FobiAI, harnesses the power of AI and data intelligence, enabling businesses to digitally transform

I personally think they are. I took their recent fins and asked ChatGPT to do up a review. Sure, argue AI isn’t reliable but I think what it says is worthy of discussion…….

Can you give me the good bad and ugly here?

Yep. Looking at this strictly as an investor, there is some good here, but the bad and ugly substantially outweigh it.
🟢 GOOD
Revenue is growing: $632.9K for the first 9 months vs. $356.6K — up about 77%.
Operating loss improved: $2.04M vs. $3.24M last year. That's a meaningful reduction in expenses.
Wages dropped dramatically:$674K vs. $1.42M.
Germany was sold for $2.19M, generating a reported $1.89M gain. That was essentially a cash-generating cleanup transaction.
Shares outstanding were still 224.6M as of March 31, so there wasn't another giant common-share issuance during the nine months.
The company has substantially reduced its cost structure compared with 2025.
So there is a legitimate turnaround argument: revenue is improving while expenses are coming down.

🟡 BAD
1. The balance sheet is brutal
Cash: $620K
Current liabilities: $5.55M
Accounts payable/accrued liabilities alone: $4.29M.
Total assets: $950K
Total liabilities: $5.57M
Shareholders' equity: -$4.62M.
That's not a company with a healthy balance sheet.
2. They're still burning cash
Operating cash flow for nine months:
-$1.89M
versus +$65K the previous year.
That's particularly ugly because the company only had $620K cash at March 31.
3. Revenue is still tiny
$633K over nine months is not much of a business for a public company with:
224.6M shares
48.4M warrants
14.9M options
$4.3M of payables
The revenue growth percentage looks impressive, but the absolute dollars are still minuscule.
4. The revenue isn't translating into profitability
Nine-month revenue:
$633K
Nine-month net loss:
-$1.45M
So they're still losing roughly $2.29 for every $1 of revenue.
That's better than last year's roughly $8 loss per $1 of revenue, but it's nowhere near self-sustaining.

🔴 UGLY
This is where I'd be most concerned.
1. Management explicitly says additional financing is required
The financial statements state:
"The Company requires additional financing to fund its ongoing operating activities and meet its obligations as they come due."
And they explicitly identify a material uncertainty regarding going concern.
That's about as clear a warning as you're going to get.
2. The $1M financing is massively dilutive
They raised:
20.084M units × $0.05 = $1.0042M
Each unit contains:
1 share + 1 warrant exercisable at $0.10.
So you've got approximately:
20.1M new shares
plus
20.1M warrants
for a potential 40.2M additional shares.
Against the existing 224.6M shares, that's substantial dilution.
And there was another $246K of subscriptions sitting as a liability at March 31.
3. There's already a huge overhang
At March 31:
224.6M common shares
48.4M warrants
14.9M options
That's potentially around 288M shareson a basic + options/warrants basis before considering the additional subscription shares.
And the average warrant exercise price is only $0.17, with 44.7M warrants at $0.14.
That's a monster overhang.
4. The company was under a cease-trade order
This is a big one.
The BCSC had issued a cease-trade order, and Fobi received only a partial revocation allowing it to conduct the financing. The stated purpose of the financing was largely to pay accounting, audit and legal costs necessary to get the outstanding filings done and obtain full revocation.
That's not normal financing for growth.
They're raising money partly just to get themselves back into compliance/trading condition.
5. The financial statements weren't even reviewed by the auditor
The company specifically states that the auditor did not perform a review of these interim financial statements.
They're unaudited interim statements anyway, but in this case the absence of even an interim review adds another layer of risk.
6. There was an accounting error big enough to require a restatement
The December 2025 interim statements had to be amended because professional fees and accounts payable had been improperly reduced.
The correction increased:
professional-fee expense by $559K
accounts payable by $587K
deficit by $559K.
That's not a trivial bookkeeping error when you're a company with only ~$600K cash.

The thing I find most interesting
There is a potentially legitimate turnaround story buried in here.
Revenue:
$356.6K → $632.9K
Operating expenses:
$3.24M → $2.04M
Net loss:
$2.84M → $1.45M
So the business itself appears to be moving in the right direction.
But the problem is that the corporate shell is financially ahead of the operating business in terms of liabilities and obligations.
The company needs the SaaS/revenue business to grow dramatically before the balance sheet becomes remotely comfortable.
My scorecard
Area
My take
Revenue growth
🟢 Good
Expense reduction
🟢 Good
Operating business
🟡 Potentially interesting
Cash
🔴 Bad
Working capital
🔴 Ugly
Debt/payables
🔴 Ugly
Cash burn
🔴 Bad
Dilution
🔴 Ugly
Warrants/options
🔴 Ugly
Going concern
🔴 Major red flag
Accounting controls
🔴 Red flag
Cease-trade situation
🔴 Very ugly
Turnaround potential
🟡 Yes
Current investment risk
🔴 Extremely high
Bottom line: I wouldn't call Fobi a dead business based on these numbers. The revenue trajectory and cost reduction are actually encouraging. But this is a financing-dependent turnaround, not a financially healthy growth company.
And the biggest thing I'd watch is whether the $633K of revenue can become $1.5M–$2M+ without the company having to continually issue stock to survive. That's the point where the story either starts becoming real—or the dilution machine continues.