AEN Group's Revenue Halves Amid Mounting Losses, Going Concern Doubts Mount

TL;DR

**AEN Group is a penny stock with no viable business, avoid at all costs.**

AI Summary

AEN Group Ltd. reported a net loss of $20,318 for the three months ended September 30, 2025, a slight increase from the $20,235 net loss in the same period of 2024. Revenue significantly declined by 54.26%, falling to $43 in Q3 2025 from $94 in Q3 2024. Gross profit also decreased by 62.5% to $12 from $32 year-over-year. The company's accumulated deficit reached $125,903 as of September 30, 2025, up from $105,585 on June 30, 2025, and its stockholders' deficit was $75,691. Cash and cash equivalents plummeted to $3,350 from $6,337 at June 30, 2025. AEN Group issued 527,000 common shares for gross proceeds of $26,350 on September 30, 2025, and converted $43,100 owed to a related party into a one-year loan at 5% interest. The company explicitly states its current financial resources are insufficient to fund operations for the next twelve months, raising substantial doubt about its ability to continue as a going concern.

Why It Matters

AEN Group's severe revenue decline and persistent net losses, coupled with a stated inability to fund operations for the next year, signal extreme financial distress for investors. The company's reliance on related party advances and capital markets for survival, with no assurances of success, puts any investment at high risk. For employees and customers, this instability could lead to operational disruptions or cessation. In the competitive import/export market between Canada and Asia, AEN Group's minimal revenue of $43 suggests it is failing to establish a viable business model, making it an insignificant player with a bleak outlook.

Risk Assessment

Risk Level: high — The company explicitly states, "Management does not believe the Company's current financial resources are sufficient to fund operations over the next twelve months," and that these conditions "raise substantial doubt about the Company's ability to continue as a going concern." This is further evidenced by a net loss of $20,318, an accumulated deficit of $125,903, and only $3,350 in cash as of September 30, 2025.

Analyst Insight

Investors should avoid AEN Group Ltd. given its severe financial instability, minimal revenue, and explicit going concern warning. The company's reliance on future capital raises with no guarantees of success makes it a highly speculative and risky investment.

Financial Highlights

debt To Equity

N/A

revenue

$43

operating Margin

N/A

total Assets

$3,418

total Debt

$79,109

net Income

-$20,318

eps

$0.00

gross Margin

27.9%

cash Position

$3,350

revenue Growth

-54.26%

Revenue Breakdown

Key Numbers

• $20,318 — Net Loss (Increased from $20,235 in Q3 2024, indicating continued unprofitability.)
• $43 — Revenue (Decreased by 54.26% from $94 in Q3 2024, showing a significant drop in sales.)
• $12 — Gross Profit (Decreased by 62.5% from $32 in Q3 2024, reflecting lower sales and efficiency.)
• $125,903 — Accumulated Deficit (Increased from $105,585 at June 30, 2025, highlighting persistent losses.)
• $3,350 — Cash & Cash Equivalents (Decreased from $6,337 at June 30, 2025, indicating dwindling liquidity.)
• $75,691 — Stockholders' Deficit (As of September 30, 2025, reflecting negative equity.)
• 527,000 — Common Shares Issued (On September 30, 2025, for $26,350, a capital raise to address liquidity issues.)
• $43,100 — Related Party Loan (Converted from an amount owed, accruing 5% interest, indicating reliance on related party funding.)

Key Players & Entities

• AEN Group Ltd. (company) — registrant
• AEN Trading Ltd. (company) — wholly owned subsidiary
• Nevada (regulator) — state of incorporation
• Alberta, Canada (regulator) — subsidiary incorporation location
• $20,318 (dollar_amount) — net loss for Q3 2025
• $43 (dollar_amount) — revenue for Q3 2025
• $125,903 (dollar_amount) — accumulated deficit as of Sep 30, 2025
• $3,350 (dollar_amount) — cash and cash equivalents as of Sep 30, 2025
• 527,000 (dollar_amount) — common shares issued on Sep 30, 2025
• $26,350 (dollar_amount) — gross proceeds from share issuance

