Shorepower Narrows Losses Amidst Revenue Surge, Cash Position Improves

TL;DR

**SPEV is burning cash and relying on related-party debt, but revenue growth offers a glimmer of hope for this micro-cap electrification play.**

AI Summary

SHOREPOWER TECHNOLOGIES INC. (SPEV) reported a net loss of $237,824 for the nine months ended September 30, 2025, a 23.6% improvement from the $311,005 net loss in the same period of 2024. Total revenue significantly increased to $180,124 for the nine months ended September 30, 2025, up from $52,779 in 2024, primarily driven by a surge in product sales to $120,591 from $35,207 and service revenue to $47,937 from $5,305. Despite revenue growth, the company's accumulated deficit widened to $3,178,871 as of September 30, 2025, from $2,941,047 at December 31, 2024. Cash increased to $53,881 from $18,332, largely due to $35,549 in net cash provided by operating activities, a stark contrast to the $152,998 used in operating activities in the prior year. Key risks include substantial related-party liabilities, with accrued officer compensation at $456,668 and notes payable to related parties totaling $1,045,454 as of September 30, 2025. The strategic outlook focuses on transportation electrification infrastructure, including EVSE, TSE, and eTRU stations, leveraging its 60 operational TSE facilities across 31 states.

Why It Matters

For investors, SPEV's significant revenue growth, particularly in product sales and service revenue, suggests potential market traction in the transportation electrification sector. However, the persistent net losses and substantial related-party liabilities, including $456,668 in accrued officer compensation, raise concerns about financial stability and governance. Employees might see increased job security with revenue growth, but the company's overall deficit and reliance on related-party financing could signal long-term challenges. Customers benefit from SPEV's expanding EVSE, TSE, and eTRU station network, contributing to broader market adoption of electric vehicle infrastructure, positioning SPEV as a niche player in a competitive, rapidly evolving industry.

Risk Assessment

Risk Level: high — The company reported an accumulated deficit of $3,178,871 as of September 30, 2025, and total liabilities of $1,973,670, significantly exceeding its total assets of $74,054. A substantial portion of liabilities, including $456,668 in accrued officer compensation and $1,045,454 in related-party notes payable, indicates a high reliance on insider financing and potential liquidity issues.

Analyst Insight

Investors should exercise extreme caution and conduct thorough due diligence before considering SPEV. The significant related-party liabilities and accumulated deficit suggest a high-risk investment, despite revenue growth. Monitor future filings for sustained profitability and a reduction in related-party debt.

Financial Highlights

debt To Equity

N/A

revenue

$180,124

operating Margin

N/A

total Assets

N/A

total Debt

N/A

net Income

-$237,824

eps

N/A

gross Margin

N/A

cash Position

$53,881

revenue Growth

+240.7%

Revenue Breakdown

Key Numbers

• $180,124 — Total revenue (for the nine months ended September 30, 2025, up from $52,779 in 2024)
• $237,824 — Net loss (for the nine months ended September 30, 2025, an improvement from $311,005 in 2024)
• $3,178,871 — Accumulated deficit (as of September 30, 2025, widened from $2,941,047 at December 31, 2024)
• $53,881 — Cash (as of September 30, 2025, up from $18,332 at December 31, 2024)
• $456,668 — Accrued officer compensation – related party (as of September 30, 2025, a significant current liability)
• $1,045,454 — Notes payable – related party (total) (sum of current and non-current portions as of September 30, 2025)
• 49,190,204 — Shares of Common Stock outstanding (as of November 10, 2025)
• 60 — Operational TSE facilities (with over 1,800 individual electrified parking spaces in 31 states)
• $120,591 — Product sales revenue (for the nine months ended September 30, 2025, up from $35,207 in 2024)
• $47,937 — Service revenue (for the nine months ended September 30, 2025, up from $5,305 in 2024)

