GlideLogic Corp. (GDLG) 10-K Deep Dive & Investment Thesis

Investment Score: 2.5 / 10

Warren.AI 💰 2.5 / 10

Key Takeaways

• Business Focus: AI-driven entertainment marketing, FinTech payment solutions, blockchain/Web3 consulting.
• Revenue: $33,563 in FY 2025 vs. $30,000 in FY 2024 (12% YoY growth).
• Profitability: Net loss of $27,436 in FY 2025 and $22,124 in FY 2024; no COGS.
• Balance Sheet: Total assets $5,020 vs. liabilities $37,534; stockholders’ deficit of $32,514.
• Cash Flows: Operating cash burn of $20,224; financing offsets via related‐party loans of $22,132.
• Going Concern: Auditor’s “going concern” warning; need $50,000+ annually to sustain operations.
• Risks: Highly concentrated management, no insurance, small scale, OTC Pink liquidity, reliance on related‐party funding.

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1. Introduction

GlideLogic Corp. (OTC Pink: GDLG) is a sub-$1M microcap specializing in AI solutions for entertainment marketing, cross-border FinTech payments, and blockchain/Web3 consulting. The firm recently uplisted to OTCQB, secured TikTok partnership statuses, and holds a patent for customized NFTs. However, revenues remain modest—$33.5K in FY 2025—and the company has a history of net losses, negative equity, and reliance on related‐party loans. This review unpacks the 10-K highlights and quantifies the risks versus opportunities.

2. Business Overview (Item 1)

Structure and Divisions

• AI & Entertainment Marketing: Leveraging Hollywood data from Propaganda GEM Inc., GlideLogic builds LLM-based models to optimize TikTok live‐stream scripts, short-video content, and KOL campaigns. As a TikTok Affiliate Partner (TAP), TikTok Shop Partner (TSP), and part of TikTok’s Creator Network, it earns sales commissions, tip‐share revenue, and ad placement fees.
• FinTech Solutions: Originating from work with Brazil’s PIX protocol and NihaoPay (UnionPay & Alipay), the company provides white-label payment gateways to cross‐border e-commerce providers and is planning an algorithmic trading platform for U.S. and crypto markets.
• Blockchain & Web3: Founders hold a patent on customized NFTs (issued early 2024). GlideLogic offers compliance and framework consulting for Real World Asset tokenization in Hong Kong, Dubai, and the U.S. OTC markets, and plans for proprietary crypto trading.

Employees & Operations: A startup model with only 2 full‐time employees (President Dapeng Ma and CEO/CFO Yitian Xue). No insurance coverage means any legal claim could bankrupt the company.

3. Revenue Streams & Marketing

• AI‐Driven Services: Revenue from TikTok shops, creators’ live streams, ad placements, and consulting fees. FY 2025 AI‐related revenues: $33.6K.
• FinTech: Consulting and custom software for payment service providers; early stage—no material revenues yet.
• Blockchain: Consulting and licensing of patented NFT technology; revenue to date is negligible.

Marketing Channels

• TikTok referrals, KOL partnerships, PGEM cross‐promotions, Brazil law firm partnerships for fintech leads, and patent licensing entities for blockchain clients.

4. Competitive Landscape

• AI & Marketing: Competes against global AI agencies, large LLM vendors, and in‐house marketing teams. Requires continuous R&D investment in compute and talent.
• FinTech & Trading: High volatility crypto‐algorithmic trading is crowded with experienced players and emerging AI strategies.
• Blockchain & Web3: Regulatory uncertainty in the U.S., Hong Kong, and UAE; nascent market with no clear leaders.

5. Risk Factors (Item 1 & 1A)

• Funding & Profitability: Operating losses since inception; need $50K annual funding just to maintain reporting status.
• Going Concern: Auditors warn of doubt; no recurring revenue to cover costs.
• Concentration Risk: Two‐person management; no board audit committee or independent oversight.
• Regulatory: Evolving FinTech and crypto rules; compliance missteps could be costly.
• Liquidity: OTC Pink/OTCQB listing offers limited liquidity; sub‐$5M market cap.
• No Insurance: Full legal liability exposure.

6. Financial Performance (Items 7, 8)

Income Statement

• FY 2025: Revenue $33,563; Net loss $(27,436).
• FY 2024: Revenue $30,000; Net loss $(22,124).
• Operating Expenses: ~$61K/year in G&A (legal, SEC filings, professional fees).
• Gross Margin: 100% (COGS $0), but margin is meaningless at this scale.

Balance Sheet

• Assets: Cash $2.1K; Equipment $2.9K; Total $5K.
• Liabilities: Accounts payable $9.6K; deferred income $0.8K; related‐party loans $27K; total $37.5K.
• Equity: Stockholders’ deficit $(32.5K).

Cash Flow

• Operating: $(20.2K) in FY 2025; $(13.3K) FY 2024.
• Investing: $0; website fully amortized.
• Financing: +$22.1K via related‐party loans; prior year net +$5K.

Going Concern: Management plans to fund operations with shareholder loans; no near‐term equity or debt financing planned.

7. Governance & Internal Controls (Item 9A)

• Material Weaknesses: No audit committee, inadequate segregation of duties, and insufficient IT/data backup controls.
• Remediation: None implemented as of year‐end.

8. Outlook & Valuation

While GlideLogic’s niche in AI marketing and cross‐border FinTech is promising, the company’s micro‐scale, lack of diversification, negative working capital, and governance gaps make it a very high‐risk speculative play. To justify an investment, the company needs to:

1. Secure $50K+ in sustainable revenue or external funding.
2. Expand partnerships beyond TikTok into other platforms.
3. Strengthen controls and add independent board oversight.
4. Showcase profitable verticals (e.g., FinTech software licensing or NFT IP royalties).

9. Conclusion: Investment Score 2.5/10

GlideLogic’s management has pedigree in entertainment marketing and technology, and small revenue growth is encouraging. However, persistent losses, negative equity, lack of scalability, dependency on shareholder loans, and audit/governance deficiencies weigh heavily on the risk/return profile. We assign a 2.5/10—very speculative and suitable only for risk-tolerant investors seeking early-stage microcaps.

Disclosure: This analysis is based solely on publicly available information from GlideLogic Corp.’s Form 10-K (fiscal year ended January 31, 2025). Always consult a financial advisor before making investment decisions.