iWallet's Losses Mount 355% Amid Zero Revenue, Cash Dwindles to $229

TL;DR

**IWAL is a burning cash pile with no revenue, avoid at all costs as 'going concern' is in serious doubt.**

AI Summary

iWallet Corp. (IWAL) reported no revenue for the three and nine months ended September 30, 2025, consistent with the prior year. The company's net loss significantly widened to $381,065 for the nine months ended September 30, 2025, a 355% increase from a net loss of $83,647 in the same period of 2024. This substantial increase in loss was primarily driven by a new research and development expense of $171,582 for the nine months ended September 30, 2025, and a loss on extinguishment of debt of $135,609, compared to a $28,000 loss in 2024. Total liabilities increased to $694,078 as of September 30, 2025, from $590,461 at December 31, 2024, largely due to a rise in accounts payable to $56,611 from $12,313 and accrued interest payable to $318,413 from $282,866. The company's cash position drastically decreased to $229 as of September 30, 2025, from $2,437 at December 31, 2024, and it continues to operate with a significant accumulated deficit of $5,970,934, raising substantial doubt about its ability to continue as a going concern.

Why It Matters

This filing paints a dire picture for iWallet Corp., indicating a company struggling to generate any revenue while its losses accelerate dramatically. For investors, the substantial doubt about its 'going concern' status, coupled with minimal cash and increasing liabilities, suggests extreme risk and potential for total loss. Employees face significant job insecurity given the company's financial instability. Customers, if any, might question the long-term viability of iWallet's biometric locking wallets. In the broader market, this highlights the challenges faced by early-stage tech companies in highly competitive sectors, especially those unable to monetize their innovations, potentially impacting investor sentiment for similar speculative ventures.

Risk Assessment

Risk Level: high — The risk level is high due to the company's 'going concern' disclosure, an accumulated deficit of $5,970,934 as of September 30, 2025, and a cash balance of only $229. Furthermore, the net loss for the nine months ended September 30, 2025, increased by 355% to $381,065, with no revenue generated, indicating severe financial distress.

Analyst Insight

Investors should avoid iWallet Corp. (IWAL) given the explicit 'going concern' warning, zero revenue, and rapidly increasing losses. The company's reliance on future financing with no assurance of success makes it an extremely speculative and high-risk investment.

Financial Highlights

debt To Equity

N/A

revenue

$0

operating Margin

N/A

total Assets

$229

total Debt

$694,078

net Income

$-381,065

eps

$-0.00

gross Margin

N/A

cash Position

$229

revenue Growth

N/A

Key Numbers

• $0 — Revenue (for the three and nine months ended September 30, 2025, indicating no sales)
• $381,065 — Net Loss (for the nine months ended September 30, 2025, a 355% increase from $83,647 in 2024)
• $229 — Cash at End of Period (as of September 30, 2025, a significant decrease from $2,437 at December 31, 2024)
• $5,970,934 — Accumulated Deficit (as of September 30, 2025, highlighting severe financial instability)
• $171,582 — Research and Development Expenses (for the nine months ended September 30, 2025, a new significant expense compared to $0 in 2024)
• $694,078 — Total Current Liabilities (as of September 30, 2025, an increase from $590,461 at December 31, 2024)
• 106,419,419 — Common Stock Outstanding (as of November 13, 2025, indicating potential dilution)
• 355% — Increase in Net Loss (comparing nine months ended September 30, 2025, to the same period in 2024)

Key Players & Entities

• iWallet Corp. (company) — registrant
• Steve Cabouli (person) — CEO and sole director
• Queensridge Mining Resources, Inc. (company) — merged with iWallet Acquisition Corporation
• $5,970,934 (dollar_amount) — accumulated deficit as of September 30, 2025
• $229 (dollar_amount) — cash balance as of September 30, 2025
• $381,065 (dollar_amount) — net loss for the nine months ended September 30, 2025
• $171,582 (dollar_amount) — research and development expenses for the nine months ended September 30, 2025
• $694,078 (dollar_amount) — total current liabilities as of September 30, 2025
• Federal Deposit Insurance Corporation (regulator) — insures bank deposits up to $250,000
• Nevada (company) — state of incorporation

FAQ

Risk Factors

• Severe Cash Burn and Going Concern Doubt [high — financial]: iWallet Corp. has a drastically reduced cash position of $229 as of September 30, 2025, down from $2,437 at December 31, 2024. This, coupled with a significant accumulated deficit of $5,970,934, raises substantial doubt about the company's ability to continue as a going concern.
• Worsening Net Loss [high — financial]: The company's net loss widened significantly to $381,065 for the nine months ended September 30, 2025, a 355% increase from $83,647 in the prior year. This deterioration is driven by new R&D expenses and a larger loss on debt extinguishment.
• Increasing Liabilities [medium — financial]: Total liabilities have increased to $694,078 as of September 30, 2025, from $590,461 at December 31, 2024. This rise is primarily due to increases in accounts payable ($56,611 from $12,313) and accrued interest payable ($318,413 from $282,866).
• No Revenue Generation [high — operational]: iWallet Corp. reported no revenue for the three and nine months ended September 30, 2025, consistent with the prior year. The company has not demonstrated any ability to generate sales, which is a fundamental concern for its business model.
• Significant Research and Development Expenses [medium — financial]: A new research and development expense of $171,582 was incurred for the nine months ended September 30, 2025. While R&D can be crucial for future growth, it represents a significant cost without corresponding revenue.
• Loss on Extinguishment of Debt [medium — financial]: The company experienced a loss on extinguishment of debt of $135,609 for the nine months ended September 30, 2025, compared to $28,000 in the prior year. This indicates unfavorable terms or costs associated with managing its debt obligations.

