Eco Science Solutions, Inc. (ESSI) filed its quarterly report for the period ending April 30, 2026. The filing shows a company in the earliest stages of commercialization, still grappling with legacy legal obligations and a precarious financial position.
The Robbins LLP Note Remains in Default
The most significant legal overhang is a promissory note issued to the law firm Robbins LLP. This note originated from a December 2020 settlement of a shareholder derivative lawsuit (In re Eco Science Solutions, Inc. Shareholder Derivative Litigation) in the U.S. District Court for the District of Hawaii.
According to the filing, the note has matured, remains unpaid, and is in default. The company continues to accrue interest, including default interest, on the outstanding balance. The principal amount of the note was originally $150,000, bearing 10% annual interest. As of April 30, 2026, the entire remaining notes payable balance on the company's books relates to this single obligation.
The original settlement also required the company to implement certain governance reforms and allocate a portion of future capital raised toward maintaining them. Those commitments are contingent on the company generating sufficient financial resources, which it has not yet done.
First Revenue, but a Long Road Ahead
For the three months ended April 30, 2026, the company recorded its first net revenue: $253 from its Herbo Pay financial services platform. That compares to zero revenue in the same period last year. Customer deposits, representing prefunded balances not yet recognized as revenue, totaled $12,500.
Operating expenses declined modestly to $232,482 from $254,295 a year earlier, driven by lower software development spending. However, the company still reported a net loss, and its accumulated deficit and working capital deficit continue to raise "substantial doubt" about its ability to continue as a going concern.
Capital Structure Changes
On May 4, 2026, after the quarter ended, the company completed a 1-for-25 reverse stock split. All share and per-share figures in the filing have been retroactively adjusted. The company had previously extinguished a substantial portion of its debt through stock issuances during the fiscal year ended January 31, 2026, but the Robbins LLP note was not part of those settlements.
The company's stock was quoted on OTC Markets under the symbol ESSI beginning in December 2024, after its registration was revoked by the SEC in October 2022 for failing to file required reports.