Helio Corporation Continues its Financial Reconstruction and Reports First Quarter Results

Rhea-AI Summary

Helio Corporation (OTC Pink: HLEO) filed its Form 10-Q for the quarter ended January 31, 2026 and reported a major financial restructuring. Key moves include extinguishing merchant cash advance loans, paying convertible notes, bringing defaulted notes current, raising ~$931,000 equity at $1.10/sh, and adding a new CFO and independent auditor.

Operationally, Q1 revenue fell to $495,550 from $1,427,576 YoY, net loss widened to $3,733,728, and cash was $282,061 as of January 31, 2026 (improved from $7,305 Oct 31, 2025).

Positive

• Cash balance improved to $282,061 as of January 31, 2026 (from $7,305 on Oct 31, 2025)
• Raised approximately $931,000 in equity financing at $1.10 per share
• Extinguished four merchant cash advance loans, reducing near-term debt pressure
• Net cash provided by financing activities of $565,375 for the quarter

Negative

• Revenue declined to $495,550 in Q1 2026 from $1,427,576 in Q1 2025
• Net loss widened to $3,733,728 for three months ended Jan 31, 2026
• Shareholders' equity remained negative at ($3,886,719) as of Jan 31, 2026

Berkeley, California--(Newsfile Corp. - March 30, 2026) - Helio Corporation (OTC Pink: HLEO) ("Helio" or the "Company"), a developer of advanced space power and engineering solutions supporting next-generation space infrastructure, today announced that it has filed its Quarterly Report on Form 10-Q (the "Form 10-Q") and issued financial results for the quarter ended January 31, 2026.

The quarter marks a significant inflection point for Helio as the Company accelerates its financial transformation, strengthens its balance sheet, and enhances leadership to support long-term growth. Through decisive actions to reduce debt, attract new capital, and upgrade governance, Helio is emerging with improved financial flexibility and a stronger foundation to advance its Space-Based Solar Power (SBSP) strategy and deliver long-term shareholder value.

Subsequent Events to First Quarter Results

Subsequent events following the first quarter ended January 31, 2026 indicate that Helio has made substantial progress in executing a comprehensive financial restructuring and strengthening its capital position:

• PAID OFF MERCHANT CASH ADVANCE (MCA) LOANS: Helio extinguished four (4) short-term expensive MCA loans, fully eliminating these obligations and reducing near-term financial pressure.

• PAID OFF CONVERTIBLE NOTES: Helio paid off two (2) convertible loans, simplifying the Company's capital structure and reducing potential dilution.

• DEFAULTED NOTES BROUGHT CURRENT: Helio restructured three (3) previously defaulted notes and brought them current, demonstrating proactive liability management and improved financial stability.

• RAISED PURE EQUITY: Raised approximately $931,000 in equity financing at $1.10 per share, reflecting investor confidence in Helio's strategic direction.

• ADDED NEW TOP FINANCIAL TEAM: Helio appointed a new Chief Financial Officer and engaged a new independent auditor, enhancing financial oversight and governance.

These actions collectively represent a meaningful step toward stabilizing the Company's balance sheet while positioning Helio for sustainable growth. These capital inflows, combined with debt reduction efforts, significantly improved Helio's financial flexibility as it advances toward key SBSP commercialization milestones while supporting long term shareholder value from orbital power development.

In parallel with its financial restructuring, Helio implemented enhanced internal controls and remediation measures designed to improve reporting accuracy, compliance, and long-term governance standards. These initiatives underscore the Company's commitment to transparency, operational discipline, and alignment with public company best practices as it scales its business.

"We view this quarter as a transformational step forward for Helio," said Ed Cabrera, Chief Executive Officer and Chairman. "By aggressively reducing debt, strengthening our capital base, and enhancing our leadership and governance, we are building a more resilient and scalable company. These actions position Helio to accelerate execution of our space-based energy strategy and create long-term value for our shareholders."

