REST EZ Reports Zero Revenue, $0 Net Loss Amid Going Concern Doubts

Ticker: RTEZ · Form: 10-Q · Filed: Dec 23, 2025 · CIK: 1733861

Sentiment: bearish

Topics: Going Concern, Zero Revenue, Microcap, Sleep Aid Supplement, High Risk, Accumulated Deficit, OTC Market

TL;DR

**RTEZ is a zombie company with no revenue, avoid at all costs; it's a going concern risk.**

AI Summary

REST EZ Inc. reported no revenue for the three months ended June 30, 2025, consistent with the prior year period. The company also recorded a net loss of $0 for the quarter, a significant improvement from the net loss of $33 in the same period of 2024. Total assets and total stockholders' equity remained flat at $300 as of June 30, 2025, compared to March 31, 2025. The company continues to operate with minimal cash, holding $300 in cash at both period ends. A key business change is the company's declaration of being in "full Production and Distribution to wholesalers and retailers as well as online at www.RestEz.net" for its Rest EZ Sleep Aid Supplement, despite reporting no revenue. The filing highlights a substantial doubt about the company's ability to continue as a going concern due to its reliance on future investment opportunities and debt/equity financing, including potential related party loans, to generate profits. The company's accumulated deficit stands at $286,101 as of June 30, 2025.

Why It Matters

This filing reveals a company in a precarious financial state, reporting no revenue despite claiming full production and distribution. For investors, this signals extreme risk, as the company's ability to continue as a going concern is explicitly doubted, relying heavily on future capital injections. Employees face job insecurity given the lack of operational income. Customers and the broader market should be wary of a company that claims active sales but reports no revenue, raising questions about its business model's viability and competitive standing in the sleep aid market. The absence of revenue makes it difficult to assess its competitive position against established players.

Risk Assessment

Risk Level: high — The risk level is high because REST EZ Inc. reported $0 revenue for the three months ended June 30, 2025, and has an accumulated deficit of $286,101. The filing explicitly states, "These factors raise a substantial doubt about the Company's ability to continue as a going concern," directly indicating severe financial instability and reliance on external capital.

Analyst Insight

Investors should avoid REST EZ Inc. (RTEZ) due to its zero revenue, accumulated deficit of $286,101, and explicit going concern warning. This company presents an extremely high-risk profile with no clear path to profitability or sustainable operations.

Financial Highlights

debt To Equity
N/A
revenue
$0
operating Margin
N/A
total Assets
$300
total Debt
$0
net Income
$0
eps
$0.00
gross Margin
N/A
cash Position
$300
revenue Growth
0.0%

Key Numbers

Key Players & Entities

FAQ

What is REST EZ Inc.'s revenue for the quarter ended June 30, 2025?

REST EZ Inc. reported $0 in revenue for the three months ended June 30, 2025, which is consistent with the $0 revenue reported for the same period in 2024.

What was REST EZ Inc.'s net loss for the three months ended June 30, 2025?

REST EZ Inc. reported a net loss of $0 for the three months ended June 30, 2025, an improvement from the net loss of $33 reported for the three months ended June 30, 2024.

Does REST EZ Inc. have enough cash to operate?

As of June 30, 2025, REST EZ Inc. had only $300 in cash. The company's ability to continue as a going concern is dependent on obtaining additional capital.

What is the accumulated deficit of REST EZ Inc. as of June 30, 2025?

As of June 30, 2025, REST EZ Inc. had an accumulated deficit of $286,101, indicating significant historical losses.

Is REST EZ Inc. considered a going concern?

The filing explicitly states that factors such as the net loss and reliance on future capital raise "substantial doubt about the Company's ability to continue as a going concern."

Who is the sole executive officer and director of REST EZ Inc.?

Mr. Carson is currently the sole executive officer and director of REST EZ Inc., and the company notes a risk if a suitable replacement cannot be found.

What product does REST EZ Inc. produce?

