01—Abstract
Summary
Summary of the 10-Q filed January 13, 2025. Cited figures are marked; the original filing is the authoritative source.
Byrn Inc. (BRRN) filed its quarterly report for the period ending September 30, 2024, revealing a company with no current operations or revenue.
The balance sheet indicates a complete absence of assets, with liabilities primarily consisting of accounts payable and related party payables. The company is in a significant stockholders' deficit position, underscoring its precarious financial state. Financially, Byrn Inc. reported net losses for both the three and nine-month periods ending September 30, 2024, with operating expenses primarily comprising administrative costs.
Cash flow statements show a negative cash flow from operations, with the company relying on related party loans for financing. Management explicitly states the company has no operations and is actively seeking a business combination, such as a reverse merger, to identify new business opportunities. The report also highlights material weaknesses in internal controls over financial reporting due to limited resources and lack of an independent board or audit committee.
02—Key points
Key Highlights
- Byrn Inc. currently has no operations and generated no revenue for the three and nine months ended September 30, 2024.
- The company reported net losses for both the three-month period ($21,796) and the nine-month period ($25,905) ended September 30, 2024.
- As of September 30, 2024, Byrn Inc. has zero assets and a total liabilities of $37,504, resulting in a stockholders' deficit of $37,504.
- The company is reliant on interest-free demand loans from a related party, David Lazar, who extended $30,475 in such loans during the nine months ended September 30, 2024.
- Management explicitly states a lack of sufficient working capital to fund operations over the next 12 months and is actively exploring business combination opportunities, such as reverse mergers.
- Material weaknesses in internal control over financial reporting have been identified, including insufficient segregation of duties, lack of an independent board and audit committee, and no written documentation of internal control policies.
- The company's future operations and financial condition are highly dependent on its ability to secure additional financing and successfully execute a business combination.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2024filed January 13, 2025Financial Statements
Q3 FY2024 against Q3 FY2023
| Line item | Q3 FY2024Q3 FY2023 | Change |
|---|---|---|
| Operating Expenses | $22K$8K | +160.6% |
| Operating Income | -$22K-$8K | −160.6% |
| Net Income | -$22K-$8K | −160.6% |
| Shares Outstanding (Basic) | 419.98M419.76M | +0.1% |
05—Questions
Frequently Asked Questions
What is Byrn Inc.'s current business status?
Byrn Inc. currently has no operations and generates no revenue. The company is actively exploring opportunities to identify and engage in a business combination, such as a reverse merger, to establish new business operations. Its historical focus was on developing medical software.
What is the company's financial health and liquidity situation?
The company is in a precarious financial state, reporting net losses and having zero assets as of September 30, 2024. It has a significant stockholders' deficit and relies on interest-free loans from a related party for its limited financing. Management acknowledges a lack of sufficient working capital to sustain operations for the next 12 months.
What are the main risks facing Byrn Inc. moving forward?
The primary risks include the company's inability to secure necessary financing, failure to identify and successfully execute a suitable business combination, potential dilution to existing shareholders from future capital raises, and the substantial risks inherent in the business of a financially unstable or early-stage entity that it may acquire. Additionally, material weaknesses in internal controls over financial reporting present operational risks.
What is the significance of the related party transactions?
The company is currently financed by interest-free demand loans from David Lazar, who is identified as a related party and holds the positions of CEO and CFO. During the nine months ended September 30, 2024, he extended $30,475 in loans, of which $18,518 was forgiven. This reliance on related party financing highlights the company's limited access to traditional funding sources.
06—Continue