Pacific Sports Exchange Reports Revenue Growth but Increased Net Loss and Financial Challenges

Pacific Sports Exchange Inc. reported its financial results for the three months ending November 30, 2025, revealing a modest revenue of $2,200, a significant increase from zero revenue in the same period last year. The company recorded a gross profit of $200, with a cost of goods sold amounting to $2,000. However, the net loss for the quarter rose to $10,081, compared to a net loss of $7,817 in the prior year, primarily due to increased operating expenses, which totaled $10,281, up from $7,817 in the previous year.

The company's financial position has deteriorated, with total assets decreasing to $6,769 from $10,245 as of August 31, 2025. This decline was driven by a reduction in cash reserves, which fell to zero from $1,476, and a decrease in inventory from $8,769 to $6,769. Total liabilities increased to $58,927, up from $52,322, largely due to an increase in amounts owed to related parties, which rose from $40,323 to $55,322. Consequently, the working capital deficiency widened to $52,158 from $42,077.

Strategically, the company has undergone significant changes in leadership and ownership. Following a change in control on September 23, 2024, Alpine Elite Holdings Ltd. acquired approximately 70% of the company's shares, leading to the resignation of former executives Timothy Conte and Jennifer Whitesides. Huang Hua Shang was appointed as the new Chief Executive Officer and sole Director. The company continues to focus on its core business of reselling new and used tennis and golf equipment, leveraging eBay as its primary sales platform.

Operationally, Pacific Sports Exchange has identified a concentrated customer base, with one customer accounting for 100% of its revenue during the reported quarter. The company has also engaged in consignment sales and is exploring geographic expansion opportunities, particularly in Florida and California, to source high-demand equipment. Despite these efforts, the company faces challenges in achieving profitability and maintaining adequate cash flow, as indicated by its reliance on advances from related parties to fund operations.

Looking ahead, Pacific Sports Exchange's management acknowledges the need for additional financing to support its operations and business development. The company is actively seeking equity and debt financing options but has expressed uncertainty regarding its ability to secure necessary funds. The financial statements have been prepared under the assumption that the company will continue as a going concern, although there are substantial doubts about its ability to generate sufficient revenues or obtain financing to sustain operations in the future.