Blue Chip Capital Group Posts $17.8M Net Loss in Nine Months Ending February 2026

Blue Chip Capital Group Inc., a development-stage software company, reported a net loss of $17.8 million for the nine months ended February 28, 2026, compared to a $1.5 million loss in the same period a year earlier. The company generated no revenue during either period. Read more earnings reports.

For the three months ended February 28, 2026, the net loss totaled $3.7 million, up from $1.4 million in the prior-year quarter. Operating expenses surged to $17.2 million for the nine-month period, driven primarily by $10.2 million in inducement expenses and $5.9 million in stock-based compensation.

The company's stockholders' deficit widened to $1.7 million as of February 28, 2026, from $520,773 at May 31, 2025. Total liabilities climbed to $1.8 million from $609,756 over the same period, with convertible notes payable net of discount increasing to $1.08 million from $447,486.

Balance Sheet Deterioration

Cash on hand fell to zero by February 28, 2026, down from $393 as of May 31, 2025. The company carried an overdraft of $1,170 at the end of the reporting period. Accounts payable to related parties jumped to $268,360 from $105,000, while accrued interest payable rose to $126,978 from $22,030.

Notes payable increased to $320,000 from $35,000 during the nine-month period. The company's only significant asset remained a software application valued at $88,590, unchanged from the prior fiscal year-end.

Capital Raising Activity

Blue Chip Capital Group issued 11.5 million common shares during the nine months ended February 28, 2026, bringing total shares outstanding to 97.8 million, up from 86.3 million at May 31, 2025. Of the new shares, 6.97 million were issued in connection with convertible notes totaling $10.2 million in inducement value, and 4.55 million shares were issued for services valued at $5.8 million.

The company also granted warrants valued at $634,021 during the nine-month period. Additional paid-in capital increased to $24.4 million from $7.7 million at the prior fiscal year-end.

Expense Breakdown

For the three months ended February 28, 2026, general and administrative expenses totaled $355,019, compared to $236,219 in the year-ago quarter. Interest expense for the three-month period was $235,221, up from $90,825 a year earlier.

For the nine-month period, interest expense reached $650,969, compared to $90,825 in the prior year. General and administrative expenses totaled $1.1 million for the nine months ended February 28, 2026, versus $363,680 in the same period of the prior year.

Cash Flow

Net cash used in operating activities was $955,393 for the nine months ended February 28, 2026, compared to $317,993 in the prior-year period. The company raised $955,000 through note payable borrowings during the nine-month period, compared to $565,000 in borrowings and $1,000 from the sale of common stock in the prior year.

The company recorded non-cash charges including $546,021 in amortization of debt discount, compared to $85,106 in the prior-year period. Net loss per share for the nine months was $0.192, based on 93.3 million weighted average shares outstanding, compared to a loss of $0.02 per share on 81.1 million weighted average shares in the prior year.