01—Abstract
Summary
Summary of the 10-Q filed January 13, 2025. Cited figures are marked; the original filing is the authoritative source.
Born, Inc. (BRRN) filed its quarterly report for the period ending March 31, 2024, revealing a company with no active operations and significant financial challenges.
The company reported zero revenue for both the three months ended March 31, 2024, and March 31, 2023. Operating expenses were minimal, consisting primarily of administrative expenses related to a party mentioned as David Lazar, resulting in net losses of $1,817a and $2,188 for the respective periods. The company's balance sheet as of March 31, 2024, shows total assets of $0 and total liabilities of $31,934, leading to a substantial stockholders' deficit of $117,478,941.
Born, Inc. explicitly states it has 'No Current Operations' and its 'Plan of Operation' involves exploring and identifying business opportunities, potentially through a reverse merger or asset acquisition. The company acknowledges a severe lack of capital, with existing operational cash flow insufficient to fund anticipated operations for the next 12 months.
Management is relying on interest-free demand loans from David Lazar and anticipates needing to raise additional funds through equity or debt issuances. Investors should be aware that the company is a shell company, carries a going concern warning due to its negative working capital and accumulated deficit, and its plan of operation carries substantial risks, including potential dilution from future financings.
02—Key points
Key Highlights
- No revenue reported for the three months ended March 31, 2024, and March 31, 2023.
- Net loss for the three months ended March 31, 2024, was $1,817, compared to $2,188 for the same period in 2023.
- Total assets are listed as $0 as of March 31, 2024.
- The company has a significant stockholders' deficit of $117,478,941 as of March 31, 2024.
- Born, Inc. is classified as a shell company with 'No Current Operations' and is actively seeking a business combination.
- A going concern warning is present due to insufficient working capital to fund operations over the next 12 months.
- The company is primarily funded by interest-free demand loans from David Lazar, who is identified as a related party and also the CEO and CFO.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed January 13, 2025Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Operating Expenses | $2K$2K | −17.0% |
| Operating Income | -$2K-$2K | +17.0% |
| Net Income | -$2K-$2K | +17.0% |
| Shares Outstanding (Basic) | 419.76M419.76M | 0.0% |
05—Questions
Frequently Asked Questions
What is Born, Inc.'s current operational status?
Born, Inc. currently has no operations and reported zero revenue for the three months ended March 31, 2024, and March 31, 2023. The company is actively seeking to identify and pursue business opportunities, potentially through a reverse merger or acquisition.
What is the company's financial health and outlook?
The company faces significant financial challenges, as indicated by its zero total assets, substantial stockholders' deficit of $117,478,941 as of March 31, 2024, and ongoing net losses. A going concern warning is in effect due to insufficient working capital, and management is reliant on related-party funding to sustain operations.
How is the company funded, and what are the implications for existing shareholders?
Currently, the company is being funded by interest-free demand loans from David Lazar, a related party and also the CEO and CFO. Born, Inc. anticipates needing to raise additional capital through future issuances of debt or equity securities, which could result in significant dilution to existing shareholders.
What are the company's plans for the future?
The company's management plans to explore and identify business opportunities, including a potential acquisition of an operating entity through a reverse merger, asset purchase, or similar transaction. They are also focused on investigating, evaluating, and negotiating potential business combinations and fulfilling SEC reporting obligations.
06—Continue