Londax Corp (LDXC) revenue drops, swings to loss amid going concern risk
Londax Corp. reports quarterly results that highlight early-stage growth but rising financial strain. For the nine months ended February 28, 2026, revenue was $19,918, down sharply from $66,410 a year earlier as the company shifted from one-time projects to annual subscription contracts that recognize revenue over time.
The company posted a nine-month net loss of $33,089, versus net income of $24,052 in the prior-year period, driven by higher professional fees and amortization. Cash was only $13,951 against total liabilities of $63,995, including a $49,485 related party loan.
Management states that these factors raise substantial doubt about Londax’s ability to continue as a going concern and plans to seek additional funding through private or public offerings. The business remains a development-stage software and IT consulting company focused on its Londax.ai CRM and recruitment platform and related tools like the Roleform interview kit generator.
Positive
- None.
Negative
- Going concern risk: Management discloses substantial doubt about Londax Corp.’s ability to continue as a going concern, citing accumulated losses, a nine-month net loss of $33,089, and reliance on related party financing.
- Severe revenue decline: Nine-month revenue fell about 70% year over year to $19,918, reflecting a shift in the business model but materially reducing reported top line and contributing to the swing from profit to loss.
Insights
Revenue fell sharply and losses widened, triggering a going concern warning.
Londax Corp. is still in development stage, building a CRM and recruitment software suite. Revenue for the nine months ended February 28, 2026 dropped to $19,918 from $66,410 as the company moved from one-time services to annual subscriptions with slower revenue recognition.
The business swung from prior-year profit to a nine-month net loss of $33,089, while operating expenses more than doubled to $64,956, driven mainly by professional fees and higher amortization on newly capitalized software and platform assets.
Cash of $13,951 is modest relative to $63,995 of liabilities, including a $49,485 related party loan. Management explicitly notes “substantial doubt” about the company’s ability to continue as a going concern and indicates an intention to raise additional capital, so future disclosures about funding efforts and subscription traction will be important for assessing sustainability.
Key Figures
Key Terms
going concern financial
development stage company financial
deferred income financial
related party loan financial
emerging growth company regulatory
earnings per share financial
Table of Contents
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form
For the quarterly period ended
For the transition period from __________ to __________
Commission file number
(Exact name of registrant as specified in its charter)
| 7371 | ||
| State or Other Jurisdiction of | Primary Standard Industrial | IRS Employer |
| Incorporation or Organization | Classification Code Number | Identification Number |
(Address and telephone number of 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.
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 for such shorter period that the registrant was required to submit such files).
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”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act:
| Large accelerated filer ☐ |
Accelerated filer ☐ |
☒ |
Emerging growth company |
Smaller reporting 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 any new or revised financial accounting
standards provided pursuant to Section 7(a)(2)(B) of the Securities Act.
Indicate by check mark whether the registrant
is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐
State the number of shares outstanding of each
of the issuer's classes of common equity, as of the latest practicable date:
LONDAX CORP.
QUARTERLY REPORT ON FORM 10-Q
TABLE OF CONTENTS
| Page | ||
| PART I | FINANCIAL INFORMATION: | |
| Item 1. | Financial Statements (Unaudited) | 3 |
| Balance Sheets – February 28, 2026 (Unaudited) and May 31, 2025 (Audited) | 3 | |
| Statements of Operations – Three and Nine months ended February 28, 2026 and 2025 (Unaudited) | 4 | |
| Statements of Stockholders’ Equity/(Deficit) – Three and Nine months ended February 28, 2026 and 2025 (Unaudited) | 5 | |
| Statements of Cash Flows – Nine months ended February 28, 2026 and 2025 (Unaudited) | 6 | |
| Notes to the Unaudited Financial Statements | 7 | |
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 12 |
| Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 18 |
| Item 4. | Controls and Procedures | 18 |
| PART II | OTHER INFORMATION: | |
| Item 1. | Legal Proceedings | 19 |
| Item 1A. | Risk Factors | 19 |
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 19 |
| Item 3. | Defaults Upon Senior Securities | 19 |
| Item 4. | Submission of Matters to a Vote of Securities Holders | 19 |
| Item 5. | Other Information | 19 |
| Item 6. | Exhibits | 20 |
| Signatures | 21 |
| 2 |
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements
The accompanying interim financial statements of Londax Corp. (“the Company”, “we”, “us” or “our”), have been prepared without audit pursuant to the rules and regulations of the Securities and Exchange Commission.