Key Players & Entities

• SHOREPOWER TECHNOLOGIES INC. (company) — Registrant
• Jeff Kim (person) — CEO of Shurepower, LLC and current CEO of the Company
• Daniel T. Meisenheimer, III (person) — Former Chairman of the Board of Directors and President of the Company
• Saeb Jannoun (person) — Former Chairman of the Board of Directors and President, later CEO
• Michael Pruitt (person) — Former Board Member
• World Equity Markets (company) — Broker/dealer for Purchase Agreements
• Verde Capital (company) — Consulting Services provider
• EROP Enterprises, LLC (company) — Purchaser of preferred stock
• SEC (regulator) — Securities and Exchange Commission
• EPA SmartWay-Verified (regulator) — Certification for Shorepower's stations

FAQ

Risk Factors

• Going Concern Uncertainty [high — financial]: As of September 30, 2025, the Company had a cash balance of $53,881, negative working capital of $980,937, and an accumulated deficit of $3,178,871. Significant losses for the nine months ended September 30, 2025 ($237,824) and 2024 ($311,005) raise substantial doubt about the Company's ability to continue as a going concern.
• Related-Party Liabilities [high — financial]: The company has substantial related-party liabilities, including $456,668 in accrued officer compensation and $1,045,454 in notes payable to related parties as of September 30, 2025. These significant obligations could impact financial flexibility and future cash flows.
• Dependence on Electrification Infrastructure [medium — operational]: The company's strategic outlook is focused on transportation electrification infrastructure, including EVSE, TSE, and eTRU stations. Dependence on this specific sector exposes the company to market adoption rates, technological advancements, and competitive pressures within the evolving EV market.

Industry Context

ShorePower Technologies operates in the rapidly expanding transportation electrification sector, focusing on EVSE, TSE, and eTRU stations. This industry is characterized by significant growth potential driven by environmental regulations, technological advancements in battery technology, and increasing consumer adoption of electric vehicles. The competitive landscape includes established automotive manufacturers, dedicated charging infrastructure providers, and energy companies.

Regulatory Implications

The company's focus on electrification infrastructure may be influenced by government incentives and regulations promoting EV adoption and emissions reduction. Compliance with evolving standards for charging equipment and grid integration will be crucial. The recent FASB updates on expense disaggregation (ASU 2024-03 and ASU 2025-01) will require enhanced transparency in expense reporting for public companies starting in late 2026.

What Investors Should Do

1. Monitor cash burn and operating cash flow trends closely.
2. Assess the resolution of related-party liabilities.
3. Evaluate the growth drivers for product and service revenue.
4. Track progress in expanding operational TSE facilities.

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 financial results reported — Indicates significant revenue growth but continued net loss, with improved cash position and operating cash flow compared to the prior year.
• 2025-12-31: Year-end 2024 financial position reported — Provides a baseline for comparison, showing a lower cash balance and accumulated deficit prior to the reported nine-month period.

Glossary

Accumulated Deficit

The total cumulative net losses of a company since its inception, minus any cumulative net income. (Indicates the company has historically operated at a loss, with the deficit widening to $3,178,871 as of September 30, 2025.)

Working Capital

The difference between a company's current assets and current liabilities. Positive working capital indicates a company has enough liquid assets to cover its short-term obligations. (The company reported negative working capital of $980,937 as of September 30, 2025, highlighting short-term liquidity concerns.)

EVSE

Electric Vehicle Supply Equipment, which includes charging stations and related infrastructure for electric vehicles. (A key area of focus for ShorePower Technologies' strategic outlook, indicating their involvement in the growing EV market.)

TSE

Transportation electrification infrastructure, likely referring to broader systems beyond just EV charging, potentially including grid integration or fleet management solutions. (Represents a core strategic focus for the company, suggesting a comprehensive approach to the electrification of transportation.)

eTRU

Electrified Transport Refrigeration Unit, used to power refrigeration units on trucks and trailers, often requiring dedicated charging infrastructure. (Another specific segment within transportation electrification that ShorePower Technologies is targeting, indicating a niche market focus.)

Year-Over-Year Comparison

For the nine months ended September 30, 2025, ShorePower Technologies Inc. demonstrated a significant improvement in revenue, which more than tripled to $180,124 compared to $52,779 in the same period of 2024. This revenue growth, driven by substantial increases in both product sales and service revenue, contributed to a reduced net loss of $237,824, an improvement from $311,005 in the prior year. Notably, operating activities generated positive cash flow of $35,549, a stark contrast to the $152,998 used in the prior year, leading to an increased cash position. However, the accumulated deficit continued to widen, indicating ongoing challenges in achieving profitability.

