Greenlit Ventures flags going-concern risk, $18K loss
GLVT remains pre-revenue with no cash, funded by convertible debt, and faces substantial doubt about its ability to continue as a going concern.
Filing Impact
(Moderate)
Filing Sentiment
(Neutral)
Form Type
10-Q
Rhea-AI Filing Summary
Greenlit Ventures Inc. (GLVT) reported minimal activity for the quarter ended March 31, 2026, remaining in development of its encryption-focused products ForceShield Mail and ForceShield VPN and generating no revenue. The company recorded a net loss of $18,496, slightly improved from a $20,703 loss a year earlier, driven mainly by lower professional fees.
The balance sheet is highly constrained, with no cash or other assets, total liabilities of $255,942 and a matching stockholders’ deficit of $255,942. Current liabilities were $58,218, producing a working capital deficit of the same amount. Greenlit is financed primarily through convertible notes totaling $197,724 (all maturing December 31, 2027) plus $38,154 of accrued interest.
Management states that recurring losses, minimal revenue since inception, and the accumulated deficit of $790,157 raise substantial doubt about the company’s ability to continue as a going concern. Continuation depends on securing additional funding and eventually generating cash from operations. Management also concludes that disclosure controls and procedures were not effective as of March 31, 2026, although no material changes to internal control over financial reporting occurred during the quarter.
Positive
- None.
Negative
- Going concern risk: minimal revenue, an accumulated deficit of $790,157, and continued losses lead management to state there is substantial doubt about the company’s ability to continue as a going concern.
- Zero cash and working capital deficit: the company reports $0 in cash and current assets and a working capital deficiency of $58,218 as of March 31, 2026.
- Leverage and accrued interest: financing relies on $197,724 of convertible notes plus $38,154 of accrued interest, all maturing December 31, 2027, with no operating cash flow.
- Weak controls: management concludes disclosure controls and procedures were not effective as of March 31, 2026, indicating control weaknesses around SEC reporting.
