Hawkeye Systems Reports Increased Net Loss and Strategic Shift to Private Equity

Hawkeye Systems, Inc. reported its financial results for the three and nine months ended March 31, 2026, revealing a net loss of $117,261 for the quarter and $326,609 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 $102,987 for the same quarter and $347,383 for the nine months ended March 31, 2025. The company did not generate any revenue during these periods, and total operating expenses for the three months were $48,666, up from $40,082 in the prior year, while nine-month operating expenses decreased to $120,070 from $160,334.

The company's total assets increased to $71,875,000 as of March 31, 2026, compared to $57,917,000 as of June 30, 2025. This growth was primarily driven by an increase in prepaid expenses and the equity investment in Rift Cyber LLC, which rose to $64,815,000 from $54,815,000. However, total liabilities also increased to $3,365,838 from $3,135,271, largely due to accrued interest and promissory notes payable to related parties. The accumulated deficit now stands at $13,537,140, reflecting ongoing financial challenges.

Strategically, Hawkeye Systems is undergoing a significant transformation, shifting its focus from selling personal protective equipment to becoming a private equity and corporate advisory firm. This change is supported by the formation of Rift Cyber LLC, a joint venture aimed at developing technologies at the intersection of physical and digital security. The company has also made organizational changes, including the appointment of new directors and the conditional appointment of four additional board members, effective May 4, 2026.

Operationally, the company has not reported any customer counts or user statistics, as it has not generated revenue. The company’s cash reserves have dwindled to $385, down from $24,994 a year earlier, raising concerns about its ability to sustain operations without additional funding. Management has indicated that it will require approximately $125,000 per quarter to maintain operations and fulfill reporting obligations, and plans to raise capital through equity or debt securities.

Looking ahead, Hawkeye Systems acknowledges the need for additional capital to support its business strategy and operations. The company is exploring various funding avenues, including potential acquisitions and partnerships, to enhance its market position. However, there are no guarantees that it will secure the necessary financing, which raises substantial doubt about its ability to continue as a going concern. The management's plans include developing its private equity business and furthering the technology initiatives of Rift, but the success of these efforts remains uncertain.