ILAL's Revenue Plunges 74%, Net Loss Hits $5.1M Amid Going Concern Doubts

Ticker: ILAL · Form: 10-Q · Filed: Nov 19, 2025

Sentiment: bearish

Topics: Real Estate Development, Going Concern, Net Loss, Revenue Decline, Liquidity Risk, Share Dilution, Baja California

TL;DR

**ILAL is bleeding cash and facing a going concern warning; get out now before more dilution hits.**

AI Summary

International Land Alliance Inc. (ILAL) reported a significant decline in financial performance for the nine months ended September 30, 2025, with net revenues plummeting to $1,878,548 from $7,134,240 in the prior year, representing a 73.7% decrease. The company posted a net loss of $5,133,913 for the nine-month period, a stark contrast to the net income of $3,492,250 reported for the same period in 2024. This resulted in a net loss applicable to common shareholders of $5,265,967, or $(0.05) per share, compared to net income of $3,377,942, or $0.04 per share, in 2024. Key business changes include the full acquisition of Rancho Costa Verde Development LLC (RCVD) on January 3, 2023, making it a wholly-owned subsidiary. The company faces substantial doubt about its ability to continue as a going concern, with current liabilities exceeding current assets by approximately $14.3 million as of September 30, 2025. Strategic outlook relies on increasing land plot sales and house construction, alongside continued capital raises through debt and equity, which may dilute existing shareholders.

Why It Matters

ILAL's dramatic revenue decline and substantial net loss signal deep operational challenges and raise serious questions about its long-term viability, directly impacting investor confidence. The 'going concern' warning, with current liabilities exceeding current assets by $14.3 million, indicates a precarious financial position that could lead to further equity dilution or even bankruptcy, jeopardizing shareholder value. For employees and customers, this instability could translate to job insecurity or unfulfilled development promises, respectively. In the competitive Baja California real estate market, ILAL's struggles could open opportunities for more financially stable developers.

Risk Assessment

Risk Level: high — The company's current liabilities of $16,105,282 significantly exceed its current assets of $1,758,028 as of September 30, 2025, resulting in a working capital deficit of approximately $14.3 million. Furthermore, ILAL reported a net loss of $5,133,913 for the nine months ended September 30, 2025, and an accumulated deficit of $29,280,871, indicating a severe lack of profitability and substantial doubt about its ability to continue as a going concern.

Analyst Insight

Investors should consider divesting from ILAL given the severe financial distress, including a significant net loss and a 'going concern' warning. The company's reliance on further debt and equity financing for survival suggests high risk of future dilution and potential capital loss. Avoid new positions until a clear path to sustained profitability and improved liquidity is demonstrated.

Financial Highlights

revenue
$1.88M
net Income
$(5.13M)
eps
$(0.05)
revenue Growth
-73.7%

Key Numbers

Key Players & Entities

FAQ

What were International Land Alliance Inc.'s net revenues for the nine months ended September 30, 2025?

International Land Alliance Inc.'s net revenues for the nine months ended September 30, 2025, were $1,878,548, a substantial decrease from $7,134,240 reported for the same period in 2024.

Did International Land Alliance Inc. report a net profit or loss for the nine months ended September 30, 2025?

International Land Alliance Inc. reported a net loss of $5,133,913 for the nine months ended September 30, 2025, which contrasts sharply with the net income of $3,492,250 for the same period in 2024.

What is the primary risk factor highlighted in International Land Alliance Inc.'s 10-Q filing?

The primary risk factor highlighted is substantial doubt about International Land Alliance Inc.'s ability to continue as a going concern, evidenced by current liabilities exceeding current assets by approximately $14.3 million and an accumulated deficit of $29.3 million as of September 30, 2025.

How has International Land Alliance Inc.'s liquidity changed as of September 30, 2025?

As of September 30, 2025, International Land Alliance Inc.'s liquidity has significantly deteriorated, with current liabilities of $16,105,282 far exceeding current assets of $1,758,028, resulting in a working capital deficit of $14,347,254.

What is International Land Alliance Inc.'s strategy to address its going concern issues?

International Land Alliance Inc. plans to raise additional capital through debt instruments and equity to fund ongoing operations and anticipates improved capital resources if land plot sales and house construction gain wider market recognition and acceptance.

What was the net loss applicable to common shareholders for International Land Alliance Inc. for the nine months ended September 30, 2025?

The net loss applicable to common shareholders for International Land Alliance Inc. for the nine months ended September 30, 2025, was $5,265,967, or $(0.05) per common share.

How many common shares of International Land Alliance Inc. were outstanding as of November 19, 2025?

As of November 19, 2025, International Land Alliance Inc. had 128,239,522 shares of common stock outstanding.

What was the change in fair value of derivative liability for International Land Alliance Inc. in the nine months ended September 30, 2025?

International Land Alliance Inc. reported a negative change in fair value derivative liability of $682,653 for the nine months ended September 30, 2025, compared to a positive change of $229,814 in the prior year.

Where are International Land Alliance Inc.'s target properties located?

International Land Alliance Inc.'s target properties are primarily located in the Baja California, Northern region of Mexico, and Southern California, focusing on residential land development.

What was the impact of debt extinguishment on International Land Alliance Inc.'s financials?

International Land Alliance Inc. recognized a loss from debt extinguishment of $537,969 for the nine months ended September 30, 2025, contributing to its overall net loss.

