Londax Corp. Revenue Plunges 88%, Reports Net Loss Amid Going Concern Doubts

TL;DR

**LDXC is burning cash with plummeting revenue and a 'going concern' warning; steer clear unless you're a high-risk speculator.**

AI Summary

Londax Corp. (LDXC) reported a significant decline in revenue and a net loss for the three months ended August 31, 2025. Revenue plummeted by 87.9% to $3,107 from $25,708 in the prior-year period. The company posted a net loss of $11,943, a stark contrast to the net income of $10,297 reported for the three months ended August 31, 2024. Operating expenses remained relatively stable at $14,848 compared to $15,411, but amortization and depreciation expense increased substantially to $6,257 from $338. Cash increased to $24,602 from $10,606 as of May 31, 2025, primarily due to $30,514 in deferred income. A key business change was the cancellation of 3,000,000 common shares by President Olegs Pavlovs on July 31, 2025, reducing outstanding shares to 2,231,135. The company also disclosed a 'going concern' risk due to accumulated losses of $15,222 and a reliance on future fundraising. Strategic outlook involves generating sufficient revenue from its IT consulting and software development solutions, including its londax.ai CRM system, and raising additional funds through private or public offerings.

Why It Matters

This filing reveals Londax Corp. is in a precarious financial state, with a massive revenue drop and a net loss raising 'going concern' doubts. For investors, this signals extreme risk and potential for further share price depreciation, especially given the reliance on future fundraising. Employees might face job insecurity if the company fails to secure additional capital or generate sufficient revenue. Customers of Londax's IT consulting and software development services, including its londax.ai CRM, could experience service disruptions or a lack of future development if the company's financial health deteriorates further. In the competitive software development market, Londax's struggles highlight the challenges faced by development-stage companies in achieving profitability and sustainable operations.

Risk Assessment

Risk Level: high — The company explicitly states 'substantial doubt about the Company's ability to continue as a going concern' due to an accumulated loss of $15,222 as of August 31, 2025, and a net loss of $11,943 for the three months ended August 31, 2025. Revenue also dropped by 87.9% to $3,107, indicating a severe lack of operational income.

Analyst Insight

Investors should exercise extreme caution and consider avoiding LDXC shares given the 'going concern' warning, significant revenue decline, and net loss. Current shareholders should evaluate their position, as the company's ability to raise additional funds and generate sufficient revenue is uncertain.

Financial Highlights

revenue

$3,107

total Assets

$101,047

total Debt

$44,821

net Income

$(11,943)

eps

$(0.01)

gross Margin

100.0%

cash Position

$24,602

revenue Growth

-87.9%

Revenue Breakdown

Key Numbers

• $3,107 — Revenue (for the three months ended August 31, 2025, down 87.9% from $25,708 in 2024)
• $(11,943) — Net Loss (for the three months ended August 31, 2025, compared to $10,297 net income in 2024)
• $(15,222) — Accumulated Loss (as of August 31, 2025, indicating 'going concern' issues)
• 2,231,135 — Common Shares Outstanding (as of October 20, 2025, after 3,000,000 shares were cancelled)
• $24,602 — Cash (as of August 31, 2025, up from $10,606 on May 31, 2025)
• $30,514 — Deferred Income (new liability as of August 31, 2025, contributing to cash increase)
• $4,281 — Related Party Loan (owed to the company's president as of August 31, 2025)
• $6,257 — Amortization and Depreciation Expense (for the three months ended August 31, 2025, significantly up from $338 in 2024)

Key Players & Entities

• Londax Corp. (company) — registrant of the 10-Q filing
• Olegs Pavlovs (person) — former president and director of Londax Corp., cancelled 3,000,000 shares
• Mariami Togonidze (person) — appointed to the Board of Directors on October 14, 2025
• Giorgi Loloshvili (person) — appointed Interim CEO and CFO on October 14, 2025
• SEC (regulator) — Securities and Exchange Commission
• Wyoming (company) — state of incorporation for Londax Corp.
• Cyprus (company) — location of principal executive offices
• AWS (company) — cloud services provider for londax.ai

