DeltaSoft Revenue Halves, Net Income Plummets 89% Amidst Going Concern

TL;DR

**DeltaSoft is burning cash and its revenue is collapsing, making it a speculative bet on future capital raises.**

AI Summary

DeltaSoft Corp. reported a significant decline in revenue for the three months ended June 30, 2025, falling to $10,109 from $20,654 in the same period of 2024, a 51% decrease. Despite this, the company achieved a net income of $1,130 for the quarter, a sharp drop from $10,177 in Q2 2024, representing an 89% decrease. Operating expenses decreased to $4,979 from $7,477 year-over-year, primarily due to a reduction in professional fees from $7,350 to $896. The company's cash balance decreased by 28% from $38,771 on March 31, 2025, to $27,983 on June 30, 2025. DeltaSoft remains a development-stage company focused on IT consulting and software development, having capitalized $27,000 in software development costs, $14,000 in website development costs, and $8,000 in mobile application development costs. A related party loan from its sole director increased by $4,000 to $15,131, highlighting ongoing reliance on insider funding. The company also disclosed a 'going concern' risk due to limited working capital and an unstable revenue source.

Why It Matters

DeltaSoft's substantial revenue decline and significant drop in net income raise serious red flags for investors, indicating a struggle to scale its IT consulting and software development platform, deltasoft.work. The 'going concern' disclosure, coupled with reliance on a $15,131 related party loan, suggests a precarious financial position, potentially impacting employee stability and customer confidence in its long-term viability. In a competitive software and IT services market, DeltaSoft's inability to generate consistent, substantial revenue puts it at a severe disadvantage against more established players, making it a high-risk investment.

Risk Assessment

Risk Level: high — DeltaSoft explicitly states a 'going concern' risk due to 'limited working capital' and not having 'completed its efforts to establish a stabilized source of revenue sufficient to cover operating costs over an extended period of time.' Cash decreased by $10,788 during the quarter, from $38,771 to $27,983, and net cash used in operating activities was -$14,788, indicating a significant cash burn.

Analyst Insight

Investors should avoid DeltaSoft Corp. given its 'going concern' warning, declining revenue, and reliance on related party loans. The company's financial instability and lack of a stabilized revenue source present an unacceptably high risk profile for any investment.

Financial Highlights

debt To Equity

N/A

revenue

$10,109

operating Margin

N/A

total Assets

N/A

total Debt

N/A

net Income

$1,130

eps

N/A

gross Margin

N/A

cash Position

$27,983

revenue Growth

-51%

Revenue Breakdown

Key Numbers

• $10,109 — Revenue (51% decrease from $20,654 in Q2 2024)
• $1,130 — Net Income (89% decrease from $10,177 in Q2 2024)
• $27,983 — Cash at end of period (28% decrease from $38,771 at March 31, 2025)
• $14,788 — Net cash used in Operating Activities (Increased from $6,481 in Q2 2024, indicating higher cash burn)
• $15,131 — Related Party Loan (Increased by $4,000 during the quarter, showing reliance on insider funding)
• 5,317,706 — Common Shares Outstanding (Consistent with March 31, 2025, indicating no new equity dilution this quarter)
• $430 — Accumulated Income (Shifted from an accumulated deficit of -$700 at March 31, 2025)
• $4,083 — General and Administrative Expenses (Increased significantly from $127 in Q2 2024, primarily due to amortization)
• $896 — Professional Fees (Decreased substantially from $7,350 in Q2 2024)
• $47,817 — Total Current Liabilities (Increased from $43,818 at March 31, 2025)

Key Players & Entities

• DeltaSoft Corp. (company) — registrant of the 10-Q filing
• $10,109 (dollar_amount) — revenue for the three months ended June 30, 2025
• $20,654 (dollar_amount) — revenue for the three months ended June 30, 2024
• $1,130 (dollar_amount) — net income for the three months ended June 30, 2025
• $10,177 (dollar_amount) — net income for the three months ended June 30, 2024
• $15,131 (dollar_amount) — related party loan from sole director as of June 30, 2025
• $27,983 (dollar_amount) — cash balance as of June 30, 2025
• $38,771 (dollar_amount) — cash balance as of March 31, 2025
• SEC (regulator) — Securities and Exchange Commission
• Chief Executive Officer (person) — DeltaSoft's Chief Operating Decision Maker (CODM)