FAQ

Risk Factors

• Going Concern Uncertainty [high — financial]: The company explicitly states its current financial resources are insufficient to fund operations for the next twelve months. This raises substantial doubt about its ability to continue as a going concern, indicating a high risk of financial distress.
• Dwindling Cash Reserves [high — financial]: Cash and cash equivalents decreased to $3,350 as of September 30, 2025, from $6,337 at June 30, 2025. This significant reduction in liquidity exacerbates the going concern issue.
• Persistent Net Losses [high — financial]: The company reported a net loss of $20,318 for Q3 2025, a slight increase from $20,235 in Q3 2024. The accumulated deficit has grown to $125,903, indicating a history of unprofitability.
• Declining Revenue and Gross Profit [high — financial]: Revenue fell by 54.26% to $43 in Q3 2025 from $94 in Q3 2024, and gross profit decreased by 62.5% to $12 from $32. This sharp decline suggests significant challenges in sales generation and operational efficiency.
• Stockholders' Deficit [medium — financial]: The company has a stockholders' deficit of $75,691 as of September 30, 2025. This negative equity position indicates that liabilities exceed assets, a sign of financial weakness.
• Reliance on Related Party Funding [medium — financial]: The conversion of $43,100 owed to a related party into a one-year loan at 5% interest highlights the company's dependence on related party financing, which can pose risks if terms change or funding is withdrawn.
• High Selling, General & Administrative Expenses [medium — operational]: SG&A expenses were $19,794 for Q3 2025, representing a substantial portion of revenue. While slightly down from $20,265 in Q3 2024, these costs remain high relative to the company's minimal revenue.
• Small Reporting Issuer Status [low — regulatory]: As a 'small reporting issuer', AEN Group is not required to provide certain disclosures, such as detailed market risk information. This may limit transparency for investors.

Industry Context

AEN Group operates in the import and export of specialty consumer products. The sector is characterized by global supply chains, fluctuating consumer demand, and competitive pricing pressures. Companies in this space often face challenges related to inventory management, logistics, and currency exchange rates.

Regulatory Implications

As a small reporting issuer, AEN Group faces fewer disclosure requirements, which may impact investor understanding of its financial health. The company's going concern warning is a significant regulatory disclosure that investors must heed.

What Investors Should Do

1. Review the company's plan to address the going concern issue.
2. Assess the sustainability of the business model given the drastic revenue decline.
3. Monitor future capital raises and related party transactions.
4. Evaluate the company's ability to manage operating expenses relative to revenue.

Key Dates

• 2025-09-30: Issuance of 527,000 common shares — Raised $26,350 in gross proceeds, a capital infusion to address liquidity concerns, though insufficient to resolve going concern issues.
• 2025-09-30: Conversion of $43,100 owed to related party into a loan — Restructured a debt obligation, indicating reliance on related parties for financing and adding interest expense.
• 2025-09-30: Balance Sheet Date — Reflects a significant decrease in cash and an increase in accumulated deficit, highlighting deteriorating financial condition.
• 2025-09-30: End of Q3 2025 — Period for which the company reported a net loss of $20,318 and a sharp decline in revenue.
• 2024-09-30: End of Q3 2024 — Prior year period for comparison, showing a net loss of $20,235 and higher revenue of $94.
• 2024-05-15: Acquisition of AEN Trading Ltd. — Established the company's primary business operations in importing and exporting specialty consumer products.

Glossary

Accumulated Deficit

The cumulative net losses of a company that have not been offset by net income. It represents a negative retained earnings balance. (Indicates the company's history of unprofitability, with the deficit growing to $125,903 as of September 30, 2025.)

Stockholders' Deficit

A situation where a company's total liabilities exceed its total assets, resulting in negative equity for shareholders. (AEN Group has a stockholders' deficit of $75,691, signifying negative net worth.)

Going Concern

The assumption that a company will continue to operate for the foreseeable future. If there is substantial doubt about this, it must be disclosed. (The company explicitly states substantial doubt about its ability to continue as a going concern, a critical warning for investors.)

Small Reporting Issuer

A classification for companies that meet certain size criteria, allowing them to file less extensive disclosure documents with regulatory bodies. (AEN Group's status exempts it from certain disclosures, potentially reducing transparency.)

Cost of Revenue

The direct costs attributable to the production or purchase of the goods sold by a company. (Decreased to $31 in Q3 2025 from $62 in Q3 2024, mirroring the decline in revenue.)

Selling, General & Administrative Expenses (SG&A)

Expenses incurred by a company in the course of its business operations that are not directly related to the production of goods or services. (Remained high at $19,794 in Q3 2025, despite declining revenues, contributing to the net loss.)

Related Party

An individual or entity that has the ability to control or significantly influence the financial and operating decisions of another entity. (The company converted a debt owed to a related party into a loan, highlighting financial dependence.)

