UPAY, Inc. Reports Revenue Increase for Quarter but Decline for Half-Year, Faces Financial Challenges

UPAY, Inc. reported its financial results for the three and six months ended August 31, 2025, revealing a revenue increase for the quarter but a decline for the half-year period compared to the previous year. The company generated $188,947 in revenue for the three months ending August 31, 2025, up from $168,071 in the same period last year, marking a 12.4% increase. However, for the six-month period, revenues fell to $359,361 from $425,320, a decrease of 15.5%. The net loss for the quarter was $117,252, a significant improvement from the $191,324 loss reported in the same quarter of 2024. For the six months, the net loss was $259,238, down from $342,001 in the prior year.

The company’s total expenses decreased to $249,017 for the three months ended August 31, 2025, compared to $302,897 in the same period last year, primarily due to reduced general and administrative costs. For the six-month period, expenses also declined to $507,449 from $569,811. UPAY's accumulated deficit increased to $2,422,489 as of August 31, 2025, from $2,163,251 at the end of the previous fiscal period. The company’s total assets decreased to $173,165 from $234,149, while total liabilities rose to $834,010 from $703,005, indicating a growing financial strain.

Strategically, UPAY has been active in expanding its operations, particularly in South Africa, where it has focused on software development and licensing for the credit provider industry. The company has made several acquisitions, including a controlling interest in Miway Finance Inc. and the complete acquisition of Huntpal LLC. These acquisitions are part of UPAY's strategy to enhance its service offerings and market presence. The company also reported a significant increase in common stock issuable, rising to $172,000 from $103,500, reflecting ongoing efforts to incentivize management and align interests.

Operationally, UPAY's customer concentration remains a concern, with two customers accounting for 33% of revenues in the most recent six-month period. The company reported a working capital deficit of $409,379 as of August 31, 2025, compared to a deficit of $386,487 at the end of February 2025. The company’s cash and cash equivalents decreased to $35,518 from $55,362, indicating challenges in liquidity. Despite these challenges, UPAY reported a decrease in net cash used in operating activities, which fell to $188,768 from $651,056 year-over-year, suggesting improved cash management.

Looking ahead, UPAY's management has expressed concerns regarding the company's ability to continue as a going concern, citing insufficient revenues to execute its business plan. The company plans to fund operations through equity financing arrangements, although there is no assurance of success. The management's outlook emphasizes the need for adaptability in the U.S. market and the importance of developing interest in its software solutions to drive future growth.