FAQ

Risk Factors

• Going Concern Risk [high — financial]: The company faces a 'going concern' risk due to limited working capital and an unstable revenue source. The cash balance decreased by 28% to $27,983 in Q2 2025, and net cash used in operating activities increased to $14,788.
• Revenue Instability [high — financial]: Revenue experienced a sharp 51% decline to $10,109 in Q2 2025 compared to $20,654 in Q2 2024. This highlights the volatile and unstable nature of the company's revenue stream, which is dependent on a markup on freelancer fees.
• Dependence on Related Party Funding [medium — financial]: The company's reliance on insider funding is evident as the related party loan from its sole director increased by $4,000 to $15,131 during the quarter. This indicates a lack of external financing and potential future liquidity challenges.
• High Operating Expenses Relative to Revenue [medium — operational]: Despite a significant reduction in professional fees from $7,350 to $896, operating expenses were $4,979, which is still a substantial portion of the $10,109 revenue. General and administrative expenses increased to $4,083, primarily due to amortization, further pressuring margins.
• Declining Profitability [high — financial]: Net income plummeted by 89% to $1,130 in Q2 2025 from $10,177 in Q2 2024. This severe drop, coupled with the revenue decline, points to significant challenges in achieving sustainable profitability.
• Increased Cash Burn [high — financial]: Net cash used in operating activities more than doubled from $6,481 in Q2 2024 to $14,788 in Q2 2025. This accelerated cash burn rate, combined with a decreasing cash balance, exacerbates the going concern risk.

Industry Context

DeltaSoft operates in the competitive IT consulting and software development sector, specifically targeting project planning and performance management. The market includes numerous platforms facilitating freelance work and project management tools, many with established user bases and advanced features. Trends include increasing adoption of AI for task automation and efficiency, which DeltaSoft aims to leverage.

Regulatory Implications

As a development-stage company, DeltaSoft must ensure compliance with financial reporting standards, particularly regarding revenue recognition and the capitalization of development costs. The disclosure of 'going concern' risk is a critical regulatory requirement that signals potential financial instability to investors and stakeholders.

What Investors Should Do

1. Monitor cash burn and runway
2. Evaluate revenue stabilization strategies
3. Assess the sustainability of related party funding
4. Scrutinize G&A expenses and amortization

Key Dates

• 2025-06-30: End of Q2 2025 — Reported significant revenue decline (-51%) and net income drop (-89%), with a reduced cash balance and increased operating cash burn, highlighting financial distress.
• 2025-03-31: End of Q1 2025 — Cash balance was $38,771, indicating a substantial decrease of $10,788 by the end of Q2 2025.
• 2024-06-30: End of Q2 2024 — Reported significantly higher revenue ($20,654) and net income ($10,177) compared to Q2 2025, providing a stark contrast to the current financial performance.

Glossary

Development-stage company

A company that has established a plan for a new business but has not yet begun generating revenue or has generated minimal revenue. Such companies often have significant research and development costs. (DeltaSoft Corp. is in this stage, focusing on developing its IT consulting and software platform, with substantial capitalized development costs.)

Capitalized software development costs

Costs incurred in developing software that are recorded as an asset on the balance sheet rather than expensed immediately. This typically applies to costs incurred after technological feasibility has been established. (DeltaSoft has capitalized $27,000 in software development costs, indicating investment in its core product.)

Going concern

An accounting assumption that a business will continue to operate for the foreseeable future. If there is substantial doubt about a company's ability to continue as a going concern, it must be disclosed. (DeltaSoft explicitly discloses a 'going concern' risk due to its financial condition, making this a critical disclosure for investors.)

Related party loan

A loan provided by an individual or entity that has a close relationship with the company, such as a director or major shareholder. These transactions require careful disclosure. (DeltaSoft relies on a loan from its sole director, which increased during the quarter, highlighting potential conflicts of interest and dependence on insider financing.)

Net cash used in Operating Activities

The net amount of cash spent or used by a company's core business operations during a period. An increase indicates higher cash burn from operations. (This figure increased significantly to $14,788 in Q2 2025, showing a worsening operational cash outflow.)

Accumulated Income (Deficit)

The cumulative net income or loss of a company since its inception, reported in the Statement of Stockholders' Equity. A positive balance is accumulated income; a negative balance is an accumulated deficit. (DeltaSoft shifted from an accumulated deficit of -$700 to accumulated income of $430, a minor improvement despite the current quarter's poor performance.)