The interim financial statements are condensed and 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.
LONDAX CORP.
BALANCE SHEETS
February 28, 2026 (Unaudited) | May 31, 2025 (Audited) | |||||||
| ASSETS | ||||||||
| Cash | $ | $ | ||||||
| Prepaid Expenses | ||||||||
| Total Current Assets | ||||||||
| Fixed Assets, Net | ||||||||
| Mobile App, Net | ||||||||
| Software Development Costs, Net | ||||||||
| Website, Net | ||||||||
| Total Other Assets | ||||||||
| Total Assets | $ | $ | ||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY/(DEFICIT) | ||||||||
| Accounts Payable | $ | $ | ||||||
| Deferred Income | ||||||||
| Related Party Loan | ||||||||
| Total Current Liabilities | ||||||||
| Common Stock, $ | ||||||||
| Additional Paid-in Capital | ||||||||
| Accumulated Income/(Deficit) | ( | ) | ( | ) | ||||
| Total Stockholders’ Equity/(Deficit) | ||||||||
| Total Liabilities and Stockholders’ Equity/(Deficit) | $ | $ | ||||||
The accompanying notes are an integral part of these unaudited financial statements.
| 3 |
LONDAX CORP.
STATEMENTS OF OPERATIONS
Three and Nine months ended February 28, 2026 and 2025 (Unaudited)
Three months ended February 28, 2026 (Unaudited) | Three months ended February 28, 2025 (Unaudited) | Nine months ended February 28, 2026 (Unaudited) | Nine months ended February 28, 2025 (Unaudited) | |||||||||||||
| REVENUES | $ | $ | $ | $ | ||||||||||||
| Cost of sales | ||||||||||||||||
| GROSS PROFIT | ||||||||||||||||
| OPERATING EXPENSES | ||||||||||||||||
| Amortization and Depreciation Expense | ||||||||||||||||
| General and Administrative Expenses | – | |||||||||||||||
| Professional Fees | ||||||||||||||||
| TOTAL OPERATING EXPENSES | ||||||||||||||||
| NET INCOME /(LOSS) FROM OPERATIONS | ( | ) | ( | ) | ||||||||||||
| OTHER INCOME/(EXPENSES) | ||||||||||||||||
| PROVISION FOR INCOME TAXES | ||||||||||||||||
| NET INCOME /(LOSS) | $ | $ | $ | ( | ) | $ | ||||||||||
| NET INCOME /(LOSS) PER SHARE: BASIC AND DILUTED | $ | $ | $ | ( | ) | $ | ||||||||||
| WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED | ||||||||||||||||
The accompanying notes are an integral part of these unaudited financial statements.
| 4 |
LONDAX CORP.
STATEMENTS OF STOCKHOLDERS’ EQUITY/(DEFICIT)
Three and Nine months ended February 28, 2026 and 2025 (Unaudited)
| Common Stock | Additional Paid-in | Accumulated | Total Stockholders’ Equity/ | |||||||||||||||||
| Shares | Amount | Capital | Deficit | (Deficit) | ||||||||||||||||
| Balance, May 31, 2025 | $ | $ | $ | ( | ) | $ | ||||||||||||||
| Cancellation of common stock | ( | ) | ( | ) | ||||||||||||||||
| Net Loss for the three months ended August 31, 2025 | – | – | – | ( | ) | ( | ) | |||||||||||||
| Balance, August 31, 2025 | $ | $ | $ | ( | ) | $ | ||||||||||||||
| Net Loss for the three months ended November 30, 2025 | – | – | – | ( | ) | ( | ) | |||||||||||||
| Balance, November 30, 2025 | $ | $ | $ | ( | ) | $ | ( | ) | ||||||||||||
| Net Income for the three months ended February 28, 2026 | – | – | – | |||||||||||||||||
| Balance, February 28, 2026 | $ | $ | $ | ( | ) | $ | ||||||||||||||
| Balance, May 31, 2024 | $ | $ | $ | ( | ) | $ | ||||||||||||||
| Net Income for the three months ended August 31, 2024 | – | – | – | |||||||||||||||||
| Balance, August 31, 2024 | $ | $ | $ | $ | ||||||||||||||||
| Net Income for the three months ended November 30, 2024 | – | – | – | |||||||||||||||||
| Balance, November 30, 2024 | $ | $ | $ | $ | ||||||||||||||||
| Net Income for the three months ended February 28, 2025 | – | – | – | |||||||||||||||||
| Balance, February 28, 2025 | $ | $ | $ | $ | ||||||||||||||||
The accompanying notes are an integral part of these unaudited financial statements.
| 5 |
LONDAX CORP.