First Quarter 2026 Highlights

The table below indicates the results of the Form 10-Q for the first quarter ending January 31, 2026. Sales were down to $495,550 in the first quarter of 2026 as compared to $1,427,576 during the first quarter of 2025. The sales were down because the National Aeronautics and Space Administration (NASA), Helio's largest customer, closed with the U.S. federal government shutdown for several month during the period of first quarter results. Despite down sales, cash ending as of January 31, 2026 was $282,061, compared to $7,305 as of October 31, 2025. The subsequent events that included the March equity raise have increased Helio's cash levels even higher.

The increase reflects a significant improvement in liquidity, driven primarily by successful financing activities during the quarter. This substantial growth in cash provides the Company with enhanced operational flexibility and supports near-term working capital needs, representing a meaningful step forward in financial stability.

Net loss for the three months ended January 31, 2026 was $3,733,728, compared to $919,142 in the prior year period. The increase in net loss was significantly impacted by non-cash and non-recurring items, including $643,880 related to debt extinguishment, $188,792 from changes in derivative liabilities, and $61,233 in debt discount amortization, as well as $2,131,600 in equity-based compensation and stock issued for services.

These items do not reflect core operating cash performance from the cashflow statement which shows that our operating cashflow improved from a loss of $501,760 in the first quarter of 2025 to a loss of only $290,619 in the first quarter of 2026. The reduction in operating cash burn of approximately 42% reflects improved cash efficiency, working capital management, and operating efficiencies which is bringing the business to a near-term breakeven cash flow.

Income Statement Summary for Three Months Ended January 31, 2026 and January 31, 2025

			January 31, 2026				January 31, 2025
Revenue		$	495,550			$	1,427,576
Gross Profit		$	250,687			$	410,728
Operating Income (Loss)			($2,675,514	)			($865,406	)
Net Income (Loss)			($3,733,728	)			($919,142	)
Earnings Per Share			($0.21	)			($0.08	)

 

Cash Flows from Financing Activities for Three Months Ended January 31, 2026 and January 31, 2025

		January 31, 2026				January 31, 2026
Net loss	$	(3,733,728	)		$	(919,142	)
Adjustments to reconcile net loss to net cash (used in) operating activities
Depreciation & amortization	$	5,666			$	5,666
Credit loss expense	$	5,990				-
Stock-based compensation	$	32,384			$	46,497
Common stock issued for services	$	2,131,600				-
Loss on extinguishment of debt	$	643,880
Amortization of debt discount	$	61,233				-
Right of use asset amortization	$	82,249			$	100,019
Change in fair value of derivative liability	$	188,792				-
Changes in assets and liabilities
Accounts receivable	$	301,058			$	236,569
Prepaid expenses and other current assets	$	44,609				($14,633	)
Work in progress		-			$	191,683
Accounts payable and accrued expenses	$	99,350			$	32,502
Accrued compensation		($52,380	)			($81,590	)
Operating lease obligations		($101,322	)			($99,331	)
Net cash (used in) operating activities		($290,619	)			($501,760	)
Proceeds from notes payable	$	100,000			$	50,000
Proceeds from convertible notes payable Liabilities	$	559,762				-
Proceeds from notes payable - Related party	$	187,715				-
Repayment of notes payable		($259,602	)			-
Repayment of notes payable - related parties	$	22,500				-
Net cash provided by financing activities	$	565,375			$	50,000
NET INCREASE (DECREASE) IN CASH	$	274,756			$	451,760
CASH - BEGINNING OF PERIOD	$	7,305			$	551,552
CASH - END OF PERIOD	$	282,061			$	99,792

 

Balance Sheet Summary: January 31, 2026 (Unaudited) and October 31, 2025

			January 31, 2026 (Unaudited)				October 31, 2025 (Audited)
Total Assets		$	1,141,800			$	1,306,616
Total Liabilities		$	5,028,519			$	5,366,754
Shareholders' Equity			($3,886,719	)			($4,060,138	)

 

The full Form 10-Q is available through the U.S. Securities and Exchange Commission's EDGAR database.

