APPlife Digital Solutions, Inc.

ALDS: 10-K · periodic report

APPlife Digital Solutions (OTC: ALDS) reported fiscal 2026 revenue of $2,297,200, up roughly 7x from $315,130, but a net loss of $4,673,550 including a full $2,697,728 goodwill impairment on its AP4L acquisition. The auditor's report expresses substantial doubt about the company's ability to continue as a going concern: cash was only $21,725 at June 30, 2026, alongside a $4,012,622 working capital deficit, an $8,295,331 accumulated deficit, and defaults under notes to Labrys Fund II, C/M Capital Master Fund, and a credit card facility from the CEO. The company effected a 1-for-250 reverse split in June 2026 and cut authorized shares to 20 million, while outstanding variable-rate convertible notes carrying 35% discount conversion features and full-ratchet resets create severe 'death spiral' dilution risk. Management also disclosed material weaknesses in internal controls and multiple related-party transactions, including a consulting deal with the CEO's son.

SEC 10-K•18d ago

ALDS: NT 10-K · late filing

APPlife Digital Solutions filed a Form 12b-25 NT 10-K on September 28, 2026, notifying the SEC it could not file its Form 10-K for fiscal year ended June 30, 2026 on time. The delay stems from the company's first full year consolidating Sugar Auto Parts after a reverse acquisition, complex convertible note derivative valuations, and a 1-for-250 reverse stock split; it expects to file within the 15-day grace period. Preliminary unaudited results show revenue of roughly $2.3 million versus $0.3 million in the prior shorter period, with the net loss widening to approximately $4.7 million from $1.0 million. The larger loss is driven mainly by a non-cash goodwill impairment of about $2.7 million, higher operating expenses, and convertible note finance costs, partly offset by a ~$1.0 million derivative fair-value gain. The combination of a late filing, a substantial goodwill impairment, and an extreme 1-for-250 reverse split points to elevated accounting complexity and financial distress risk pending the completed audit.

SEC NT 10-K•28d ago

ALDS: 8-K · debt financing

On August 5, 2026, APPlife Digital Solutions entered into a securities purchase agreement with an accredited investor under which it issued a $170,000 6% convertible redeemable promissory note maturing August 5, 2027. The note carried a $17,000 original issue discount, so the company received a purchase price of $153,000 (with a further $6,000 deducted for the buyer's legal expenses). The note becomes convertible six months after issuance at 65% of the lowest trading price of the common stock over the prior 20 trading days — a deeply discounted 'toxic' structure that deepens to 55% during any DTC chill and to 50% upon an event of default. The company must reserve 16,325,747 shares (with a 5x minimum coverage requirement) and may prepay at premiums of 105% to 140% during the first 180 days. The filing's Schedule 3(e) discloses at least seven existing convertible note agreements, including ClearThink Capital Partners, Monroe Street Capital Partners, Proactive Capital, and C/M Capital Master Fund LP, indicating a serial convertible financing pattern. For common shareholders, the combination of deep-discount conversion mechanics, per-conversion fee deductions, and escalating default penalties points to substantial dilution risk despite the small absolute size of the raise.

SEC 8-K•2mo ago

APPlife Digital Solutions, Inc. Announces Reverse Stock Split

APPlife Digital Solutions announced a 1-for-250 reverse stock split of its common stock, effective June 12, 2026. The extreme ratio signals significant listing compliance pressure, as the company seeks to improve marketability and liquidity on the OTC Markets. The ticker will temporarily trade as 'ALDSD' for 20 business days to indicate the split before reverting to 'ALDS'.

•4mo ago

ALDS: 10-Q · periodic report

APPlife Digital Solutions Inc. reported a net loss of $1,345,106 for the nine months ended March 31, 2026. This loss was primarily driven by operating expenses of $1,746,130 and finance expenses of $500,868. The company's revenue for the same period was $2,075,142, with costs of goods sold amounting to $1,613,140, resulting in a gross margin of $462,002. The company's cash balance as of March 31, 2026, was $16,305, and it has a working capital deficit of $3,543,173. The company is heavily dependent on additional equity and debt financing to fund its operations and implement its business plan. If management fails to secure sufficient capital, the company may have to reduce its business activities or curtail its operations. APPlife Digital Solutions Inc. has a significant amount of convertible promissory notes and derivative liabilities, with total liabilities of $4,829,686 as of March 31, 2026. The company's current liabilities include $1,634,079 of assumed liabilities, $797,765 of derivative liabilities, and $485,118 in convertible promissory notes, net of discounts. The company's management concluded that the disclosure controls and procedures were not effective due to material weaknesses in internal controls over financial reporting. This raises concerns about the accuracy and reliability of the financial statements and the company's ability to manage its financial reporting processes effectively.

SEC 10-Q•5mo ago