STATEMENTS OF CASH FLOWS
Three and Nine months ended February 28, 2026 and 2025 (Unaudited)
Nine months ended February 28, 2026 (Unaudited) | Nine months ended February 28, 2025 (Unaudited) | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net Income (Loss) | $ | ( | ) | $ | ||||
| Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||
| Amortization and Depreciation Expense | ||||||||
| Prepaid Expenses | ||||||||
| Project-In-Progress | ||||||||
| Accounts Payable | ( | ) | ||||||
| Deferred Income | ||||||||
| CASH FLOWS USED IN OPERATING ACTIVITIES | ( | ) | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Software Development Costs | ( | ) | ||||||
| Mobile App | ( | ) | ||||||
| Website | ( | ) | ||||||
| CASH FLOWS PROVIDED BY INVESTING ACTIVITIES | ( | ) | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Related Party Loan | ||||||||
| Notes Payable | ( | ) | ||||||
| CASH FLOWS PROVIDED BY FINANCING ACTIVITIES | ( | ) | ||||||
| Net increase (decrease) in cash and equivalents | ||||||||
| Cash and equivalents at beginning of the period | ||||||||
| Cash and equivalents at end of the period | $ | $ | ||||||
| Supplemental cash flow information: | ||||||||
| Cash paid for: | ||||||||
| Interest | $ | $ | ||||||
| Taxes | $ | $ | ||||||
The accompanying notes are an integral part of these unaudited financial statements.
| 6 |
LONDAX CORP.
NOTES TO THE UNAUDITED FINANCIAL STATEMENTS
NINE MONTHS ENDED FEBRUARY 28, 2026 AND 2025 (UNAUDITED)
NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION
Londax Corp. (referred as the “Company”, “we”, “our”) was Incorporated in the State of Wyoming and established on May 19, 2023. We are a Software Development company that offers Consulting services.
Our office is located at Yiangou Potamiti 27, Limassol, Cyprus 3010.
NOTE 2 – GOING CONCERN
The Company’s financial statements have been prepared assuming that it will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business.
As reflected in the financial statements, the
Company had an accumulated loss of $
The Company is attempting to commence operations and generate sufficient revenue; however, the Company’s cash position may not be sufficient to support the Company’s daily operations. Management intends to raise additional funds by way of a private or public offering. While the Company believes in the viability of its strategy to commence operations and generate sufficient revenue and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to further implement its business plan and generate sufficient revenue and its ability to raise additional funds by way of a public or private offering.
The financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”).
The Company’s year-end is May 31.
| 7 |
Interim Financial Statements
The unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The results of operations for such periods are not necessarily indicative of the results expected for a full year or for any future period. Therefore, these financial statements should be read in conjunction with the Company’s audited financial statements and notes filed with the SEC for the year ended May 31, 2025.
Development Stage Company
The Company is a development stage company as defined in Accounting Standards Codification (“ASC”) 915 “Development Stage Entities”. The Company is devoting substantially all of its efforts on establishing the business and its planned principal operations have not commenced. All losses accumulated since inception have been considered as part of the Company's development stage activities.
The Company has elected to adopt application of Accounting Standards Update No. 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements. Upon adoption, the Company no longer presents or discloses inception-to-date information and other remaining disclosure requirements of Topic 915.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents
The Company considers all highly liquid investments with the original maturities of three months or less to be cash equivalents.
Website, Mobile Application and Software Development Costs
The Company follows the provisions of ASC 985, Software, which requires that all costs relating to the purchase or internal development and production of software products to be sold, leased or otherwise marketed, be expensed in the period incurred unless the requirements for technological feasibility have been established. The Company capitalizes all eligible software costs incurred once technological feasibility is established. The Company amortizes these costs using the straight-line method over a period of three years, which is the remaining estimated economic life of the costs.
| 8 |
Fair Value of Financial Instruments
AS topic 820 “Fair Value Measurements and Disclosures” establishes a three-tier fair value hierarchy, which prioritizes the inputs in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market.
