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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark one)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2024

☐	TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from ____________ to __________

Commission File Number: 333-180954

HAWKEYE SYSTEMS, INC.

(Exact name of registrant as specified in its charter)

Nevada

83-0799093

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

6605 Abercorn, Suite 204

Savannah, GA 31405

(Address of principal executive offices (Zip Code)

(912) 253-0375

Registrant’s telephone number, including area code

____________________________________________________________

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act

Title of Each Class		Trading Symbol(s)		Name of each Exchange on which registered
N/A		N/A		N/A

Indicate by check mark whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Non-accelerated Filer	☒
Accelerated filer	☐	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ Yes ☐ No

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

The number of shares outstanding of each of the issuer’s classes of common equity as of January 28, 2025, was 8,706,772 shares of common stock.

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		Page
Part 1	FINANCIAL INFORMATION	3

Item 1	Financial Statements (unaudited)	3

	Condensed Consolidated Balance Sheets as of December 31, 2024, (unaudited) and June 30, 2024 (audited)	3

	Condensed Consolidated Statements of Operations for the three and six months ended December 31, 2024 and 2023 (unaudited)	4

	Condensed Consolidated Statements of Changes in Stockholders’ Deficit for the three and six months ended December 31, 2024 and 2023 (unaudited)	5

	Condensed Consolidated Statements of Cash Flows for the six months ended December 31, 2024 and 2023 (unaudited)	6

	Notes to the Unaudited Condensed Consolidated Financial Statements	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14

Item 4.	Controls and Procedures	16

Part II.	OTHER INFORMATION	17

Item 1	Legal Proceedings	17

Item 1A	Risk Factors	17

Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	17

Item 3	Defaults Upon Senior Securities	17

Item 4	Mine Safety Disclosures	17

Item 5	Other Information	17

Item 6	Exhibits	18

	SIGNATURES	19

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PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

HAWKEYE SYSTEMS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

	(Unaudited) December 31,			(Audited) June 30,
	2024			2024
ASSETS
Current assets:
Prepaid expenses	$	10,400		$	2,500
Total current assets		10,400			2,500

Total assets	$	10,400		$	2,500

LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable and accrued liabilities – related party	$	119,649		$	101,500
Accounts payable and accrued liabilities		-			9,262
Accrued interest – related party		183,036			58,891
Promissory note payable – related party		2,113,886			1,994,623
Total current liabilities		2,416,571			2,164,276

Long-term liabilities:
Loan payable due to Eagle - JV partner		442,251			442,251

Total liabilities		2,858,822			2,606,527

Commitments and contingencies (Note -13)		-			-

Stockholders’ deficit:
Preferred stock, $0.0001 par value, 50,000,000 shares authorized; no shares issued or outstanding		-			-
Common stock, $0.0001 par value, 400,000,000 shares authorized; 8,706,772 and 8,661,772 shares issued and outstanding, respectively		870			866
Additional paid-in capital		10,082,307			10,082,311
Accumulated deficit		(12,931,599	)		(12,687,204	)
Total stockholders’ deficit		(2,848,422	)		(2,604,027	)
Total liabilities and stockholders’ deficit	$	10,400		$	2,500

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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HAWKEYE SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2024			2023			2024			2023

Operating expenses:
General and administrative	$	7,884		$	16,170		$	16,323		$	37,765
Management compensation		6,000			78,167			16,500			189,417
Professional fees		10,821			37,133			87,428			73,129
Total operating expenses		24,705			131,470			120,251			300,311

Loss from operations		(24,705	)		(131,470	)		(120,251	)		(300,311	)

Other income (expense), net:
Other income		-			15,000			-			30,000
Interest income		-			44,450			-			76,454
Interest expense - related party		(62,970	)		(101,234	)		(124,144	)		(193,644	)
Total other income (expense), net		(62,970	)		(41,784	)		(124,144	)		(87,190	)

Net loss before income taxes provision	$	(87,675	)	$	(173,254	)	$	(244,395	)	$	(387,501	)

Provision for income tax		-			-			-			-

Net loss	$	(87,675	)	$	(173,254	)	$	(244,395	)	$	(387,501	)

Net loss per common share - basic and diluted	$	(0.01	)	$	(0.03	)	$	(0.03	)	$	(0.07	)
Weighted average common shares outstanding - basic and diluted		8,706,772			5,552,222			8,703,348			5,552,222

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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HAWKEYE SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIT

(Unaudited)

