Rising losses and going-concern risk at Hoops Scouting USA (HSCT) in latest 10-Q

Rhea-AI Filing Summary

Hoops Scouting USA reported a much larger net loss and mounting financial strain in its quarterly report for the period ended March 31, 2026. The company recorded a net loss of $70,186 for the nine months, compared with $18,796 in the prior-year period, and total liabilities of $313,650 against total assets of just $66,677.

As of March 31, 2026, Hoops Scouting USA had a working capital deficit of $230,973, an accumulated deficit of $382,023, and a cash balance of only $5,563. Management explicitly states that these conditions raise substantial doubt about the company’s ability to continue as a going concern. Operations are being funded largely by related-party support, with $275,355 owed to the President and Director. Management also concluded that disclosure controls and procedures were not effective as of March 31, 2026.

Positive

• None.

Negative

• Substantial going-concern doubt: As of March 31, 2026, Hoops Scouting USA reported a working capital deficit of $230,973, an accumulated deficit of $382,023, and explicitly stated that these conditions raise substantial doubt about its ability to continue as a going concern.
• Weak liquidity and reliance on insiders: The company had only $5,563 in cash and owed $275,355 to its President and Director, indicating heavy dependence on related-party funding rather than self-sustaining operations.
• Internal controls not effective: Management concluded that disclosure controls and procedures were not effective as of March 31, 2026, increasing the risk of reporting errors or delayed identification of financial issues.

Insights

Small-cap fundamental analyst

Losses widened, going-concern risk and weak controls dominate this update.

Hoops Scouting USA shows a sharp deterioration in operating performance. Net loss for the nine months ended March 31, 2026 was $70,186 versus $18,796 a year earlier, while total assets were only $66,677 against liabilities of $313,650. Cash was just $5,563, so liquidity is extremely limited.

The company discloses a working capital deficit of $230,973 and an accumulated deficit of $382,023 as of March 31, 2026. Management states these factors raise substantial doubt about its ability to continue as a going concern, and operations depend heavily on related-party funding, with $275,355 owed to the President and Director.

Disclosure controls and procedures were deemed not effective as of March 31, 2026, adding governance and reporting risk on top of financial strain. Subsequent filings for periods after March 31, 2026 may clarify whether the company can secure further financing or materially reduce losses.

Key Figures

Net loss (nine months 2026): $70,186 Net loss (nine months 2025): $18,796 Working capital deficit: $230,973 +5 more

8 metrics

Net loss (nine months 2026) $70,186 Nine months ended March 31, 2026

Net loss (nine months 2025) $18,796 Nine months ended March 31, 2025

Working capital deficit $230,973 As of March 31, 2026

Accumulated deficit $382,023 As of March 31, 2026

Cash balance $5,563 As of March 31, 2026

Total assets $66,677 As of March 31, 2026

Total liabilities $313,650 As of March 31, 2026

Due to President and Director $275,355 Related-party payable as of March 31, 2026

Key Terms

going concern, working capital deficit, accumulated deficit, related party transactions, +2 more

6 terms

going concern financial

"These factors raise substantial doubt regarding the Company’s ability to continue as a going concern."

A going concern is a business that is expected to continue its operations and meet its obligations for the foreseeable future, rather than shutting down or selling off assets. This assumption matters to investors because it indicates stability and ongoing profitability, making the business a more reliable investment. Think of it as believing a restaurant will stay open and serve customers, rather than closing down suddenly.

working capital deficit financial

"As at March 31, 2026, the Company has a working capital deficit of $230,973 and an accumulated deficit of $382,023."

A working capital deficit occurs when a company's short-term obligations—like bills, supplier payments and near-term debt—are larger than its readily available short-term resources such as cash, money expected from customers, and inventory that can be sold. Like a household whose monthly bills exceed its checking account, it signals potential difficulty paying immediate expenses, which matters to investors because it raises the chance the company will need outside financing or cut operations, affecting risk and value.

accumulated deficit financial

"As at March 31, 2026, the Company has a working capital deficit of $230,973 and an accumulated deficit of $382,023."

