UPAY, Inc. 2025 10-K Review: Fintech Software, AML Compliance & Huntpal Marketplace

UPAY, Inc. (OTCQB: UPYY) is a Nevada-incorporated fintech software company providing cloud-based credit administration solutions in South Africa and expanding its product suite into anti-money-laundering (AML) compliance and a unique “Hunt Now–Pay Later” wildlife-adventure financing marketplace. The 2025 Form 10-K reveals a diversified product lineup, strong regional market traction, and significant market opportunities, yet also highlights ongoing losses, concentrated customer exposure, and cash-flow challenges that pose a going-concern risk.

Warren.AI 💰 3.5 / 10

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1. Company Overview & Recent Milestones

Business Description (Item 1)

• UPAY, Inc., founded in 2015, operates primarily through wholly owned subsidiary Rent Pay (Pty) Ltd in South Africa. It offers the Automated Credit Provider Administration System (ACPAS), a SaaS-based loan origination and portfolio management platform tailored to local and online lenders.
• In mid-2024, UPAY completed acquisitions and integrations of two strategic businesses:

1. AML GO (Pty) Ltd: A real-time AML screening and compliance solution for regulated financial institutions in South Africa, enabling Customer Due Diligence (CDD), transaction monitoring and regulatory reporting.
2. HUNTPAL LLC: A U.S.-based “Hunt Now–Pay Later” marketplace that seamlessly connects American hunters with accredited South African outfitters and offers interest-free installment financing plans.

• The company also consolidated Huntpal’s South African operations under HUNTPAL (Pty) Ltd and achieved milestones such as onboarding 30+ new financial institution clients for AML GO in April 2025.

Market & Industry Context

• South Africa: A R 28 billion-plus unsecured credit market with R 3.3 billion in short-term credit origination per quarter (NCR Q4 2023).
• United States: A check-cashing and payday-loan industry generating approximately $21.4 billion in revenue in 2023 (IBISWorld).
• Adventure Financing: A niche yet growing $1 billion–plus market for financed safari and outdoor adventures.

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2. Products & Services

ACPAS (South Africa)

• Cloud-based loan origination, administration, payment gateway & credit bureau integrations
• SMS notifications, credit-protection insurance, bookkeeping modules
• Tailored website themes and API connectivity
• Billing: one-time setup fees, monthly license fees ($40.80 per branch), and transaction-based fees (2.8% per successful debit order)

AML GO (Pty) Ltd

• Automated CDD/EDD workflows with real-time PEP/sanctions screening
• Built-in transaction monitoring, pattern recognition & risk scoring
• FICA-compliant regulatory reporting and audit trails
• RESTful APIs for seamless embedding into lender and payments systems

HUNTPAL (U.S. & South Africa)

• Marketplace for safari and hunting adventures, integrated trip planning & gear rentals
• Interest-free installment financing via “Hunt Now–Pay Later” plans (3–12 months)
• Dedicated support: licensing guidance, travel logistics, community-based conservation
• Digital marketing, email campaigns and influencer partnerships to drive bookings

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3. Sales & Marketing Strategy

ACPAS & AML GO (South Africa)

• Targeted sales outreach, webinars, local conferences (MFSA)
• Google/Facebook ads, LinkedIn campaigns, thought-leadership blog & video content
• Whitepapers, virtual workshops and partner integrations with core banking software

HUNTPAL (U.S.)

• Dallas-based digital campaigns targeting hunters ages 25–55
• Sponsored content on outdoor publications, hunting expos (SCI, SHOT Show)
• Strategic alliances with South African outfitters for co-branded promotions
• Planned YouTube & blog content around hunt prep, conservation stories

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4. Financial Performance & Position (Items 7, 8, 7A)

Revenue Trend

• 2025: $715,269 (down 49% from $1,394,408 in 2024)
• Gross profit margin ~62% (2025) vs 53% (2024)
• Decline driven by customer loss and reduced transaction volumes

Profitability & Cash Flow

• Net loss: ($540,062) 2025 vs ($726,191) 2024
• Operating cash outflow: ($764,674) 2025 vs ($145,611) 2024
• Working capital deficit: ($386,487) 2025 vs ($229,865) 2024
• Cash balance at 02/28/2025: $55,362 (vs $642,846 at 02/29/2024)

Balance Sheet

• Total assets: $234,149 2025 vs $770,340 2024
• Total liabilities: $703,005 2025 vs $1,025,147 2024
• Stockholders’ deficit: ($468,856) 2025 vs ($254,807) 2024
• $1.21 million U.S. NOLs available (expiring 2036–2045)

Going Concern

• Recurring losses, negative cash flow, working capital shortfall
• Reliance on equity financing and related-party funding
• Outlined need for $31k monthly cash infusion over next 12 months

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5. Risk Factors & Key Observations (Item 1A)

Customer & Revenue Concentration

• Top 2 customers = 38.2% of 2025 revenues (Top 3 = 57% in 2024)

Going Concern & Liquidity

• Significant cash burn; dependence on related-party loans
• SEC reporting costs ($70k annual) and U.S. expansion spending

Regulatory & Market Risk

• Compliance with South Africa’s National Credit Act & FICA rules
• Unproven AML GO rollout in the U.S.

Competitive Landscape

• Myriad established credit software providers (Compuloan, Delter)
• HUNTPAL’s niche concept faces seasonality & regulatory variables in hunting tourism

Management & Governance

• Tight-knit 16-employee team (4 developers, 4 sys-engineers, 4 accountants)
• Significant related-party transactions and stock-based compensation tied to management

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6. Valuation & Investment Thesis

Upside Potential

• Addressable markets: R 28 billion credit in SA; $21 billion payday loans in the U.S.
• Unique SaaS + AML + niche financing marketplace diversifies revenue mix
• Early traction: 30+ AML GO clients; growing Huntpal bookings

Downside Risks

• Persistent net losses, severe cash constraints, working capital deficit
• Reliance on related-party funding and equity issuances for runway
• High customer‐concentration, limited scale outside core SA market

Investment Score: 3.5 / 10 This reflects UPAY’s strong product-market fit in South Africa’s lending ecosystem and innovative niche expansions. However, ongoing losses, cash-flow challenges, and concentrated revenues make this a high-risk investment.

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Final Verdict

UPAY, Inc. offers a multifaceted fintech platform—loan origination, compliance, and adventure financing—poised for growth in Africa and the U.S. Yet the latest 10-K underscores significant funding needs, ongoing net losses, and customer concentration.

Prospective investors should weigh the promising technology suite against the substantial going-concern uncertainties before considering participation in this early-stage opportunity.