FAQ

Risk Factors

• Going Concern Risk [high — financial]: The company faces a going concern risk due to accumulated losses of $15,222 as of August 31, 2025. Londax Corp. relies on future fundraising through private or public offerings to continue operations.
• Revenue Decline [high — financial]: Revenue decreased by 87.9% to $3,107 for the three months ended August 31, 2025, from $25,708 in the prior year. This drastic drop raises concerns about the company's ability to generate sustainable income.
• Increased Amortization and Depreciation [medium — operational]: Amortization and depreciation expense surged to $6,257 from $338 year-over-year. This significant increase, while operating expenses remained stable, negatively impacts profitability.
• Reliance on Future Financing [high — financial]: The company's strategic outlook explicitly mentions raising additional funds through private or public offerings, indicating a dependence on external capital to meet its financial obligations and growth plans.
• Share Cancellation [medium — operational]: President Olegs Pavlovs cancelled 3,000,000 common shares on July 31, 2025, reducing outstanding shares to 2,231,135. While this reduces share count, the underlying business performance remains critical.

Industry Context

Londax Corp. operates in the IT consulting and software development sector, with a focus on solutions like its londax.ai CRM system. This industry is highly competitive, characterized by rapid technological advancements and a constant need for innovation. Companies in this space often rely on recurring revenue models and strong client relationships to maintain growth.

Regulatory Implications

As a publicly traded company, Londax Corp. is subject to SEC regulations and reporting requirements. The 'going concern' disclosure is a critical regulatory point that signals financial distress to investors and may attract scrutiny from regulatory bodies if not adequately addressed.

What Investors Should Do

1. Monitor future fundraising efforts closely.
2. Analyze the drivers of the 87.9% revenue decline.
3. Evaluate the sustainability of the current cash position.
4. Assess the impact of increased amortization and depreciation.

Key Dates

• 2025-08-31: End of Q2 2025 reporting period — Reported significant revenue decline and net loss, highlighting going concern risks.
• 2025-07-31: Cancellation of 3,000,000 common shares by President Olegs Pavlovs — Reduced outstanding shares, impacting share count metrics but not addressing core business performance issues.
• 2025-05-31: End of Q1 2025 reporting period — Previous period's cash balance was $10,606, showing a substantial increase by August 31, 2025.

Glossary

Accumulated Income (Deficit)

The cumulative net income or loss of a company since its inception. A deficit indicates total losses exceed total profits. (Londax Corp. has an accumulated deficit of $15,222, contributing to its going concern risk.)

Deferred Income

Revenue that has been received by the company but has not yet been earned. It is recorded as a liability until the service is provided or the product is delivered. (A new liability of $30,514 in deferred income contributed to the increase in cash, but it represents future obligations rather than earned revenue.)

Going Concern

An accounting assumption that a business will continue to operate for the foreseeable future. If there is substantial doubt about this, it must be disclosed. (Londax Corp. explicitly faces a going concern risk due to its financial condition.)

Amortization and Depreciation Expense

Non-cash expenses that allocate the cost of intangible assets (amortization) and tangible assets (depreciation) over their useful lives. (This expense increased dramatically to $6,257 from $338, significantly impacting the company's net loss.)

Related Party Loan

A loan made between entities that have a close relationship, such as a company and its president. (Londax Corp. owes $4,281 to its president, indicating a financial tie to key management.)

Year-Over-Year Comparison

Compared to the prior year's period, Londax Corp. has experienced a dramatic downturn. Revenue has fallen by 87.9% from $25,708 to $3,107, and the company has swung from a net income of $10,297 to a net loss of $11,943. While operating expenses remained relatively stable, a substantial increase in amortization and depreciation expense to $6,257 from $338 has exacerbated the losses. The company's financial position is further complicated by an accumulated deficit of $15,222, leading to a 'going concern' risk.

Key Financial Figures

• $0.001 — r consideration of $ 4,000 at par value $0.001 per share. In January 2024 the Company
• $0.03 — consideration of $ 21,156 at par value $0.03 per share. 11 In February 2024 the C

Filing Documents

• londax_i10q-083125.htm (10-Q) — 284KB
• londax_ex3101.htm (EX-31.1) — 10KB
• londax_ex3102.htm (EX-31.2) — 10KB
• londax_ex3201.htm (EX-32.1) — 4KB
• londax_ex3202.htm (EX-32.2) — 4KB
• 0001683168-25-007665.txt ( ) — 1977KB
• none-20250831.xsd (EX-101.SCH) — 17KB
• none-20250831_cal.xml (EX-101.CAL) — 26KB
• none-20250831_def.xml (EX-101.DEF) — 41KB
• none-20250831_lab.xml (EX-101.LAB) — 192KB
• none-20250831_pre.xml (EX-101.PRE) — 151KB
• londax_i10q-083125_htm.xml (XML) — 126KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 3 Balance Sheets – August 31, 2025 (Unaudited) and May 31, 2025 (Audited) 4 5 6 7 Notes to the Unaudited 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 18 Item 4.

