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UpLink Communications Inc.
2025 Annual Financial Overview
Prepared for the Board of Directors — Draft Report, March 2026
⚠️ Important Notice
This report is preliminary and not yet complete. The underlying data in Zoho Books contains known discrepancies, including missing entries, unreconciled transactions, and potential classification errors. Figures presented herein should be considered draft estimates and will be updated once all entries have been reviewed and deemed complete. This document should not be used for regulatory filings or binding financial decisions until a final version is issued.
1. Executive Summary
Total Revenue
$1.54M
Operating income
Gross Profit
$975,875
63.4% gross margin
Net Profit
$210,275
13.7% net margin
Total Assets
$2.87M
Fibre + wireless infra
Total Liabilities
$2.46M
Debt-to-equity: 5.96x
Total Equity
$412,283
Retained + current earnings
Metric
2025 Full Year
Total Revenue
$1,538,825
Cost of Goods Sold
$562,950
Gross Profit
$975,875
Gross Margin
63.4%
Operating Expenses
$765,378
Operating Profit
$210,497
Non-Operating (Net)
($222)
Net Profit
$210,275
Net Margin
13.7%
2. Revenue Breakdown by Service Category
Internet Services — $1,172,704 (76.2% of revenue)
Wireless — Residential
$302,907 (19.7%)
TPIA Cable — Residential
$274,877 (17.9%)
General Sales *
$266,026 (17.3%)
Fibre — Residential
$209,438 (13.6%)
Wireless — Business
$61,073 (4.0%)
Fibre — Business
$30,334 (2.0%)
TPIA Cable — Business
$15,880 (1.0%)
Other Internet
$12,135 (0.8%)
* “Sales” ($266,026) likely contains internet service revenue not broken out by category in Zoho Books. Classification review recommended.
Implied Segment Margins: Internet ~67.7% • IPTV ~22.3% • Phone ~82.1% Note: Segment margins are approximate as “Sales” revenue is unallocated.
4. Quarterly Performance
Q1 (Jan-Mar)
Q2 (Apr-Jun)
Q3 (Jul-Sep)
Q4 (Oct-Dec)
Full Year
Revenue
$465,818
$376,523
$366,818
$329,665
$1,538,825
COGS
$149,417
$197,535
$170,527
$45,471
$562,950
Gross Profit
$316,401
$178,988
$196,291
$284,194
$975,875
Gross Margin
67.9%
47.5%
53.5%
86.2%
63.4%
Operating Expenses
$261,374
$223,705
$142,126
$138,173
$765,378
Operating Profit
$55,027
($44,717)
$54,166
$146,021
$210,497
Net Profit
$55,148
($44,722)
$54,173
$145,676
$210,275
Q2 posted a net loss of ($44,722), driven by elevated COGS ($197,535) and higher operating expenses ($223,705).
Q4 was the strongest quarter with the highest gross margin (86.2%) and net profit ($145,676).
Revenue trended downward from $465,818 in Q1 to $329,665 in Q4 — however, this may reflect timing of entries in Zoho rather than actual decline.
⚠ COGS variability is significant — Q4 COGS of $45,471 vs Q2’s $197,535 suggests possible data entry lag or accrual timing issues. Exercise caution interpreting quarter-over-quarter trends until reconciliation is complete.
5. Operating Expenses — $765,378
Top 15 Expense Categories
Category
Amount
% of OpEx
Payroll — Employees
$152,597
19.9%
Office Rent
$49,520
6.5%
Fuel
$43,418
5.7%
Software Expense
$42,378
5.5%
Cell Phone
$33,093
4.3%
Legal Fees
$31,596
4.1%
Stripe Processing Fees
$28,800
3.8%
Employee Medical Expenses
$26,988
3.5%
Tower Rental
$26,000
3.4%
Auto Repairs & Maintenance
$22,586
2.9%
Supplier Interest Charges
$22,143
2.9%
Advertising & Marketing
$20,983
2.7%
Payroll — Company EI, CPP
$18,946
2.5%
Accounting & Bookkeeping
$15,210
2.0%
Supplies & Materials
$15,087
2.0%
All Other Expenses
$215,433
28.1%
Total Operating Expenses
$765,378
100%
Expenses of Note
Legal Fees ($31,596): Elevated for a company this size. The board should review the nature of legal matters driving this spend.
Supplier Interest Charges ($22,143): Indicates payables are being stretched beyond terms. Combined with $797K in AP, this signals cash flow pressure.
Cell Phone ($33,093): High for company size — plan consolidation could yield savings. Bad Debt ($8,470): ~0.6% of revenue, within industry norms but worth monitoring.
6. Balance Sheet Summary — December 31, 2025
Assets
Category
Amount
Cash & Bank
$589,522
Accounts Receivable
$32,109
Other Current Assets
$222,928
Total Current Assets
$844,559
Fixed Assets (net)
$2,010,233
Other Assets
$15,082
Total Assets
$2,869,874
Liabilities
Category
Amount
Accounts Payable
$797,478
Due to Gerald Van Meppelen Scheppink
$307,637
GST/HST & Tax Payable
$234,717
Other Current Liabilities
($165,362)
Total Current Liabilities
$1,174,470
Long-Term Loans & Debt
$1,281,143
Other Liabilities
$1,978
Total Liabilities
$2,457,591
Equity
Category
Amount
Share Capital (all classes)
$420,100
Retained Earnings (prior years)
($176,328)
Current Year Earnings
$245,411
Dividends Paid
($76,400)
Drawings
($500)
Total Equity
$412,283
7. Key Financial Ratios
Current Ratio
0.72
Below 1.0 — caution
Debt-to-Equity
5.96x
Highly leveraged
Gross Margin
63.4%
Strong for regional ISP
Net Margin
13.7%
Healthy profitability
AR Days
~7.6
Good collections
AP Outstanding
$797K
51.8% of annual revenue
8. Significant Balance Sheet Items
Accounts Payable — $797,478: AP represents over half of annual revenue. Combined with $22,143 in supplier interest charges, this indicates the company is consistently carrying trade payables well beyond terms. This is a material cash flow management concern.
Shareholder & Related-Party Balances
Party
Amount
Due to Gerald Van Meppelen Scheppink
$307,637
Due to Shareholder Brad Mousseau
($183,290)
Kelly & Brad Mousseau (LT loan)
$407,566
Debbie & Dennis Smith
$119,180
Dennis Smith
$57,411
Related-party balances are substantial. Terms, interest rates, and repayment schedules should be formally documented and disclosed.
Long-Term Debt — $1,281,143
Includes 6 vehicle loans, BDC loan ($80,573), CEBA loan ($60,000), Fibernetics Ventures loan ($80,000), and multiple shareholder/family loans. The company’s debt structure is complex with numerous related-party obligations.
Fixed Assets — $2,010,233 (net)
Asset Category
Amount
Fibre Network
$918,492
Wireless Network
$441,754
Vehicles (8 units)
$526,314
Other Equipment & Fixtures
$260,142
Accumulated Depreciation
($136,468)
Total Fixed Assets
$2,010,233
9. Areas Requiring Attention
Zoho Books Data Quality — Quarterly COGS swings suggest incomplete entries; full reconciliation needed before this report can be finalized