Freedom Holdings' Losses Mount Despite Revenue Surge Post-TAG Merger

TL;DR

**TAAG is burning cash despite new revenue streams, making it a risky bet until they prove they can turn a profit.**

AI Summary

Freedom Holdings, Inc. (TAAG) reported a net loss of $175,887 for the three months ended June 30, 2025, a decrease from the $234,448 net loss in the prior-year period. For the nine months ended June 30, 2025, the net loss was $556,758, compared to a net loss of $255,137 for the same period in 2024. The company generated revenues of $139,375 for the three months and $816,528 for the nine months ended June 30, 2025, a significant increase from zero revenue in the comparable 2024 periods, primarily due to the merger with The Awareness Group (TAG) on September 17, 2024, and subsequent solar system sales and Power Purchase Agreements (PPAs). Total assets more than doubled to $61,671,209 as of June 30, 2025, from $29,049,999 as of September 30, 2024, driven by a substantial increase in fixed assets to $25,388,896 and investment tax credits of $3,546,414. Total liabilities also surged to $30,923,671 from $6,369,698, largely due to increased accrued project costs and deferred revenue. The company continues to face risks related to operating losses and the need for additional capital to fund operations.

Why It Matters

Freedom Holdings' significant revenue generation post-merger with TAG indicates a pivotal shift from a development-stage company, offering new growth potential for investors in the renewable energy sector. However, the substantial increase in liabilities and continued operating losses highlight execution risks, potentially impacting future profitability and shareholder value. The competitive landscape in solar energy demands efficient capital deployment, and TAAG's ability to manage its burgeoning project costs and secure further funding will be critical for long-term success and market positioning against established players. Employees and customers could see benefits from expanded solar projects, but financial instability could pose risks.

Risk Assessment

Risk Level: high — The company reported a net loss of $556,758 for the nine months ended June 30, 2025, and has an accumulated deficit of $10,886,013, indicating persistent operating losses. Cash and cash equivalents decreased from $95,815 to $65,078, and the company explicitly states risks including 'continuing operating losses and negative cash flows' and the ability to 'obtain sufficient capital to fund our operations'.

Analyst Insight

Investors should exercise extreme caution and conduct thorough due diligence. While revenue generation is a positive step, the escalating liabilities and continued net losses suggest significant operational challenges. Monitor future filings for evidence of improved cash flow management and a clear path to profitability before considering an investment.

Financial Highlights

debt To Equity

0.84

revenue

$816,528

operating Margin

N/A

total Assets

$61,671,209

total Debt

$30,923,671

net Income

-$556,758

eps

N/A

gross Margin

N/A

cash Position

$65,078

revenue Growth

N/A

Revenue Breakdown

Key Numbers

• $139,375 — Revenue for Q2 2025 (Significant increase from $0 in Q2 2024, indicating new business activity post-merger.)
• $816,528 — Revenue for nine months ended June 30, 2025 (Substantial growth from $0 in the prior-year period, driven by solar system sales and PPAs.)
• $175,887 — Net loss for Q2 2025 (Reduced from $234,448 in Q2 2024, but still a loss.)
• $556,758 — Net loss for nine months ended June 30, 2025 (Increased from $255,137 in the prior-year period, indicating growing operational costs.)
• $61,671,209 — Total Assets as of June 30, 2025 (More than doubled from $29,049,999 as of September 30, 2024, primarily due to fixed assets and tax credits.)
• $30,923,671 — Total Liabilities as of June 30, 2025 (Increased significantly from $6,369,698 as of September 30, 2024, mainly from accrued project costs and deferred revenue.)
• $10,886,013 — Accumulated Deficit (Indicates ongoing historical losses and a lack of sustained profitability.)
• $65,078 — Cash and Cash Equivalents (Low cash balance, down from $95,815, highlighting liquidity concerns.)
• $25,388,896 — Fixed assets, net (Significant increase from $7,822,463, reflecting investment in solar assets.)
• $3,546,414 — Investment tax credits (New asset category, indicating potential future tax benefits from solar projects.)

