T-REX Acquisition Corp. (TRXA) Reports December 2025 Quarterly Results: Key Highlights and Critical Investor Insights

PLANTATION, FL – T-REX Acquisition Corp. (“TRXA” or the “Company”) has released its unaudited consolidated financial statements for the second quarter and six months ended December 31, 2025. The following is a detailed summary and analysis of the Company’s performance, with a particular focus on factors that may be price sensitive and relevant to shareholders.

Key Highlights

• Cash Position: The Company’s cash and cash equivalents dropped sharply to \$12,759 as of December 31, 2025, from \$82,232 as of June 30, 2025. This significant decline in liquidity is a red flag and may raise questions about the Company’s ability to fund ongoing operations without further financing or asset sales.
• Total Assets: Total assets fell to \$680,255 at December 31, 2025, from \$747,662 at June 30, 2025, indicating a contraction in the Company’s asset base.
• Working Capital Deficit and Shareholder Equity: The Company reports a stockholders’ deficit of \$1,013,037 as of December 31, 2025, worsening from a deficit of \$1,089,187 as of June 30, 2025. This persistent deficit signals ongoing financial stress and may impact stock value.
• Liabilities – Related Parties:
  • Accrued compensation due to related parties is \$708,973 (up from \$508,163).
  • Notes payable to related parties increased to \$364,366 (from \$304,366).
  • Interest payable to related parties rose to \$28,028 (from \$9,391).
  • Advances from related parties stand at \$19,256.

  The Company is highly reliant on related party funding, which creates risks regarding independence and liquidity.

• Common Stock:
  • Shares outstanding as of February 23, 2026: 27,154,508 (up from 25,067,479 as of June 30, 2025).
  • Significant dilution has occurred during the period, with over 2 million new shares issued.
  • Shareholders should note the potential for further dilution if this trend continues.
• Preferred Stock: As of December 31, 2025, there are 2,475 Series A Preferred shares outstanding (up from zero at June 30, 2025), with a par value of \$0.001.
• Stock Subscription Payable: This liability was reduced to zero by December 31, 2025 (from \$319,018 at June 30, 2025), which may reflect the issuance of new shares or settlement of previous commitments.

Operating Results

• Revenue:
  • Mining revenue for the quarter ended December 31, 2025, was \$2,240, compared to zero in the prior year period.
  • Total revenues for the six months ended December 31, 2025, were negligible, showing little or no improvement from the prior year.
  • Low revenue generation is concerning, given the Company’s ongoing costs and expanding share base.
• Expenses:
  • Professional Fees: \$126,465 for the six months ended December 31, 2025 (up from \$52,503).
  • Management and Consulting Fees: Data for the current period was not explicitly stated, but prior six months were \$309,503.
  • Share-based Compensation Expense: \$86,671 for the six months ended December 31, 2025 (up from \$149,716 in the prior year).
• Unrealized Gains on Bitcoin Holdings: The Company reported an unrealized gain of \$1,226 for the six months ended December 31, 2025, reflecting exposure to cryptocurrency price movements. Given the small size relative to overall losses, this is not currently a material positive.

Capital Structure and Liquidity Concerns

• Current liabilities are heavily skewed toward related party obligations and far exceed current assets, indicating a severe liquidity crunch.
• Additional Paid-in Capital rose significantly to \$9,853,732 (from \$8,175,305), primarily due to share issues and possibly conversions of debt or subscription payables. This is a double-edged sword: while it supports capital base, it also dilutes shareholders.
• Deferred Stock Compensation was removed from equity (previously \$(26,666)), which may relate to vesting or forfeiture of awards.

Potential Price-Sensitive Matters for Shareholders

• Ongoing Losses and Negative Equity: The Company remains deeply in the red, with negative equity and ongoing losses. This is a major risk factor and may drive share price down unless there is a clear path to profitability or recapitalization.
• Liquidity Risk: The cash balance is dangerously low relative to liabilities. There is a risk of default or the need for additional, possibly dilutive, capital raises.
• Related Party Reliance: The Company’s reliance on related party loans and advances may be viewed negatively by independent investors, raising questions about governance and sustainability.
• Share Dilution: The increase of over 2 million common shares in six months is material dilution for existing shareholders. Any further equity issuance will likely continue to pressure the stock.
• Minimal Revenue Generation: Despite being in the “crypto assets/mining” space, the Company’s revenues remain negligible, calling into question the viability of its business model.

Summary Table – Key Financial Metrics

Conclusion

TRXA faces severe financial challenges including negative equity, liquidity risks, dependence on related parties for funding, and ongoing share dilution. While the Company generated some mining revenue in the latest period, it remains minimal and insufficient to cover expenses. Investors should be aware of the high risk of further dilution, continued losses, and the potential need for significant restructuring or recapitalization.

There is no indication in this report of a turnaround, major new contracts, or other positive catalysts. The main news is the worsening financial condition, which is highly price sensitive and likely to negatively impact shareholder value.

Disclaimer: This summary is for informational purposes only and does not constitute investment advice. Investors should perform their own due diligence before making any investment decisions. The Company’s filings contain risks that could result in significant losses, including total loss of capital.

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