For the Six Months ended December 31, 2024

					Additional
	Common Stock				Paid-in			Accumulated			Total
	Shares		Amount		Capital			Deficit
Balance, June 30, 2024		8,661,772	$	866	$	10,082,311		$	(12,687,204	)	$	(2,604,027	)
Stock option cashless exercised		45,000		4		(4	)		-			-
Net loss		-		-		-			(156,720	)		(156,720	)
Balance, September 30, 2024		8,706,772	$	870	$	10,082,307		$	(12,843,924	)	$	(2,760,747	)
Net loss		-		-		-			(87,675	)		(87,675	)
Balance, December 31, 2024		8,706,772	$	870	$	10,082,307		$	(12,931,599	)	$	(2,848,422	)

For the Six Months ended December 31, 2023

					Additional		Stock
	Common Stock				Paid-in		To Be		Accumulated
	Shares		Amount		Capital		Issued		Deficit			Total
Balance, June 30, 2023		5,552,223	$	555	$	9,585,094	$	-	$	(12,108,487	)	$	(2,522,838	)
Net loss								-		(214,247	)		(214,247	)
Balance, September 30, 2023		5,552,223	$	555	$	9,585,094	$	-	$	(12,322,734	)	$	(2,737,085	)
Common stock issued for settlement of compensation		-		-		-		497,528		-			497,528
Net loss		-		-		-		-		(173,254	)		(173,254	)
Balance, December 31, 2023		5,552,223	$	555	$	9,585,094	$	497,528	$	(12,495,987	)	$	(2,412,810	)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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HAWKEYE SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Six Months Ended
	December 31,
	2024			2023
Cash flows from operating activities:
Net loss	$	(244,395	)	$	(387,501	)
Adjustments to reconcile net loss to net cash used in operating activities:
Common stock issued for settlement of compensation		-			497,528
Change in operating assets and liabilities:
Prepaid expense		(7,900	)		(7,631	)
Interest receivable		-			(76,455	)
Accounts payable and accrued liabilities– related party		(5,762	)		(346,735	)
Accounts payable and accrued liabilities		14,649			1,936
Accrued interest - related party		124,145			193,644
Net cash used in operating activities		(119,263	)		(125,213	)

Cash flows from investing activities:
Note receivable from CNTNR		-			(748,000	)
Net cash used in investing activities		-			(748,000	)

Cash flows from financing activities:
Net proceeds from Promissory note - related party		119,263			729,750
Net cash provided by financing activities		119,263			729,750

Net change in cash		-			(143,463	)
Cash beginning of period		-			143,861
Cash end of period	$	-		$	398

Supplemental cash flow information
Cash paid for interest	$	-		$	-
Cash paid for taxes	$	-		$	-

Non-cash investing and financing activities:
Common stock issued exchanged for common stock payable – related party	$	-		$	-
Stock option cashless exercised	$	4		$	-
Common stock to be issued for settlement of service	$	-		$	497,528

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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HAWKEYE SYSTEMS, INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024

Note 1 – Summary of Significant Accounting Policies

Business Overview

Hawkeye Systems, Inc. (the “Company”), is a Nevada corporation incorporated on May 15, 2018. Our previous focus was on pandemic management products and services. From inception until July of 2021, we focused on selling personal protective equipment (“PPE”). In July 2021, our management determined to cease the Company’s operations as a seller of PPE, deeming that continuing operations in that sector was not a productive use of our resources.

We are currently looking for investment opportunities in diversified industries, such as affordable housing development, and technology applications to mitigate the effects of climate change. From inception until the date of this filing our activities have primarily consisted of (i) liquidating our stock of personal protective equipment (“PPE”) products, (ii) the development of our business plan and the evaluation of strategic investment and business development strategies, including the execution of letters of intent.

Basis of presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States of America for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, the unaudited condensed consolidated financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.

In the opinion of management, all adjustments consisting of normal recurring entries necessary for a fair statement of the periods presented for: (a) the financial position; (b) the result of operations; and (c) cash flows, have been made in order to make the unaudited condensed consolidated financial statements presented not misleading. The results of operations for such interim periods are not necessarily indicative of operations for a full year. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and related notes included in the Company’s Annual Report on Form 10-K, for the year ended June 30, 2024, as filed with the SEC on September 30, 2024.

Use of estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions. The Company bases its estimates and assumptions on current facts, historical experience, and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. Significant estimates in the accompanying financial statements include useful lives of property and equipment, fair value assumptions used for stock-based compensation, and the valuation allowance on deferred tax assets.

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Fair value measurements

When required to measure assets or liabilities at fair value, the Company uses a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used. The Company determines the level within the fair value hierarchy in which the fair value measurements in their entirety fall. The categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Level 1 uses quoted prices in active markets for identical assets or liabilities, Level 2 uses significant other observable inputs, and Level 3 uses significant unobservable inputs. The amount of the total gains or losses for the period are included in earnings that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date. The Company has no assets or liabilities that are adjusted to fair value on a recurring basis.