These tiers include:
| Level 1: | defined as observable inputs such as quoted prices in active markets; |
| Level 2: | defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and |
| Level 3: | defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. |
The carrying value of cash and the Company’s loan from shareholder approximates its fair value due to their short-term maturity.
Income Taxes
Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.
Basic Income (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.
As of February 28, 2026, and May 31, 2025, there
were
Stock-Based Compensation
Stock-based compensation is accounted for at fair value in accordance with ASC Topic 718. To date, the Company has not adopted a stock option plan and has not granted any stock options.
Recent Accounting Pronouncements
In November 2023, the FASB issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which require public companies disclose significant segment expenses and other segment items on an annual and interim basis and to provide in interim periods all disclosures about a reportable segment's profit or loss and assets that are currently required annually. The guidance is effective for public entities for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The guidance is applied retrospectively to all periods presented in the financial statements, unless it is impracticable. The adoption of ASU 2023-07 has not had a material effect on the Company’s statements and disclosures. As defined in the ASU, operating segments are components of an enterprise about which discrete financial information is regularly provided to the chief operating decision maker (“CODM”) in making decisions on how to allocate resources and assess performance for the organization. The Company operates and manages its business as one reportable and operating segment. The Company’s CODM is the Chief Executive Officer. The Company’s CODM reviews operating results to make decisions about allocating resources and assessing performance for the entire Company.
Management does not believe that any other recently issued, but not yet effective accounting pronouncements, when adopted, will have a material effect on the accompanying financial statements.
| 9 |
NOTE 4 – FIXED ASSETS
As of February 28, 2026, our fixed assets comprised
of $561 in equipment. Depreciation expense of equipment was $
NOTE 5 – INTANGIBLE ASSETS
In August 2023 the Company acquired a website
for $
In November 2024 the Company completed the development
of another website to advertise its services. The total cost of the website development was $
Additionally, in May 2025 we introduced a new
website to promote services for Android mobile application users. The total cost of the website development was $
In February 2025 the Company completed the development
of mobile application. The total cost of the mobile application development was $
In May 2025 we launched our Android mobile application,
as the previous version was only available for iOS users. The total cost of the mobile application development was $
The Company has developed its Customer Relationship
Management (CRM) platform. The total cost of the CRM platform is $
The Company has launched its Interview Kit Generator
Program at https://roleform.com/. We created Roleform to help non-technical founders, recruiters, and hiring managers quickly generate
high-quality interview questions. It saves time, ensures better candidate evaluation, and improves hiring decisions even without deep
expertise in the role. The total cost of the Program is $
The Company believes that the development of its websites, mobile applications, CRM platform and Interview Kit Generator Program will be relevant for 3 years with its constant testing and improvement.
NOTE 6 – RELATED PARTY LOAN
As of February 28, 2026, the Company owed $
| 10 |
NOTE 7 – COMMON STOCK
The Company has
On May 31, 2023, the Company issued
In January 2024 the Company issued
In February 2024 the Company issued
On July 31, 2025,
Olegs Pavlovs, former president and director of
Londax Corp., decided to cancel
There were
NOTE 8 – COMMITMENTS AND CONTINGENCIES
Our president have agreed to provide her own premise under office needs. He will not take any fee for these premises; it is for free use.
NOTE 9 – SUBSEQUENT EVENTS
In accordance with ASC 855-10 the Company has analyzed its operations subsequent to February 28, 2026, to the date these financial statements were issued, and has determined that it does not have any material subsequent events to disclose in these financial statements.
| 11 |
| ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
FORWARD LOOKING STATEMENTS
This report contains forward-looking statements that involve risk and uncertainties. We use words such as “anticipate”, “believe”, “plan”, “expect”, “future”, “intend”, and similar expressions to identify such forward-looking statements. Investors should be aware that all forward-looking statements contained within this filing are good faith estimates of management as of the date of this filing. Our actual results could differ materially from those anticipated in these forward-looking statements for many reasons, including the risks faced by us in this report.
DESCRIPTION OF BUSINESS
Our company was established as a Wyoming corporation on May 19, 2023. As a developmental-stage enterprise, our primary focus is on offering IT consulting services and software development solutions. Our web site is https://londaxcorp.com/. Currently, we have developed and implemented our flagship product https://londax.ai/, which comprises a Customer Relationship Management (CRM) System, Applicant Tracking Systems (ATS), and out-staffing services.
