revenue $4.1M, net income -$653,732. Toppoint's gross margin turns negative as control deficiencies escalate to material weaknesses

Filed May 14, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 15, 2025 · ~1 min read

Key Changes

• high

  Internal control deficiencies upgraded from 'significant deficiencies' to 'material weaknesses,' indicating reasonable possibility of material misstatement. Company lacks internal audit function and COSO 2013 framework implementation.

  Controls & Procedures verify on EDGAR →
• high

  Gross margin collapsed to -4% from +3% prior year despite 8% revenue growth. Costs rose 7.7% while revenue grew 8%, meaning the company now loses money on every load before covering overhead.

  MD&A: Gross Margin verify on EDGAR →
• high

  Waste paper revenue fell 20% year-over-year to $2.1M as domestic mills absorbed more recycled capacity, reducing export demand. Core vertical now represents 50% of revenue vs. 68% a year earlier.

  MD&A: Waste Paper Revenue verify on EDGAR →