Accumulated deficit is the running total of a company’s past net losses minus any profits, showing how much the business has eaten into its own funds over time—think of it like a bank account that’s been overdrawn by repeated shortfalls. It matters to investors because a large accumulated deficit reduces the cushion that protects owners and creditors, can limit dividends or borrowing, and signals how much funding the company may need to reach profitability.

related party transactions financial

"As at March 31, 2026, the Company owed $275,355 ... to the President and Director of the Company"

Transactions between a company and people or entities that have close ties to it—such as executives, board members, major shareholders, family members, or related companies—where the parties are not independent. These deals matter to investors because they can create conflicts of interest or hide favorable terms that distort a company’s true profits and risks; think of it like a business buying or selling to a family member instead of using the open market, which can lead to biased prices or undisclosed obligations.

intangible asset financial

"the Company purchased the Grit Mobile Application ... as an intangible asset at a purchase price of $100,000."

Non-physical assets such as patents, trademarks, software, customer relationships, brand reputation or goodwill that provide future economic benefit. Investors care because these unseen resources can drive revenue, reduce costs or create competitive advantage, but they are harder to value and sell than physical assets, so they influence company valuation, risk and prospects much like an invisible engine that powers growth yet can be difficult to measure or replace.

disclosure controls and procedures regulatory

"our disclosure controls and procedures ... were not effective as of March 31, 2026."

Policies, routines and internal checks a public company uses to identify, collect and verify information that must appear in its financial reports and public filings, and to make sure that material news is disclosed accurately and on time. Investors care because effective controls increase confidence that the company’s reported numbers and disclosures are reliable and reduce the risk of surprises, much like a building’s inspection and alarm system helps occupants trust the structure’s safety.

10-Q Quarterly Reports: What Changes Quarter to Quarter →

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended

March 31, 2026

Or

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 (For the transition period from to).

Commission File Number: 333-260704

HOOPS SCOUTING USA

(Exact name of registrant as specified in its charter)

Wyoming		7389		38-4010393
(State or other jurisdiction of		(Primary Standard Industrial		(I.R.S. Employer
incorporation or organization)		Classification Code Number)		Identification Number)

63 Rocio Court

Palm Desert, CA 92260

Tel: (760) 636-4353

(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days ☒ Yes    ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or such shorter period that the registrant was required to submit such files). Yes ☒    No ☐

Indicate by check mark whether the registrant is a large, accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large, accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large, accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller Reporting Company	☒
Emerging Growth Company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in rule 12b-2 of the Exchange Act.) ☐ Yes    ☒ No

The number of shares of the Registrant’s common stock, par value $0.0001 per share, outstanding as of May 13, 2026 was 101,250,000.

PART I	FINANCIAL INFORMATION:		3
Item 1.	Financial Statements		3
	Unaudited Balance Sheets as of March 31, 2026 and June 30, 2025		4
	Unaudited Statements of Operations for the three and nine months ended March 31, 2026 and 2025		5
	Unaudited Statements of Stockholders’ Deficit for the three and nine months ended March 31, 2026, and 2025		6
	Unaudited Statements of Cash Flows for the nine months ended March 31, 2026, and 2025		7
	Notes to the Financial Statements		8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		13
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		15
Item 4.	Controls and Procedures		15
PART II	OTHER INFORMATION:		16
Item 1.	Legal Proceedings		16
Item 1A.	Risk Factors		16
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		16
Item 3.	Defaults Upon Senior Securities		16
Item 4.	Submission of Matters to a Vote of Securities Holders		16
Item 5.	Other Information		16
Item 6.	Exhibits		17
	Signatures		18

2

Table of Contents

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

The accompanying interim financial statements of Hoops Scouting USA. (“the Company”, “we”, “us” or “our”), have been prepared without audit pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with United States generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations.

The interim financial statements should be read in conjunction with the Company’s latest annual financial statements.

In the opinion of management, the financial statements contain all material adjustments, consisting only of normal adjustments considered necessary to present fairly the financial condition, results of operations, and cash flows of the Company for the interim periods presented.

