10-Q — Apple iSports Group, Inc.

Apple iSports Group, Inc. filed its Q3 2025 10-Q report showing significant financial challenges as the company develops its digital sports betting and gaming platform. The company reported no revenue for both the three and nine months ended September 30, 2025, while incurring substantial losses primarily due to compensation and financing activities. For the nine months ended September 30, 2025, the company posted a net loss of $8.25 million compared to $2.01 million in the prior year period, representing a 310% increase. Operating expenses totaled $6.07 million, up 133% from $2.60 million in 2024, with the largest component being consulting and professional fees of $5.56 million. This dramatic increase was primarily attributed to $4.37 million in stock-based compensation related to newly granted stock options under both US and Australian employee stock plans. The company granted 12 million options under its Australian plan and 8.275 million options under its US plan, both with exercise prices of $0.25 per share. Additionally, the company incurred $2.30 million in issuance costs related to an equity contract signed in August 2025 with LDA Capital Group, allowing the company to draw down up to $25 million in funding. From a balance sheet perspective, Apple iSports had only $9,304 in cash and cash equivalents as of September 30, 2025, down from $42,167 at year-end 2024. The company maintains a working capital deficit of $6.07 million and total stockholders' deficit of $5.75 million. Related party loans totaled $2.02 million, down from $3.60 million due to the conversion of $2.81 million in related party debt to equity in January 2025, resulting in the issuance of 11.23 million shares to Cres Discretionary Trust No. 2. The company is pursuing licensing opportunities, having applied for an Online Bookmaking License in Australia through the Northern Territory Racing Commission and holding a license in North Dakota as an ADW provider. Several strategic initiatives were mentioned, including entering into agreements for customer database acquisitions and infrastructure purchases, though one significant transaction (AmeriCrew Inc.) was terminated in July 2025. Management acknowledged substantial doubt about the company's ability to continue as a going concern, citing dependence on additional debt or equity financing and continued support from related parties to fund operations and platform development.