Alphega Innovations Corp Annual Report - A Deep Dive for Investors

Considering an investment in Alphega Innovations Corp? This summary cuts through the technical language of their latest annual report, offering a clear view of their operations, financial performance, and what it could mean for your investment.

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1. Business Overview (What the company does)

Alphega Innovations Corp, founded in July 2024, operates as a development-stage company within the rapidly evolving immersive technology industry. This means the company is in its very early phases, focusing on building its business around technologies like augmented reality (AR), virtual reality (VR), and Metaverse environments.

Alphega's ambitious vision involves developing AR/VR applications, potentially integrating artificial intelligence (AI), for a range of uses:

• Corporate wellness and mental health: Creating tools to support employee well-being.
• Employee training: Developing realistic VR simulations for professional development.
• Digital education: Exploring new immersive learning experiences.
• Market research and community engagement: Facilitating brand and community interaction in virtual spaces.

The company's initial strategy includes developing these applications, forming partnerships with businesses, educational institutions, and wellness centers for testing and adoption, and launching marketing efforts to build awareness and gather feedback.

2. Financial Performance (Revenue, profit, year-over-year changes)

Let's examine Alphega's financial situation for the year ended November 30, 2025, compared to its initial period (July 24, 2024, to November 30, 2024):

• Revenue (Money from sales): The company reported zero revenue for both periods. This is a critical point for investors, as Alphega Innovations Corp, as a development-stage company, has not yet started its main business operations or generated any sales income. It relies entirely on external funding.
• Operating Expenses (Costs to run the business): The company significantly increased these costs as it ramped up activities.
  • For the year ended November 30, 2025, expenses surged to $2,279,604. Alphega primarily allocated these funds to consulting services, legal and professional fees, marketing initiatives, and travel, all supporting corporate setup, business development, and exploring potential mergers and acquisitions (M&A).
  • In its initial period (July-November 2024), expenses were significantly lower at $47,945, mainly covering initial planning and setup.
• Net Loss (How much money they lost): With no revenue and rising expenses, the company reported substantial losses.
  • For the year ended November 30, 2025, Alphega incurred a net loss of $2,279,604.
  • For the initial period ended November 30, 2024, the net loss was $47,945.
• Accumulated Deficit: As of November 30, 2025, the company's total accumulated losses since inception reached $2,327,549. This figure represents the total amount of money the company has lost over its lifetime.

In essence, the past year saw Alphega spend substantially to establish itself, generating no corresponding income.

3. Risk Factors (Key risks)

The key risks for Alphega Innovations Corp include:

• "Going Concern" Uncertainty: The most immediate and severe risk is the auditor's explicit doubt about the company's ability to continue operating. This implies a high probability of bankruptcy or significant restructuring if Alphega cannot secure new funding.
• Complete Reliance on Future Funding: With no revenue, the company depends entirely on its ability to raise additional capital. There is no guarantee of success, and any new funding could heavily dilute existing shareholders' ownership.
• High Cash Burn Rate: The company spends over $2.2 million annually without any income, rapidly depleting its limited resources.
• Negative Equity and High Debt: Alphega's liabilities far outweigh its assets, indicating extreme financial weakness and potential insolvency.
• Significant Related Party Debt: A substantial portion of the company's liabilities, specifically $1.88 million, is owed to related parties. These obligations could impact future financing.
• Market Acceptance Risk: As a development-stage company, there is no guarantee that its immersive technology products will gain market traction or achieve widespread adoption.
• Technology Development Risk: Developing cutting-edge AR/VR/AI solutions is complex, costly, and subject to unforeseen technical challenges and delays.

4. Management's Discussion and Analysis (MD&A) Highlights

Management's discussion focuses on the company's operational progress as a development-stage entity and its critical financial condition.

• Results of Operations: As detailed in the Financial Performance section, the company has not generated any revenue since its inception. Operations for the year ended November 30, 2025, involved significant operating expenses totaling $2,279,604, primarily for corporate setup, business development, and exploring M&A opportunities. This resulted in a net loss of $2,279,604 for the year, contributing to an accumulated deficit of $2,327,549. Management acknowledges this substantial cash burn as part of its initial investment phase. Management indicates progress in laying foundational groundwork, including corporate setup, strategic planning, and initial business development.
• Liquidity and Capital Resources: The company's liquidity is severely constrained, with a cash balance of only $2,070 as of November 30, 2025. Management's primary focus for capital resources is securing additional funding through the sale of equity or debt securities, as the company's current resources are insufficient to meet its operational requirements. Alphega used $106,030 in cash for operating activities during the year, highlighting its dependence on financing activities, which provided $108,100 from sources including subscription receivables and related party loans.
• Going Concern Uncertainty: A critical highlight from management's perspective, reinforced by the independent auditors, is the substantial doubt about the company's ability to continue operating. This concern stems from recurring losses, negative cash flows from operations, and a significant accumulated deficit. Management recognizes that the company's future operations depend entirely on its ability to secure additional financing.
• Contractual Obligations and Related Party Transactions: A significant portion of the company's liabilities, specifically $1,881,592, is owed to related parties. Other liabilities include a short-term loan of $17,000 and additional related party loans totaling $32,000.

5. Financial Health (Debt, cash, liquidity)

Alphega Innovations Corp's financial health is extremely precarious:

• Cash on Hand: As of November 30, 2025, the company held a critically low cash balance of just $2,070. While an increase from zero the previous year, this amount is insufficient to cover ongoing operational expenses.
• Total Assets: The company's total assets (what it owns) were also very low at $2,070, indicating minimal physical or intangible assets.
• Current Liabilities (Short-term bills): This is a major concern. Current liabilities surged to $2,240,519 as of November 30, 2025, a massive increase from $17,945 the prior year.
  • A significant portion, $1,881,592, is owed to related parties.
  • Other liabilities include a short-term loan of $17,000 and additional loans from related parties totaling $32,000.
• Stockholders' Equity (Net worth): This is deeply negative, showing a deficit of $(2,238,449). This indicates that the company's liabilities far exceed its assets, effectively meaning it owes more than it owns.
• Cash Flow: The small amount of cash the company received this year came from financing activities, specifically $108,100 from sources like subscription receivables (money promised for shares), related party loans, and a short-term business loan. However, Alphega used $106,030 in cash for its operating activities, demonstrating a significant cash burn.

In summary, Alphega Innovations Corp possesses minimal cash, a substantial amount of short-term debt (especially to related parties), and a severely negative equity position. This dire financial state is the primary reason for the auditors' "going concern" warning, as the company lacks the resources to meet its current obligations and continue operations without an immediate and significant influx of new capital.

6. Future Outlook (Guidance, strategy)

Alphega Innovations Corp's future outlook depends almost entirely on its ability to raise additional capital. The company explicitly states it will "require additional capital to meet our long-term operating requirements" and plans to secure this through "the sale of equity or debt securities."

The outlook remains focused on the very early stages of building platforms, establishing partnerships, and initiating marketing efforts, without clear targets or success metrics. This indicates a highly uncertain path forward, heavily dependent on external financing.

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Investor Takeaway:

Alphega Innovations Corp represents an extremely high-risk, development-stage investment. While operating in an exciting and potentially transformative industry, the company currently has no revenue, significant losses, minimal cash, and substantial debt, particularly to related parties. The auditor's "going concern" warning is a critical red flag, indicating a high probability that the company may not be able to continue operations without immediate and substantial new funding. Investors should approach with extreme caution and recognize the significant speculative nature of this opportunity.