3

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HOOPS SCOUTING USA
Condensed Balance Sheets
		March 31, 2026				June 30, 2025
		(unaudited)				(Audited)
Assets
Current assets
Bank		$	5,543			$	-
Cash			20				20
Inventory			61,114				76,869
Total current asset		$	66,677			$	76,889
Total assets		$	66,677			$	76,889
Liabilities and stockholders’ deficit
Current liabilities
Accounts payable			22,295				2,732
Due to related party (Note 3)			275,355				234,944
Total current liabilities			297,650				237,676
Non-current liabilities
Loans payable (Note 7)			16,000				16,000
Total liabilities		$	313,650			$	253,676
Nature of operations and continuance of business (Note 1)
Stockholders’ deficit
Common stock Authorized: 10,000,000,000 common shares, $0.0001 par value 101,250,000 shares issued and outstanding as of March 31, 2026 and June 30, 2025 respectively		$	10,125			$	10,125
Additional paid-in capital			124,925				124,925
Accumulated deficit			(382,023	)			(311,837	)
Total stockholders’ deficit			(246,973	)			(176,787	)
Total liabilities and stockholders’ deficit		$	66,677			$	76,889
(The accompanying notes are an integral part of these condensed unaudited financial statements)

4

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HOOPS SCOUTING USA
Condensed statements of operations and comprehensive loss (Unaudited)
		For the three months ended March 31, 2026				For the three months ended March 31, 2025				For the nine months ended March 31, 2026				For the nine months ended March 31, 2025
Sales			20,000				-				20,000				-
Cost of goods sold			(15,755	)			-				(15,755	)			-
Gross Profit			4,245				-				4,245				-
Expenses
General and administrative			165				-				282				171
Professional fees			5,040				8,428				32,290				12,428
Transfer agent and filing fees			36,175				1,329				41,859				6,197
Total expenses		$	41,380			$	9,757			$	74,431			$	18,796
Net loss		$	(37,135	)		$	(9,757	)		$	(70,186	)		$	(18,796	)
Loss per share, basic and diluted			(0.00	)			(0.00	)			(0.00	)			(0.00	)
Weighted average shares outstanding			101,250,000				101,250,000				101,250,000				101,250,000
(The accompanying notes are an integral part of these condensed unaudited financial statements)

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HOOPS SCOUTING USA
Condensed statements of stockholders’ deficit (Unaudited)
		Common stock
		Number of shares				Amount				Additional paid-in capital				Accumulated deficit				Total stockholders’ deficit
		For the three and nine months ended March 31, 2025
Balance, June 30, 2024			101,250,000			$	10,125			$	124,925			$	(291,719	)		$	(156,669	)
Net loss for the period			-				-				-				(3,178	)			(3,178	)
Balance, September 30, 2024			101,250,000			$	10,125			$	124,925			$	(294,897	)		$	(159,847	)
Balance, September 30, 2024			101,250,000			$	10,125			$	124,925			$	(294,897	)		$	(159,847	)
Net loss for the period			-				-				-				(5,861	)			(5,861	)
Balance, December 31, 2024			101,250,000			$	10,125			$	124,925			$	(300,758	)		$	(165,708	)
Balance, December 31, 2024			101,250,000			$	10,125			$	124,925			$	(300,758	)		$	(165,708	)
Net loss for the period			-				-				-				(9,757	)			(9,757	)
Balance, March 31, 2025			101,250,000			$	10,125			$	124,925			$	(310,515	)		$	(175,465	)

		For the three and nine months ended March 31, 2026
Balance, June 30, 2025			101,250,000			$	10,125			$	124,925			$	(311,837	)		$	(176,787	)
Net loss for the period			-				-				-				(11,468	)			(11,468	)
Balance, September 30, 2025			101,250,000			$	10,125			$	124,925			$	(323,305	)		$	(188,255	)
Balance, September 30, 2025			101,250,000				10,125				124,925				(323,305	)			(188,255	)
Net loss for the period			-				-				-				(21,583	)			(21,583	)
Balance, December 31, 2025			101,250,000			$	10,125			$	124,925			$	(344,888	)		$	(209,838	)
Balance, December 31, 2025			101,250,000				10,125				124,925				(344,888	)			(209,838	)
Net loss for the period			-				-				-				(37,135	)			(37,135	)
Balance, March 31, 2026			101,250,000			$	10,125			$	124,925			$	(382,023	)		$	(246,973	)
(The accompanying notes are an integral part of these condensed unaudited financial statements)

