Full Press Release Details
| MBody AI Corp, Inc. |
| Index to Financial Statements |
| Page | ||
| Report of Independent Registered Public Accounting Firm (PCAOB Firm ID: 7158) | 2 | |
| Financial Statements | ||
| Balance Sheets | 3 | |
| Statements of Operations | 4 | |
| Statements of Stockholders' Equity | 5 | |
| Statements of Cash Flows | 6 | |
| Notes to Financial Statements | 7 |
Report of Independent Registered
Public Accounting Firm
To the Board of Directors
and Stockholders of MBody AI Corp.
Opinion on the Financial Statements
We have audited the accompanying
balance sheets of MBody AI Corp. (the "Company") as of June 30, 2025 and December 31, 2024, the related statement of operations,
stockholders' equity (deficit), and cash flows for the six months ended June 30, 2025 and for the period October 7, 2024 (date of
formation) to December 31, 2024, and the related notes (collectively referred to as the "financial statements"). In our opinion,
the financial statements present fairly, in all material respects, the financial position of the Company as of June 30, 2025 and December
31, 2024, and the results of its operations and its cash flows for the six months ended June 30, 2025 and for the period October 7, 2024
(date of formation) to December 31, 2024, in conformity with accounting principles generally accepted in the United States.
These financial statements are
the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements
based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB")
and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.
our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not
required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we
are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion
on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.
included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud,
and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts
and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates
made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable
basis for our opinion.
Critical Audit Matters
Critical audit matters are matters
arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee
and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging,
subjective, or complex judgments. We determined that there were no critical audit matters.
BCRG Group (PCAOB ID 7158)
We have served as the Company's auditor since
| MBody AI Corp, Inc. |
| Balance Sheets |
| June 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 568,876 | $ | 94,333 | ||||
| Inventories, net | 651,184 | 75,934 | ||||||
| Other current assets | 50,538 | 14,673 | ||||||
| Total current assets | 1,270,598 | 184,940 | ||||||
| Total assets | $ | 1,270,598 | $ | 184,940 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Loans payable to shareholders and related parties | 173,202 | 183,202 | ||||||
| Income taxes | 290 | 290 | ||||||
| Total current liabilities | 173,492 | 183,492 | ||||||
| Total liabilities | 173,492 | 183,492 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity | ||||||||
| Common Stock- $0.00001 par value; 200,000,000 authorized shares; 151,962,777 shares and 35,900,000 shares issued and outstanding, respectively | 1,520 | 359 | ||||||
| Additional paid-in-capital | 1,151,000 | - | ||||||
| Accumulated deficit | (55,414 | ) | 1,089 | |||||
| Total stockholders' equity | 1,097,106 | 1,448 | ||||||
| Total liabilities and stockholders' equity | $ | 1,270,598 | $ | 184,940 |
The accompanying footnotes are an integral
part of these financial statements.
| MBody AI Corp, Inc. |
| Statements of Operations |
| From | ||||||||
| Six Months | October 7, 2024 | |||||||
| Ended | (Date of formation) to | |||||||
| June 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| Net Revenue | ||||||||
| Product sales | $ | 68,180 | $ | 47,940 | ||||
| Services | 25,595 | - | ||||||
| Total net revenue | 93,775 | 47,940 | ||||||
| Cost of Revenue | ||||||||
| Cost of revenue | 44,750 | 45,450 | ||||||
| Total cost of sales | 44,750 | 45,450 | ||||||
| Gross profit | 49,025 | 2,490 | ||||||
| Operating expenses: | ||||||||
| Payroll and Contract Labor | 46,528 | - | ||||||
| Housing and Rent | 15,978 | - | ||||||
| Freight and Transportation | 9,632 | 548 | ||||||
| Travel and Entertainment | 11,562 | - | ||||||
| Insurance and Utilities | 4,372 | 461 | ||||||
| Professional and Administrative | 17,467 | 102 | ||||||
| Total operating expenses | 105,539 | 1,111 | ||||||
| Income (loss) from operations | (56,514 | ) | 1,379 | |||||
| Other income (expense) | ||||||||
| Interest income | 11 | - | ||||||
| Total other income (expense), net | 11 | - | ||||||
| Income (loss) before income tax provision | (56,503 | ) | 1,379 | |||||
| Income tax provision | - | 290 | ||||||
| Net income (loss) | $ | (56,503 | ) | $ | 1,089 | |||
| Earnings (Loss) Per Share: | ||||||||
| Net income (loss) per common share - basic and diluted | $ | (0.00 | ) | $ | 0.00 | |||
| Weighted average number of common shares | 147,845,303 | 35,900,000 |
footnotes are an integral part of these financial statements.
