This restatement confirms significant accounting errors in prior filings, adding to the company's credibility issues. With zero revenue, a deepening net loss, and a going concern warning requiring $1M in new capital, the stock faces severe fundamental headwinds. Monitor for any capital raise announcements, which would likely be highly dilutive given the current share structure.
Price Chart
Executive Summary
PreAxia Health Care Payment Systems Inc. filed a second amendment (10-Q/A2) to its quarterly report for the period ended August 31, 2025, restating previously filed financials. The restatement reclassified management and consulting contracts from prepaid expenses to warrants, recognized certain stock transactions as completed rather than subscriptions, and recorded a loss on debt conversion. The company remains a pre-revenue development-stage entity with a net loss of $745,208 for the quarter, a working capital deficit of $605,757, and substantial doubt about its ability to continue as a going concern, requiring an estimated $1,000,000 in additional capital over the next twelve months.
Key Facts
- The filing is a second amendment (10-Q/A2) restating the quarterly report for the period ended August 31, 2025, following a notice of non-reliance on the original filings.
- Total assets were restated downward by $1,020,000 to $130,285, primarily due to the removal of $360,000 in current and $660,000 in long-term prepaid expenses.
- The company reported zero revenue and a net comprehensive loss of $742,250 for the three months ended August 31, 2025, compared to a loss of $4,627 in the prior-year period.
- Shareholders' equity was restated from a positive $427,322 to a deficit of $605,757, driven by the removal of $3,651,222 in stock subscriptions and a $129,926 improvement in accumulated deficit.
- The company has a working capital deficit of $605,757 and an accumulated deficit of $5,955,598, with substantial doubt raised about its ability to continue as a going concern.
- The company projects it will require an estimated $1,000,000 over the next twelve months to fund operations and complete its business plan.
- A loss on settlement of $169,143 was recognized due to the conversion of debt at below-market prices for the stock.
- Common shares outstanding increased from 19,767,698 to 43,514,782 during the quarter, driven by stock issued for debt and cash, and the exercise of warrants.
- The company's disclosure controls and procedures were concluded to be not effective as of August 31, 2025.
Financial Impact
Total assets restated down by $1,020,000; net comprehensive loss of $742,250 for the quarter; working capital deficit of $605,757; accumulated deficit of $5,955,598.
Risk Factors
- Going concern risk is substantial; the company may be unable to raise necessary capital.
- Continued restatements and non-reliance filings indicate weak internal controls and potential for further accounting issues.
- Massive shareholder dilution (shares outstanding more than doubled in the quarter) with no revenue to show for it.
- Pre-revenue development-stage company with no clear path to profitability.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 10-Q/A Filing (Primary) | 0001350156-26-000013 |
| Exhibit: ex32.htm | 0001350156-26-000013 |
| Exhibit: ex31.htm | 0001350156-26-000013 |
| Document: 0001350156-26-000013-index-headers.html | 0001350156-26-000013 |
| Document: 0001350156-26-000013-index.html | 0001350156-26-000013 |
| Document: 0001350156-26-000013.txt | 0001350156-26-000013 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 11, 2026 6w ago | 10-Q/A | $0.2200 $0.2200 | · 0.00% | ▲ +2.12% | $0.2200 (+0.00%) |
Apr 21, 2026 26w ago | 8-K | $0.2200 $0.2200 | · 0.00% | ▲ +3.17% | $0.2200 (+0.00%) |
Mar 5, 2026 33w ago | 8-K/A | $0.2200 $0.2200 | · 0.00% | ▼ −2.04% | $0.2200 (+0.00%) |
Feb 25, 2026 34w ago | 8-K | $0.2200 $0.2200 | · 0.00% | ▼ −6.40% | $0.2200 (+0.00%) |
US Market Status
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