Executive Summary / Key Takeaways

• Strategic Pivot to Clean Energy: GHST World Inc. is undergoing a significant strategic shift, transitioning from its long-standing, unmonetized sports technology development to a nascent clean energy production and trading business in Italy, driven by management's belief that prior losses were unsustainable.
• Dual-Pronged Growth Strategy: The company is pursuing two distinct, high-potential, yet capital-intensive ventures: the commercialization of its patented Smart Shin Guard sports technology and the development of solar energy projects and electricity trading through its InSSIDe subsidiary.
• Significant Financial Headwinds: GHST faces substantial financial challenges, including an accumulated deficit of $14.06 million as of June 30, 2025, a "going concern" doubt from its auditors, and a critical reliance on related-party financing, which has led to shareholder dilution.
• Technological Differentiators: The Smart Shin Guard offers patented, AI-integrated data collection for sports performance, while InSSIDe leverages machine learning models for energy production prediction and trading optimization, providing potential competitive advantages in their respective fields.
• High-Risk, High-Reward Outlook: The investment thesis hinges on the successful execution and monetization of these unproven business models, particularly the ability to secure significant third-party financing for the clean energy projects and achieve market acceptance for the Smart Shin Guard, against a backdrop of intense competition and limited capital.

A Dual Ambition: GHST's Strategic Evolution in Sports Tech and Green Energy

GHST World Inc. (GHST) is charting an ambitious course, evolving from its origins in technologically-enhanced sports equipment to embrace the burgeoning clean energy sector. Founded in 1999, the company's strategic direction sharpened in 2019 with the establishment of GHST Sport Inc., focusing on its patented Smart Shin Guard. More recently, in late 2024 and early 2025, GHST initiated a significant pivot into clean energy production and trading in Italy through its wholly-owned subsidiary, InSSIDe World Inc. This dual strategy positions GHST in two dynamic, yet highly competitive, industries, reflecting a calculated shift by management to address historical operational losses and unlock shareholder value.

The global sports technology market is experiencing rapid expansion, projected to reach $40.22 billion in revenue by 2028, driven by increased sports engagement, the rise of eSports, and the integration of AI and IoT. Concurrently, the clean energy industry is witnessing robust growth, fueled by economic, social, and environmental factors. Italy, GHST's primary focus for its energy ventures, is a particularly attractive market, aiming for 65% of its electricity from renewable sources by 2030, creating consistent demand and regulatory tailwinds for scalable projects.

Technological Edge: Smart Shin Guard and AI-Driven Energy Trading

GHST's investment narrative is underpinned by its commitment to technological differentiation across its core segments.

The Smart Shin Guard, developed by GHST Sport, represents a fusion of protective equipment and advanced data analytics. This patented device monitors individual and collective physical and performance-based metrics in real-time, including covered distance, acceleration, kicking force, collision impact, positioning, and directional movement. The "2PLAI" brand, emphasizing Artificial Intelligence (AI) integration and two-limb analysis, aims to offer deep insights for match analysis and injury prevention, extending beyond basic metrics. While specific quantitative performance metrics like "X% superior energy yield" are not detailed in the company's filings, the inherent benefit lies in providing comprehensive, real-time data that can empower coaches and athletes to make faster, more informed decisions, potentially offering a competitive advantage on the field. Beta testing for the Smart Shin Guard was completed in July 2024, with a goal to commence marketing in 2025. The company is also collaborating with Cross-ING, an AI development firm, to further enhance the smartphone application and expand the product's application to other sports.

In the clean energy sector, InSSIDe World Inc. is leveraging machine learning models to optimize its electricity trading operations. These models are designed to predict energy production, facilitate precise sales planning, enhance market forecasting, and conduct robust risk analysis. InSSIDe's strategy involves purchasing electricity at a fixed price, currently €0.14 per kWh, and reselling it at market prices. The "so what" for investors here is the potential for these AI-driven analytics to maximize the spread between purchase and resale prices, thereby enhancing profitability in a volatile commodity market. InSSIDe's operations are anticipated to begin between October and November 2025, contingent on power plants in Mosciano, Italy, connecting to the national grid.

Competitive Landscape: A Battle for Niche Dominance Against Giants

GHST operates in highly competitive environments, facing both specialized niche players and global industry behemoths.

In sports technology, GHST Sport's Smart Shin Guard directly competes with companies like Soccerment and TibTop, which offer wearable shin guards, and Catapult Sports, known for its wearable tracking devices. Broader competition comes from major sports apparel firms such as Nike (NKE), and GPS-enabled device specialists like Garmin (GRMN), which possess significantly greater capital, human resources, and established brand recognition. While GHST believes its patented technology and the depth of real-time, in-game data collection offer a unique advantage, it must overcome substantial market entry barriers. Competitors benefit from longer operating histories and established relationships with professional leagues and teams. Crucially, GHST has not yet secured approval for the Smart Shin Guard's in-game use by major soccer leagues like FIFA or UEFA, a critical factor for widespread adoption among professional teams.

