UMeWorld Net Loss Widens to $138,727 in Q1 FY2026 on Revenue of $147,455
UMeWorld Inc., a Delaware-incorporated technology company, reported a net loss of $138,727 for the three months ending December 31, 2025, compared to a loss of $14,710 in the same quarter a year earlier. Revenue climbed to $147,455 from $195 in the prior-year period.
UMeWorld Inc. (OTC), a Delaware-incorporated technology company, reported a net loss of $138,727 for the three months ending December 31, 2025, compared to a net loss of $14,710 in the same quarter of fiscal 2025. Revenue for the quarter reached $147,455, a substantial increase from $195 in the year-earlier period. Read more earnings reports.
Operating expenses surged to $143,296 from $12,322 a year earlier, overwhelming the modest gross profit. The company posted an operating loss of $138,754 compared to an operating loss of $14,710 in the prior-year quarter.
Cost of revenue totaled $142,913 for the quarter, compared to $2,583 in the same period last year. Gross profit turned positive at $4,542 versus a gross loss of $2,388 a year earlier.
Balance Sheet Shifts
Total assets stood at $1.75 million as of December 31, 2025, up sharply from $170,409 at the end of the prior fiscal year on September 30, 2025. The increase was driven by a surge in inventory, which jumped to $1.68 million from $13,410 at the end of September.
Cash and restricted cash declined to $60,904 as of December 31, 2025, down from $154,353 three months earlier. The company held $62,275 in cash at the end of the prior year on December 31, 2024.
Total liabilities climbed to $2.21 million from $494,320 at the prior quarter end. Accounts payable spiked to $1.67 million from $2,395 three months earlier, reflecting the inventory buildup.
Negative Equity Deepens
Stockholders' equity remained negative at $462,599 as of December 31, 2025, compared to a deficit of $323,911 at the end of September. The company's retained deficit widened to $32.07 million from $31.93 million over the quarter.
Cash used in operations totaled $93,488 for the quarter, compared to $53,254 in the same period a year earlier. The company reported no cash from financing activities during the quarter, compared to an outflow of $6,280 a year earlier.
Financial Summary
| Metric | Q1 FY2026 (ended Dec 31, 2025) | Q1 FY2025 (ended Dec 31, 2024) |
|---|---|---|
| Total Revenue | $147,455 | $195 |
| Cost of Revenue | $142,913 | $2,583 |
| Gross Profit (Loss) | $4,542 | ($2,388) |
| Operating Expenses | $143,296 | $12,322 |
| Operating Loss | ($138,754) | ($14,710) |
| Net Loss | ($138,727) | ($14,710) |
| Cash from Operations | ($93,488) | ($53,254) |
The company had 114.8 million common shares outstanding as of December 31, 2025, unchanged from the end of the prior quarter. UMeWorld is classified as a non-accelerated filer and qualifies as a small business.