01—Abstract
Summary
Summary of the 10-K filed December 30, 2024. Cited figures are marked; the original filing is the authoritative source.
Born, Inc. (BRRN) filed its 10-K for the period ending December 31, 2021, indicating the company is a smaller reporting company and an emerging growth company.
The filing reveals that Born, Inc. is currently a dormant shell company with no ongoing operations or revenue. The company has a complex corporate history involving changes in name, structure, and custodianship. Notably, the company experienced a significant goodwill impairment of $87,670,010a in February 2021 related to a voided share exchange agreement with Alkeon Creators, Inc. The auditors have expressed substantial doubt about the company's ability to continue as a going concern due to recurring losses and negative cash flows.
Management's plan involves exploring and identifying viable business opportunities, potentially through a reverse merger with an operating entity. However, the company lacks sufficient working capital for the next 12 months and anticipates the need for further financing, which may result in significant dilution for existing shareholders.
The company's common stock is not quoted on any exchange, and no dividends are currently paid or anticipated. Investors should be aware of the high-risk profile associated with a dormant shell company seeking a future business combination.
02—Key points
Key Highlights
- Born, Inc. is a dormant shell company with no current operations or revenue.
- The company experienced a significant goodwill impairment of $87,670,010 in February 2021.
- Auditors have expressed substantial doubt about the company's ability to continue as a going concern due to recurring losses and negative cash flows.
- Management intends to pursue a business combination, likely a reverse merger, to acquire an operating business.
- The company lacks sufficient working capital and anticipates needing additional financing, which could lead to significant shareholder dilution.
- Common stock is not traded on any exchange, and no dividends are anticipated.
- The corporate history is complex, involving name changes, custodianship, and a voided acquisition.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2021filed December 30, 2024Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Operating Expenses | $87.67M$2.30M | +3706.2% |
| Operating Income | -$87.67M-$2.30M | −3706.2% |
| Net Income | -$87.67M-$2.30M | −3706.2% |
| EPS (Basic) | $-0.24$0.98 | −124.5% |
| EPS (Diluted) | $-0.24$-0.93 | +74.2% |
| Shares Outstanding (Basic) | 367.40M2.49M | +14678.1% |
05—Questions
Frequently Asked Questions
What is the current business status of Born, Inc.?
Born, Inc. is currently a dormant shell company with no ongoing operations or revenue. Management is actively exploring opportunities to acquire a viable business, potentially through a reverse merger.
What is the financial health of the company?
The company has a history of significant operating losses and a substantial accumulated deficit. The auditors have expressed substantial doubt about its ability to continue as a going concern due to recurring losses and negative cash flows. Born, Inc. also lacks sufficient working capital for the next 12 months.
What are the main risks for investors?
Key risks include the company's dormant status, the uncertainty of identifying and successfully completing a business combination, the potential for significant shareholder dilution from future financing, the lack of trading for its common stock, and the auditor's going concern opinion. The company's future profitability is highly speculative.
Has the company undergone any significant financial events recently?
Yes, in February 2021, Born, Inc. recorded a goodwill impairment of $87,670,010 related to a share exchange agreement with Alkeon Creators, Inc. that was subsequently voided.
06—Continue