01—Abstract
Summary
Summary of the 10-K/A filed December 19, 2024. Cited figures are marked; the original filing is the authoritative source.
Born Inc. (BRRN) filed an amendment to its 2020 10-K, primarily to replace its auditor due to an SEC order against the former firm.
This amendment also includes a restatement of financial statements for the year ended April 30, 2019, which now shows a net income of $1,482,735,a a significant improvement from the previously reported $0. This change is attributed to a gain from the extinguishment of $1,492,855 in debt due to the expiration of the statute of limitations on third-party and related-party debt, which was not accounted for in the original filing. The company has been largely dormant since 2013, with new management appointed in late 2019.
Born Inc. is currently a shell company actively seeking investment opportunities through synergistic acquisitions or joint ventures. It operates as a 'smaller reporting company' and has no employees, no research and development activities, and no physical office facilities beyond a mailing address. The company's stock is traded on the OTC Pink Sheets and is considered a penny stock, with associated trading risks and potential difficulty for investors to sell shares.
02—Key points
Key Highlights
- Born Inc. is amending its 2020 10-K due to a change in auditors, stemming from an SEC cease-and-desist order against its former firm, B.F. Borgers CPA PC.
- The financial statements for the year ended April 30, 2019, have been restated, showing a net income of $1,482,735, compared to the previously reported $0.
- The restatement is primarily due to a $1,492,855 gain on extinguishment of debt, resulting from the expiration of the statute of limitations on certain debt.
- The company has been dormant for several years and is now operating as a shell company actively seeking acquisitions or joint ventures.
- Born Inc. qualifies as a 'smaller reporting company' with reduced disclosure requirements and has no employees or physical office facilities.
- The company's common stock is traded on the OTC Pink Sheets under the symbol 'QUTR', qualifying it as a penny stock with inherent trading volatility and liquidity risks.
03—Questions
Frequently Asked Questions
Why is Born Inc. filing an amendment to its 2020 10-K?
Born Inc. is filing an amendment to its 2020 10-K primarily to replace its former auditor, B.F. Borgers CPA PC, due to an SEC cease-and-desist order against that firm. The amendment also includes a restatement of prior financial periods to reflect newly recognized accounting adjustments.
What is the impact of the restated financial statements for the year ended April 30, 2019?
The restatement for the year ended April 30, 2019, significantly changes the reported net income from $0 to $1,482,735. This improvement is largely due to recognizing a gain of $1,492,855 from the extinguishment of debt, which occurred because the statute of limitations expired on certain third-party and related-party debt.
What is the current business strategy and operational status of Born Inc.?
Born Inc. has been dormant for an extended period and is currently operating as a shell company. Its strategy is to seek synergistic acquisitions or joint ventures with companies that can enhance its business plan. The company currently has no employees and no R&D activities.
What are the risks associated with investing in Born Inc.'s stock, considering its market and operational status?
Investing in Born Inc. carries significant risks. The company's stock is traded on the OTC Pink Sheets, classifying it as a penny stock, which means trading is often thin, prices can be highly volatile, and investors may face difficulty selling their shares. Furthermore, as a shell company seeking new business opportunities, its future prospects are highly uncertain and dependent on successful acquisitions.
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