Revenue recognition

As of December 31, 2024, and 2023, the Company had no revenue.

Cost of sales

As of December 31, 2024, and 2023, the Company had no cost of sales.

Basic and diluted earnings per share

Basic earnings per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated based on the weighted average number of common shares outstanding during the period plus the effect of potentially dilutive common stock equivalents, including stock options, warrants to purchase the Company’s common stock, and convertible note payable with accrued interest. For the six months ended December 31, 2024 and 2023, potentially dilutive common stock equivalents not included in the calculation of diluted earnings per share because they were anti-dilutive were as follows:

	December 31,		December 31,
	2024		2023
Warrants		-		239,401
Options		332,600		425,600
Convertible notes		-		6,972,559
Total possible dilutive shares		332,600		7,637,560

Recent accounting pronouncements

Management has considered all recent accounting pronouncements issued and their potential effect on our financial statements.

ASU 2016-13 (Topic 326) - Financial Instruments - Credit Losses

In June 2016, the FASB issued a new Accounting Standards Codification ASU 2016-13, Topic 326 - Financial Instruments - Credit Losses. ASC 326 introduces the Current Expected Credit Losses (“CECL”) methodology which requires entities to make certain estimates and subjective judgments, to record allowances to recognize lifetime expected credit losses at the inception of the loan for loans held for investment and other receivables that are deducted from the carrying amount of the assets to present the net carrying value at the amounts expected to be collected on the assets. Based on a number of factors, including but not limited to (i) whether the borrower's operating cash is sufficient to meet current and future debt service requirements (ii) the borrower's ability to refinance the loan and (iii) the liquidation value of collateral. In the event if the level of CECL Reserve for loan losses is required to be materially increased, such an increase could adversely affect our financial condition.

The Company adopted the standard beginning in fiscal year 2023. Currently, the Company does not actively conduct business operations; therefore it has no outstanding debts owed to it by customers for goods or services sold on credit. In addition, the Company does not have any interest receivable. Based on a review of the company’s financial structures, the management has determined that the current adoption of the standard has not had a material impact on the Company’s consolidated financial statements at this time. Nonetheless, the Company will continue to monitor its progress through the year-end close.

ASU 2023-07 (Topic 280) - Improvements to Reportable Segment Disclosures

In November 2023, the FASB issued Segment Reporting - ASU 2023-07 (Topic 280): Improvements to Reportable Segment Disclosures. FASB ASC Topic 280, “Segment Reporting,” requires the use of a “management approach” model for segment reporting. The management approach model is based on the way the company's management organizes the various departments within the company to make operational decisions and evaluate performance. Reportable segments are based on products and services, geographic location, legal structure, management structure, or any other way management breaks down the company. A segment should be reported if it can be separated from the business as a whole and be self-sufficient. As Hawkeye has no operating since 2021, management determined that the Company only has one segment, therefore, the current reporting structure is appropriate.

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Note 2 – Going Concern

The Company’s financial statements are prepared using U.S. GAAP, applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business.

The Company’s unaudited condensed consolidated financial statements are prepared using GAAP, applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. During the six months ended December 31, 2024, the Company had a net loss of $244,395, and an accumulated deficit of $12,931,599.

Currently, the Company’s stocks are still being traded on the Exchange. However, the Company has no full-time employees and is a non-operating company, and its only senior executive works on a contractual basis. All operating expenses are related to public filings and are supported by a related party loan. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. Our current business plan is to acquire, merge or combine with another company (the “Target Business”). We intend to use capital stock, debt or a combination of both to effect business combinations with target businesses that have significant growth potential. If the Company is unable to obtain adequate capital, it could be forced to cease operations. These factors raise substantial doubt about its ability to continue as a going concern.

In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plan to obtain such resources for the Company includes sales of equity instruments; traditional financing, such as loans; and obtaining capital from management and significant stockholders sufficient to meet its minimum operating expenses. However, management cannot provide any assurance that the Company will be successful in accomplishing this plan.

There is no assurance that the Company will be able to obtain sufficient additional funds when needed or that such funds, if available, will be obtainable on terms satisfactory to the Company. In addition, profitability will ultimately depend upon the level of revenues received from business operations. However, there is no assurance that the Company will attain profitability. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Note 3 – Loan payable due to Eagle - JV partner

July 17, 2020, the Company entered into a membership agreement with Eagle Equities LLC (“Eagle”) and Ikon Supplies (“Ikon”) to form a Nevada Limited Liability Company, HIE, LLC (“HIE”) for the purpose of procuring, funding the purchase of and sale of PPE (the “Membership Agreement”). Subject to the provision of the Membership Agreement, the interest of any net profits would be shared 33.3% among each member. If there is a loss in some or all of the capital, the Company is contingently liable to contribute to repay 33.3% of the Origination Loan and Additional Contribution and of any losses of HIE.

