Tofla Megaline Reports Significant Net Loss and Leadership Changes in Financial Results

Tofla Megaline Inc. reported its financial results for the three and nine months ending April 30, 2025, revealing a significant net loss of $1,869,925 for the nine-month period, compared to a loss of $23,371 in the same period the previous year. The company generated $23,000 in revenue during the nine months, a slight increase from $21,700 in the prior year. However, the company did not report any revenue for the three months ending April 30, 2025, which is unchanged from the same quarter in 2024. The substantial increase in operating expenses to $1,892,949 for the nine months, up from $45,071, was primarily driven by a $1,712,000 expense related to shares issued for services, alongside increased general and administrative costs.

The company has undergone significant organizational changes, including a shift in management. On January 30, 2025, Katerine Calero was appointed as CEO and CFO, followed by the appointment of Dilip R. Petigara to the board and as CEO on March 5, 2025. This leadership transition comes as Tofla evaluates opportunities to expand its strategic focus, potentially diversifying its revenue streams beyond its current offerings in AI-powered software for robotic security systems. The company is also exploring strategic opportunities for growth, including potential acquisitions and investments in technology platforms.

Operationally, Tofla's total operating expenses for the three months ending April 30, 2025, reached $1,826,095, a significant increase from $12,952 in the same quarter of 2024. This rise was attributed to higher general and administrative expenses, including professional fees and amortization costs associated with the acquisition of intangible assets. The company reported an accumulated deficit of $1,923,376 as of April 30, 2025, indicating ongoing financial challenges as it continues to develop its business.

In terms of liquidity, Tofla had $9,944 in cash at the end of the reporting period, a notable increase from $0 at the beginning of the fiscal year. The company reported negative working capital of $242,585, up from negative $85,801 as of July 31, 2024. To support its operations, Tofla has relied on related party loans and advances, and it plans to continue this practice while seeking additional financing through private placements of common stock.

Looking ahead, Tofla Megaline anticipates further losses as it continues to develop its business. Management expects revenue growth over the next twelve months, contingent on the successful execution of its strategic initiatives. However, the company acknowledges substantial doubt about its ability to continue as a going concern without generating profitable operations or securing necessary financing.