Key Players & Entities

• Freedom Holdings, Inc. (company) — registrant
• The Awareness Group (company) — merged entity
• Candela Coin (company) — majority owned subsidiary
• Captain Manicorn (company) — majority owned subsidiary
• Standard Eco (company) — majority owned subsidiary
• SEC (regulator) — filing oversight
• Bloomberg (company) — publisher

FAQ

Risk Factors

• Operating Losses and Need for Capital [high — financial]: The company reported a net loss of $175,887 for Q2 2025 and $556,758 for the nine months ended June 30, 2025. The accumulated deficit stands at $10,886,013. This indicates ongoing operational losses and a continued need for external capital to fund operations.
• Liquidity Concerns [medium — financial]: Cash and cash equivalents decreased to $65,078 as of June 30, 2025, from $95,815 as of September 30, 2024. This low cash balance, coupled with significant liabilities, raises concerns about the company's ability to meet its short-term obligations.
• Integration of Merged Entity [medium — operational]: The significant increase in assets and liabilities is largely due to the merger with The Awareness Group (TAG) on September 17, 2024. Successfully integrating operations, managing increased project costs ($22,242,144 in non-current accrued project costs), and realizing synergies from the merger are critical for future performance.
• Deferred Revenue and Project Costs [medium — financial]: The company has substantial deferred revenue ($6,158,055 non-current) and accrued project costs ($22,242,144 non-current). Managing these obligations and ensuring timely project completion and revenue recognition is crucial to avoid cash flow issues.
• Asset Growth vs. Profitability [medium — financial]: Total assets more than doubled to $61,671,209, driven by fixed assets ($25,388,896) and investment tax credits ($3,546,414). However, this asset growth has not yet translated into profitability, with net losses continuing.

Industry Context

The solar energy sector is characterized by increasing demand driven by environmental concerns and government incentives. Freedom Holdings, Inc. operates within this growing market, leveraging PPAs and solar system sales. However, the industry is also competitive, with established players and evolving technologies, requiring continuous innovation and efficient project execution.

Regulatory Implications

The company's operations, particularly its solar projects, are subject to various environmental, energy, and tax regulations. Changes in government incentives, such as investment tax credits, or new environmental standards could materially impact its financial performance and project viability.

What Investors Should Do

1. Monitor revenue growth trajectory and cost management.
2. Assess the company's ability to secure future funding.
3. Analyze the integration progress and operational efficiency post-merger.
4. Evaluate the realization of investment tax credits and deferred revenue.

Key Dates

• 2024-09-17: Merger with The Awareness Group (TAG) — This event marks the beginning of significant revenue generation and asset/liability growth for Freedom Holdings, Inc.
• 2025-06-30: End of Q2 and Nine-Month Period — Reporting period for the 10-Q, showing increased revenues but continued net losses and substantial balance sheet changes.

Glossary

Power Purchase Agreements (PPAs)

Contracts where a power producer sells electricity to a buyer at a predetermined rate for a specified period. For Freedom Holdings, this relates to their solar energy projects. (A primary driver of the newly reported revenue, indicating a shift towards recurring revenue streams from solar installations.)

Investment Tax Credits

Tax credits offered by governments to incentivize investment in specific areas, such as renewable energy projects like solar. (A significant new asset category ($3,546,414) on the balance sheet, reflecting investments in solar projects and potential future tax benefits.)

Accumulated Deficit

The total cumulative net losses of a company since its inception, minus any net profits. It represents a negative retained earnings balance. (At $10,886,013, it highlights the company's history of unprofitability and the ongoing challenge of achieving sustainable earnings.)

Deferred Revenue

Revenue that has been received by a company for goods or services that have not yet been delivered or rendered. It is recorded as a liability until earned. (Significant amounts of deferred revenue ($6,158,055 non-current) indicate future revenue streams but also potential obligations to deliver services or products.)