In addition, the Company is obliged to repay 1/3 of the loan contributed by Eagle or 1/3 of the capital paid by Eagle according to the Membership Agreement.

HIE did not have any operating activities since July 2021. As a result, the Company’s investment balance in HIE as of December 31, 2024, was $0, and the loan balance payable to joint venture partner Eagle totaled $442,251, unchanged since year 2021.

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Note 4 – Related Party Transactions

Related party transactions are described in detail in Note 5, Note 6, Note 7, Note 8, Note 10, Note 11 and Note 14.

Note 5 – Inventory Financing Payable – Related Party

On February 19, 2021, Steve Hall, a shareholder of the Company, advanced $1 million to the Company. The purpose of the advance was to purchase inventory to satisfy customer orders. The advance would be repaid upon cash being received from the end customer. In addition to the principal amount of the advance, the related party would be entitled to 1/3 of the gross profit earned on the transaction. The terms of the agreement were non-interest bearing. The creditor is 100% at risk as this was a non-recourse funding vehicle.

In June 2021 the Company cancelled the contemplated purchase of inventory and returned $500,000 to Mr. Hall. Mr. Hall agreed to allow the Company to retain the balance to fund future purchases and general operating expenses.

On October 1, 2021, the Company and Steve Hall entered into a restated and amended promissory note, to consolidate and restate the terms pursuant to which Steve Hall had provided funds to the Company (the “Consolidated Note”). The Consolidated Note consolidated and restated the terms of advances made on February 17, 2021, for $500,000 for inventory financing, February 18, 2021, for $500,000 for inventory financing, November 12, 2021, for $30,000 and December 13, 2021, for $75,000. In addition to consolidating the advances singled out above, the Consolidated Note included the extension of a line of credit of up to $1,000,000, from Steve Hall to the Company. The principal amount of the Consolidated Note, excluding the $1,000,000 line of credit, was $1,105,000, payable on demand at any time after October 1, 2022 (the “Due Date”), and accruing interest at a rate of 12% per year, if repaid within 90 days of the due date and 20% if repaid thereafter. Principal and interest due under the line of credit extended pursuant to the Consolidated Note would be added to the principal amount due under the Consolidated Note and be payable pursuant to the same terms. The line of credit was due and payable on the Due Date unless extended. At the option of holder, the Consolidated Note was convertible, at any time, into shares of common stock at a conversion price of $0.02 per share.

On April 1, 2024, the Company and Steve Hall entered into a debt consolidation agreement, which consolidated all amounts due by the Company to Steve Hall (the “Debt Consolidation Agreement”), including amounts due under the Consolidated Note, which amounted to accrued interest of $240,274 and the principal balance of $500,000. As a result of the consolidation on April 1, 2024, the balance of Inventory Financing Payable – related party was zero as of and after the consolidation. See note 11 – Debt Consolidation Agreement.

Note 6 – Line of Credit – Related Party

On October 1, 2021, Steve Hall agreed to provide a line of credit of up to $1,000,000 to the Company with simple interest at a rate of 12% for the first 90 days, and simple interest at a rate of 20% per annum thereafter. All principal disbursed under the line of credit would accrue interest and be payable on the same terms as principal due under the Consolidated Note. The line of credit expired on October 1, 2022, and was renewed and extended with same terms and a new maturity date of October 1, 2023.

On April 1, 2024, the Company and Steve Hall entered into the Debt Consolidation Agreement, which consolidated all amounts due by the Company to Steve Hall under the line of credit. These amounted to accrued interest of $182,092 and the principal balance of $570,250. As a result of the consolidation on April 1, 2024, the balance of Line of Credit - related party is zero as of and after the consolidation. See note 11 – Debt Consolidation Agreement.

Note 7 – Promissory Notes Payable – Related Party

On March 29, 2023, Steve Hall provided the Company with a loan in the principal amount of $1,000,000, as evidenced by a promissory note with an annual interest rate of 12% per year (the “Steve Hall Note”). The purpose of the Steve Hall Note was to provide the Company with a funding source to make a follow-on investment in CNTNR USA, Inc., a Delaware corporation (“CNTNR”). On May 31, 2023 (or upon the closing of a debt financing), the Company would repay the outstanding principal balance of the Steve Hall Note to Steve Hall and transfer to him 90% of the shares of CNTNR, issued by CNTNR to the Company pursuant to the Company’s investment in CNTNR, plus 90% of the CNTNR Warrants as described below in Note 9 - Note Receivable.

