Winning Catering Group Reports No Revenue and Significant Financial Decline in Latest 10-Q

Winning Catering Group, Inc. (formerly LiquidValue Development Inc.) reported significant financial changes in its latest 10-Q filing for the quarter ending June 30, 2026. The company recorded no revenue for both the three and six months ended June 30, 2026, a stark decline from $6,602 and $17,811 in the same periods of 2025. This drop is attributed to the company's transition into a shell status following the distribution of its assets to shareholders in August 2025, which left it without material operations or revenue sources.

The company's operating expenses also saw a notable decrease, with general and administrative expenses falling to $16,395 and $82,614 for the three and six months ended June 30, 2026, respectively, compared to $173,823 and $1,263,602 in the prior year. This reduction is primarily due to the deconsolidation of Alset Real Estate Holdings Inc. after the asset distribution. Despite the decrease in expenses, the company reported a net loss of $16,395 for the three months and $82,614 for the six months ended June 30, 2026, which is an improvement from the net losses of $264,926 and $983,241 in the same periods of 2025.

As of June 30, 2026, Winning Catering Group's total assets were reported at $0, down from $5,912 at the end of 2025. The company’s liabilities increased to $76,702, primarily due to amounts owed to related parties. The stockholders' equity also shifted to a deficit of $76,702, compared to a positive equity of $5,912 at the end of the previous fiscal year. The company’s cash position deteriorated to $0, indicating a critical liquidity situation that raises substantial doubt about its ability to continue as a going concern.

Strategically, the company is pursuing a merger with Winning Catering Management Limited, which is part of an effort to establish new business operations. The merger agreement, signed on May 30, 2025, aims to integrate Winning Group as a wholly owned subsidiary of Winning Catering Group. However, as of the report's issuance, this transaction had not yet been completed, leaving the company in a precarious position without operational revenue.

Looking ahead, Winning Catering Group's management acknowledges the need for additional capital or a successful strategic transaction to sustain its operations. The company is actively working to finalize the merger, which is seen as a critical step in addressing its current financial challenges and re-establishing a viable business model. The ongoing situation underscores the importance of the merger in potentially revitalizing the company’s operational capabilities and financial health.