Key Financial Figures

• $10M — mmon Stock upon (a) the application for $10M in grants and/or the (b) the award of $
• $1.0 million — M in grants and/or the (b) the award of $1.0 million in grants in the first 18 months; (iii)
• $3.0 million — first 24 months generating no less than $3.0 million in gross revenues and (iv) an additiona

Filing Documents

• form10-q.htm (10-Q) — 569KB
• ex31-1.htm (EX-31.1) — 19KB
• ex32-1.htm (EX-32.1) — 8KB
• 0001493152-25-022091.txt ( ) — 3077KB
• spev-20250930.xsd (EX-101.SCH) — 25KB
• spev-20250930_cal.xml (EX-101.CAL) — 32KB
• spev-20250930_def.xml (EX-101.DEF) — 138KB
• spev-20250930_lab.xml (EX-101.LAB) — 210KB
• spev-20250930_pre.xml (EX-101.PRE) — 166KB
• form10-q_htm.xml (XML) — 368KB

Financial Statements (unaudited)

Financial Statements (unaudited) 3 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 15 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. Mine Safety Disclosures 18 Item 5. Other Information 18 Item 6. Exhibits 18

Signatures

Signatures 19 2 PART I FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS. Balance Sheets as of September 30, 2025 (unaudited) and December 31, 2024 4 5 6 7 Notes to the Financial Statements (unaudited) 8 3 SHOREPOWER TECHNOLOGIES INC. CONDENSED BALANCE SHEETS September 30, December 31, 2025 2024 (Unaudited) (Audited) ASSETS Current Assets: Cash $ 53,881 $ 18,332 Accounts receivable 843 — Prepaids — 1,322 Inventory 18,330 44,763 Total Current Assets 73,054 $ 64,417 Non-Current Assets: Other asset 1,000 1,000 Total non-current assets 1,000 1,000 Total Assets $ 74,054 $ 65,417 LIABILITIES AND STOCKHOLDERS' DEFICIT Current Liabilities: Accounts payable and accrued expenses $ 123,946 92,353 Accounts payable – related party 37,110 37,110 Accrued officer compensation – related party 456,668 306,668 Accrued interest – related party 199,097 148,460 Notes payable – related party 125,775 125,775 Note payable 111,395 111,395 Total Current Liabilities 1,053,991 821,761 Notes payable, net of current portion – related party 919,679 919,678 Total Liabilities 1,973,670 1,741,439 Commitment and contingency — — Stockholders' Deficit: Preferred stock, $ 0.01 par value, 6,894,356 shares authorized; no shares issued and outstanding — — Series A preferred stock, $ 0.01 par value, 1,105,644 shares designated; no shares issued and outstanding — — Series B preferred stock, $ 0.01 par value, 10,000,000 shares designated; 2,000,000 issued and outstanding 20,000 20,000 Preferred stock, value 20,000 20,000 Common stock, $ 0.01 par value,

financial statements

financial statements. In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses ("DISE"), which will require additional disclosure of the nature of expenses included in the income statement in response to longstanding requests from investors for more information about an entity's expenses. This ASU was further clarified by ASU 2025-01, Income Statement (Topic 220): Reporting Comprehensive Income - Expense Disaggregation Disclosures, Disaggregation of Income Statement Expenses , which was issued in December 2024. The new standards require disclosures about specific types of expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses. The new standards will be effective for public companies for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. The requirements will be applied prospectively with the option for retrospective application. Early adoption is permitted. The Company is currently evaluating the impact of these accounting standard updates on its financial statements. 11 The Company has implemented all new applicable accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. NOTE 3 – GOING CONCERN The accompanying condensed unaudited financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business. As shown in the accompanying unaudited condensed financial statements, at September 30, 2025 the Company had a cash balance of

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View this 10-Q filing on SEC EDGAR