6

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HOOPS SCOUTING USA
Condensed statements of cash flows (Unaudited)
		For the nine months ended March 31, 2026				For the nine months ended March 31, 2025
Operating activities
Net loss		$	(70,186	)		$	(18,796	)
Adjustments to reconcile net loss to net cash used in operating activities:
Increase/(Decrease) in accounts payable			19,563				(6,220	)
(Increase)/Decrease in inventory			15,755				-
Net cash used in operating activities		$	(34,868	)		$	(25,016	)
Cash Flows from Financing Activities:
Proceeds from a related party			40,411				24,960
Net cash provided by financing activities		$	40,411			$	24,960
Net increase (decrease) in cash, cash equivalents and restricted cash			5,543				(56	)
Cash, cash equivalents and restricted cash at beginning of the period			20				76
Cash, cash equivalents and restricted cash at end of the period		$	5,563			$	20
Cash, end of period
Supplemental Cash Flow Information:
Cash paid for interest		$	-			$	-
Cash paid for income taxes		$	-			$	-
(The accompanying notes are an integral part of these condensed unaudited financial statements)

7

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HOOPS SCOUTING USA

Notes to the condensed financial statements

March 31, 2026

(Expressed in US dollars)

(unaudited)

1. Nature of Operations and Continuance of Business

Hoops Scouting USA (the “Company”) was incorporated in the State of Wyoming on October 31, 2016. The Company is in the business of scouting high school and college basketball players in Colorado.

These financial statements have been prepared on a going concern basis, which implies the Company will continue to realize itsS assets and discharge its liabilities in the normal course of business. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of the Company to obtain necessary equity financing to continue operations, and ultimately the attainment of profitable operations. During the period ended March 31, 2026, the Company had no revenues and incurred a net loss of $70,186. As at March 31, 2026, the Company has a working capital deficit of $230,973 and an accumulated deficit of $382,023. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. These condensed financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Management plans to promote our website and develop the Hoops Scouting USA app to run in conjunction with the website. We are looking at potential partnerships with current scouting services and college sport sponsorship consulting firms.

 2. Significant Accounting Policies

(a) Basis of Presentation

The results for the nine months ended March 31, 2026 are not necessarily indicative of the results of operations for the full year. These financial statements and related footnotes should be read in conjunction with the financial statements and footnotes thereto included in the Company’s Annual Report for the year ended June 30, 2025, filed with the Securities and Exchange Commission.

The accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America, and pursusant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and reflect all adjustments, consisting of normal recurring adjustments, which management believes are necessary to fairly present the financial position, results of operations and cash flows of the Company for the nine months period ended March 31, 2026.

(b) Use of Estimates and Judgments

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. It also requires management to exercise its judgment in the processing of applying the Company’s accounting policies. The Company regularly evaluates estimates and assumptions related to deferred income tax valuation allowances. The Company bases its estimates and assumptions on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The impacts of such estimates and judgments are pervasive throughout the financial statements and may require accounting adjustments based on future occurrences. Revisions to accounting estimates and judgments are recognized in the period in which the estimate is revised and future periods if the revision affects both current and future periods. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.

8

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HOOPS SCOUTING USA

Notes to the condensed financial statements

March 31, 2026

(Expressed in US dollars)

(unaudited)

(c) Cash and Cash Equivalents

The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents.

(d) Liquidity / Going Concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company’s significant operating losses raise substantial doubt about its ability to continue as a going concern.  The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

(e) Income Taxes

The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, “Income Taxes”. The asset and liability method provides that deferred income tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred income tax assets to the amount that is believed more likely than not to be realized.

(f) Intangible Assets

Intangible assets consist of all right, title and interest of seller and its affiliates in the Grit Mobile Application and related complementary products acquired in an asset purchase agreement. The estimated useful life of these assets was determined to be zero years and amortized the full value of the intangible asset. The Company periodically evaluates the reasonableness of the useful lives of these assets. Once these assets are fully amortized, they are removed from the accounts. These assets are reviewed for impairment or obsolescence when events or changes in circumstances indicate that the carrying amount may not be recoverable. If impaired, intangible assets are written down to fair value based on discounted cash flows or other valuation techniques. The Company has no intangibles with indefinite lives.

(g) Impairment of Long-Lived Assets

The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. To determine recoverability of a long-lived asset, management evaluates whether the estimated future undiscounted net cash flows from the asset are less than its carrying amount. If impairment is indicated, the long-lived asset would be written down to fair value. Fair value is determined by an evaluation of available price information at which assets could be bought or sold, including quoted market prices, if available, or the present value of the estimated future cash flows based on reasonable and supportable assumptions.