Risk Factors

Industry Context

The real estate development and land sales industry is cyclical and sensitive to economic conditions, interest rates, and consumer confidence. Companies like ILAL rely on robust sales pipelines and efficient project execution. Competition can be intense, with success often depending on location, pricing, and development quality.

Regulatory Implications

As a publicly traded company, ILAL is subject to SEC regulations and accounting standards (GAAP). The going concern disclosure signals potential scrutiny from regulators and investors regarding financial health and disclosure accuracy. Compliance with land development and environmental regulations is also critical.

What Investors Should Do

  1. Monitor future capital raise activities closely for potential dilution and assess the terms of any new debt or equity issuances.
  2. Evaluate the company's ability to execute its strategy of increasing land plot sales and house construction in the current market environment.
  3. Scrutinize the company's liquidity position and cash flow generation in subsequent filings to determine if the going concern risk is being mitigated.
  4. Analyze the impact of non-recurring items like debt extinguishment and derivative fair value changes on future profitability.

Key Dates

Glossary

Going Concern
An accounting assumption that a business will continue to operate for the foreseeable future. If there is substantial doubt about this, it must be disclosed. (ILAL faces substantial doubt about its ability to continue as a going concern, indicating significant financial instability.)
Accumulated Deficit
The cumulative net losses of a company that have not been offset by net income or other gains. (ILAL has an accumulated deficit of $29.28 million as of September 30, 2025, reflecting a history of unrecovered losses.)
Debt Extinguishment
The retirement or repayment of debt before its scheduled maturity date, which can result in a gain or loss. (ILAL incurred a loss of $537,969 from debt extinguishment, negatively impacting its net income.)
Fair Value Derivative Liability
A liability arising from financial instruments whose value fluctuates based on market conditions, such as options or futures contracts. (A negative change in the fair value of derivative liabilities ($682,653) contributed to ILAL's net loss.)

Year-Over-Year Comparison

International Land Alliance Inc. has experienced a dramatic downturn in financial performance compared to the prior year. Net revenues have fallen by 73.7% from $7.13 million to $1.88 million for the nine months ended September 30, 2025. This revenue collapse has led to a significant shift from a net income of $3.49 million in the prior year to a net loss of $5.13 million. Consequently, earnings per share have reversed from $0.04 income to a $0.05 loss. New risks related to debt extinguishment and derivative liability changes have emerged, exacerbating the already precarious financial situation.

Filing Stats: 4,720 words · 19 min read · ~16 pages · Grade level 17.8 · Accepted 2025-11-19 16:21:49

Filing Documents

Financial Information

Part I. Financial Information 3

Consolidated Financial Statements

Item 1. Consolidated Financial Statements 3 Consolidated Balance Sheets – As of September 30, 2025 (unaudited) and December 31, 2024 (audited) 3 Consolidated Statements of Operations – For the three and nine months ended September 30, 2025, and 2024 (unaudited) 4 Consolidated Statements of Changes in Stockholders' Equity (Deficit) for the three and nine months ended September 30, 2025, and 2024 (unaudited) 5 Consolidated Statements of Cash Flows for the nine months ended September 30, 2025, and 2024 (unaudited) 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 8

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 32

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 36

Controls and Procedures

Item 4. Controls and Procedures 36

Other Information

Part II. Other Information 37

Legal Proceedings

Item 1. Legal Proceedings 37

Risk Factors

Item 1A. Risk Factors 37

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 37

Defaults upon Senior Securities

Item 3. Defaults upon Senior Securities 37

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 37

Other Information

Item 5. Other Information 37

Exhibits

Item 6. Exhibits 37

Signatures

Signatures 38 2 PART I — FINANCIAL INFORMATION Item 1. Financial Statements INTERNATIONAL LAND ALLIANCE, INC. CONSOLIDATED BALANCE SHEETS September 30, 2025 (unaudited) December 31, 2024 ASSETS Current assets Cash $ 24,086 $ 26,120 Accounts receivable 1,426,348 1,264,634 Prepaid and other current assets 307,595 255,516 Total current assets 1,758,028 1,546,270 Land 15,820,629 15,776,526 Buildings, net 1,885,965 1,833,021 Furniture and equipment, net - - Other non-current assets 326,732 408,064 Goodwill 11,118,187 11,118,187 Total assets $ 30,909,541 $ 30,682,068 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable and accrued liabilities $ 1,442,457 $ 1,141,338 Accounts payable and accrued liabilities related parties - 326,947 Accounts payable and accrued liabilities - 326,947 Accrued interest 1,655,415 1,394,889 Contract liability 143,680 143,680 Deposits 20,500 20,500 Derivative liability 843,789 161,136 Convertible notes, net of debt discounts 1,509,612 600,000 Promissory notes, net of debt discounts 432,762 432,762 Promissory notes, net discounts – Related Parties 457,574 347,374 Promissory notes, net discounts 457,574 347,374 Other loans 9,599,492 8,553,338 Total current liabilities 16,105,282 13,121,964 Convertible notes, net of current portion 2,571,500 2,502,000 Total liabilities 18,676,782 15,623,964 Commitments and Contingencies (Note 10) - - Preferred Stock Series B (Temporary Equity) 293,500 293,500 Preferred Stock Series C (Temporary Equity) - 310,000 Total Temporary Equity 293,500 603,500 Stockholders' Equity Preferred stock; $ 0.001 par value; 2,010,000 shares authorized; 117,000 and 117,000 Series A shares issued and outstanding as of September 30, 2025, and December 31, 2024, respectively 117 117 1,000 Series B shares issued and outstanding as of September 30, 2025, and December 31, 20

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