Year-Over-Year Comparison

Compared to the prior year's second quarter, DeltaSoft Corp. has experienced a dramatic downturn. Revenue has fallen by 51% to $10,109, and net income has collapsed by 89% to $1,130. Operating expenses saw a reduction, largely due to a sharp decrease in professional fees, but G&A expenses, driven by amortization, have surged. The company's cash position has weakened significantly, and its cash burn from operations has accelerated, intensifying the 'going concern' risk previously not highlighted to this degree.

Key Financial Figures

• $0.001 — s of September 29, 2025 Common Stock: $0.001 5,317,706 TABLE OF CONTENTS PART I
• $0.02 — n stock for cash proceeds of $ 2,304 at $0.02 per share. In November 2024 the Compan

Filing Documents

• deltasoft_i10q-063025.htm (10-Q) — 265KB
• deltasoft_ex3101.htm (EX-31.1) — 10KB
• deltasoft_ex3201.htm (EX-32.1) — 5KB
• 0001683168-25-007324.txt ( ) — 1862KB
• none-20250630.xsd (EX-101.SCH) — 14KB
• none-20250630_cal.xml (EX-101.CAL) — 21KB
• none-20250630_def.xml (EX-101.DEF) — 31KB
• none-20250630_lab.xml (EX-101.LAB) — 163KB
• none-20250630_pre.xml (EX-101.PRE) — 128KB
• deltasoft_i10q-063025_htm.xml (XML) — 142KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements. 3 Balance Sheets (Unaudited) 5 6 7 8

Notes to Financial Statements (Unaudited)

Notes to Financial Statements (Unaudited) 9 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. 18 Item 4.

Controls and Procedures

Controls and Procedures. 18

— OTHER INFORMATION

PART II — OTHER INFORMATION 19 Item 1. Legal Proceedings. 19 Item 1A. Risk Factors. 19 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 19 Item 3. Defaults Upon Senior Securities. 19 Item 4. Mine Safety Disclosures. 19 Item 5. Other Information. 19 Item 6. Exhibits. 19

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial statements

Item 1. Financial statements.

Forward-Looking Statements

Forward-Looking Statements This Form 10-Q contains forward-looking statements, which relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as "may," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks in the section entitled "Risk Factors," that may cause our industry's actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results. 3 INDEX TO FINANCIAL STATEMENTS Page No. Balance Sheets as of June 30, 2025 (Unaudited) and March 31, 2025 5 6 7 8 Notes to the Financial Statements 9 4 DELTASOFT CORP. BALANCE SHEETS June 30, 2025 (Unaudited) March 31, 2025 (Audited) ASSETS CURRENT ASSETS: Cash $ 27,983 $ 38,771 Prepaid Ex

Management's Discussion and Analysis of Financial Condition

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operation. DESCRIPTION OF BUSINESS We are a development-stage company currently operating in the software and online industries. We have created a comprehensive, all-in-one platform for seamless project planning and performance management, available at https://deltasoft.work. Our promotional website is https://deltasoft360.com. We have also developed and launched a mobile application, currently available for Android users. Additionally, we have a dedicated website promoting this mobile application. Here are the current benefits users can experience: Planning: Quickly create detailed project descriptions using smart forms or AI. Tasks: Break projects into subprojects and tasks with ease, using forms or AI assistance. Performers: Find and assign freelancers by creating ads manually or with AI-generated role suggestions. Management: Use tools like WBS, roadmaps, weekly planning, and product hubs for effective tracking and control. In summary, the DeltaSoft program facilitates the quick and convenient creation and execution of projects, products, or any other complex tasks, guiding the user through all stages of execution. The integrated AI functionality significantly saves time, speeding up and simplifying each stage, ultimately leading to maximum efficiency and speed of project execution. We are currently running a marketing campaign to promote our website platform. Additionally, we are marketing our mobile application. We've also created supplementary websites to explain our services and attract potential customers. Our platform is fully operational, and we are continuously working to improve and maintain it. Application Structure – User View The app has 5 main sections to simplify project management: Overview: A quick snapshot of all projects' status at a glance. Projects: View and manage each project, including teams, progress, and tasks. Tasks: See all tasks acro

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