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HOOPS SCOUTING USA

Notes to the condensed financial statements

March 31, 2026

(Expressed in US dollars)

(unaudited)

(h) Loss Per Share

The Company computes income (loss) per share in accordance with FASB ASC 260 “Earnings per Share”. Basic loss per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted income (loss) per share gives effect to +all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. There are no potentially issuable common shares as of March 31, 2026, or 2025.

(i) Comprehensive Loss

ASC 220, “Comprehensive Income” establishes standards for the reporting and display of comprehensive income and its components in the financial statements. As at March 31, 2026 and June 30, 2025, the Company had no items that affected comprehensive loss.

(j) Inventory

The Company values inventory at the lower of cost or market. Cost is determined using the first-in first-out method, which is calculated by counting each item in inventory, assigning costs to each item based upon the actual purchase cost of each item and reporting the costs of each item sold.

(k) Recent Accounting Pronouncements

The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

(l) Revenue recognition

We recognize revenue in accordance with ASC 606, Revenue from Contracts with Customers. The standard’s stated core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, ASC 606 includes provisions within a five-step model that includes identifying the contract with a customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations, and recognizing revenue when, or as, an entity satisfies a performance obligation.

3. Related Party Transactions

Till June 30, 2022, president of the company contributed $61,581 towards the Company operating expenses.

During the three months ended September 30, 2022, president of the company contributed $4,000 towards the Company operating expenses.

During the three months ended December 31, 2022, president of the company contributed $7,800 towards the Company operating expenses.

During the three months ended March 31, 2023, president of the company contributed $6,416 towards the Company operating expenses.

During the three months ended June 30, 2023, the company borrowed $9,468 from the President and Director of the Company, towards company operating expenses and $47,241 towards purchase of inventory.

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HOOPS SCOUTING USA

Notes to the condensed financial statements

March 31, 2026

(Expressed in US dollars)

(unaudited)

During the three months ended September 30, 2023, president of the company contributed $12,030 towards the Company operating expenses and $8,013 towards purchase of inventory.

During the three months ended December 31, 2023, president of the company contributed $16,700 towards the Company operating expenses and $13,712 towards purchase of inventory.

During the three months ended March 31, 2024, president of the company contributed $10,333 towards the Company operating expenses and $7,903 towards purchase of inventory.

During the three months ended June 30, 2024, president of the company contributed $750 towards the Company operating expenses.

During the three months ended September 30, 2024 president of the company $12,834 towards company operating expenses.

During the three months ended December 31, 2024 president of the company $3,658 towards company operating expenses.

During the three months ended March 31, 2025 president of the company $8,468 towards company operating expenses.

During the three months ended June 30, 2025 president of the company $4,037 towards company operating expenses.

During the three months ended September 30, 2025 president of the company $10,863 towards company operating expenses.

During the three months ended December 31, 2025 president of the company $18,678 towards company operating expenses.

During the three months ended March 31, 2026 president of the company $10,870 towards company operating expenses.

As at March 31, 2026, the Company owed $275,355 (June 30, 2025 - $234,944) to the President and Director of the Company

4. Intangible Asset

On February 17, 2023, the Company purchased the Grit Mobile Application and related complementary products from Grit Performance Athletics Inc at a purchase price of $100,000. The total recorded cost of this intangible asset of $100,000 has been included in “Property and Equipment” on the balance sheet. As of June 30, 2023, we determined that this intangible asset doesn’t have a definite useful life, and as such, it was fully impaired.

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HOOPS SCOUTING USA

Notes to the condensed financial statements

March 31, 2026

(Expressed in US dollars)

(unaudited)

As of March 31, 2026, the balance on this intangible asset was $0

		As at
		June 30,
		2023
Intangible asset		$	100,000
Less: Impairment			(100,000	)
Property and equipment net		$	-

Impairment expense is $100,000 for the year ended June 30, 2023.

5. Common Stock

During the three months ended September 30, 2021, the Company received proceeds of $3,000 (As of June 30, 2021, $32,000) relating to share subscriptions for the issuance of common shares at $0.10 per share.

On October 15, 2021, the Company issued (350,000 before split) 26,250,000 common shares at $0.10 per share for proceeds of $35,000, of which $32,000 were received during the year ended June 30, 2021.

On May 8, 2023, the Company issued (500,000 before split) 37,500,000 common shares at $0.20 per share for converting the promissory note value of $100,000.