Our principal executive office is located at Yiangou Potamiti 27, Limassol, Cyprus 3010. Our phone number is +371 29591676.
Our company develop and implement a customized Customer Relationship Management (CRM) System that facilitates out-staffing for our future clients. Our software is designed to seamlessly integrate into our clients' corporate structure, enabling them to hire and manage their staff, including top managers and IT specialists, with ease.
We are intending to operate in Europe with potential for working worldwide. From a technical perspective, londax.ai is a web application consisting of Frontend and Backend components hosted on cloud services provided by AWS. Londax.ai CRM system is developed for analyzing and monitoring the recruitment process using a funnel (hiring stages) and analyzing the KPIs of the already hired personnel. Currently, our main dashboard consists of: 1) Segment for Recruitment: funnel, creating job postings (manual \ AI) and portal for applicants.2) Segment for; Employees: Profile, password and personal data change and Help.
For the Artificial Intelligence functionality (advertisement generation), the OpenAI API is used.
Revenue
Our possible revenue streams are following:
| 1. | Subscription-Based Revenue Model: This revenue stream involves charging clients a monthly or annual fee for access to our CRM system. We can offer various rate plans, enabling clients to choose a subscription that best suits their needs and budget. | |
| 2. | Customization Services: We can charge clients on a project basis for customization services. This revenue stream involves working closely with clients to develop customized solutions that meet their specific needs and objectives. | |
| 3. | Data Migration Services: We can partner with data management companies to offer data migration services to clients who need to transfer their data from their existing system to our CRM system. This revenue stream involves charging clients a fee for data migration services. | |
| 4. | Training and Consulting Services: We can offer training and consulting services to help clients get the most out of our CRM system. This revenue stream involves charging clients a fee for training and consulting services. | |
| 5. | Integration Services: We can offer integration services to enable clients to integrate our CRM system with other software solutions. This revenue stream involves charging clients a fee for integration services. | |
| 6. | Maintenance and Support Services: We can offer maintenance and support services to ensure that our clients' CRM system is functioning properly and to provide technical support as needed. This revenue stream involves charging clients a fee for maintenance and support services. | |
| 7. | Upgrades and Add-Ons: We can offer upgrades and add-ons to our CRM system to provide additional functionality or to keep up with changing technologies. This revenue stream involves charging clients a fee for upgrades and add-ons. |
| 12 |
Marketing and Competition
Our business is focused on the online market, and we intend to utilize various online marketing tools to promote our services effectively. To reach our potential clients, we plan to employ banners, flags, and video advertisements on popular social media platforms such as Facebook, Twitter, Instagram, and YouTube. We will present our services in an organized web catalog that can be easily accessed through our website and mobile application. Our catalog will be categorized and tagged to facilitate user-friendliness.
We intend to leverage context advertising tools such as Google AdWords, Yahoo!, and similar tools provided by AOL and Facebook to attract customer attention. Additionally, we will utilize SEO (Search Engine Optimization) to ensure that our application and web platform appear at the top of search queries related to our services.
We will participate in advertising conventions, workshops, presentations, and similar events to promote our application and services. We will also advertise our services in printed and electronic issues of magazines, commercial web communities, and communities of advertising professionals.
To further enhance our promotional activities, we will establish our social media pages on popular platforms such as Facebook, Twitter, and Instagram. We plan to demonstrate how our product works and performs on these platforms to increase customer engagement. We will also use WhatsApp accounts to post up-to-date information and create discussion channels with our customers and interested individuals. We believe that instant messaging platforms like WhatsApp, Telegram, and others will help us react and interact with our customers more efficiently.
Our company has designed our services to cater to small to midsize business entities, with the flexibility to adjust and accommodate their evolving needs as they grow.
We operate in a highly competitive industry, our strategy focuses on the following aspects:
| 1. | Our officers and directors have professional management and marketing experience and a vast network. | |
| 2. | Our customized approach aligns with the values, mission, and market needs of our clients. | |
| 3. | We continuously analyze contemporary social media trends without interruption. | |
| 4. | We utilize AI, data science, and data analysis to increase efficiency and productivity. |
Despite the presence of numerous competitors in the market, our advantages include a focus on small and medium-sized businesses, as well as a willingness to work with larger companies. We prioritize customization and tailor our products and solutions to meet our clients' unique needs, while also providing maximum integration on their behalf.