Working Capital Deficiency

Occurs when a company's current liabilities exceed its current assets, indicating a potential short-term liquidity problem. (AEN Group has a working capital deficiency of $75,691 as of September 30, 2025.)

Year-Over-Year Comparison

Compared to the prior year period, AEN Group Ltd. has experienced a severe decline in financial performance. Revenue has dropped by 54.26% to $43, and gross profit has fallen by 62.5% to $12. The net loss has slightly widened to $20,318. Key risks have intensified, particularly the substantial doubt about the company's ability to continue as a going concern, exacerbated by dwindling cash reserves and a growing accumulated deficit.

Key Financial Figures

• $43 — enues and Sale Expenses: We generated $43 in revenues and incurred $31 in cost of
• $31 — generated $43 in revenues and incurred $31 in cost of sales for the three months e
• $94 — hs ended September 30, 2025 compared to $94 in revenues and $62 in cost of sales fo
• $62 — 0, 2025 compared to $94 in revenues and $62 in cost of sales for the three months e
• $19,794 — s ended September 30, 2025, we incurred $19,794 in selling, general and administration
• $20,265 — and administration expenses compared to $20,265 in selling, general and administration
• $20,318 — n Statement. Net Loss: Net loss was $20,318 for the three months ended September 30
• $20,235 — mber 30, 2025 compared to a net loss of $20,235 for the three months ended September 30
• $23,214 — ree months ended September 30, 2025 was $23,214 compared to net cash used in operating
• $18,649 — et cash used in operating activities of $18,649 for the nine months ended September 30,
• $20,180 — ee months ended September 30, 2024, was $20,180 consisting of repayment of advance from
• $6,170 — ayment of advance from related party of $6,170 and issuance of shares of $26,350 compa
• $26,350 — rty of $6,170 and issuance of shares of $26,350 compared to net cash provided by financ
• $22,900 — ash provided by financing activities of $22,900 consisting of advance from related part
• $3,418 — sets: The Company's total assets were $3,418 as of September 30, 2025 and $6,436 as

Filing Documents

• aen_10q.htm (10-Q) — 350KB
• aen_ex311.htm (EX-31.1) — 11KB
• aen_ex321.htm (EX-32.2) — 5KB
• 0001640334-25-002189.txt ( ) — 1691KB
• aen-20250930.xsd (EX-101.SCH) — 18KB
• aen-20250930_lab.xml (EX-101.LAB) — 116KB
• aen-20250930_cal.xml (EX-101.CAL) — 26KB
• aen-20250930_pre.xml (EX-101.PRE) — 91KB
• aen-20250930_def.xml (EX-101.DEF) — 34KB
• aen_10q_htm.xml (XML) — 105KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Interim Consolidated Balance Sheet as of September 30, 2025 (unaudited) and June 30, 2024 (audited) 4 Interim Consolidated Statement of Comprehensive Income (Loss) (unaudited) for the Three Months Ended September 30, 2025 and 2024 5 Interim Consolidated Statement of Changes in Stockholders' Equity (unaudited) for the Three Months Ended September 30, 2025 and 2024 6 Interim Consolidated Statement of Cash Flows (unaudited) for the Three Months Ended September 30, 2025 and 2024 7 Notes to the Unaudited Consolidated Financial Statements 8 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 12 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 13 Item 4.

Controls and Procedures

Controls and Procedures 13

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 15 Item 1A.

Risk Factors

Risk Factors 15 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 15 Item 3. Defaults upon Senior Securities 15 Item 4. Mine Safety Disclosures 15 Item 5. Other Information 15 Item 6. Exhibits 16

SIGNATURES

SIGNATURES 17 2 Table of Contents Cautionary Note Concerning Forward-Looking Statements This Quarterly Report on Form 10-Q contains "forward-looking statements". These forward-looking statements, including without limitation forward-looking statements made under the caption "Management's Discussion and Analysis of Financial Condition and Results of Operations," involve risks and uncertainties. Any statements contained in this Quarterly Report that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements include, without limitation, statements as to our future operating results; plans for the marketing of our services; future economic conditions; the effect of our market and product development efforts; and expectations or plans relating to the implementation or realization of our strategic goals and future growth, including through potential future acquisitions. Forward-looking statements may include, among other things, statements relating to future sales, earnings, cash flow, results of operations, use of cash and other measures of financial performance, as well as statements relating to future dividend payments. Other forward-looking statements may be identified through the use of words such as "believes," "anticipates," "may," "should," "will," "plans," "projects," "expects," "expectations," "estimates," "predicts," "targets," "forecasts," "strategy," and other words of similar meaning in connection with the discussion of future operating or financial performance. These statements are based on current expectations, estimates and projections about the industries in which we operate, and the beliefs and assumptions made by management. Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and changes in circumstances that are difficult to predict. Accordingly, the Company's actual results may differ materially from those contemplated by the forward-

