AEN Group's Financials Collapse: Revenue Plunges, Losses Soar 60,000%

TL;DR

**AEN Group is a burning pile of cash, avoid at all costs; their financials are a disaster, and they're bleeding money with no clear path to profitability.**

AI Summary

AEN Group Ltd. reported a significant deterioration in its financial performance for the fiscal year ended June 30, 2025. The company's revenues plummeted by 58.1% to $5,385 from $12,863 in the prior year. This revenue decline, coupled with a massive increase in selling, general, and administrative expenses to $104,016 from $2,916, led to a net loss of $104,106, a substantial increase from the $171 net loss in 2024. Total assets decreased sharply to $6,436 from $31,670, while total liabilities surged to $88,206 from $9,271. Consequently, the company's shareholders' equity swung from a positive $22,399 to a deficit of $81,770. Cash used in operating activities also increased dramatically to $79,988 from $2,290, with financing activities providing $59,218, primarily from related party advances and short-term loans.

Why It Matters

AEN Group Ltd.'s dire financial state, marked by a 58.1% revenue drop and a 60,000% increase in net loss, signals extreme operational challenges and raises significant going concern doubts. For investors, this indicates a highly speculative and risky investment, with a working capital deficit of $81,770 and reliance on related party funding. Employees face uncertainty given the company's inability to generate sufficient revenue to cover expenses. Customers might experience instability in product supply or service quality from a company struggling with liquidity. In the broader market, AEN Group's struggles highlight the inherent risks for small, early-stage import/export businesses attempting to bridge Canadian and Asian markets without robust capital or established operations, potentially impacting competitive dynamics in niche trade sectors.

Risk Assessment

Risk Level: high — AEN Group Ltd. faces a high risk level due to a working capital deficit of $81,770 as of June 30, 2025, a significant deterioration from a positive working capital of $22,399 in 2024. The company also reported a cumulative net loss of $105,585 since inception and a net loss of $104,106 for the fiscal year 2025, raising substantial doubt about its ability to continue as a going concern.

Analyst Insight

Investors should exercise extreme caution and consider divesting any holdings in AEN Group Ltd. given the severe financial deterioration, significant net losses, and explicit going concern warning from auditors. The company's reliance on related party funding and lack of clear financing commitments suggest a highly speculative and unstable investment.

Financial Highlights

debt To Equity

N/A

revenue

$5,385

operating Margin

N/A

total Assets

$6,436

total Debt

$88,206

net Income

-$104,106

eps

N/A

gross Margin

N/A

cash Position

$6,337

revenue Growth

-58.1%

Revenue Breakdown

Key Numbers

• $5,385 — Revenue (Decreased by 58.1% from $12,863 in 2024)
• $104,106 — Net Loss (Increased significantly from $171 in 2024)
• $104,016 — Selling, General & Administrative Expenses (Increased from $2,916 in 2024)
• $6,436 — Total Assets (Decreased from $31,670 in 2024)
• $88,206 — Total Liabilities (Increased from $9,271 in 2024)
• $81,770 — Shareholders' Deficit (Shifted from $22,399 equity in 2024)
• $79,988 — Cash Used in Operating Activities (Increased from $2,290 in 2024)
• $59,218 — Cash Provided by Financing Activities (Primarily from related party advances and short-term loans)
• 7,210,000 — Common Shares Outstanding (As of June 30, 2025)
• $60,000 — Estimated Expenses (For the next 12 months, requiring additional capital)

Key Players & Entities

• AEN Group Ltd. (company) — registrant
• AEN Trading Ltd. (company) — wholly owned subsidiary
• Globex Transfer, LLC (company) — transfer agent
• CT International LLP (company) — independent registered public accounting firm
• $5,385 (dollar_amount) — revenue for fiscal year 2025
• $12,863 (dollar_amount) — revenue for fiscal year 2024
• $104,106 (dollar_amount) — net loss for fiscal year 2025
• $171 (dollar_amount) — net loss for fiscal year 2024
• $81,770 (dollar_amount) — working capital deficit as of June 30, 2025
• $60,000 (dollar_amount) — estimated expenses for the next 12 months