Year-Over-Year Comparison

Freedom Holdings, Inc. has transitioned from zero revenue in the prior year to generating $139,375 in Q2 2025 and $816,528 over nine months, primarily due to the TAG merger and solar business. However, this revenue growth has not yet offset rising operational costs, as evidenced by an increased net loss of $556,758 for the nine-month period compared to $255,137 last year. Total assets have more than doubled, driven by fixed assets and tax credits, while liabilities have also surged significantly, primarily due to project costs and deferred revenue, indicating substantial business expansion alongside persistent financial challenges.

Key Financial Figures

• $0.0001 — nding of the registrant's common stock, $0.0001 par value per share, as of August 25, 2

Filing Documents

• fhld_10q.htm (10-Q) — 634KB
• fhld_ex311.htm (EX-31.1) — 9KB
• fhld_ex312.htm (EX-31.2) — 9KB
• fhld_ex321.htm (EX-32.1) — 3KB
• fhld_ex322.htm (EX-32.2) — 4KB
• 0001477932-25-006204.txt ( ) — 3156KB
• fhld-20250630.xsd (EX-101.SCH) — 32KB
• fhld-20250630_lab.xml (EX-101.LAB) — 189KB
• fhld-20250630_cal.xml (EX-101.CAL) — 45KB
• fhld-20250630_pre.xml (EX-101.PRE) — 157KB
• fhld-20250630_def.xml (EX-101.DEF) — 65KB
• fhld_10q_htm.xml (XML) — 385KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Condensed Consolidated Financial Statements

Item 1. Condensed Consolidated Financial Statements 4

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 17

Quantitative and Qualitative Disclosure About Market

Item 3. Quantitative and Qualitative Disclosure About Market 19

Controls and Procedures

Item 4. Controls and Procedures 20

– OTHER INFORMATION

PART II – OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 21

Risk Factors

Item 1A. Risk Factors 21

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 21

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 21

Mine Safety Disclosures NA

Item 4. Mine Safety Disclosures NA 21

Other Information

Item 5. Other Information 21

Exhibits

Item 6. Exhibits 22

Signatures

Signatures 23 3 Table of Contents

Financial Statements

Item 1. Financial Statements. FREEDOM HOLDINGS, INC. a/k/a FREEDOM ACQUISITION CORP Index to the Condensed Unaudited Consolidated Financial Statements Page Condensed Consolidated Balance Sheets as of June 30, 2025 (unaudited) and September 30, 2024 (audited) 5 Condensed Consolidated Statements of Operations for the three and nine months June 30, 2025 and 2024 (unaudited) 6 Condensed Consolidated Statements of Changes in Shareholders' Deficit for the nine months ended June 30, 2025 and 2024 (unaudited) 7 Condensed Consolidated Statements of Cash Flows for the nine months ended June 30, 2025 and 2024 (unaudited) 8 Notes to the Condensed Consolidated Financial Statements (unaudited) 9 4 Table of Contents FREEDOM HOLDINGS, INC. a/k/a FREEDOM ACQUISITION CORP CONDENSED CONSOLIDATED BALANCE SHEETS June 30, September 30, 2024 2025 Restated ASSETS (unaudited) (Audited) Current Assets: Cash $ 65,078 $ 95,815 Marketable securities 1,260,000 1,260,000 Accounts receivable - 300,708 Investment tax credits 3,546,414 - Inventory 650,000 517,000 Notes receivable 140,591 - Other current assets 5,209 4,583 Total Current Assets 5,667,292 2,178,106 Fixed assets, net 25,388,896 7,822,463 Intangible assets, net 1,608,430 1,603,430 Crypto currency tokens 2,735,000 2,700,000 Notes receivable 11,676,591 150,000 Other assets 14,595,000 14,596,000 TOTAL ASSETS $ 61,671,209 $ 29,049,999 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accrued project costs $ 1,583,825 $ 6,148,304 Credit cards payable 1,430 1,980 Deferred revenue 290,423 - Accrued payroll & related amounts 128,762 - Other current payables 376,619 82,470 Total Current Liabilities 2,381,059 6,232,754 Non-Current Liabilities Deferred revenue 6,158,055 - Accrued project costs 22,242,144 - Notes payable 142,413 136,944 Total Non-Current Li

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