On June 9, 2023, the Company executed forward stock split at 75:1

As at March 31, 2026, common shares issued and outstanding is 101,250,000 (1,350,000 before split)

6. Promissory Note Payable

During the three months ended March 31, 2023, the company purchased intangible assets valued at $100,000 by issuing the promissory note. This promissory note was converted into equity shares of 500,000 at $0.20 per share on May 8,2023.

7. Loans Payable

As at March 31, 2026, the Company owed $16,000 (June 30, 2025 - $16,000) to non-related parties for loans payable. The amounts owing are unsecured, non-interest bearing, and due on or before March 31, 2026.

8. Subsequent Event

During the period after March 31, 2026, and through April 30, 2026, the Company received $10,000 from the President of the company towards the payment for company operating expenses.

Other than this transaction the Company doesn’t have any other event to report after the reporting period from March 31,2026 through April 30, 2026.

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

FORWARD-LOOKING STATEMENTS

This Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) contains forward-looking statements that involve known and unknown risks, significant uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed, or implied, by those forward-looking statements. You can identify forward-looking statements by the use of the words may, will, should, could, expects, plans, anticipates, believes, estimates, predicts, intends, potential, proposed, or continue or the negative of those terms. These statements are only predictions. In evaluating these statements, you should consider various factors which may cause our actual results to differ materially from any forward-looking statements. Although we believe that the exceptions reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Therefore, actual results may differ materially and adversely from those expressed in any forward- looking statements. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

Liquidity and Capital Resources

As of March 31, 2026, we had a cash balance of $5,563, inventory $61,114 and total assets of $66,677 compared to cash and total assets of $76,889 as at June 30, 2025. The decrease in total assets was due to inventory impairment

As at March 31, 2026, and June 30, 2025 we had total liabilities of $313,650 and $253,676 respectively. Our liabilities at March 31, 2026 and June 30, 2025 were comprised of amounts due to our President and Director and for two loans payable to non-related parties for $16,000, which are unsecured, non-interest bearing, and due on or before March 31, 2026.

Our working capital deficit was $230,973 as at March 31, 2026 compared to $160,787 as at June 30, 2025 respectively.

During the period ended March 31, 2026, we did not issue any common shares.

Results of Operation

During the three months ended March 31 2026, we incurred $41,380 of operating expenditures comprised of general and administrative, professional fees, and transfer agent fees compared to $9,757 for general and administrative, professional fees and transfer agent fees during the three months ended March 31, 2025.

During the nine months ended March 31 2026, we incurred $74,431 of operating expenditures comprised of  general and administrative, professional fees, and transfer agent fees compared to $18,796 for general and administrative, professional fees and transfer agent fees during the nine months ended March 31, 2025.

   Cash Flows

During the nine months ended March 31, 2026, we used $(34,868) of cash for operating activities compared to the use of $(25,016) for operating activities during the nine months ended March, 2025. During the nine months ended March 31, 2026 our financial activities consisted of $40,411 in proceeds from a related party, compared to 24,960 in financing activity during the nine months ended March 31, 2025.

Trends

There is no assurance that we will be able to generate cash flows from our operations. The outcome of these matters cannot be predicted with any certainty at this time and raises substantial doubt that we will be able to continue as a going concern.

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Off-Balance Sheet Arrangements

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to our stockholders.

Inflation

The effect of inflation on our revenues and operating results has not been significant.

Critical Accounting Policies

Our financial statements are presented in United States dollars and are prepared using the accrual method of accounting, which conforms to US GAAP.

We have elected to use the extended transition period for complying with new or revised accounting standards under Section 102(b)(1) of the JOBS Act. This election allows us to delay the adoption of new or revised accounting standards that have different effective dates for public and private companies until those standards apply to private companies. As a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates.

The financial statements as of and for the nine months ended March 31, 2026 included herein, which have not been audited pursuant to the rules and regulations of the Securities and Exchange Commission, reflect all adjustments which, in the opinion of management, are necessary for a fair presentation of financial position, results of operations and cash flows for the interim periods on a basis consistent with the annual audited statements. All such adjustments are of a normal recurring nature. The results of operations for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for a full year. Certain information, accounting policies and footnote disclosures normally included in financial statements prepared in conformity with accounting principles generally accepted in the United States of America have been omitted pursuant to such rules and regulations, although we believe that the disclosures are adequate to make the information presented not misleading.