Employees; Identification of Certain Significant Employees.
We have no employees other than our president, who currently devotes approximately twenty hours per week to company matters.
| 13 |
Government Regulation
Our principal office is located in Cyprus and we are intending to operate in EU (European Union). We are might be subject of following EU governmental regulations:
GDPR governs the processing of personal data in the European Union (EU). Our Company must ensure that we comply with GDPR when collecting, storing, and processing personal data through their software products.
Consumer Protection Laws. This EU directive establishes rules for online and distance sales, including software. It covers issues such as the right of withdrawal, warranties, and dispute resolution.
Copyright Law: Software is subject to copyright protection in most European countries. Our Company must respect the intellectual property rights of others and enforce their own software copyrights.
Export Control Regulations: If our software includes encryption technology or has other export-controlled components, we may need to comply with EU and national export control regulations.
E-Commerce Directive: This directive addresses various legal aspects of e-commerce, including electronic contracts, electronic signatures, and liability of online service providers.
Antitrust and Competition Laws: Our Company must comply with EU and national competition laws, which can affect software pricing, distribution, and licensing practices.
VAT (Value Added Tax): VAT rules can vary from country to country within the EU, and they may apply to the sale of our software products.
Contract Law: Software sales often involve licensing agreements and contracts. Company should ensure that our contracts comply with applicable contract laws and are enforceable.
Network and Information Security Directive (NIS Directive): This directive imposes cybersecurity requirements on operators of essential services and digital service providers.
Sanctions and Embargoes: Depending on the nature of our software and its use cases, we may need to be aware of EU sanctions and embargoes that restrict the sale or export of certain software products to specific countries.
Offices
Our business office is located at Yiangou Potamiti 27, Limassol, Cyprus 3010. This address was provided by our president, Mr. Loloshvili. Our telephone number is +371 29591676.
LEGAL PROCEEDINGS
During the past ten years, none of the following occurred with respect to the President of the Company: (1) any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time; (2) any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offenses); (3) being subject to any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of any competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities or banking activities; and (4) being found by a court of competent jurisdiction (in a civil action), the SEC or the commodities futures trading commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated.
We are not currently a party to any legal proceedings, and we are not aware of any pending or potential legal actions.
| 14 |
RESULTS OF OPERATIONS
Results of Operations for the three months ended February 28, 2026 and 2025:
Revenue
For the three months ended February 28, 2026 and 2025, the Company generated total revenue of $8,405 and $13,165, respectively, from providing services to its customers. Revenue decreased by approximately $4,760, or 36%, for the three months ended February 28, 2026, compared to the same period in 2025. The decrease was mainly due to a shift in the Company's revenue model. In the current period, revenue was recognized from an annual subscription service, which recognizes revenue ratably over the subscription term. In contrast, revenue for the same period in the prior year was derived from a one-time service, which was recognized fully at the time of sale. This change resulted in lower revenue recognition in the current period despite ongoing service delivery.
Cost of sales
Cost of sales for the three months ended February 28, 2026 and 2025 was $0 and $3,000, respectively.
Operating expenses
Total operating expenses for the three months ended February 28, 2026 were $13,109 ($8,863 for the three months ended February 28, 2025) consisting of amortization and depreciation expense of $6,257 ($3,563 for the three months ended February 28, 2025); general and administrative expenses of $0 ($3,224 for the three months ended February 28, 2025); professional fees of $6,852 ($2,076 for the three months ended February 28, 2025). Operating expenses increased by approximately $4,246, or 48%, for the three months ended February 28, 2026 as compared to the same period of 2025. The increase in total operating expenses was primarily driven by higher professional fees and amortization and depreciation expenses.
Other Expenses
The total other income for the three months ended February 28, 2026 and 2025 were $12,000 and $0, respectively. Other income included debt forgiveness.
Net Income (Losses)
The company recorded a net income of $7,296 and $1,302 for the three months ended February 28, 2026 and 2025, respectively. As a result of the factors described above, net income for the three months ended February 28, 2026 increased by approximately $5,994, or 460%, as compared for the same period for 2025.