For More Information:
Ed Cabrera
Chairman of the Board and Chief Executive Officer
Helio Corporation
(956) 225-9639
emcabrera@helio.space

About Helio Corporation

Helio is pioneering a new class of energy infrastructure-space-based power systems aka "Power plants in space" that captures solar energy beyond Earth's atmosphere and beams it safely and efficiently to the surface. Our vision is to establish orbital energy platforms as a foundational layer of the global power grid, delivering uninterrupted, carbon-free electricity at scale and reshaping how nations power cities, industries, and critical systems. Founded in 2018 as the 'problem solvers to the space industry,' Helio designs and delivers world-class space mechanisms, advanced antenna systems, and space design solutions; supporting NASA, private companies, universities, and global space agencies across missions ranging from small-scale programs to flagship space initiatives. We are proud to be a trusted partner to over a dozen space agencies, organizations, and companies across the globe. Our products can be found operating from the Sun to Jupiter. From NASA and European Space Agency to emerging private aerospace firms and academic institutions, we collaborate with some of the most innovative and forward-thinking players in the space industry.

For more information on the new strategic direction, financing initiatives and management additions, please visit www.helio.space to be added to our email list.

Note Regarding Forward Looking Statements:

Some of the matters discussed herein may contain forward-looking statements that involve significant risk and uncertainties. Forward-looking statements can be identified by the use of words like "believes," "could," "possibly," "probably," "anticipates," "estimates," "projects," "expects," "may," "will," "should," "seek," "intend," "plan," "expect," or "consider" or the negative of these expressions or other variations, or by discussions of strategy that involve risks and uncertainties. All forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual transactions, results, performance or achievements to be materially different from any future transactions, results, performance or achievements expressed or implied by such forward-looking statements, including our ability to obtain financing on acceptable terms or at all, and other risk factors included in the reports we file with the Securities and Exchange Commission (the "Commission"). We base these forward-looking statements on current expectations and projections about future events and the information currently available to us. Although we believe that the assumptions for these forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Consequently, no representation or warranty can be given that the estimates, opinions, or assumptions made in or referenced by this press release, including, but not limited to, our ability to obtain financing, will prove to be accurate. We caution you that the forward-looking statements in this press release are only estimates and predictions, or statements or current intent. Actual results or outcomes, or actions that we ultimately undertake, could differ materially from those anticipated in the forward-looking statements due to risks, uncertainties or actual events differing from the assumptions underlying these statements. We caution investors not to rely on the forward-looking statements contained in or made in connection with this press release and encourage investors to review the reports we file with the Commission. The Company undertakes no duty or obligation to update any forward-looking statements contained in this press release as a result of new information, future events or changes in the Company's business plans or model.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/290433

FAQ

What did Helio (HLEO) report for Q1 2026 revenue and cash on hand?

Helio reported Q1 2026 revenue of $495,550 and cash of $282,061 as of January 31, 2026. According to the company, revenue fell from $1,427,576 a year earlier and cash rose from $7,305 on October 31, 2025 due to financing and debt actions.

How much equity did Helio (HLEO) raise in March 2026 and at what price?

Helio raised approximately $931,000 in equity financing at $1.10 per share in March 2026. According to the company, that capital injection, plus debt payoffs, materially improved short-term liquidity and balance sheet flexibility.

What caused Helio's (HLEO) net loss of $3.73 million in Q1 2026?

Helio's Q1 2026 net loss of $3.73 million was driven by non-cash and non-recurring items and operating shortfall. According to the company, items included $643,880 loss on debt extinguishment, $2,131,600 in stock issued for services, and derivative and amortization adjustments.

What debt reductions did Helio (HLEO) complete after Q1 2026?

Helio extinguished four merchant cash advance loans, paid off two convertible loans, and brought three defaulted notes current. According to the company, these actions simplified capital structure and reduced near-term financial pressure.

Did Helio (HLEO) improve operating cashflow in Q1 2026 compared with Q1 2025?

Yes, operating cash outflow improved to a loss of $290,619 in Q1 2026 from $501,760 in Q1 2025. According to the company, that 42% reduction reflects better cash efficiency and working capital management.

What governance changes did Helio (HLEO) announce alongside its Q1 2026 results?

Helio appointed a new Chief Financial Officer and engaged a new independent auditor to enhance oversight and reporting. According to the company, these governance upgrades accompany internal control remediation and aim to align with public company best practices.