FAQ

Risk Factors

• Going Concern Uncertainty [high — financial]: The company has suffered recurring losses from operations and has a net capital deficiency, raising substantial doubt about its ability to continue as a going concern. This is evidenced by a net loss of $104,106 and a shareholders' deficit of $81,770 as of June 30, 2025.
• High SG&A Expenses [high — operational]: Selling, general, and administrative expenses surged to $104,106 in fiscal year 2025, a dramatic increase from $2,916 in the prior year. This disproportionate rise in expenses significantly contributed to the net loss.
• Deteriorating Asset and Liability Position [high — financial]: Total assets decreased sharply to $6,436 from $31,670, while total liabilities surged to $88,206 from $9,271. This indicates a severe weakening of the company's financial structure.
• Increased Cash Burn from Operations [high — financial]: Cash used in operating activities increased dramatically to $79,988 from $2,290 in the prior year, indicating a substantial outflow of cash to sustain operations.
• Dependence on Related Party Financing [medium — financial]: Financing activities provided $59,218, primarily from related party advances and short-term loans. This reliance on related parties for funding can pose risks if these relationships change.
• Smaller Reporting Company Status [low — regulatory]: As a 'smaller reporting company,' AEN Group is not required to provide certain disclosures, such as detailed risk factors. This may limit transparency for investors.

Industry Context

AEN Group operates in the import and export of specialty products, aiming to connect Canadian and Asian markets. This sector is characterized by global supply chain dynamics, trade regulations, and demand fluctuations for niche goods. Competition can be intense, with success often depending on sourcing capabilities, logistics efficiency, and market access.

Regulatory Implications

As a smaller reporting company, AEN Group faces fewer disclosure obligations, which may impact investor understanding. The company's financial distress and going concern issues could attract scrutiny from regulatory bodies if not adequately addressed.

What Investors Should Do

1. Seek clarification on the nature and terms of related party financing.
2. Request a detailed plan for addressing the going concern issue.
3. Inquire about the reasons for the dramatic increase in SG&A expenses.
4. Evaluate the feasibility of the company's business model given the current financial state.

Key Dates

• 2024-01-29: Incorporation of AEN Group Ltd. — Marks the legal establishment of the parent company in Nevada, USA.
• 2024-05-15: Acquisition of AEN Trading Ltd. — AEN Group acquired 100% interest in AEN Trading, establishing its primary operating subsidiary focused on importing/exporting specialty products.
• 2024-06-30: End of Fiscal Year 2024 — Represents the prior year's financial performance, serving as a baseline for comparison.
• 2025-06-30: End of Fiscal Year 2025 — The reporting period showing significant financial deterioration, including revenue decline, increased losses, and a negative equity position.

Glossary

Smaller Reporting Company

A company that meets certain SEC criteria for revenue, public float, and filing history, allowing for reduced disclosure requirements. (Explains why AEN Group is not required to provide certain detailed disclosures, such as comprehensive risk factors.)

Going Concern

An accounting assumption that a company will continue to operate for the foreseeable future. If there is substantial doubt, it must be disclosed. (The auditor's report highlights substantial doubt about AEN Group's ability to continue as a going concern due to recurring losses and capital deficiency.)

Shareholders' Deficit

Occurs when a company's total liabilities exceed its total assets, resulting in a negative net worth for shareholders. (AEN Group has a shareholders' deficit of $81,770 as of June 30, 2025, indicating insolvency.)

Related Party Advances

Loans or financial contributions provided by individuals or entities that have a close relationship with the company, such as management or major shareholders. (A significant portion of AEN Group's financing ($59,218) came from related party advances, highlighting reliance on these sources.)

Year-Over-Year Comparison

Compared to the fiscal year ended June 30, 2024, AEN Group Ltd. has experienced a severe financial downturn. Revenue plummeted by 58.1% to $5,385, while selling, general, and administrative expenses exploded by over 3,400% to $104,106, leading to a net loss of $104,106, a stark contrast to the near-breakeven result of $171 in the prior year. The company's balance sheet has also deteriorated significantly, with total assets shrinking and total liabilities surging, resulting in a substantial shareholders' deficit of $81,770, compared to a positive equity of $22,399. The cash burn from operations has also escalated dramatically.