Results of Operations for the nine months ended February 28, 2026 and 2025:
Revenue
For the nine months ended February 28, 2026 and 2025, the Company generated total revenue of $19,918 and $66,410, respectively, from providing services to its customers. Revenue decreased by approximately $46,492, or 70%, for the nine months ended February 28, 2026, compared to the same period in 2025. The decrease was mainly due to a shift in the Company's revenue model. In the current period, revenue was recognized from an annual subscription service, which recognizes revenue ratably over the subscription term. In contrast, revenue for the same period in the prior year was derived from a one-time service, which was recognized fully at the time of sale. This change resulted in lower revenue recognition in the current period despite ongoing service delivery.
Cost of sales
Cost of sales for the nine months ended February 28, 2026 and 2025 was $0 and $12,000, respectively.
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Operating expenses
Total operating expenses for the nine months ended February 28, 2026 were $64,956 ($30,358 for the nine months ended February 28, 2025) consisting of amortization and depreciation expense of $18,772 ($6,642 for the nine months ended February 28, 2025); general and administrative expenses of $233 ($8,916 for the nine months ended February 28, 2025); professional fees of $45,951 ($14,800 for the nine months ended February 28, 2025). Operating expenses increased by approximately $34,598, or 114%, for the nine months ended February 28, 2026 as compared to the same period of 2025. The increase in total operating expenses was primarily driven by higher professional fees and amortization and depreciation expenses.
Other Expenses
The total other expenses for the nine months ended February 28, 2026 and 2025 were $11,949 and $0, respectively. Other income included debt forgiveness of $12,000, and other expenses included foreign exchange loss of $51.
Net Income (Losses)
The company recorded a net loss of $33,089 for the nine months ended February 28, 2026, and a net income of $24,052 for the nine months ended February 28, 2025. As a result of the factors described above, the change represents a decrease in net income of $57,141, or approximately 238%, year over year.
LIQUIDITY AND CAPITAL RESOURCES
As of February 28, 2026, the Company had $13,951 in cash and our liabilities were $63,995, comprising $807 in accounts payable, $13,703 in deferred income and $49,485 owed to our president.
As of May 31, 2025, the Company had $10,606 in cash and our liabilities were $55,653, comprising $51,372 in accounts payable and $4,281 owed to Olegs Pavlovs, our former president.
Since inception, we have sold 5,231,135 shares of common stock to our president and shareholders. On July 31, 2025, Olegs Pavlovs, president of the Company, decided to cancel 3,000,000 of his restricted shares.
Cash Flows from Operating Activities
Net cash used in operating activities was $41,859 for the nine months ended February 28, 2026, compared with $76,521 used in operating activities during the nine months ended February 28, 2025.
During the nine months ended February 28, 2026, the net cash of $41,859 used in operating activities was attributed to net loss of $33,089; decreased by amortization and depreciation expense of $18,772; prepaid expenses of $9,320; accounts payable of $50,565; and increased by deferred income of $13,703.
During the nine months ended February 28, 2025, the net cash of $76,521 used in operating activities was attributed to net income of $24,052; decreased by amortization and depreciation expense of $6,642; accounts receivable of $12,827; software in development of $33,000; and increased by accounts payable of $12,827.
Cash Flows from Investing Activities
For the nine months ended February 28, 2026, net cash flows provided by or used in investing activities was $0.
For the nine months ended February 28, 2025, net cash flows provided by or used in investing activities was $50,528, which was attributable to the capitalization of the development of intangible assets.
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Cash Flows from Financing Activities
For the nine months ended February 28, 2026, net cash flows provided by financing activities was $45,204, was attributable to net advances received from related parties.
For the nine months ended February 28, 2025, net cash flows provided by financing activities was $14,491, which was attributable to the repayment of notes payable ($14,512) and net advances received from related parties ($21).
MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this report. Some of the information contained in this discussion and analysis or set forth elsewhere in this report, including information with respect to our plans and strategy for our business and related financing, includes forward-looking statements that involve risks and uncertainties.
We qualify as an “emerging growth company” under the JOBS Act. As a result, we are permitted to, and intend to, rely on exemptions from certain disclosure requirements. For so long as we are an emerging growth company, we will not be required to:
| · | have an auditor report on our internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act; |
| · | provide an auditor attestation with respect to management’s report on the effectiveness of our internal controls over financial reporting; |
| · | comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the financial statements (i.e., an auditor discussion and analysis); |
| · | submit certain executive compensation matters to shareholder advisory votes, such as “say-on-pay” and “say-on-frequency”; |
| · | disclose certain executive compensation related items such as the correlation between executive compensation and performance and comparisons of the CEO’s compensation to median employee compensation. |
In addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits of this extended transition period. Our financial statements may therefore not be comparable to those of companies that comply with such new or revised accounting standards.