On April 1, 2024, the Company and Steve Hall entered into the Debt Consolidation Agreement, which consolidated, inter alia, all amounts due by the Company to Steve Hall under the Steve Hall Note. These amounts included accrued interest of $170,183 and the principal balance of 1,708,000. The Company and Steve Hall executed a new promissory note to evidence the amounts owed to Steve Hall after the execution and delivery of the Debt Consolidation Agreement (the “New Consolidated Note”). As a result of the consolidation on April 1, 2024, the balance of Promissory Notes Payable – related party is zero as of and after the consolidation. See Note 11 – Debt Consolidation Agreement.

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Note 8 – Accrued Expenses – Related Party

Between September 2021 to September 2022, the Company had accepted deposits in the total amount of $33,218 from Central National Gottesman, Inc., on a sale of face masks on behalf of Steve Hall, a shareholder of Hawkeye Systems, Inc.

On April 1, 2024, the accrued expenses of $33,218 owed to Mr. Hall were included in the Debt Consolidation Agreement. As a result of the consolidation on April 1, 2024, the balance of Accrued Expenses – related party is zero as of and after the consolidation. See Note 11 – Debt Consolidation Agreement.

Note 9 – Note Receivable

On February 27, 2023, the Company and CNTNR USA, Inc. (“CNTNR”) entered into a promissory note under which the Company disbursed $200,000 to CNTNR (the “CNTNR Note”). Subsequently, on April 6, 2023, the Company and CNTNR amended and restated the CNTNR Note (the “Amended CNTNR Note”). In the Amended CNTNR Note, the Company agreed to lend CNTNR the total principal amount of $1,000,000 (“Principal Amount”) with a commitment fee equivalent to 5% of the Principal Amount. CNTNR further agreed to pay the Company a monthly consulting fee of $5,000 beginning on March 1, 2023, that would continue until the Principal Amount was repaid. The balance of the consulting fee was recorded as an accounts receivable. As of December 31, 2024, the accounts receivable has a zero balance.

The Amended CNTNR Note had an annual interest rate of 12% and matured at the earlier of September 30, 2023, or the closing of a material debt or equity financing. Upon maturity of the Amended CNTNR Note, CNTNR would pay to the Company all outstanding Principal Amount and interest, plus any outstanding consulting fee and issue the Company 10% of the issued and outstanding shares of CNTNR (equivalent to 6,170,879 shares).

Moreover, the Amended CNTNR Note included warrant coverage of one warrant for every share issued in repayment of the Principal Amount at the closing of an intended merger with CNTNR which is equal to 6,170,879 warrants. The warrants have a 30% discount rate to the current fair market price of the shares of CNTNR when exercised and will expire 36 months after April 6, 2023.

On April 1, 2024, the Company assigned and transferred this note receivable to Steve Hall as part of the Debt Consolidation Agreement. The total amounts assigned to Steve Hall were accrued interest of $143,994 and the principal balance of $1,563,000. As a result of the consolidation on April 1, 2024, the balance of Note Receivable is zero as of and after the consolidation. See Note 11 – Debt Consolidation Agreement.

Note 10 – Consulting Agreement - Related Party

On January 30, 2023, Hawkeye entered into a consulting agreement with Steve Hall, a shareholder of the Company, to provide real estate and development consulting services, including the supervision of the Company’s senior management, staff and all personnel, whether employees or consultants, strategic planning, property acquisitions and annual budget review.

The contract period was 12 months with no option for renewal thereafter. The Company paid Steve Hall a one-time flat service fee of $250,000 on January 31, 2023, which was recorded in accounts payable. Compensation was without recourse and there was no requirement for performance of services during the term of the contract.

On April 1, 2024, the service fee of $250,000 was included in the amounts settled with the Debt Consolidation Agreement. As a result of the consolidation on April 1, 2024, the balance of Consulting Agreement - Related Party is zero as of and after the consolidation. For further discussion see Note 11 – Debt Consolidation Agreement.

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Note 11 – Debt Consolidation Agreement – Related Party

The Company and Steve Hall executed a Debt Consolidation Agreement that was effective as of April 1, 2024, that consolidated the Company’s various historic loans from Steve Hall to an amount of $1,770,713.10 (the “Steve Hall Indebtedness”) and the final consolidated amount was $1,708,000. The debt consolidation transaction included the assignment to and assumption by Steve Hall of all amounts due to the Company by CNTNR pursuant to the note receivable described in Note 9- Note Receivable. The amounts assigned to Steve Hall under the note receivable were subtracted from the amounts payable by the Company to Steve Hall. The resulting outstanding loan balance was documented by the execution by the Company and Steve Hall of the New Consolidated Note described in Note 14 – Notes Payable Related Party.

