Pacific Sports Exchange Reports Revenue Decline and Increased Net Loss for Six Months Ending February 2025

Pacific Sports Exchange Inc. reported its financial results for the six months ending February 28, 2025, revealing a revenue of $2,000, a significant decrease from $3,400 in the same period the previous year. The company experienced a net loss of $14,990, compared to a loss of $11,689 in the prior year, indicating a worsening financial position. The gross profit for the period was $1,100, up from $860, but this was overshadowed by a rise in operating expenses, which increased to $16,090 from $12,549. The increase in operating expenses was primarily attributed to higher professional fees and general administrative costs.

In terms of balance sheet performance, total assets rose to $2,241 from $1,264, largely due to an increase in cash reserves, which grew to $1,972 from $995. However, total liabilities decreased significantly from $80,419 to $22,563, primarily due to the forgiveness of a related party loan amounting to $73,823. This change in liabilities contributed to an improved working capital deficiency, which narrowed from $79,155 to $20,322.

Strategically, the company underwent a significant change in control in September 2024, when Alpine Elite Holdings Ltd. acquired approximately 70% of the company's shares. This transition led to a new executive leadership team, with Huang Hua Shang appointed as the new CEO and CFO. 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 while also exploring enhancements to its own website for broader market reach.

Operationally, Pacific Sports Exchange has maintained its employee headcount at 14,375, with no changes reported in the number of shares outstanding. The company has identified a concentration risk, as one customer accounted for 100% of its revenue during the reporting period. This reliance on a single customer raises concerns about revenue stability and highlights the need for diversification in its customer base.

Looking ahead, the company acknowledges the challenges it faces in achieving profitability and securing additional financing to support its operations. Management plans to raise funds through equity or debt financing but cautions that there are no guarantees of success. The company’s ability to continue as a going concern remains uncertain, contingent on its capacity to generate sufficient cash flow from operations and secure necessary funding.