UPAY, Inc. Reports Revenue Decline and Reduced Net Loss for Quarter Ending May 31, 2025

UPAY, Inc. reported a significant decline in revenue for the three months ending May 31, 2025, with total revenue of $170,414, down from $257,249 in the same period last year. This decrease of $86,835 is attributed primarily to a reduction in transactional revenue from the company's South African operations. Despite the drop in revenue, UPAY managed to reduce its net loss to $141,986, compared to a net loss of $150,677 in the prior year, reflecting a decrease in losses of $8,691 due to lower general and administrative expenses.

The company's total operating expenses also decreased to $258,432 from $266,914 year-over-year, marking an $8,482 reduction. This decline in expenses is largely due to cost-cutting measures implemented in South Africa. UPAY's cash flow situation showed improvement, with net cash used in operating activities decreasing to $130,676 from $425,730 in the previous year, indicating a $295,054 reduction in negative cash flows. Additionally, the company reported net cash provided by financing activities of $120,000 for the quarter, a notable increase from zero in the same period last year.

UPAY's balance sheet as of May 31, 2025, shows total assets of $199,185, down from $234,149 at the end of February 2025. Current liabilities decreased to $490,424 from $534,201, while total liabilities increased to $775,761 from $703,005, primarily due to an increase in notes payable to related parties. The company’s stockholders’ deficit widened to $576,576 from $468,856, driven by an increase in the accumulated deficit, which now stands at $2,305,237.

Strategically, UPAY has focused on its South African operations, particularly through its subsidiaries Rent Pay and AML GO, which provide software solutions for credit providers and compliance tools for financial institutions, respectively. The company has also made efforts to streamline its U.S. operations, pausing active sales and focusing on potential future expansion under new leadership. UPAY's management has indicated that it intends to fund operations through equity financing arrangements, although there is no assurance of success in this endeavor.

Looking ahead, UPAY faces challenges related to its ability to generate sufficient revenue to execute its business plan. The company has expressed uncertainty regarding its adaptability to U.S. market needs and the level of interest in its software solutions. As of May 31, 2025, UPAY's working capital remains negative at $374,905, raising concerns about its financial sustainability. The management's outlook emphasizes the need for strategic financing and operational adjustments to navigate these challenges effectively.