PreAxia 10-K Earnings Report: Zane Spending Widens Net Loss
PreAxia Health Care Payment Systems reported no revenue and a $1.16 million net loss for fiscal 2026 as it built its Zane platform, with going-concern doubt.
The news: PreAxia Health Care Payment Systems Inc. (OTC Markets: PAXH) filed its Form 10-K on September 4 for the fiscal year ended May 31, 2026. The Dunedin, Florida-based company had no revenue in either year and reported a net loss of $1,161,471 and a net comprehensive loss of $1,163,312, compared with $82,010 and $79,782 in fiscal 2025. Its auditor and management both state that there is substantial doubt about its ability to continue as a going concern.
By the numbers:
- Revenue: $0 in fiscal 2026 and fiscal 2025
- Total expenses: $992,700, versus $152,124
- Research and development: about $308,000, versus $0
- Loss on debt settlement: $169,143, versus a $70,114 gain a year earlier
- Cash at May 31, 2026: $1,003
- Working capital deficit: $966,177, versus $2,314,169 a year earlier
- Shares outstanding: 48,314,782 as of August 26, 2026
Why it matters: This is an early-stage company reporting an annual earnings report with no income to compare. The expense jump traces to a change of business plan. PreAxia’s original business is health spending account payment processing, for which it earns a 10% commission on reimbursed eligible expenses, but the filing now centers on Zane, an AI-driven personal finance and banking platform developed through new Canadian and U.S. subsidiaries. The company says Zane Inc. CA normally has three to eight software developers under contract, and it contracted outside consultants, including one who acts as chief executive of the Zane subsidiaries at $12,000 a month.
The working capital deficit narrowed by more than half. The filing separately attributes the $169,143 settlement loss to converting debt into stock at prices below the market price.
The big picture: PreAxia’s funding need is spelled out. It estimates it needs about $1.8 million over the next twelve months, roughly $200,000 for creditors and $1.6 million to complete its business plan, and says it expects to raise that through private placements of equity or loans. Subsequent events listed in the filing include convertible notes issued to related parties of $100,000 and $150,000 on June 10, $50,000 on July 15 and $50,000 on August 26, plus the exercise of 3.6 million warrants by contractors on July 1.
The filing also records turnover among auditors. GreenGrowth CPAs resigned in October 2024 and Fruci & Associates resigned in December 2025, each with no reported disagreements. Sadler, Gibb & Associates was asked to resign on February 19, 2026 before completing any review or audit, after it began questioning prior-period reporting and the two sides could not reach an understanding. M&K CPAs was engaged on February 20, 2026.
What’s next: The next test is whether PreAxia can raise the capital it describes before its cash runs out. As a smaller reporting company, it is not required to provide risk factors in this filing, so the going-concern language and the funding discussion are the main guides to its position.
Prepared with AI assistance from public sources and reviewed under our editorial policy. Not investment advice.