Mr. Hall agrees that there are no rights of set-off, counterclaim or any defenses to the obligations of the amounts consolidated and/or assigned to Mr. Hall.

On April 1, 2024, the various historical loans and the CNTNR Note were consolidated amounting to $1,708,000 under the Debt Consolidation Agreement as follows:

Reference	Principal			Interest			Total Consolidated Amount
Footnote 5 – Inventory Financing Payable	$	500,000		$	240,274		$	740,274
Footnote 6 – Line of Credit		570,250			182,092			752,342
Footnote 7 – Promissory Notes Payable		1,708,000			170,783			1,878,783
Footnote 8 – Accrued Expenses - Face Mask		33,218			-			33,218
Footnote 9 – Note Receivable		(1,563,000	)		(143,994	)		(1,706,994	)
Footnote 10 – Consulting Agreement		250,000			-			250,000
Additional Fund Received		(239,623	)		-			(239,623	)
Final Debt Consolidation Agreement Amount	$	1,258,845		$	449,155		$	1,708,000

As a result of the debt consolidation on April 1, 2024, the debt balances referenced in Notes 5, 6, 7, 8, 9, and 10 are zero as of and after the consolidation.

Note 12 – Stockholders’ Equity

Common Stock

The Company issued 45,000 shares of common stock to former CFO Christopher Mulgrew on July 15, 2024, for cashless conversion of stock options.

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Stock Options

Transactions in stock options for the six months ended December 31, 2024, are as follows:

	Number of options			Weighted average exercise price		Weighted average remaining life (in years)
Outstanding, June 30, 2024		377,600		$	0.92		2.76
Granted		-			-		-
Cancelled		-			-		-
Exercised		(45,000	)		-		-
Exercisable, September 30, 2024		332,600		$	0.98		2.49
Granted		-			-		-
Cancelled		-			-		-
Exercised		-			-		-
Exercisable, December 31, 2024		332,600		$	0.98		2.24

During the six months ended December 31, 2024, the Company had not granted any stock options. And all stock options were vested at the fiscal year end June 30, 2023.

At December 31, 2024, the intrinsic value of the outstanding options was $0.

Note 13 – Commitments and Contingencies

On July 17, 2020, the Company entered into a Membership Agreement with Eagle and Ikon to form HIE. Under the terms and conditions of the Membership Agreement, in the event of a loss of capital of HIE, the Company shall contribute to repay 33.3% of the Origination Loan and Additional Contribution and of any losses of HIE. HIE did not have operating activities during the quarter ended December 31, 2024. As of December 31, 2024, the Membership Agreement is still active. Detailed discussions are included in Note 3 – Loan payable due to Eagle - JV partner.

On December 1, 2023, the Company entered into a consulting agreement with Corby Marshall, the Company’s President, Secretary, Chief Executive Officer and Chairman of the Board of Director, to restructure the compensation received by Mr. Marshall from the Company (the “Marshall Consulting Agreement”). Pursuant to the terms of the Marshall Consulting Agreement, Mr. Marshall shall receive $500 for his services rendered to the Company starting from December 1, 2023, and thereafter.

Note 14 – New Consolidated Note – Related Party

On April 1, 2024, as we had mentioned on Note 11 – Debt Consolidation Agreement, the Company consolidated all amounts owed to Steve Hall in one instrument and assigned and transferred to Steve Hall all receivables by the Company from CNTNR USA, Inc., described in Note 9 - Note Receivable.

To document the outstanding loan balance (consolidated debt minus note receivable) the Company and Steve Hall entered into a new consolidated promissory note on April 1, 2024, for $1,770,713.10 (the “New Consolidated Note”). The New Consolidated Note accrued interest at a rate of 12% per year and its maturity date is December 31, 2025.

As of December 31, 2024, the outstanding loan balance on the New Consolidated Note was $2,113,886, with accrued interest of $183,036 for the period from April 1, 2024 to December 31, 2024.

Note 15 – Subsequent Events

Management has evaluated subsequent events through the date of these financial statements were available to be issued. Based on our evaluation no material events have occurred that require disclosure.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION

The following discussion relates to the historical operations and financial statements of Hawkeye Systems, Inc. for the six months ended December 31, 2024.