Key Financial Figures

• $0.0001 — ection 12(g) of the Act: Common Stock, $0.0001 par value (Title of class) Indicate
• $5,385 — enues and Sale Expenses: We generated $5,385 in revenues and incurred $4,099 in cost
• $4,099 — nerated $5,385 in revenues and incurred $4,099 in cost of sales for the year ended Jun
• $12,863 — he year ended June 30, 2025 compared to $12,863 in revenues and $9,930 in cost of sales
• $9,930 — 025 compared to $12,863 in revenues and $9,930 in cost of sales for the year ended Jun
• $104,106 — e year ended June 30, 2025, we incurred $104,106 in selling, general and administration
• $2,916 — and administration expenses compared to $2,916 in selling, general and administration
• $171 — June 30, 2025 compared to a net loss of $171 for the year ended June 30, 2024. Cash
• $79,988 — es for the year ended June 30, 2025 was $79,988 compared to net cash used in operating
• $2,290 — et cash used in operating activities of $2,290 for the year ended June 30, 2024. Cas
• $59,218 — es for the year ended June 30, 2025 was $59,218 consisting of advance and loan from rel
• $27,481 — ies for the year ended June 30, 2024 of $27,481 consisted of repayment to related party
• $3,700 — sisted of repayment to related party of $3,700, issuance of common stock of $24,900 an
• $24,900 — of $3,700, issuance of common stock of $24,900 and cash acquired from assets acquisiti
• $6,301 — ash acquired from assets acquisition of $6,301. Total Assets: The Company's total a

Filing Documents

• aen_10k.htm (10-K) — 513KB
• aen_ex311.htm (EX-31.1) — 13KB
• aen_ex321.htm (EX-32.1) — 4KB
• aen_10kimg3.jpg (GRAPHIC) — 11KB
• aen_10kimg4.jpg (GRAPHIC) — 3KB
• 0001640334-25-001754.txt ( ) — 2356KB
• aen-20250630.xsd (EX-101.SCH) — 25KB
• aen-20250630_lab.xml (EX-101.LAB) — 144KB
• aen-20250630_cal.xml (EX-101.CAL) — 29KB
• aen-20250630_pre.xml (EX-101.PRE) — 119KB
• aen-20250630_def.xml (EX-101.DEF) — 48KB
• aen_10k_htm.xml (XML) — 166KB

Business

Business 3 Item 1A

Risk Factors

Risk Factors 3 Item 1B Unresolved Staff Comments 3 Item 2

Properties

Properties 3 Item 3

Legal Proceedings

Legal Proceedings 3 Item 4 Mine Safety Disclosures 3 Part II Item 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 4 Item 6

Selected Financial Data

Selected Financial Data 4 Item 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 4 Item 7A

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 6 Item 8

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 6 Item 9 Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 8 Item 9A

Controls and Procedures

Controls and Procedures 8 Item 9B Other Information 9 Part III Item 10 Directors, Executive Officers and Corporate Governance 10 Item 11

Executive Compensation

Executive Compensation 13 Item 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 15 Item 13 Certain Relationships and Related Transactions and Director Independence 15 Item 14 Principal Accountant Fees and Services 16 Item 15 Exhibits and Financial Statement Schedules 17 2 Table of Contents PART I

Forward Looking Statements

Forward Looking Statements. This annual report contains forward-looking statements. These statements 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", which may cause our or 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. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. 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. Our financial statements are stated in United States Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles. All references to "common shares" refer to the common shares in our capital stock. As used in this annual report, the terms "we", "us", "our" and the "Company", mean AEN Group Ltd. and our wholly owned subsidiary, AEN Trading Ltd.

Description of Business

Item 1. Description of Business General Information AEN Group Ltd. ("AEN Group") was incorporated on January 29, 2024, in the state of Nevada, USA. The AEN Group acquired 100% interest in AEN Trading Ltd. ("AEN Trading") on May 15, 2024, as its wholly owned subsidiary. AEN Trading, incorporated on June 10, 2022, in Alberta, Canada, is a start-up in the business of importing and exporting specialty products to and from Asia. AEN Trading aims to bridge the gap between Canadian and Asian markets by providing high demand, superior quality products. Other than the acquisition of AEN Trading, we haven't undergone any material reclassification, merger, consolidation, purchase or sale of a significant amount of assets in the ordinary course of business, neither we have ever been a party to any bankruptcy, receivership or similar proceeding.

Risk Factors

Item 1A. Risk Factors As a "smaller reporting company", we are not required to provide the information required by this Item.

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments None.

Properties

Item 2. Properties We do not own any real property. We are currently sharing office space with other parties.

Legal Proceedings

Item 3. Legal Proceedings We know of no material, existing or pending legal proceedings against our Company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which our director, officer or any affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest.

