Invech Holdings, Inc.

Invech Holdings, Inc. (IVHI) Annual Report: A Closer Look for Investors

Considering an investment in Invech Holdings, Inc.? This summary provides a clear overview of the company's past year, highlighting key financial details, strategic shifts, and significant risks. Use this information to make a well-informed decision.

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Business Overview (What the Company Does)

Invech Holdings, Inc., founded in 1998, has a history of significant business changes. The company previously explored internet technology, natural resources, and pharmaceuticals, but abandoned these operations by 2007. A major transformation occurred in January 2023, when Invech completely redefined its focus.

Today, Invech provides regulatory compliance and consulting services to other public companies, particularly microcap companies trading on OTC Markets. The company helps clients with essential SEC filings (such as 10-K and 10-Q), FINRA reporting, and public disclosures. This new business model capitalizes on the growing demand for compliance services among microcap public companies, largely driven by recent amendments to SEC Rule 15c2-11. As a public company itself, Invech also adheres to broader regulations like the Exchange Act and the Sarbanes-Oxley Act (SOX) for its own public reporting.

Financial Performance (Revenue, Profit, Year-over-Year Changes)

Despite its strategic pivot, Invech has faced substantial challenges in launching its new business. For the fiscal year ended December 31, 2025, the company reported no revenue and a net loss of approximately $500,000. This follows a similar performance in the fiscal year ended December 31, 2024, which also showed no revenue and a net loss of around $400,000. These figures clearly indicate that Invech is incurring significant operating expenses without generating any income from its new services.

Risk Factors (Key Risks)

Investors should be aware of several critical risks:

• No Revenue & Persistent Operating Losses: The company has not generated any income while consistently incurring losses. This makes sustained operations impossible without external funding.
• Insufficient Capital: Invech explicitly states it needs to raise at least $1 million to execute its business plan. Failure to secure this substantial funding could force the company to scale back or even cease operations entirely.
• "Going Concern" Warning: Auditors have issued a formal "going concern" statement, signaling a high risk of business failure. This makes it difficult for Invech to attract new investors or retain existing ones.
• Heavy Competition: The regulatory compliance market is crowded. Invech faces established law firms, accounting firms, and specialized consultants that possess greater resources and client bases. Invech will struggle to compete effectively.
• Zero Market Value for Common Stock: Perhaps the most alarming risk for retail investors is that, as of the last business day of the most recently completed second fiscal quarter, the aggregate market value of common stock held by non-affiliates was $0. This means no active public market or liquidity currently exists for these shares, making it virtually impossible for regular investors to buy or sell them. This effectively renders the stock untradable and without a readily determinable value.

Management Discussion (MD&A Highlights)

The most significant strategic development was the complete business pivot in January 2023, moving Invech into the growing regulatory compliance space. New leadership accompanied this shift, with Rhonda Keaveney appointed CEO, Director, Secretary, and Treasurer, bringing a fresh perspective.

In September 2023, Invech signed a consulting agreement with Invech Consulting Corporation (ICC) to market services and draft compliance documents. The company has not yet issued the shares intended as compensation for this agreement. Further solidifying this new direction, Small Cap Compliance, LLC, initially a custodian, became the sole holder of the company's controlling Preferred A Stock in March 2023. This move effectively gave Small Cap Compliance control and steered the company toward its current business model. This ownership and strategic alignment has remained consistent through 2023, 2024, and 2025.

The most critical challenges remain the complete absence of revenue and persistent operating losses for two consecutive fiscal years. The auditors' "going concern" warning presents a severe challenge, directly impacting investor confidence and the company's ability to secure future funding.

Financial Health (Debt, Cash, Liquidity)

Invech's financial health is extremely precarious. As of December 31, 2025, the company held a mere $10,000 in cash and reported an accumulated deficit of over $2 million from historical losses. This minimal cash balance is critically insufficient to cover ongoing operating expenses, which have consistently resulted in negative cash flow. The company also faces significant current liabilities from ongoing operating expenses, further straining its limited cash resources and contributing to its precarious financial position.

The company's independent auditors have issued a "going concern" warning, a serious red flag indicating significant doubt about Invech's ability to continue operations without securing substantial new funding. This suggests the company may be unable to meet its financial obligations or continue as a viable entity without immediate and significant capital infusion. The company reported no specific commitments or contingencies.

Future Outlook (Guidance, Strategy)

Invech's outlook remains highly uncertain. The company does not anticipate generating revenue until it further develops its business model and its client acquisition efforts succeed. Management acknowledges the critical need to raise a substantial amount of capital (estimated at $1 million or more) to fund operations and implement its business plan. There is no guarantee that Invech will successfully secure this funding, attract clients, or achieve profitability, making the future highly speculative.

Competitive Position

Invech aims to carve out a niche by focusing on microcap public companies, leveraging the increased demand for compliance services driven by recent regulatory changes. However, it faces stiff competition from more experienced and better-resourced firms, including specialized compliance consultants, law firms, and accounting firms. Invech's strategy relies on advertising, marketing, and client referrals to build a client base from scratch.