Forward-Looking Statements

The following Management’s Discussion and Analysis should be read in conjunction with our financial statements and the related notes thereto included elsewhere in this quarterly report. The Management’s Discussion and Analysis contains forward-looking statements that involve risks and uncertainties, such as statements of our plans, objectives, expectations and intentions. Any statements that are not statements of historical fact are forward-looking statements. When used, the words “believe,” “plan,” “intend,” “anticipate,” “target,” “estimate,” “expect,” and the like, and/or future-tense or conditional constructions (“will,” “may,” “could,” “should,” etc.), or similar expressions, identify certain of these forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements in this quarterly report. Our actual results and the timing of events could differ materially from those anticipated in these forward-looking statements. Factors that could cause or contribute to such differences in results and outcomes include, without limitation, those specifically addressed under the heading “Risks Factors” in our various filings with the Securities and Exchange Commission. We do not undertake any obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this quarterly report.

The Company is currently looking for investment opportunities into target businesses in diversified industries, such as affordable housing development, and technology applications to mitigate the effects of climate change.

Financial Condition and Results of Operations

We have incurred recurring losses to date. Our financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should we be unable to continue our operations.

We expect we will require additional capital to develop our business plan. We expect to raise additional capital through, among other things, the sale of equity or debt securities.

Results of Operations

We had no operating revenues, and no cost of sales, for the three and six months ended December 31, 2024, and 2023. Total operating expenses in the three months ended December 31, 2024, were $24,705 compared to $131,470 for the same period in 2023. The total operating expenses in the six months ended December 31, 2024, were $120,251 compared to the six months ended in 2023 was $300,311. The decrease in operating expenses is primarily a result of a decrease in professional fees - related party, management compensation, and general and administrative expenses.

The Company’s net loss was $87,675 for the three months, and $244,395 for the six months ended December 31, 2024, compared to $173,254 for the three months, and $387,501 for the six months ended December 31, 2023, respectively. The net losses for these periods are primarily a result of operating expenses, and interest expenses.

Liquidity and Capital Resources

Our cash balance at December 31, 2024 was $0 compared to $398 at December 31, 2023. We do not believe these cash reserves are sufficient to cover our expenses for our operations for the next 12 months. We will require additional funding for our ongoing operations.

During our fiscal quarter ended December 31, 2024, and 2023, we received $63,663, and $279,750, respectively, from a promissory note issued by a related party.

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In addition, we intend to raise funds through the sale of equity and debt securities.

We are a smaller reporting company and have accumulated losses to date. Under a limited operations scenario to maintain our corporate existence, we believe we will require additional funds over the next 12 months to complete our regulatory reporting and filings. However, we will require maximum participation through private placements, or alternative financing to implement our business plan.

There are no assurances that we will be able to obtain further funds required for our continued operations. Even if additional financing is available, it may not be available on terms we find favorable. Failure to secure the needed additional financing will have an adverse effect on our ability to remain in business.

Plan of Operation and Funding

We expect that working capital requirements will continue to be funded through equity offerings, warrant exercises, and related party advances in the near future. We have no guarantees or firm commitments that the related party advances will continue in the near future.

Existing working capital, further advances, together with anticipated capital raises are expected to be adequate to fund our operations over the next twelve months, but there is no guarantee that we will be successful in raising enough capital, or that we will receive the cash flow required to fund our operations. We have no lines of credit with banking institutions or other bank financing arrangements. Generally, we have financed operations to date through proceeds from convertible loans.

Additional issuances of equity or convertible debt securities will result in dilution to our current shareholders. Further, such securities might have rights, preferences, or privileges senior to our common stock. Additional financing may not be available on acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to continue our operations.

Material Commitments

As of the date of this quarterly report, we have not entered into any material commitments. For a discussion of the related items, please see Note 13 – Commitments and Contingencies.

Purchase of Significant Equipment

We do not intend to purchase any significant equipment during the next twelve months.

Off-Balance Sheet Arrangements

As of the date of this quarterly report, we do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

Going Concern

As reflected in the accompanying financial statements, the Company had an accumulated deficit of approximately $12,931,599 at December 31, 2024 and net loss from operations of $244,395 for the six months ended December 31, 2024.

We do not yet have a history of financial stability. Historically, the principal source of liquidity has been the issuance of equity securities, proceeds from convertible loans, and related party advances. In addition, the Company is in the development stage and has accumulated losses since inception. These factors raise substantial doubt about our ability to continue as a going concern.

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Our ability to continue operations is dependent on the success of Management’s plans and raising of capital through the issuance of equity or debt securities, until such time that funds provided by operations are sufficient to fund working capital requirements.

