Hawkeye Systems Reports Increased Net Loss and Strategic Shift to Cybersecurity

Hawkeye Systems, Inc. reported its financial results for the three and nine months ended March 31, 2025, revealing a net loss of $102,987 for the quarter and $347,383 for the nine-month period. This marks a slight increase in losses compared to the previous year, where the company recorded a net loss of $99,470 for the three months and $486,970 for the nine months ended March 31, 2024. The company has not generated any revenue during these periods, and its total operating expenses for the three months were $40,082, a marginal decrease from $40,224 in the same quarter of the prior year. For the nine months, operating expenses decreased significantly to $160,334 from $340,535, primarily due to reductions in professional fees, management compensation, and general administrative costs.

In terms of operational developments, Hawkeye Systems is transitioning its focus from selling personal protective equipment (PPE) to cybersecurity. The company has formed a new limited liability company, Rift Cyber LLC, in partnership with cybersecurity veterans Christian Schjolberg and Peter Herzog. This strategic move aims to develop technologies that integrate physical and digital security, marking a significant shift in the company's business model. As of March 31, 2025, the company had no full-time employees and is primarily engaged in public filing activities, supported by related party loans.

The company’s cash position improved slightly, with cash reserves of $24,994 at the end of the reporting period, compared to $58 a year earlier. However, management indicated that these funds are insufficient to cover operational expenses for the next 12 months, necessitating additional capital. The company plans to raise funds through equity or debt securities, although there are no guarantees that such financing will be available on favorable terms. The accumulated deficit as of March 31, 2025, stood at approximately $13,034,586, raising concerns about the company's ability to continue as a going concern.

Hawkeye Systems has also undergone significant changes in its financial structure, including a debt consolidation agreement with related party Steve Hall, which consolidated various loans into a single promissory note totaling $1,770,713. This restructuring aims to streamline the company's financial obligations and improve liquidity. Despite these efforts, the company remains in a precarious financial position, with ongoing losses and a reliance on related party financing to sustain operations.

Looking ahead, Hawkeye Systems acknowledges the need for additional funding to support its business plan and regulatory obligations. The management's strategy includes seeking investment opportunities in diversified industries, particularly in cybersecurity. However, the company faces substantial uncertainty regarding its ability to secure the necessary capital, which could impact its operational viability in the future.