SportsQuest, Inc. Annual Report - How They Did This Year

I’ve put together this guide to help you understand how SportsQuest, Inc. (SPQS) performed this year. My goal is to translate complex filings into plain English so you can decide if this company belongs in your portfolio.

1. What does this company do?

SportsQuest has changed its focus many times. After years of managing sports events and golf tours, they pivoted in 2021 to become a franchise consulting business. Today, they operate a website (www.iefranchise.com) that connects people looking to buy franchises with companies selling them. They make money by charging brands to list on their site and earning commissions when a lead buys a franchise. On February 14, 2025, they moved their legal home base from Nevada to Wyoming to take advantage of friendlier business laws.

2. Financial Performance & Health

The company is currently struggling. For the year ending December 31, 2025, they lost $121,640. While this is an improvement over the previous year’s $227,443 loss, it was achieved through cost-cutting rather than sales growth.

The company’s financial health is extremely fragile. As of December 31, 2025, they held only $259 in cash against over $460,000 in debt. Because they do not have enough cash to cover their upcoming obligations, their auditors issued a "going concern" warning. This indicates serious doubt regarding the company’s ability to remain in business without an immediate infusion of capital.

3. Major Wins and Challenges

The company is in an early stage and has generated minimal revenue from its consulting business throughout 2025. To cover basic office costs and legal filings, they rely on high-interest loans and the issuance of additional shares. They now have 4.2 billion shares outstanding. This high share count means that individual ownership percentages are diluted, and the company currently operates without a profit.

4. Key Risks

If you are considering this investment, keep these red flags in mind:

• Going Concern: Auditors warn the company may not survive, as they lack the cash to fund their own operations.
• Liquidity: The stock trades on the OTC Pink Sheets, where there is little transparency and very low trading volume, making the price highly unpredictable.
• Lack of Revenue: Since 2021, the company has struggled to build a steady client base, and the business model remains unproven.
• No Insider Protections: The company lacks an audit committee and clear rules against insider trading, which increases the risk of poor oversight.

5. Future Outlook

The company’s future is very uncertain. Management intends to continue their current model, though they have not outlined a clear path or specific sales targets to reach profitability. Their reliance on debt and the constant issuance of new shares is an unsustainable strategy. Without a major partner or a significant injection of new cash, the company faces a high risk of running out of funds entirely.

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Final Thought for Investors: When looking at a company like SportsQuest, it is helpful to weigh the potential for a turnaround against the reality of their current financial position. With a "going concern" warning, extremely low cash reserves, and a history of unproven revenue, this investment carries a very high level of risk. Always consider whether the potential reward justifies the possibility of a total loss of capital.