 — n shares authorized with a par value of $0.001 per share. During the three months en
• $0.03 — es of common stock for cash proceeds at $0.03 per share for a total of $1,067 As of
• $1,067 — ceeds at $0.03 per share for a total of $1,067 As of July 31, 2025, the Company had 5
• $100 — nced $ 252,798 to the Company, of which $100 was repaid during the three months ende

Filing Documents

• ima10q_07312025.htm (10-Q) — 253KB
• cert31.htm (EX-31.1) — 13KB
• cer32.htm (EX-32.1) — 7KB
• 0001980295-25-000013.txt ( ) — 1214KB
• imaa-20250731.xsd (EX-101.SCH) — 10KB
• imaa-20250731_cal.xml (EX-101.CAL) — 20KB
• imaa-20250731_lab.xml (EX-101.LAB) — 98KB
• imaa-20250731_def.xml (EX-101.DEF) — 12KB
• imaa-20250731_pre.xml (EX-101.PRE) — 68KB
• ima10q_07312025_htm.xml (XML) — 68KB

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 14 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 17 Item 4.

Controls and Procedures

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

Legal Proceedings

Legal Proceedings 18 Item 1A

Risk Factors

Risk Factors 18 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 18 Item 3. Defaults Upon Senior Securities 18 Item 4. Submission of Matters to a Vote of Securities Holders 18 Item 5. Other Information 18 Item 6. Exhibits 18

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements The accompanying interim financial statements of IMA Tech ("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 are condensed and should be read in conjunction with the Company's latest annual financial statements. In the opinion of management, the financial financial condition, results of operations, and cash flows of the Company for the interim periods presented. 4 IMA Tech Condensed Balance Sheets As of July 31, 2025 As of April 30, 2025 (Unaudited) ASSETS Current Assets Cash $ 11,938 $ 4,500 Prepaid Expenses 2,450 4,900 Total Current Assets 14,388 9,400 Other Assets Intangible Assets, net 198,025 212,256 Total Other Assets 198,025 212,256 TOTAL ASSETS $ 212,413 $ 221,656 LIABILITIES AND STOCKHOLDERS` EQUITY (DEFICIT) Liabilities Current Liabilities Accounts Payable $ 10,802 $ 10,099 Deferred Revenue 15,416 4,400 Loan from Related Parties 252,698 252,798 Total Current Liabilities 278,916 267,297 Total Liabilities 278,916 267,297 Stockholders` Equity (Deficit) Common stock, $ 0.001 par value, 75,000,000 shares authorized; 5,109,878 shares issued and outstanding as of July 31, 2025 and April 30, 2025 5,110 5,110 Additional Paid-in Capital 32,186 32,186 Accumulated Deficit ( 103,799 ) ( 82,937 ) Total Stockholders` Equity (Deficit) ( 66,503 ) ( 45,641 ) TOTAL LIABILITIES AND STOCKHOLDERS` EQUITY (DEFICIT) $ 212,

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

Management's Discussion and Analysis of Financial Condition and Results of Operations Forward Looking Statement Notice not historical or current facts are "forward-looking statements" made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 (the "Act") and Section 21E of the Securities Exchange Act of 1934. These statements often can be identified using terms such as "may," "will," "expect," "believe," "anticipate," "estimate," "approximate" or "continue," or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking in the future. However, forward-looking statements are subject to risks, uncertainties and crucial factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events. Financial information contained in this quarterly report and in our unaudited interim financial statements is stated in United States dollars and are prepared in accordance with United Business Overview Our Company's business model centers on developing and operating a website featuring digital avatars. The website offers a wide array of customizable avatars through individual accounts, enabling personalization and interaction through digital personas. Additionally, our website provides multilingual support for up to 40 languages, ensuring a seamless experience

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Overview The following discussion of our financial condition and results of operations should be read in conjunction with our audited financial statement as of April 30, 2025. Results of Operations Three months ended July 31, 2025 compared to July 31, 2024 Revenue For the three months ended July 31, 2025 we generated total revenue of $4,400. For the three months ended July 31, 2024 we generated total revenue of $4,700. Operating expenses Total operating expenses for three months ended July 31, 2025 were $25,262. The operating expenses included bank service charges ($55), amortization expense ($14,231), professional fees ($8,526), and website technical support services ($2,450). Total operating expenses for three months ended July 31, 2024 were $21,820. The operating expenses included bank service charge ($4), amortization expense ($14,232) and professional fees ($7,584). Net Loss Our Net Loss for three months ended July 31, 2025 was $20,862. Our Net Loss for three months ended July 31, 2024 was $17,120. Liquidity and Capital Resources Three months ended July 31, 2025 compared to July 31, 2024 As of July 31, 2025 the Company had cash of $11,938 ($4,500 as of April 30, 2025) and had a negative working capital of $266,978 as of July 31, 2025. Net cash provided by operating activities for the three months ended July 31, 2025, was $7,538, that was made up of a $20,862 net loss, offset by amortization of $14,231 and changes in operating assets and liabilities of $14,169. 15 Net cash used in operating activities for the three months ended July 31, 2024, was $10,269, that was made up of a $17,120 net loss and changes in operating assets and liabilities of $7,381, offset by amortization of $14,232. We had no cash flows used in or provided by investing activities for the three months ended July 31, 2025 and 2024. Net cash used in financing activities for the thr

View Full Filing

View this 10-Q filing on SEC EDGAR