Guru App Factory Corp. reported its financial results for the three-month period ending October 31, 2025, revealing a significant increase in revenue and a notable rise in operating expenses. The company generated $13,000 in revenue, a substantial increase from $4,500 during the same period in 2024, marking a growth of approximately 188.9%. This revenue growth was primarily attributed to the launch of new software development services. However, the cost of revenue also rose to $7,500 from $2,500 year-over-year, reflecting the expenses associated with this new service line.

Despite the increase in revenue, Guru App Factory experienced a net loss of $20,842 for the quarter, compared to a loss of $3,556 in the prior year. The increase in net loss was largely due to a significant rise in operating expenses, which totaled $26,342, up from $5,556 in the previous year. The higher operating expenses were primarily driven by increased legal and audit fees. As a result, the company's accumulated deficit grew to $88,265 as of October 31, 2025, compared to $67,423 at the end of the previous fiscal period.

On the balance sheet, total assets increased to $13,000 from zero at the end of July 2025, while total liabilities surged to $35,145 from $1,303. The stockholders' deficit also widened to $22,145, compared to a deficit of $1,303 in the prior period. The company reported no cash on hand as of October 31, 2025, and indicated a working capital deficit, raising concerns about its ability to continue as a going concern. The company is reliant on financial support from its major shareholder and is exploring options for additional equity or debt financing.

Operationally, Guru App Factory has not yet established a consistent source of revenue sufficient to cover its operating costs. The company has indicated that all of its revenue for the quarter was generated from a single customer, highlighting its dependency on limited client relationships. The company plans to continue developing its mobile applications and software services, with expectations of increasing operational expenses and capital expenditures as it seeks to grow its business.

Looking ahead, Guru App Factory Corp. anticipates needing to raise additional capital to meet its long-term operating requirements. The management has expressed uncertainty regarding its ability to secure necessary funding, which could significantly impact its operations. The company’s future performance will depend on its ability to expand its customer base, enhance product offerings, and improve financial stability through effective capital management.

About Guru App Factory Corp

Guru App Factory Corp. develops and publishes mobile applications for iOS and Google Play, generating revenue through app sales, in-app purchases, and advertising. It also offers software development consulting, including services in encryption, blockchain, and data protection. Serving small and medium-sized businesses, the company leverages its development expertise to provide custom solutions and app services, focusing on innovation and digital transformation.

This description was generated via AI from an annual report. Updated 8 months ago.

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