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION AEN Group Ltd. Condensed Consolidated Balance Sheet (Unaudited) September 30, June 30, Note 2025 2025 ASSETS ($) ($) Current Assets Cash & cash equivalents 3,350 6,337 Accounts receivable 42 99 Inventory 26 - TOTAL ASSETS 3,418 6,436 LIABILITIES & STOCKHOLDERS' EQUITY Current Liabilities Accounts payable and accrued expenses 17,367 20,837 Interest payable 1,612 1,069 Due to related party 6 17,030 23,200 Short term loan 6 43,100 43,100 Total Liabilities 79,109 88,206 Stockholders' Equity Common stock 7 774 721 Additional Paid in Capital 49,410 23,113 Deficit ( 125,903 ) ( 105,585 ) Accumulated Other Comprehensive Income (Loss) 28 ( 19 ) Total Stockholders' Equity ( 75,691 ) ( 81,770 ) TOTAL LIABILITIES & STOCKHOLDERS' EQUITY 3,418 6,436 The accompanying notes are an integral part of these condensed consolidated financial statements. 4 Table of Contents AEN Group Ltd. Condensed Consolidated Statement of Comprehensive Loss (Unaudited) For the For the 3 months 3 months ended ended September 30, September 30, Note 2025 2024 ($) ($) Revenue 43 94 Cost of revenue 31 62 Gross profit 12 32 Selling, general & administrative expenses 19,794 20,265 Loss from operations ( 19,782 ) ( 20,233 ) Other items Finance costs ( 543 ) - Foreign exchange loss 7 ( 2 ) Net loss ( 20,318 ) ( 20,235 ) Foreign exchange translation 47 ( 7 ) Net loss and other comprehensive loss ( 20,271 ) ( 20,242 ) Basic and diluted earnings per common share ( 0.00 ) ( 0.00 ) Weighted average number of common shares outstanding 7,215,728 7,210,000 The accompanying notes are an integral part of these condensed consolidated financial statements. 5 Table of Contents AEN Group Ltd. Condensed Consolidated Statement of Changes in Stockholder's Equity (Unaudited)

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 General Overview 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 in the business of importing and exporting specialty consumer products to and from Asia. Results of Operations Three months ended September 30, 2025, compared to the three months ended September 30, 2024: Revenues and Sale Expenses: We generated $43 in revenues and incurred $31 in cost of sales for the three months ended September 30, 2025 compared to $94 in revenues and $62 in cost of sales for the three months ended September 30, 2024. Other Operating and General and Administrative Expenses: During the three months ended September 30, 2025, we incurred $19,794 in selling, general and administration expenses compared to $20,265 in selling, general and administration expenses for the three months ended September 30, 2024. General and administrative expenses primarily consist of legal, accounting, consulting and other professional services fees. The higher cost for the quarter ended September 30, 2024 was primarily due to higher professional fees related to the preparation of the S-1 Registration Statement. Net Loss: Net loss was $20,318 for the three months ended September 30, 2025 compared to a net loss of $20,235 for the three months ended September 30, 2024. Cash Used in Operating Activities Net cash used in operating activities for the three months ended September 30, 2025 was $23,214 compared to net cash used in operating activities of $18,649 for the nine months ended September 30, 2024. Cash Provided by Financing Activities Net cash provided by financing activities for the three months ended September 30, 2024, was $20,180 consisting of repayme

QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK As a "small reporting issuer", the Company is not required to provide the information required by this Item.

CONTROLS AND PROCEDURES

ITEM 4. CONTROLS AND PROCEDURES Evaluation of Disclosure Controls and Procedures As required by Rule 13a-15 under the Exchange Act, our management evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of September 30, 2025. Our management, with the participation of our president (our principal executive officer, our principal accounting officer and our principal financial officer), evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the "Exchange Act")) as of the end of the period covered by this report. 13 Table of Contents Based on this evaluation, our management has concluded that, as of the end of such period, our disclosure controls and procedures were not effective to ensure that information that is required to be disclosed by us in the reports we file or submit under the Exchange Act is (i) recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms and (ii) accumulated and communicated to our management, including our president (our principal executive officer, our principal accou

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