OTC:AAPI
Apple iSports Group, Inc.
AAPI is a capital-intensive OTC sports group facing severe liquidity challenges with zero revenue and deep retained earnings deficits.
Key Metrics
Investment Thesis
Bull Case
AAPI offers speculative upside potential for investors who believe the company can pivot to profitable sports media operations or secure strategic partnerships. The stock may attract attention due to its unique non-operating income sources and recent cash position improvement from $673 to $42,167.
Bear Case
The stock is a high-risk investment with no revenue, negative net income for two consecutive years, and a working capital deficit. Investors face extreme dilution risks as the company relies on share issuances totaling $1.3M to cover operational shortfalls while liabilities exceed assets by over $4M.
About Apple iSports Group, Inc.
Apple iSports Group (AAPI) is a specialized sports entertainment entity operating primarily through equity financing activities rather than traditional product revenue streams. The company serves the broader sports media and event hosting markets but reports significant non-operating income and substantial accumulated deficits. Key financial metrics indicate heavy reliance on capital raising to fund operations amid zero reported gross profit.
Analysis
Management Discussion
The company reported a net loss of $2.8M in 2024 following a $3.7M gain in 2023, primarily driven by zero revenue and $3.4M in operating expenses. Cash flow from operations turned negative at $2.4M while financing activities provided $2.5M, highlighting an unsustainable burn rate funded entirely by capital markets.
Industry Overview
The sports entertainment industry is highly competitive with dominant players controlling media rights and event sponsorships. Smaller entities struggle without significant revenue streams, making AAPI's lack of gross profit a critical structural weakness in a capital-efficient market.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 |
|---|---|---|
| Revenue | $0 | $0 |
| Cost of Revenue | $0 | $0 |
| Gross Profit | $0 | $0 |
| Operating Expenses | $3.6M | $3.4M |
| Operating Income | $-3.6M | $-3.4M |
| R&D | $664.0K | $0 |
| G&A | $810.1K | $724.0K |
| Other OpEx | $2.1M | $2.7M |
| Non-Operating Income | $-75.2K | $598.1K |
| Interest Expense | $60.7K | $92.2K |
| Pre-Tax Income | $-3.7M | $-2.8M |
| Income Tax | $0 | $0 |
| Continuing Ops | $-3.7M | $-2.8M |
| Discontinued Ops | $7.4M | $0 |
| Net Income | $3.7M | $-2.8M |
| Minority Interest | $0 | $0 |
| Net to Common | $3.7M | $-2.8M |
| Metric | 2023 | 2024 |
|---|---|---|
| Current Assets | $69.4K | $101.8K |
| Marketable Securities | $100 | $100 |
| Prepaid Expenses | — | $11.4K |
| Other Current Assets | $69.3K | $90.2K |
| Long-Term Assets | $0 | $170.3K |
| Total Assets | $69.4K | $272.1K |
| Current Liabilities | $5.4M | $6.6M |
| Long-Term Liabilities | $0 | $0 |
| Total Liabilities | $5.4M | $6.6M |
| Shareholders' Equity | $-5.3M | $-6.4M |
| Paid-In Capital | $5.2M | $6.6M |
| Retained Earnings | $-10.4M | $-13.3M |
| AOCI | $-60.1K | $354.2K |
| Total L&E | $69.4K | $272.1K |
| Metric | 2023 | 2024 |
|---|---|---|
| Net Income (CFO) | $3.7M | $-2.8M |
| Non-Cash Adjustments | $-7.4M | $-777.8K |
| Working Capital Changes | $2.3M | $1.2M |
| Cash from Operations | $-1.5M | $-2.4M |
| Cash from Investing | $-21.6K | $-80.0K |
| Cash from Financing | $1.5M | $2.5M |
| FX Effect | $0 | $-30.8K |
| Net Change in Cash | $-19.2K | $41.5K |
| Beginning Cash | $19.9K | $673 |
| Ending Cash | $673 | $42.2K |
Frequently Asked Questions
How does Apple iSports Group, Inc. make money?
Equity Financing & Capital Markets, Sports Media Licensing, Event Hosting & Operations
What are the main risks for AAPI?
Severe liquidity crisis with $2.4M operating cash outflow and $6.6M current liabilities against minimal assets, zero revenue generation capability, massive retained earnings deficit of $13.3M, heavy dependence on dilutive share issuances for survival.
What is AAPI's competitive advantage?
Access to niche sports markets not served by major leagues, flexible equity financing structure via share issuances, potential for non-operating income diversification.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.