| MBody AI Corp, Inc. |
| Statement of Stockholders' Equity |
| Additional | Retained | |||||||||||||||||||
| Common Stock | Paid-in | Earnings | ||||||||||||||||||
| # of Shares | Amount | Capital | (Deficit) | Total Equity | ||||||||||||||||
| Balance - October 7, 2024 (date of formation) | 35,900,000 | $ | 359 | $ | - | $ | - | $ | 359 | |||||||||||
| Net income | - | - | - | 1,089 | 1,089 | |||||||||||||||
| Balance - December 31, 2024 | 35,900,000 | 359 | - | 1,089 | 1,448 | |||||||||||||||
| Shares issued for cash | 116,062,777 | 1,161 | 1,151,000 | - | 1,152,161 | |||||||||||||||
| Net loss | - | - | - | (56,503 | ) | (56,503 | ) | |||||||||||||
| Balance - June 30, 2025 | 151,962,777 | $ | 1,520 | $ | 1,151,000 | $ | (55,414 | ) | $ | 1,097,106 |
The accompanying footnotes are an integral part of
these financial statements.
| MBody AI Corp, Inc. |
| Statements of Cash Flows |
| From | ||||||||
| Six Months | October 7, 2024 | |||||||
| Ended | (Date of formation) to | |||||||
| June 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income (loss) | $ | (56,503 | ) | $ | 1,089 | |||
| Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||
| Changes in assets and liabilities: | ||||||||
| Inventories | (575,250 | ) | (75,934 | ) | ||||
| Other current assets | (35,865 | ) | (14,673 | ) | ||||
| Income taxes payable | - | 290 | ||||||
| Net cash used in operating activities | (667,618 | ) | (89,228 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from share issuances | 1,152,161 | 359 | ||||||
| Borrowings or payments on loans payable to shareholders or related parties, net | (10,000 | ) | 183,202 | |||||
| Net cash provided by financing activities | 1,142,161 | 183,561 | ||||||
| Net increase in cash and cash equivalents | 474,543 | 94,333 | ||||||
| Cash and cash equivalents - beginning of period | 94,333 | - | ||||||
| Cash and cash equivalents - end of period | $ | 568,876 | $ | 94,333 | ||||
| Supplemental disclosures of cash flow information | ||||||||
| Cash paid during the periods for: | ||||||||
| Interest | $ | - | $ | - | ||||
| Income taxes | $ | - | $ | - |
The accompanying footnotes are an integral part of
these financial statements.
| MBody AI Corp, Inc. |
| Notes to Financial Statements |
MBody AI Corp. ("MBody
AI" or "the Company") is a Nevada-based artificial intelligence technology company that designs, integrates, and manages
AI-enabled robotic and software systems for large commercial environments such as hotels, casinos, convention centers, and other high-traffic
facilities. The Company was incorporated on October 7, 2024 (date of formation).
The Company's core business
model combines artificial intelligence software, robotic automation, and data analytics to deliver a comprehensive operational efficiency
solution to clients in the hospitality, property management, and commercial cleaning industries.
Historically, the Company operated
under a hardware leasing model, purchasing robotic cleaning equipment from suppliers and deploying them at customer sites under 36-month
lease agreements. Under this structure, revenue primarily consisted of fixed monthly lease payments that bundled the cost of hardware,
maintenance, warranty, and service support.
Beginning in 2025, the Company
commenced a strategic transition toward a software-as-a-service (SaaS) and AI- platform subscription model, emphasizing recurring, high-margin
software revenues over hardware ownership. Under this model, MBody AI provides customers with continuous access to its proprietary software
platform and AI-driven analytics suite that powers, monitors, and optimizes robotic systems deployed at customer sites.
The Company's revenues comprise
the following categories:
Deployment and Support Revenue - Covers
installation, on-site setup, calibration, and initial operator training for customers deploying new robotic systems.
MBody AI operates primarily in
the United States but maintains supplier relationships internationally for the sourcing of robotic hardware. The Company's customers
are primarily large-scale hospitality groups, including MGM Resorts and Caesars Entertainment, as well as other enterprise clients pursuing
technology-driven operational automation.
| MBody AI Corp, Inc. |
| Notes to Financial Statements |
Basis of Preparation
statements are prepared in accordance with U.S. GAAP and are presented in U.S. dollars. The statements include management estimates, particularly
in revenue recognition and inventory valuation. These financial statements include all adjustments, consisting only of normal recurring
adjustments, necessary for a fair presentation.
The preparation of financial statements
in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities,
revenues, and expenses, and related disclosures. Significant estimates include revenue allocation among performance obligations, inventory
valuation, useful lives of equipment, and the realizability of deferred tax assets. Actual results could differ from those estimates.
Operating segments are identified
as components of an enterprise about which separate financial information is available for evaluation by the chief operating decision-maker
in making decisions regarding resource allocation and assessing performance. The Company views operations and manage business as one operating
Cash and Cash Equivalents
Cash and cash equivalents include
cash on hand and deposits with financial institutions that are readily convertible to known amounts of cash and have original maturities
of three months or less.
Accounts receivable, if any, are
recorded at their invoiced amounts. The Company evaluates collectability regularly and establishes an allowance for doubtful accounts
when collection is no longer probable. As of June 30 2025, no allowance was deemed necessary.
Inventories consist primarily
of robotic hardware purchased from third-party suppliers for deployment under customer contracts. Inventory is stated at the lower of
cost or net realizable value using the weighted-average cost method which approximates actual cost. Cost includes purchase price, freight,
and any other costs directly attributable to acquisition.
Property and Equipment
Property and equipment, if any,