01—Abstract
Summary
Summary of the 10-K/A filed September 23, 2020. Cited figures are marked; the original filing is the authoritative source.
Quture International, Inc. (QUTR) presents a unique filing as a "smaller reporting company" and "shell company" with a significant history of dormancy.
The company was dormant from March 2013 until December 2019 when new management, led by David Lazar, was appointed as custodian. As of the filing date (September 23, 2020, for the fiscal year ended April 30, 2020), Quture has no employees, no research and development activities, and no registered intellectual property. The company's stated business objective is to seek synergistic acquisitions or joint ventures.
However, it has not generated any revenue since inception and is heavily reliant on financing from its sole director, David Lazar, who provided a $42,560a interest-free loan and was granted significant super-voting preferred stock. The company's financial statements present substantial doubt about its ability to continue as a going concern, with a significant working capital deficit and a disclaimer of opinion from its auditors due to insufficient audit evidence from the prior dormant period. Investors should be aware that Quture International, Inc. is in the very early stages of its business plan under new management.
The company has no active operations, no revenue, and a history of dormancy. Its future prospects are entirely dependent on its ability to successfully identify and execute acquisitions or joint ventures, which is highly uncertain.
The significant dilution and control represented by the preferred stock issued to David Lazar also warrant careful consideration. The company's stock is traded on the OTC Pink Sheets, which typically involves thin trading and price volatility.
02—Key points
Key Highlights
- The company has been dormant for an extended period (March 2013 - December 2019) and is now under new management focused on identifying acquisition opportunities.
- Quture International, Inc. is a shell company with no employees, no revenue generation, and no current business operations.
- Significant control has been consolidated by David Lazar, the sole director and officer, who was appointed custodian and was granted 10,000,000 preferred shares with super-voting rights equivalent to 21,000,000,000 common shares.
- The company faces substantial doubt about its ability to continue as a going concern due to a lack of operational history, significant losses, and a need for external financing.
- The independent auditor issued a disclaimer of opinion on the financial statements due to insufficient audit evidence from the period when the company was dormant.
- The company's common stock is traded on the OTC Pink Sheets, characterized by low trading volume and high price volatility, and is subject to penny stock regulations.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-K/AFY2020filed September 23, 2020Financial Statements
FY2020 against FY2019
| Line item | FY2020FY2019 | Change |
|---|---|---|
| Operating Expenses | $2.30M$10K | +22659.9% |
| Operating Income | -$2.30M-$10K | −22659.9% |
| Net Income | -$2.30M$1.48M | −255.3% |
| EPS (Basic) | $0.98$0.60 | +63.3% |
| EPS (Diluted) | $-0.93$0.60 | −255.0% |
| Shares Outstanding (Basic) | 2.49M2.49M | 0.0% |
05—Questions
Frequently Asked Questions
What is Quture International, Inc.'s current business and operational status?
Quture International, Inc. is a shell company that has been dormant for a significant period. Under new management appointed in late 2019, the company's stated plan is to seek synergistic acquisitions or joint ventures. However, as of April 30, 2020, it has no employees, no active business operations, and has not generated any revenue since its inception.
What is the financial health and outlook for Quture International, Inc.?
The company's financial situation is precarious, with substantial doubt raised about its ability to continue as a going concern. It has incurred significant operating losses, has a working capital deficit, and relies on interest-free demand loans from its sole director, David Lazar. The independent auditor issued a disclaimer of opinion due to inability to obtain sufficient audit evidence from the company's dormant period.
Who controls Quture International, Inc. and what is the ownership structure?
Control is largely consolidated with David Lazar, who serves as the sole Director and Officer. He was appointed custodian of the company and was granted 10,000,000 preferred shares with super-voting rights equivalent to 21,000,000,000 common shares. This issuance represents a significant concentration of voting power.
What are the risks associated with investing in Quture International, Inc. given its status?
Key risks include the company's lack of operational history, its status as a shell company actively seeking acquisitions with no guarantee of success, the significant concentration of voting control, the substantial doubt about its going concern status, and the volatile and illiquid nature of its stock trading on the OTC Pink Sheets, which is subject to penny stock regulations that can limit trading activity and investor liquidity.
06—Continue