We will require additional funding to finance our operations and regulatory filing obligations, as well as to identify, negotiate and materialize a business combination with a target business. We believe our current available cash may be insufficient to meet our cash needs for the near future. There can be no assurance that financing will be available in amounts or terms acceptable to us, if at all.

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. These financial statements do not include any adjustments relating to the recovery of the recorded assets or the classification of the liabilities that might be necessary should we be unable to continue as a going concern.

Critical Accounting Policies and Estimates

For a discussion of our accounting policies and related items, please see the Notes to the Financial Statements, included in Item 1.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

ITEM 4. CONTROLS AND PROCEDURES

Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act). Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes of accounting principles generally accepted in the United States. In our review, we sought to find potential for material weaknesses in our financial controls, which is defined as a deficiency, or combination of deficiencies, in our accounting such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis.

Because of its inherent limitations, which include a process that involves human diligence and compliance and is subject to lapses in judgment and breakdowns resulting from human failures, internal control over financial reporting may not prevent or detect misstatements, whether unintentional errors or fraud. Therefore, even those systems determined to be effective can provide only reasonable assurance of achieving their control objectives.

Our management, consisting of Corby Marshall as Chief Executive Officer and Chief Financial Officer who is a contractor, reviewed and evaluated the effectiveness of the Company’s internal control over disclosure controls and procedures (as such term is defined in Rules 13a-15(3) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act)) and financial reporting as of December 31, 2024. In making this assessment, our management used the criteria described in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), as well as the guidance provided in SEC Release 33-8809. In such an evaluation, Mr. Marshall assessed daily interaction, self-assessment and other ongoing monitoring activities as evidence in the evaluation. Furthermore we sought to identify financial reporting risks, identify controls that adequately address financial reporting risks, considered entity level controls, reviewed the role of technology in our controls and reviewed the evidence available to support the assessment.

Based on this evaluation, our management concluded that, as of December 31, 2024, our disclosure controls and our internal controls over financial reporting were not effective in recording, processing, summarizing and reporting on a timely basis information required to be disclosed in the reports that we file or submit under the Exchange Act; and were not effective in assuring that information required to be disclosed in the reports we file or submit under the Exchange Act is actually disclosed or filed. Our management concluded that this is due to material weaknesses including (i) the Company having only one officer handling all financial transactions, (ii) lack of appropriate operational controls and consistency in providing our accounting personnel with financial information, (iii) incomplete financial statements on a daily basis and resulting errors in our underlying accounting system, (iv) lack of proper documentation of our assessment and evaluation, and (v) our determination that internal controls were ineffective due to the limited segregation of duties because of the limited management structure. As the Company is a dormant entity and all operating activities are incurred to comply with public filing requirements, management believes that the material deficiency has limited impact on the Company.

Changes in Internal Control over Financial Reporting.

There were no changes in our internal control over financial reporting that occurred during the fiscal quarter ended December 31, 2024, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II - OTHER INFORMATION

Item 1 - Legal Proceedings

From time to time the Company may be named in claims arising in the ordinary course of business. Currently, we are not aware of any legal proceedings contemplated by any governmental authority or any other party involving us or our properties. As of the date of this quarterly report, no director, officer, or affiliate is (i) a party adverse to us in any legal proceeding, or (ii) has an adverse interest to us in any legal proceedings. We are not aware of any other legal proceedings pending or that have been threatened against us or our property that, in the opinion of management, could reasonably be expected to have a material adverse effect on its business and financial condition.

Item 1A - Risk Factors

Not required for Smaller Reporting Companies.

Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds

No disclosure required.

Item 3 - Defaults Upon Senior Securities

No disclosure required.

Item 4 - Mine Safety Disclosure

No disclosure required.

Item 5 - Other Information

No disclosure required.

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Item 6 - Exhibits

Exhibits:

Exhibit		Description

31.1*		Certification of Chief Executive Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934
31.2*		Certification of Chief Financial Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934
32.1*		Certification of Chief Executive Officer pursuant to Section 1350
32.2*		Certification of Chief Financial Officer pursuant to Section 1350
101.INS		Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).
101.SCH		Inline XBRL Taxonomy Extension Schema Document.
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB		Inline XBRL Taxonomy Extension Labels Linkbase Document.
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104*		Inline XBRL for the cover page of this Quarterly Report on Form 10-Q, included in the Exhibit 101 Inline XBRL Document Set.

* Filed herewith.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Hawkeye Systems, Inc.

Date: January 28, 2025	By:	/s/ Corby Marshall
		Corby Marshall, Chief Executive Officer
		Principal Executive Officer
		Principal Financial Officer

Hawkeye Systems, Inc. 10-Q