Hawkeye Systems, Inc. reported its financial results for the three months ended September 30, 2024, revealing a net loss of $156,720, a decrease from a net loss of $214,247 in the same period of the previous year. The company has not generated any revenue or incurred any cost of sales during both Q3 2024 and Q3 2023. Operating expenses significantly decreased to $95,546 from $168,841 year-over-year, with general and administrative expenses also declining from $21,594 to $8,438.

As of September 30, 2024, Hawkeye's total assets increased to $14,307, up from $2,500 as of June 30, 2024. Current assets also rose, primarily due to a cash balance of $7, compared to no cash reported in the previous quarter. However, total liabilities increased to $2,775,054 from $2,606,527, contributing to a total stockholders' deficit of $(2,760,747), which widened from $(2,604,027) in the prior quarter.

The company’s cash position at the end of the reporting period was notably lower than the $50,296 reported at the end of Q3 2023. Net cash used in operating activities improved to $(55,593) from $(68,565) year-over-year, while financing activities generated $55,600 in Q3 2024, a significant drop from $450,000 in the same quarter of 2023.

Hawkeye Systems has shifted its strategic focus from pandemic management products to seeking investment opportunities in diversified industries, including affordable housing and technology applications for climate change mitigation. The company has been actively liquidating its PPE stock and developing a business plan for future investments.

Management has indicated that additional capital will be necessary to sustain operations, with plans to raise funds through equity offerings and related party advances. However, there are no guarantees for the continuation of these advances, and the company has no current lines of credit or bank financing arrangements.

The company’s accumulated deficit reached approximately $12,843,924 as of September 30, 2024, raising concerns about its ability to continue as a going concern. Management has acknowledged material weaknesses in internal controls over financial reporting, citing a lack of segregation of duties and insufficient operational controls due to a small management structure. No significant changes in internal controls were reported during the quarter.