Wewards, Inc. Reports No Revenue and Increased Net Loss for Quarter Ending August 31, 2025

Wewards, Inc. reported its financial results for the three months ending August 31, 2025, revealing no revenue generation during the period, consistent with the previous year. The company recorded total operating expenses of $29,980, a decrease from $32,690 in the same quarter of 2024, primarily due to reduced general and administrative costs and lower professional fees. The net loss for the quarter was $159,009, slightly improved from a net loss of $160,099 in the prior year, reflecting a decrease in operating loss and other expenses.

The company's balance sheet as of August 31, 2025, showed total assets of $671,822, down from $693,777 at the end of the previous fiscal year. Current liabilities increased to $4,183,285 from $4,046,231, largely due to accrued interest on related party loans. Long-term liabilities remained stable at $10,500,000, resulting in total liabilities of $14,683,285, compared to $14,546,231 previously. Stockholders' equity reflected a deficit of $14,011,463, widening from $13,852,454, primarily due to the accumulated losses.

Wewards continues to focus on developing its web-based platform designed to facilitate consumer purchases and reward them with Bitcoin rebates. However, the company has yet to secure any licensing agreements to monetize this platform. The management is actively pursuing such arrangements to generate revenue. The company has also emphasized its reliance on its CEO, Lei Pei, for financial support, as it has historically depended on convertible loans from him and his affiliated entities.

Operationally, Wewards has not reported any significant changes in customer counts or user engagement metrics, as it has not launched any new products or services during the reporting period. The company’s cash position decreased to $671,635 from $693,290, indicating ongoing cash flow challenges. The management has expressed concerns regarding its ability to continue as a going concern, citing negative working capital of $3,511,463 and the need for additional financing to sustain operations.

Looking ahead, Wewards acknowledges the necessity of raising capital to fund its operations and repay related party debts. The company has not provided specific guidance on future revenue expectations but remains focused on securing licensing agreements to initiate revenue generation. The management's outlook is cautious, emphasizing the need for strategic decisions to navigate the current financial landscape and achieve sustainable operations.