REST EZ Inc. produces one product, a liquid gel capsule named Rest EZ Sleep Aid Supplement, manufactured by an unaffiliated outside provider, Sport Energy.

How many shares of common stock does REST EZ Inc. have outstanding?

As of June 30, 2025, REST EZ Inc. had 27,537,033 shares of common stock outstanding, with a par value of $0.001 per share.

Are there any related party loans for REST EZ Inc.?

Brandon Sosa, a former President, had previously loaned the company money, but the $13,500 loan was forgiven and deemed satisfied through shares of stock he retained.

What is the primary risk for investors in REST EZ Inc.?

The primary risk for investors is the company's inability to generate revenue and its explicit going concern warning, indicating a high likelihood of financial distress or failure without significant external funding.

Risk Factors

Industry Context

The sleep aid supplement market is competitive, with numerous established brands and emerging players. Key trends include a growing consumer interest in natural and non-habit-forming sleep solutions, and increasing online sales channels. However, regulatory scrutiny and efficacy claims are critical factors for success.

Regulatory Implications

As a supplement manufacturer, REST EZ Inc. is subject to regulations by the FDA regarding manufacturing practices (cGMP) and labeling. Claims made about the product's efficacy must be substantiated and not misleading. Failure to comply can result in warning letters, product recalls, and fines.

What Investors Should Do

  1. Monitor financing activities closely.
  2. Scrutinize revenue generation efforts.
  3. Assess the viability of the business model.

Key Dates

Glossary

Accumulated Deficit
The total cumulative net losses of a company that have not been offset by net income or other gains since its inception. (Indicates REST EZ Inc.'s significant historical unprofitability, with a deficit of $286,101 as of June 30, 2025.)
Going Concern
An assumption that a company will continue to operate for the foreseeable future, typically at least the next 12 months. (The company explicitly states substantial doubt about its ability to continue as a going concern, highlighting significant financial risks.)
Related Party Loan
A loan provided by an individual or entity that has a close relationship with the borrower, such as a major shareholder or executive. (REST EZ Inc. relies on potential related party loans for future financing, which can introduce specific risks and disclosure requirements.)
Weighted Average Shares Outstanding
The average number of shares outstanding over a period, used to calculate earnings per share. (Shows a significant increase in weighted average shares outstanding from 20,000,000 in Q2 2024 to 27,537,033 in Q2 2025, potentially diluting future earnings if profitability is achieved.)

Year-Over-Year Comparison

Compared to the prior year period ended June 30, 2024, REST EZ Inc. maintained $0 revenue but improved its net loss from $33 to $0. Total assets and cash remain stagnant at $300. A significant change is the increase in weighted average shares outstanding from 20,000,000 to 27,537,033, indicating potential dilution. New risks highlighted include the explicit statement of substantial doubt about the company's ability to continue as a going concern.

Filing Stats: 4,638 words · 19 min read · ~15 pages · Grade level 14.4 · Accepted 2025-12-23 06:27:35

Filing Documents

Signatures

Signatures 16 Table of Contents NOTE ABOUT FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, among other things, statements regarding plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements, which are other than statements of historical facts. Forward-looking statements may appear throughout this report, including without limitation, Item 2 "Management's Discussion and Analysis of Financial Condition and Results of Operations." Forward-looking statements generally can be identified by words such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "predicts," "projects," "will be," "will continue," "will likely result," and similar expressions. These forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties, which could cause our actual results to differ materially from those reflected in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in this report and in our Form S-1/A, and in particular, the risks discussed under the caption "Risk Factors" in Item 1A of this report and in in our Form S-1/A, and those discussed in other documents we file with the Securities and Exchange Commission ("SEC"). Important factors that in our view could cause material adverse effects on our financial condition and results of operations include, but are not limited to, risks associated with service demands and acceptance, our ability to expand, changes in healthcare practices, changes in technology, economic conditions, the impact of competition and pricing, government regulation and approvals, impacts and disruptions caused by the COVID-19 pandemic and other factors that may cause actual results to be

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