| Line Item | 2026-05-31 | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $8K | -60.5% | -18.5% |
| Cost of Revenue | $38K | — | — |
| Gross Profit | $8K | -60.5% | -18.5% |
| SG&A Expense | $29K | -51.1% | -29.3% |
| Operating Income | -$21K | +46.4% | +32.6% |
| Interest Expense | $8K | +213.7% | — |
| Net Income | -$24K |
| Line Item | 2026-05-31 | Q/Q | Y/Y |
|---|---|---|---|
| Cash & Equivalents | $506 | -55.5% | -88.4% |
| Current Assets | $19K | -38.6% | +346.8% |
| Total Assets | $108K | -16.3% | -27.8% |
| Total Liabilities | $248K | +0.2% | +15.3% |
| Stockholders' Equity | -$141K | -18.0% | -112.4% |
| Line Item | 2026-05-31 | Q/Q | Y/Y |
|---|---|---|---|
| Operating Cash Flow | -$54K | — | — |
| Financing Cash Flow | $47K | — | — |
Business Overview
E-Smart Corp. is a digital platform connecting tattoo artists and clients, offering artist profile showcases and an AI-powered tattoo design API service on a subscription basis. The company is in early growth stages with nine-month revenues of $37,710 (up from $20,101 in prior year), though it remains unprofitable with a net loss of $88,821 and accumulated deficit of $199,070 as of May 31, 2026. Management is pursuing monetization through API subscriptions, premium features, and strategic partnerships while planning marketing expansion through social media and online advertising.
Segment Performance
The company operates as a single business segment. Nine-month revenues for the period ended May 31, 2026 were $37,710, representing an 87.5% increase compared to $20,101 in the nine months ended May 31, 2025. However, net loss increased to $88,821 from $71,952, and general and administrative expenses rose to $118,744 from $84,770 year-over-year. Three-month revenue for the quarter ended May 31, 2026 was $7,950 versus $9,756 in the prior-year quarter, representing a 18.5% decrease. Three-month net loss was $24,322 versus $34,423 in the prior-year quarter.
Forward Guidance
Management plans to "finance operational expenses for the next twelve months by using available cash on hand, as well as loans from directors and/or a private offering of Common Stock." The company "intends to position itself so that it will be able to raise additional funds through the capital markets." Forward-looking language includes plans to "utilize social media marketing, online advertising channels, and strategic partnerships with industry influencers" and that "[d]epending on available resources, [the company] may engage advertising agencies to accelerate [its] marketing efforts." However, management explicitly states "there are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going concern."
| +29.3% |
| EPS (Diluted) | -$0.01 | +0.0% | +0.0% |
Key Risk Factors
Substantial doubt exists about the company's ability to continue as a going concern given current losses and lack of stabilized revenue sources sufficient to cover operating costs. The company is heavily dependent on related party financing (CEO loan of $248,227) and has minimal cash reserves ($506 as of May 31, 2026), requiring additional capital raises to fund operations. The business is highly concentrated with revenue from a single customer during Q3 2026, creating customer concentration risk. The company has accumulated deficits since inception and negative stockholders' equity of $140,742, indicating limited financial flexibility. Limited intellectual property protection (no patents or trademarks), early-stage operations, and execution risk on monetization strategy and user acquisition also present significant challenges.