Mine Safety Disclosures

Item 4. Mine Safety Disclosures Not Applicable. 3 Table of Contents PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Our common stock is quoted on the OTC Markets (Pink). OTC Markets securities are not listed and traded on the floor of an organized national or regional stock exchange. Instead, OTC Market securities transactions are conducted through a telephone and computer network connecting dealers. OTC Market issuers are traditionally smaller companies that do not meet the financial and other listing requirements of a national or regional stock exchange. Our transfer agent is Globex Transfer, LLC, located at 780 Deltona Blvd., Suite 202, Deltona, FL 32725. Holders As of June 30, 2025, there were 15 holders of record of our common stock, and 7,210,000 shares of our common stock were issued and outstanding. Dividends We have not declared or paid any cash dividends since inception. We intend to retain future earnings, if any, for use in the operation and expansion of our business and do not intend to pay any cash dividends in the foreseeable future. There are no restrictions in our articles of incorporation or bylaws that prevent us from declaring dividends. Recent Sales of Unregistered Securities; Use of Proceeds from Registered Securities We did not sell any equity securities which were not registered under the Securities Act during the year ended June 30, 2025, that were not otherwise disclosed on our quarterly reports on Form 10-Q or our current reports on Form 8-K filed during the year ended June 30, 2025. Equity Compensation Plans We do not have in effect any compensation plans under which our equity securities are authorized for issuance, and we do not have any outstanding stock options. Purchases of Equity Securities by the Company We have not repurchased any of our shares of common stock during the fiscal year ended June 30, 2024.

Selected Financial Data

Item 6. Selected Financial Data As a "smaller reporting company", we are not required to provide the information required by this Item.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations The following discussion should be read in conjunction with our audited financial statements and the related notes for the years ended June 30, 2025, and June 30, 2024, that appear elsewhere in this annual report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to such differences include but are not limited to those discussed below and elsewhere in this annual report. Results of Operations The Year Ended June 30, 2025 compared to the Year Ended June 30, 2024 Revenues and Sale Expenses: We generated $5,385 in revenues and incurred $4,099 in cost of sales for the year ended June 30, 2025 compared to $12,863 in revenues and $9,930 in cost of sales for the year ended June 30, 2024. Other Operating and General and Administrative Expenses: During the year ended June 30, 2025, we incurred $104,106 in selling, general and administration expenses compared to $2,916 in selling, general and administration expenses for the year ended June 30, 2024. General and administrative expenses primarily consist of legal, accounting, consulting and other professional services fees. 4 Table of Contents Net Loss: Net loss was $104,106 for the year ended June 30, 2025 compared to a net loss of $171 for the year ended June 30, 2024. Cash Used in Operating Activities Net cash used in operating activities for the year ended June 30, 2025 was $79,988 compared to net cash used in operating activities of $2,290 for the year ended June 30, 2024. Cash Provided by Financing Activities Net cash provided by financing activities for the year ended June 30, 2025 was $59,218 consisting of advance and loan from related party of $59,218 compared to net cash provided by financing activities fo

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk N/A.

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data The Company's Financial Statements required by Item 8, together with the reports thereon of the Independent Registered Public Accounting Firm, are set forth on pages F-1 through F12 of this report and are incorporated by reference in this Item 8. 6 Table of Contents AEN GROUP LTD.

Financial Statements

Financial Statements For the years ended June 30, 2025 and 2024 (Stated in US Dollars) 7 Table of Contents AEN GROUP LTD. FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 INDEX TO FINANCIAL STATEMENTS PAGE Reports of Independent Registered Public Accounting Firm ID 6967 F-2 Consolidated Balance Sheet F-3 Consolidated Statement of Comprehensive Income (Loss) F-4 Consolidated Statement of Change in Stockholders' (Deficit)/Equity F-5 Consolidated Statement of Cash Flows F-6 Notes to the Consolidated Financial Statements F-7 to F12 F-1 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Stockholders of AEN Group LTD. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of AEN Group LTD. (the Company) as of June 30, 2025 and 2024, and the related consolidated statement of Comprehensive Income (Loss), changes in Stockholder's (Deficit)/Equity, and cash flows for each of the years in the two-year period ended June 30, 2025, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of June 30, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the two-year period ended June 30, 2025, in conformity with accounting principles generally accepted in the United States of America. Material Uncertainty Relating to Going Concern The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 3 to the financial statements, the Company has suffered recurring losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 3. The financial statements do not

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