PACIFIC SPORTS EXCHANGE INC.

What they do

The company sources used and new tennis and golf equipment, used golf carts, and consignment tennis rackets from Southwest Florida sports retailers and trade shows, then resells them online to domestic and international customers. It operates exclusively through eBay as its primary marketing channel and has no physical retail locations or subsidiaries. Its principal executive office is in Portland, Oregon.

Revenue drivers

• Golf cart sales — The only revenue source disclosed in the 10-K; generated $4,600 in fiscal 2025 and $5,400 in fiscal 2024.
• Tennis and golf equipment resale — Core business of reselling new and used equipment, but no revenue figures are broken out for this line in the excerpts.
• Consignment sales — Consignment sales of tennis rackets and golf carts are mentioned in the 10-Q but no revenue is disclosed.

Recent performance

Fiscal 2025 revenue was $4,600, down from $5,400 in fiscal 2024, with cost of goods sold of $2,900 and $4,270 respectively. The company reported a net loss of $36,745 in fiscal 2025 compared to net income of $9,928 in fiscal 2024, a swing of $46,673, largely because fiscal 2024 included $40,957 of other income from forgiveness of debt. Operating expenses rose to $38,445 in fiscal 2025 from $32,159 in fiscal 2024, mostly due to professional fees of $38,075. For the three months ended February 28, 2026, revenue was $0 compared to $2,000 in the prior-year quarter, and the net loss was $11,842 versus $7,173. As of February 28, 2026, the company had $0 cash, total assets of $6,769, total liabilities of $70,769, and negative shareholder equity of $64,000.

Strategy

The company states it will continue sourcing high-value used and new tennis and golf equipment from Southwest Florida retailers, trade shows, and reseller events, and will expand consignment sales of tennis rackets and golf carts. It plans to optimize its own website for global search terms and to sell through an expanding referral network of repeat customers, while maintaining eBay as its primary marketing channel. Management intends to improve the marketing and functionality of its own website as a hedge against reliance on third-party platforms. New CEO, CFO, Secretary and sole Director Huang Hua Shang was appointed on September 6, 2024, after Alpine Elite Holdings Ltd. acquired approximately 70% of the outstanding shares on September 23, 2024.

Risks

• Going concern — The company has a working capital deficiency of $42,077 at August 31, 2025, and negative shareholder equity of $64,000 at February 28, 2026, and management states it may have to curtail or cease operations if it cannot raise additional working capital.
• Platform dependence — The company relies on eBay as its primary marketing channel, and could lose selling privileges or be harmed by technical failures or policy changes at eBay.
• Control concentration — Alpine Elite Holdings Ltd. owns approximately 70% of the common stock and can unilaterally control the election of the board of directors and all matters requiring shareholder approval.
• Revenue concentration and volatility — Revenue is very small and volatile, consisting solely of golf cart sales in the most recent fiscal year, and was $0 in the quarter ended February 28, 2026.

Outlook

Management states that there are no assurances the company will achieve a level of revenues adequate to generate sufficient cash flow from operations or obtain additional financing through private placements, public offerings or bank financing necessary to support working capital requirements. If adequate working capital is not available, the company may be required to curtail or cease operations. No specific revenue or earnings guidance is provided.