Hawkeye Systems Reports Decreased Net Loss and Increased Total Assets for Six Months Ending December 31, 2025

Hawkeye Systems, Inc. reported its financial results for the six months ending December 31, 2025, revealing a net loss of $209,348, a decrease from a loss of $244,395 during the same period in 2024. The company had no operating revenues for both periods, and total operating expenses for the latest six-month period were $71,404, down from $120,251 in the prior year. The reduction in expenses was attributed to lower professional fees, management compensation, and general administrative costs. The net loss per share for the six months was $(0.02), compared to $(0.03) in the previous year.

In terms of financial position, Hawkeye's total assets increased to $75,662 as of December 31, 2025, up from $57,917 at the end of June 2025. This growth was primarily driven by an increase in the investment in its subsidiary, Rift Cyber LLC, which rose to $64,815 from $54,815. The company's cash reserves, however, decreased to $167 from $502, indicating a tightening liquidity position. Current liabilities also saw a slight increase, totaling $2,810,113 compared to $2,693,020 in the previous period, largely due to accrued interest on related party loans.

Strategically, Hawkeye has shifted its focus towards cybersecurity through the establishment of Rift Cyber LLC, a joint venture aimed at developing technologies that integrate physical and digital security. This move marks a significant pivot from its previous operations in personal protective equipment. The company has issued common stock to settle outstanding accounts payable, including 500,000 shares for $50,000 related to accounts payable and another 500,000 shares for intellectual property valued at $50,000. As of December 31, 2025, the total number of common shares outstanding increased to 9,706,772 from 8,706,772.

Operationally, Hawkeye remains a non-operating entity with no full-time employees, relying on related party loans to cover its expenses. The company reported a cash flow from financing activities of $98,368 for the six months ended December 31, 2025, compared to $119,263 in the same period of 2024. The management has indicated that it will require approximately $70,000 per quarter to maintain its operations and comply with SEC reporting obligations. The company plans to raise additional capital through equity or debt securities to support its ongoing operations and the development of Rift's products.

Looking ahead, Hawkeye Systems acknowledges the need for additional funding to continue its operations and execute its business plan. The management has expressed uncertainty regarding its ability to secure the necessary capital, which raises substantial doubt about the company's ability to continue as a going concern. The company is actively seeking investment opportunities and plans to leverage its participation in Rift to enhance its market position in the cybersecurity sector.