We will remain an “emerging growth company” for up to five years, or until the earliest of (i) the last day of the first fiscal year in which our total annual gross revenues is $1 billion, (ii) the date that we become a “large accelerated filer”as defined in Rule 12b-2 under the Securities Exchange Act of 1934, which would occur if the market value of our ordinary shares that is held by non-affiliates is $700 million as of the last business day of our most recently completed second fiscal quarter or (iii) the date on which we have issued more than $1 billion in non-convertible debt during the preceding three year period.
As of the date of these financial statements, the current funds available to the Company should be sufficient to continue maintaining our reporting status for a minimum period of 12 months from the date of this statement or until we raise funds from this offering, whichever occurs earlier.
In case our short-term expenses exceed our expectations, the company’s former president, Olegs Pavlovs , has indicated that he may be willing to provide funds required to maintain the reporting status in the form of a non-secured loan until minimum required proceeds are obtained by the Company. However, there is no contract in place or written agreement securing this agreement. We believe that we will obtain this loan from our president as he is the majority owner of the company and therefore has an incentive to finance us.
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OFF-BALANCE SHEET ARRANGEMENTS
We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.
LIMITED OPERATING HISTORY; NEED FOR ADDITIONAL CAPITAL
There is no historical financial information about us upon which to base an evaluation of our performance. We are in start-up stage operations and have not generated sufficient revenues. We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources and possible cost overruns due to price and cost increases in services and products.
We have no assurance that future financing will be available to us on acceptable terms. If financing is not available on satisfactory terms, we may be unable to continue, develop or expand our operations. Equity financing could result in additional dilution to existing shareholders.
| ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
None
| ITEM 4. | CONTROLS AND PROCEDURES |
Our management is responsible for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) that is designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
An evaluation was conducted under the supervision and with the participation of our management of the effectiveness of the design and operation of our disclosure controls and procedures as of February 28, 2026. Based on that evaluation, our management concluded that our disclosure controls and procedures were not effective as of such date to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms.
Changes in Internal Controls over Financial Reporting
There was no change in the Company’s internal control over financial reporting during the quarterly period covered by this report that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.
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PART II – OTHER INFORMATION
| ITEM 1. | LEGAL PROCEEDINGS |
During the past ten years, none of the following occurred with respect to the President of the Company: (1) any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time; (2) any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offenses); (3) being subject to any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of any competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities or banking activities; and (4) being found by a court of competent jurisdiction (in a civil action), the SEC or the commodities futures trading commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated.
We are not currently a party to any legal proceedings, and we are not aware of any pending or potential legal actions.
| ITEM 1A. | RISK FACTORS |
None
| ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
None
| ITEM 3. | DEFAULTS UPON SENIOR SECURITIES |
None
| ITEM 4. | SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS |
None
| ITEM 5. | OTHER INFORMATION |
During the
quarter ended February 28, 2026,
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| ITEM 6. | EXHIBITS |
The following exhibits are included as part of this report by reference:
| 31.1 | Certification of Chief Executive Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a) | |
| 31.2 | Certification of 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 | |
| 32.2 | 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 | |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document | |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
| 104 | Cover Page Interactive Data File (formatted in iXBRL, and included in exhibit 101) |
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SIGNATURES
In accordance with the requirements of the Securities Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| LONDAX CORP. | |||
| Date: April 7, 2026 | By: | /s/ Giorgi Loloshvili | |
| Name: | Giorgi Loloshvili | ||
| Title: |
President, Treasurer and Secretary (Principal Executive, Financial and Accounting Officer) | ||
In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities indicated.
| Signature | Title | Date | ||
|
/s/ Giorgi Loloshvili Giorgi Loloshvili |
President, Treasurer and Secretary (Principal Executive, Financial and Accounting Officer) |
April 7, 2026 | ||
|
/s/ Mariami Togonidze Mariami Togonidze |
Director | April 7, 2026 | ||
|
/s/ Ani Vashakidze Ani Vashakidze |
Director | April 7, 2026 |
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