In the clean energy sector, InSSIDe enters a growing market with numerous participants, many of whom are better capitalized and have longer operating histories. The company's focus on Italy means it will compete with established local and international energy producers and traders. The reliance on Green Capital SRL, a third-party entity responsible for raising $7 million to $10 million in financing for solar plant construction, introduces a significant dependency and competitive vulnerability. This model exposes GHST to commodity price risk, as profitability hinges on market prices for electricity remaining above its fixed purchase price.

GHST's other subsidiaries, GHST Art World and IoTT World, are in early developmental stages and face intense competition from established art platforms and a saturated IoT market, respectively. The company's overall market positioning is that of a niche innovator, with potential strengths in specialized technological integration but significant vulnerabilities due to its smaller operational scale, which can lead to higher costs and weaker profitability compared to larger, more diversified rivals.

Financial Performance and Liquidity: A Going Concern Challenge

GHST's financial performance reflects its developmental stage and capital constraints. For the fiscal year ended June 30, 2025, the company reported revenue of $60,469, primarily attributable to InSSIDe's renewable energy consulting activities. This represents a notable increase from $40,916 in revenue for the fiscal year ended June 30, 2024. Despite this revenue growth, GHST sustained a net loss of $182,848 in FY 2025, an improvement from the $511,284 net loss in FY 2024, largely due to a reduction in general and administrative expenses.

However, the company's financial health remains precarious. As of June 30, 2025, GHST had an accumulated deficit of $14.06 million, and its auditors have expressed substantial doubt about its ability to continue as a going concern. Cash and cash equivalents stood at approximately $15,900 as of October 3, 2025. The company anticipates needing at least $250,000 to cover its working capital needs for the next 12 months.

Liquidity is a critical concern. GHST has historically relied heavily on indebtedness from shareholders, including $147,917 borrowed from CEO Roberto Castellazzi in FY 2025, to fund operations and development. These unsecured, non-interest-bearing loans, totaling $465,764 as of October 9, 2025, are often repaid through the issuance of common stock, leading to significant dilution for existing shareholders and downward pressure on the stock price. The company's TTM financial ratios underscore these challenges, with a 100.00% gross profit margin (likely reflecting the nature of its current revenue from consulting rather than product sales), but deeply negative operating and net profit margins of -242.73% and -243.16%, respectively.

Outlook and Risks: A Path Fraught with Dependencies

GHST's forward outlook is characterized by ambitious goals heavily dependent on external factors and successful execution. The company expects to generate revenue from electricity sales through InSSIDe, contingent on Green Capital securing the necessary financing for solar plant construction. The Smart Shin Guard is targeted for marketing in 2025, with the consumer kit's smartphone application expected to be completed before the more complex professional version.

However, significant risks loom. The unproven nature of the clean energy business model, its capital-intensive requirements, and the reliance on a third party (Green Capital) for substantial financing ($7 million to $10 million) present considerable uncertainty. The potential for commodity price fluctuations in electricity markets also poses a direct threat to InSSIDe's profitability. Delays in Smart Shin Guard development due to capital constraints have been a recurring issue, and there is no guarantee of obtaining crucial league approvals for in-game use or securing athlete endorsements.

Operational risks include material weaknesses in internal controls, such as insufficient segregation of accounting duties and the CEO's dual role in initiating and approving related-party transactions. Macroeconomic headwinds, including geopolitical conflicts, inflation, and potential recession, could further impede capital-raising efforts and dampen consumer spending. Operating in foreign markets exposes GHST to additional risks like trade restrictions, currency fluctuations, and compliance with international regulations. The company's stock, trading sporadically on the OTCID Basic Market, faces liquidity challenges and price volatility, exacerbated by penny stock rules and ongoing dilution from equity issuances.

Conclusion

GHST World Inc. stands at a pivotal juncture, attempting to pivot towards a potentially lucrative clean energy future while still nurturing its innovative sports technology. The core investment thesis is one of high potential reward, driven by patented technology in sports and AI-leveraged strategies in energy trading, but it is inextricably linked to substantial execution and financing risks. The company's ability to overcome its "going concern" challenges, secure the necessary capital for its Italian solar projects, and successfully commercialize the Smart Shin Guard will dictate its trajectory.

GHST's competitive standing, while benefiting from technological differentiators, is challenged by the scale and resources of established players in both the sports tech and clean energy sectors. The successful integration of its AI and machine learning capabilities into both the Smart Shin Guard and InSSIDe's energy trading platform represents a critical path to carving out sustainable competitive advantages. Investors must weigh the significant capital requirements and operational dependencies against the potential for growth in these dynamic industries, closely monitoring financing progress, operational milestones, and the company's ability to translate its technological vision into consistent, material revenue.