Controls and Procedures

Controls and Procedures 18 PART II OTHER INFORMATION: Item 1.

Legal Proceedings

Legal Proceedings 20 Item 1A.

Risk Factors

Risk Factors 20 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 20 Item 3. Defaults Upon Senior Securities 20 Item 4. Submission of Matters to a Vote of Securities Holders 20 Item 5. Other Information 20 Item 6. Exhibits 20

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements The accompanying interim financial statements of Londax Corp. ("the Company", "we", "us" or "our"), have been prepared without audit pursuant to the rules and regulations of the Securities and Exchange Commission. 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 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 LONDAX CORP. BALANCE SHEETS August 31, 2025 (Unaudited) May 31, 2025 (Audited) ASSETS Cash $ 24,602 $ 10,606 Prepaid Expenses 20,000 20,000 Total Current Assets 44,602 30,606 Fixed Assets, Net 140 187 Mobile App, Net 19,664 21,580 Software Development Costs, Net 26,538 29,607 Website, Net 10,103 11,328 Total Other Assets 56,445 62,702 Total Assets $ 101,047 $ 93,308 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts Payable $ 40,540 $ 51,372 Deferred Income 30,514 – Related Party Loan 4,281 4,281 Total Current Liabilities 75,335 55,653 Common Stock, $ 0.001 par value, 75,000,000 shares authorized; 2,231,135 and 5,231,135 shares issued and outstanding, respectively 2,231 5,231 Additional Paid-in Capital 38,703 35,703 Accumulated Income (Deficit) ( 15,222 ) ( 3,279 ) Total Stockholders' Equity 25,712 37,655 Total Liabilities and Stockholders' Equity $ 101,047 $ 93,308 The accompanying notes are an integral part of these unaudited financial statements. 4 LONDAX CORP. Three months ended August 31, 2025 and 2024 (Unaudited) Three months ended August 31, 2025 (Unaudited) Three months ended August 31, 2024 (Unaudited) REVENUES $ 3,107 $ 25,708 Cost of sales – – GROSS PROFIT

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 STATEMENTS

FORWARD LOOKING STATEMENTS This report contains forward-looking statements that involve risk and uncertainties. We use words such as "anticipate", "believe", "plan", "expect", "future", "intend", and similar expressions to identify such forward-looking statements. Investors should be aware that all forward-looking statements contained within this filing are good faith estimates of management as of the date of this filing. Our actual results could differ materially from those anticipated in these forward-looking statements for many reasons, including the risks faced by us in this report. DESCRIPTION OF BUSINESS Our company was established as a Wyoming corporation on May 19, 2023. As a developmental-stage enterprise, our primary focus is on offering IT consulting services and software development solutions. Our web site is https://londaxcorp.com/. Currently, we have developed and implemented our flagship product https://londax.ai/, which comprises a Customer Relationship Management (CRM) System, Applicant Tracking Systems (ATS), and out-staffing services. Our principal executive office is located at Yiangou Potamiti 27, Limassol, Cyprus 3010. Our phone number is +371 29591676. Our company develop and implement a customized Customer Relationship Management (CRM) System that facilitates out-staffing for our future clients. Our software is designed to seamlessly integrate into our clients' corporate structure, enabling them to hire and manage their staff, including top managers and IT specialists, with ease. We are intending to operate in Europe with potential for working worldwide. From a technical perspective, londax.ai is a web application consisting of Frontend and Backend components hosted on cloud services provided by AWS. Londax.ai CRM system is developed for analyzing and monitoring the recruitment process using a funnel (hiring stages) and analyzing the KPIs of the already hired personnel. Currently, our main dashboard consists of: 1) Segment for Recruit

View Full Filing

View this 10-Q filing on SEC EDGAR