Cannabis Suisse Corp. Reports Decline in Revenue and Net Loss Improvement for Fiscal Year Ending May 31, 2025

Cannabis Suisse Corp. reported a significant decline in financial performance for the fiscal year ending May 31, 2025, with total revenue of $22,500, down from $30,000 in the previous year. The cost of sales also decreased to $22,068 from $30,067, reflecting the termination of a sublease agreement in February 2025, which resulted in a reduction of rental income. The company recorded a net loss of $456,142 for the year, an improvement from the net loss of $1,186,613 reported in the prior fiscal year. This reduction in losses was primarily attributed to a significant decrease in other expenses, particularly a loss on the settlement of debt, which fell from $1,737,341 to $551,677.

The company has undergone strategic changes since June 2022, when its current CEO, Scott McAlister, took control. Under his leadership, Cannabis Suisse Corp. shifted its focus entirely to real estate operations, moving away from any involvement in the cannabis industry. The company currently leases four properties from entities controlled by McAlister, with one property being subleased to a third party. However, the sublease was terminated in February 2025, leading to a month-to-month rental agreement that has further impacted revenue.

Operationally, the company has faced challenges, including a lack of employees, as it currently operates with no full-time staff and relies on McAlister as a part-time consultant. As of May 31, 2025, the company had a working capital deficit of $218,679, and its cash reserves dwindled to $2,850 from $28,562 a year earlier. The company’s reliance on advances from its CEO and related parties for funding raises concerns about its ability to sustain operations without additional capital. The total liabilities increased to $2,437,047 from $2,242,453, reflecting ongoing financial strain.

Looking ahead, the company has been issued a "going concern" opinion, indicating substantial doubt about its ability to continue as a viable business without securing additional funding. Management has indicated that it will seek to raise capital through investments and loans, but there are no assurances of success. The company’s future operations will depend heavily on its ability to stabilize revenue streams and manage its financial obligations effectively. As of now, Cannabis Suisse Corp. remains in a precarious financial position, with significant challenges ahead in achieving operational viability.