Summary of Financial Position and Results

Stimcell Energetics Inc. has released its unaudited condensed consolidated financial statements for the third quarter ended February 28, 2026. The company continues to face significant challenges, including an ongoing net loss, a substantial accumulated deficit, and a stockholders’ deficit. These issues raise critical questions about the company’s ability to continue as a going concern, which may be of considerable interest to current and prospective shareholders.

Key Financial Figures

• Net Loss for Q3 2026: \$90,566, compared to a net loss of \$140,537 for Q3 2025. This shows a narrowing of losses but the company remains unprofitable.
• Accumulated Deficit: The company’s accumulated deficit as of February 28, 2026, stands at (\$11,527,472), highlighting the ongoing financial pressure and lack of sustained profitability.
• Stockholders’ Deficit: Stockholders’ equity remains negative at (\$1,678,420) as of February 28, 2026, compared to (\$1,246,286) as of May 31, 2025. The deficit has increased, which points to continued erosion of shareholder value.
• Total Assets: \$34,520 as of February 28, 2026. This very low asset base underlines significant liquidity and operational risks.
• Shares Outstanding: 20,891,272 common shares as of February 28, 2026, up from 20,141,272 as of May 31, 2025, reflecting new share issuances for services.
• Loss Per Share: Basic and diluted loss per share for the quarter was \$0.00, compared to \$0.01 for the prior year’s comparable period. For the nine months, loss per share was \$0.03.

Going Concern Warning

Major Red Flag for Investors: The company’s financial statements have been prepared on a going concern basis, but management explicitly states that continued operations depend on securing additional financing and ultimately achieving profitability. If the company cannot secure funding or improve its operations, there is substantial doubt about its ability to continue as a going concern. This is a significant risk factor and may affect share value negatively if not addressed.

Share Issuances and Capital Structure

• Share Issuance for Services: During the nine months ended February 28, 2026, Stimcell issued 750,000 shares (375,000 in each of two tranches) for professional services, including investor relations fees. The value assigned to these services was \$250,000 in non-cash expenses. While this provided some temporary liquidity, it has also diluted existing shareholders.
• Stockholder Deficit Deepening: Despite these share issuances, the company’s net deficit has worsened, indicating ongoing funding and operational challenges.

Related Party Transactions

• Outstanding Related Party Liabilities: As of February 28, 2026, the company owed \$5,617 to its CFO and an additional \$8,778 as of May 31, 2025, indicating ongoing reliance on management and directors for funding.
• Management Fees: In the nine months ended February 28, 2026, the company incurred management fees of \$67,500 to its CEO and President, highlighting continued cash outflows for executive compensation despite negative results.

Cash Flow and Liquidity

• Operating Cash Flow: The primary use of cash continues to be operating expenses and professional fees, with minimal cash inflows from operations.
• Financing Activities: The company has relied on proceeds from notes due to related parties to support its operations, underlining its inability to generate sufficient cash flow internally or from external investors.
• Foreign Currency Impact: The effect of exchange rates on cash for the period was minimal.

Potential Price-Sensitive Issues for Shareholders

• Going Concern Doubt: The explicit warning regarding the company’s ability to continue as a going concern is highly price-sensitive and negative for shareholder sentiment.
• Continued Losses and Deficit: The ongoing net losses and deepening stockholders’ deficit increase the risk of further dilution or even insolvency if new financing cannot be secured.
• Reliance on Related Parties: Continued dependency on insider loans and related party transactions highlights funding difficulties, which may alarm investors looking for sustainable, arms-length operations.
• Share Dilution: Recent share issuances for services add to dilution risk, potentially reducing the value of existing shares further unless accompanied by improved operational performance.

Conclusion

Stimcell Energetics Inc. remains in a precarious financial position, with a significant accumulated deficit, ongoing losses, deepening stockholders’ deficit, and explicit warnings regarding its ability to continue as a going concern. The company’s reliance on share-based payments for services and related party funding, combined with continued share dilution and negative cash flows, presents substantial risks to shareholders and may materially affect share value. Unless the company can secure additional financing and deliver a turnaround in operating results, the risk of further declines in share value or even insolvency remains significant.