Hawkeye Systems Reports Losses Amid Pivot to Cybersecurity with New Venture Rift Cyber LLC

Company Overview: Hawkeye Systems, Inc. (OTCBB: HWKE) is a Nevada corporation focusing on investment opportunities, particularly in cybersecurity. As of March 31, 2025, the company has spun off a new venture called Rift Cyber LLC, aimed at developing technology products intersecting physical and digital security.

Income Statement Analysis:

• Operating Expenses: Total operating expenses for the three months ended March 31, 2025, were $40,082, comparable to $40,224 in the same period of the previous year. For the nine months, expenses dropped from $340,535 in 2024 to $160,334 in 2025, reflecting a decrease in professional fees and management compensation.
• Net Loss: Hawkeye reported a net loss of $102,987 for the three months and $347,383 for the nine months ending March 31, 2025, compared to $99,470 and $486,970 in 2024, respectively. The losses stem from high operating and interest expenses.
• No Revenue: The company had no operating revenue for both periods, highlighting a dependency on external funding and capital raises.

Key Financial Statistics:

• Net Loss (Q3 2025): $102,987
• Net Loss (Nine Months 2025): $347,383
• Operating Expenses (Q3 2025): $40,082
• Cash at end of Q3 2025: $24,994
• Accumulated Deficit: $13,034,586

Positive Aspects:

• Reduction in total operating expenses compared to the previous year indicates a focus on cost management.
• Formation of Rift Cyber LLC represents a strategic pivot into the growing cybersecurity market, which could offer growth opportunities in the future.
• Following a significant debt consolidation agreement, the company has streamlined its financial obligations, which may help manage cash flow better.

Negative Aspects:

• Continued net losses without revenue highlight ongoing financial instability.
• The company's accumulated deficit raises concerns regarding its ability to sustain operations without additional funding.
• Insufficient cash reserves to cover operational expenses for the next 12 months increase the risk of going concern issues.

Outlook: The future of Hawkeye Systems depends heavily on its ability to secure additional funding to support ongoing operations and grow the new cybersecurity venture. The current financial conditions do pose a significant risk, but the pivot toward cybersecurity may align the company better with market demands.