Arculus System Reports No Revenue and Significant Losses for Three and Nine Months Ended June 30, 2025

Arculus System Co., Ltd. reported its financial results for the three and nine months ended June 30, 2025, revealing a continued lack of revenue generation. The company, which specializes in Electronic Design Automation (EDA) tools and integrated circuit (IC) design services, recorded no revenues for both the current and prior year periods. Operating expenses surged significantly, with a 2054% increase to $103,049 for the three months ended June 30, 2025, compared to $4,785 in the same period last year. For the nine months ended June 30, 2025, operating expenses rose 826% to $164,867 from $17,801 in the prior year, primarily due to increased general and administrative costs and professional fees.

The company's net loss for the three months ended June 30, 2025, was $103,049, compared to a loss of $4,785 for the same period in 2024. For the nine-month period, the net loss expanded to $164,867 from $19,634 in the previous year. As of June 30, 2025, Arculus reported an accumulated deficit of $345,481, reflecting the challenges it faces in establishing a sustainable revenue stream. The company’s total assets decreased to $2,310 from $3,145 as of September 30, 2024, while total liabilities increased significantly to $258,437 from $94,405, resulting in a stockholders' deficit of $256,127.

In terms of operational developments, Arculus has not yet commenced principal revenue-generating operations, focusing instead on organizational activities and preparations for future service offerings. The company has introduced advanced tools such as the Architecture Compiler and iPROfiler, aimed at enhancing IC design processes. Despite these developments, the company has relied heavily on short-term, non-interest-bearing advances from related parties to fund its operations, with a total outstanding balance of $203,227 as of June 30, 2025.

Looking ahead, Arculus anticipates requiring approximately $500,000 in additional capital to meet its operating expenses over the next twelve months. The management plans to raise this capital through equity or debt financing. However, the company acknowledges the uncertainty surrounding its ability to secure such funding, which raises substantial doubt about its ability to continue as a going concern. The management's strategy includes enhancing internal controls and potentially hiring additional qualified personnel to improve financial reporting and compliance with SEC requirements, as the company aims to stabilize its financial position and pursue its business objectives.