Going Concern

The Company’s financial statements have been prepared on a going concern basis, which implies that the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has generated no revenues to date, has a working capital deficit of $230,973 and an accumulated deficit of $382,023. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability to raise equity or debt financing, and the attainment of profitable operations from the Company's future business. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

Use of Estimates and Assumptions

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods presented. We are required to make judgments and estimates about the effect of matters that are inherently uncertain. Although, we believe our judgments and estimates are appropriate, actual future results may be different; if different assumptions or conditions were to prevail, the results could be materially different from our reported results.

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Recent Accounting Pronouncements

We review new accounting standards as issued. Although some of these accounting standards issued or effective after the end of our previous fiscal year may be applicable to us, we have not identified any standards that we believe merit further discussion. We believe that none of the new standards will have a significant impact on our financial position, future operations or cash flows.

Item 3. Quantitative and Qualitative Disclosure about Market Risk

None

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our Principal Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based on the evaluation, both the Principal Executive Officer and the Principal Financial Officer concluded that our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) promulgated under the Securities Exchange Act of 1934, were not effective as of March 31, 2026.

Internal Control over Financial Reporting

There was no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) promulgated under the Securities Act of 1934) that materially affected, or is reasonably likely to materially affect, such internal control over financial reporting during the quarter ended March 31,2026. BF Borgers CPA PC our independent auditors, were not required and have not performed an assessment of our internal controls over financial reporting for effectiveness.

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PART II — OTHER INFORMATION

Item 1. Legal Proceedings

None.

Item 1A. Risk Factors

Not applicable to smaller reporting companies.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information

None.

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Item 6. Exhibits

No.		Description
31.1		Certification of Chief Executive Officer and Chief Financial Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a).
32.1		Certifications pursuant to Securities Exchange Act of 1934 Rule 13a-14(b) or 15d-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002.
101.INS		Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)
101.SCH		Inline XBRL Taxonomy Extension Schema Document
101.CAL		Inline XBRL Taxonomy Calculation Linkbase Document
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		Inline XBRL Taxonomy Label Linkbase Document
101.PRE		Inline XBRL Taxonomy Presentation Linkbase Document
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

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SIGNATURES

 Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	HOOPS SCOUTING USA
Date: May 13, 2026	By:	/s/ Jamie Oei
		Jamie Oei - Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer

18

FAQ

How did Hoops Scouting USA (HSCT) perform for the nine months ended March 31, 2026?

Hoops Scouting USA reported a net loss of $70,186 for the nine months ended March 31, 2026, compared with a loss of $18,796 in the prior-year period, reflecting significantly higher operating expenses and deepening negative equity.

What is Hoops Scouting USA’s cash position and working capital as of March 31, 2026?

As of March 31, 2026, Hoops Scouting USA held $5,563 in cash and reported total assets of $66,677. With current liabilities of $297,650, the company disclosed a working capital deficit of $230,973, highlighting serious short-term liquidity pressure.

Does the Hoops Scouting USA (HSCT) 10-Q raise a going-concern warning?

Yes. Management states that recurring losses, a $230,973 working capital deficit, and a $382,023 accumulated deficit as of March 31, 2026 raise substantial doubt about Hoops Scouting USA’s ability to continue as a going concern without new financing or improved profitability.

How much does Hoops Scouting USA owe related parties as of March 31, 2026?

As of March 31, 2026, Hoops Scouting USA owed $275,355 to its President and Director, classified as amounts due to a related party. The 10-Q notes the business has been funded largely through these advances to cover operating expenses and inventory purchases.

What is the capital structure of Hoops Scouting USA (HSCT) reported in this 10-Q?

The company had 101,250,000 common shares issued and outstanding as of March 31, 2026, with common stock of $10,125, additional paid-in capital of $124,925, and an accumulated deficit of $382,023, resulting in total stockholders’ deficit of $246,973.

Were Hoops Scouting USA’s disclosure controls effective as of March 31, 2026?

No. Hoops Scouting USA’s Principal Executive and Principal Financial Officer concluded that disclosure controls and procedures were not effective as of March 31, 2026, although the company reported no material changes in internal control over financial reporting during the quarter.

What subsequent events did Hoops Scouting USA disclose after March 31, 2026?

Between March 31, 2026 and April 30, 2026, the company received $10,000 from its President to pay operating expenses. Hoops Scouting USA reported no other subsequent events during that period in the 10-Q disclosure.