Mercalot Inc.
AI Executive Summary
AI-powered analysis of 10-K filing content
Mercalot Inc. is an early-stage shell-like company operating the 'SafeDeal Connect' marketplace app with negligible revenue ($30,420 in FY2026 vs $3,900 in FY2025) and a customer base of only eight named individuals/entities. Despite a smaller net loss year-over-year, the company's working capital deficit widened to $27,020, cash reserves declined, and financing activity collapsed from $35,104 to just $99, raising significant going-concern and liquidity concerns. Multiple material weaknesses in internal controls (no audit committee, poor cash segregation, no IT controls) further compound investor risk.
Red Flags Detected (8)
Working capital deficit increased from $17,736 to $27,020 year-over-year
Cash from financing activities collapsed from $35,104 (FY2025) to $99 (FY2026), indicating inability to raise new capital
Extremely small and concentrated customer base (only 8 named customers/individuals generating all revenue)
5 more red flags detected
Key Takeaways
Company remains an early-stage, thinly capitalized venture with minimal revenue diversification
Revenue growth (8x YoY) is from a very low base and concentrated among a handful of customers
3 more takeaways
Filing Overview
What This Means
High Risk Filing: This company is showing signs of financial stress or significant operational challenges.
Deteriorating Trend: Conditions are worsening compared to previous filings. This may create opportunities for service providers.
Annual Report: Comprehensive filing covering the full fiscal year with audited financial statements.