ETSHIGH SIGNALFINANCIAL10-Q

ETS shows severe cash burn with cash dropping 95% to just $68K while operating cash flow worsened to -$1.2M, creating an immediate liquidity crisis.

The company's cash position has deteriorated to critically low levels of $68K from $1.3M, while operating cash flow nearly doubled its losses to -$1.2M, indicating severe working capital challenges. Despite reducing revenue by 59%, the company improved gross margins significantly and cut operating losses, but the dramatic cash burn rate suggests potential going concern issues if additional financing is not secured immediately.

Comparing 2026-04-13 vs 2025-10-14View on EDGAR →
FINANCIAL ANALYSIS

ETS experienced a dramatic deterioration in cash position (down 95% to $68K) and operating cash flow (worsened to -$1.2M) despite operational improvements including turning gross profit positive (+$157K vs. -$8K) and reducing net losses by 78% to -$110K. Revenue declined sharply by 59% to $805K, but the company successfully reduced both operating losses and total liabilities by roughly half. The overall picture signals a company that has improved operational efficiency but faces an immediate liquidity crisis that threatens its ability to continue operations without emergency financing.

FINANCIAL STATEMENT CHANGES
Gross Profit
P&L
+2173.9%
-$8K→$157K

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

Operating Cash Flow
Cash Flow
-95%
-$640K→-$1.2M

Operating cash flow fell 95% — earnings quality concerns; investigate working capital changes and non-cash items.

Cash & Equivalents
Balance Sheet
-94.8%
$1.3M→$68K

Cash declined 94.8% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Capital Expenditure
Cash Flow
-92%
$80K→$6K

Capex reduced 92% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Net Income
P&L
+77.9%
-$498K→-$110K

Net income grew 77.9% — bottom-line growth signals improving overall business health.

Revenue
P&L
-58.8%
$2.0M→$805K

Revenue declined 58.8% — significant demand weakness or market share loss warrants investigation.

Total Liabilities
Balance Sheet
-47.6%
$513K→$269K

Liabilities reduced 47.6% — deleveraging improves balance sheet strength and financial flexibility.

Current Liabilities
Balance Sheet
-47.6%
$513K→$269K

Current liabilities reduced — improved short-term financial position and working capital health.

Operating Income
P&L
+47.4%
-$585K→-$307K

Operating leverage kicking in — revenue growth outpacing cost growth, a hallmark of scaling businesses.

Accounts Receivable
Balance Sheet
+16.3%
$73K→$84K

Receivables grew 16.3% — monitor days sales outstanding for collection efficiency.

LANGUAGE CHANGES
NEW — 2026-04-13
PRIOR — 2025-10-14
ADDED
Common Stock Class A Class B Additional Total Common Common paid-in Accumulated Stockholders stock Amount stock Amount capital Deficit Equity Balance, November 30, 2025 12,550,005 $ 13 4,166,667 $ 4 $ 15,686,846 $ ( 2,494,996 ) $ 13,191,867 Net loss for the period ( 110,104 ) ( 110,104 ) Balance, February 28, 2026 12,550,005 $ 13 4,166,667 $ 4 $ 15,686,846 $ ( 2,605,100 ) $ 13,081,763 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
April 3, 2024 Delaware Parent Holding company Subsidiary of the parent: JAR Transportation Inc May 27, 2020 California 100 % Route business operator and provider of last-mile delivery services NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the U.S.
All inter-company balances and transactions are eliminated upon consolidation.
Principles of Consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries, which include the California-registered entities directly owned by the Company.
All transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation.
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REMOVED
April 3, 2024 Delaware Parent Holding company Subsidiary of the parent: JAR Transportation Inc May 27, 2020 California 100 % Route business operator and provider of last-mile delivery services Completion of the Initial Public Offering ( IPO ) On August 22, 2025, the Company closed its IPO of 3,800,000 shares of Class A common stock at a public offering price of $ 4.00 per share, for gross proceeds of approximately $ 15.2 million, before deducting underwriting discounts and offering expenses.
GAAP ) for interim financial information and pursuant to the rules and regulations of the U.S.
The unaudited condensed consolidated financial statements should be read in conjunction with the Company s consolidated financial statements and notes thereto for the fiscal year ended November 30, 2024 and 2023 included in the Company s Registration Statement on Form S-1.
In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary to make the unaudited condensed consolidated financial statements not misleading have been included.
Operating results for the interim period ended August 31, 2025 are not necessarily indicative of the results that may be expected for the fiscal year ended November 30, 2025.
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