Industry Context

The fintech sector, where iWallet Corp. operates, is highly competitive and capital-intensive. Companies often require significant investment in R&D and marketing to gain market share. However, iWallet Corp. is not generating any revenue, which is a critical disadvantage in this environment.

Regulatory Implications

As a fintech company, iWallet Corp. may be subject to various financial regulations depending on its services. The current financial distress and lack of revenue could attract scrutiny from regulatory bodies if the company attempts to raise further capital or engage in new business activities.

What Investors Should Do

1. Avoid investment due to severe financial distress, lack of revenue, and going concern doubts.
2. Monitor for any potential restructuring or new financing attempts, which carry high risk.
3. Analyze the viability of the company's business model given the persistent absence of revenue.

Key Dates

• 2025-09-30: End of Nine Months Reporting Period — Key financial results for the period, including a significant increase in net loss and a drastic decrease in cash, were reported.
• 2025-12-31: Previous Fiscal Year End — Provided a baseline for comparison of current assets, liabilities, and cash position.

Glossary

Accumulated Deficit

The total cumulative net losses of a company that have not been offset by net income or other gains. (Indicates the company's long-term unprofitability and severe financial instability, with a deficit of $5,970,934.)

Loss on Extinguishment of Debt

A loss incurred when a company repays or retires debt before its scheduled maturity date, often due to unfavorable terms or fees. (Contributed significantly to the increased net loss, with $135,609 incurred in the nine months ended September 30, 2025.)

Going Concern

An accounting assumption that a business will continue to operate for the foreseeable future. (The company's financial condition raises substantial doubt about its ability to continue as a going concern.)

Research and Development Expenses

Costs incurred by a company in the process of developing new products or services, or improving existing ones. (A new and significant expense of $171,582 for the nine months ended September 30, 2025, contributing to the widened net loss.)

Accrued Interest Payable

Interest that has been incurred but not yet paid. (Increased to $318,413 from $282,866, contributing to the overall rise in total liabilities.)

Year-Over-Year Comparison

Revenue remains at $0, showing no progress in sales generation. The net loss has dramatically increased by 355% to $381,065 for the nine months ended September 30, 2025, driven by new R&D expenses and a larger debt extinguishment loss. Cash reserves have plummeted to $229 from $2,437, while total liabilities have grown to $694,078, indicating a worsening financial position.

Filing Documents

• iwal-20250930_10q.htm (10-Q) — 467KB
• iwal_ex311.htm (EX-31.1) — 7KB
• iwal_ex312.htm (EX-31.2) — 7KB
• iwal_ex321.htm (EX-32.1) — 3KB
• iwal_ex322.htm (EX-32.2) — 4KB
• 0001498372-25-000003.txt ( ) — 2310KB
• iwal-20250930_cal.xml (EX-101.CAL) — 18KB
• iwal-20250930_def.xml (EX-101.DEF) — 72KB
• iwal-20250930_lab.xml (EX-101.LAB) — 130KB
• iwal-20250930_pre.xml (EX-101.PRE) — 118KB
• iwal-20250930.xsd (EX-101.SCH) — 25KB
• iwal-20250930_10q_htm.xml (XML) — 222KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 4

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 4 Balance Sheets 4 5 6 7 Notes to Unaudited Financial Statements 8

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 13

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk. 17

Controls and Procedures

Item 4. Controls and Procedures. 17

- OTHER INFORMATION

PART II - OTHER INFORMATION 18

Legal Proceedings

Item 1. Legal Proceedings. 18

Risk Factors

Item 1A. Risk Factors. 18

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 18

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities. 18

Mine Safety Disclosures

Item 4. Mine Safety Disclosures. 18

Other Information

Item 5. Other Information. 18

Exhibits

Item 6. Exhibits. 18

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements iWallet Corp. Balance Sheets (Unaudited) September 30, 2025 December 31, 2024 Assets Current Assets Cash $ 229 $ 2,437 Total Current Assets 229 2,437 Total Assets $ 229 $ 2,437 Liabilities and Stockholders' Deficit Liabilities Current Liabilities Account Payable $ 56,611 $ 12,313 Line of Credit Payable 501 - Accrued Interest Payable 318,413 282,866 Due to Related Party 14,282 14,282 Notes Payable 44,271 21,000 Convertible Debentures 260,000 260,000 Total Current Liabilities 694,078 590,461 Total Liabilities 694,078 590,461 Commitments and Contingencies (Note 9) - - Stockholders' Deficit Preferred series A stock; par value $ 0.001 , 14,000,000 shares authorized; 7,644,000 shares issued and outstanding 7,644 7,644 Preferred series B stock; par value $ 0.001 , 1,000,000 shares authorized; 1,000,000 shares issued and outstanding 1,000 1,000 Common stock; par value $ 0.001 , 150,000,000 shares authorized; 86,419,419 and 77,819,419 shares issued and outstanding as of September 30, 2024 and December 31, 2024, respectively 86,419 77,819 Additional Paid-in Capital 5,182,022 4,915,382 Accumulated Deficit ( 5,970,934 ) ( 5,589,869 ) Total Stockholders' Deficit ( 693,849 ) ( 588,024 ) Total Liabilities and Stockholders' Deficit $ 229 $ 2,437 The accompanying notes are an integral part of these unaudited financial statements. 4 iWallet Corp. (Unaudited) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2025 2024 2025 2024 Revenues $ - $ - $ - $ - Cost of Sales - - - - Gross Profit - - - - Operating Expenses General and Administrative Expenses 19,992 7,678 37,761 24,394 Research and Development Expenses 161,882 - 171,582 - Total Operating Expenses 181,874 7,678 209,343 24,394 Operating Loss (

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