10-K: Altair International Corp. Reports Full Year 2024 Results, Navigates Strategic Shift

Altair International Corp. reports a net loss of $398,885 for the fiscal year ended March 31, 2024, while actively exploring new business opportunities and a potential merger.

Summary

• Altair International Corp. is a development stage company that incurred a net loss of $398,885 for the fiscal year ended March 31, 2024, compared to a net loss of $1,750,349 in the previous year.
• The company has not generated any revenue to date and is currently in preliminary discussions with potential acquisition targets.
• Operating expenses decreased to $181,178 in 2024 from $457,540 in 2023, primarily due to a reduction in mining and exploration expenses.
• The company's other expenses totaled $217,707 in 2024, which included interest expense, gains and losses on debt settlement and conversion, and changes in the fair value of derivatives.
• Altair's cash used in operating activities was $117,099 in 2024, compared to $142,020 in 2023.
• The company received $92,500 from financing activities in 2024, compared to $150,000 in 2023.
• As of June 28, 2024, there were 31,975,852 shares of common stock outstanding, held by 69 shareholders of record.
• The company is working towards a merger with Premier Air Charter, Inc., which is subject to certain preconditions, including Premier providing two years of audited financial statements.
• Altair has a 10% undivided interest in certain mining claims in Nevada and has the option to increase its ownership by an additional 50% with further payments.
• The company is also developing a solid-state lithium/graphene battery technology and exploring options for its commercialization.

Sentiment

Score: 4

Explanation: The document presents a mixed picture. While there are some positive developments, such as reduced losses and new business opportunities, the company's lack of revenue, going concern issues, and internal control weaknesses raise significant concerns. The potential for dilution from further capital raises also adds to the negative sentiment.

Positives

• The net loss decreased significantly from $1,750,349 in 2023 to $398,885 in 2024.
• Operating expenses were substantially reduced from $457,540 in 2023 to $181,178 in 2024.
• The company is actively pursuing new business opportunities, including potential acquisitions and a merger.
• Altair has a 10% interest in mining claims and the option to increase it.
• The company is developing a novel battery technology that does not rely on lithium.
• Altair has secured a license for lithium extraction technology and is the exclusive master agent for an EV battery recycling technology in North America.

Negatives

• The company has not generated any revenue to date.
• Altair has incurred recurring losses and has an accumulated deficit of $17,515,410 as of March 31, 2024.
• The company's auditors have raised substantial doubt about its ability to continue as a going concern.
• The merger with Premier Air Charter is subject to preconditions, including the provision of audited financial statements.
• The company has material weaknesses in its internal control over financial reporting.
• Altair has no full-time or part-time employees.

Risks

• The company's ability to continue as a going concern is dependent on generating profitable operations or obtaining necessary financing.
• The merger with Premier Air Charter is subject to preconditions that may not be met.
• The company has material weaknesses in its internal control over financial reporting.
• Additional issuances of equity or convertible debt securities will result in dilution to current shareholders.
• The company may not be able to take advantage of new business opportunities if adequate funds are not available.
• The company's battery technology is still under development and may not be successfully commercialized.
• The company has no full-time or part-time employees, which may impact its ability to execute its business plan.

Future Outlook

The company expects that working capital requirements will continue to be funded through a combination of existing funds, advances from shareholders, and further issuances of securities. Management anticipates additional increases in operating expenses and capital expenditures relating to developmental expenses, acquisition of assets, and sales and marketing expenses. The company intends to finance these expenses with further issuances of securities and debt issuances.

Management Comments

• Management resolves to provide updates on these efforts at the earliest such time that they become tangible.
• Management intends to finance operating costs over the next twelve months with existing cash on hand, loans from third parties and/or private placement of common stock.
• Management believes that the financial statements included in this report fairly present in all material respects our financial condition, results of operations and cash flows for the periods presented.

Industry Context

The company's activities in lithium extraction and battery technology development place it within the broader context of the growing electric vehicle and renewable energy sectors. The company's focus on a lithium-free battery technology could provide a competitive advantage in the market.

Comparison to Industry Standards

• Altair's lack of revenue and ongoing losses are not uncommon for development-stage companies in the resource and technology sectors, particularly those focused on early-stage exploration and R&D.
• Compared to established lithium mining companies like Albemarle or SQM, Altair is at a much earlier stage of development, with no current production or revenue.
• In the battery technology space, companies like QuantumScape or Solid Power are also pursuing solid-state battery technologies, but with more advanced development and funding.
• Altair's reliance on convertible debt and equity financing is typical for early-stage companies, but it also carries the risk of dilution for existing shareholders.
• The company's lack of full-time employees is unusual for a company with its stated goals and may indicate a need for additional resources to execute its business plan.

Management Changes

Related Party Transactions

• During the years ended March 31, 2024 and 2023, the Company paid Mr. Leonard Lovallo $22,000 and $34,000 for his role as Chief Executive Officer and President of the Company.
• As of March 31, 2024, Mr. Lovallo agreed to accept shares of common stock for his accrued salary through March 31, 2024 and for April Compensation.
• Mr. Lovallo received 1,760,000 shares of common stock for $44,000 of accrued salary and 160,000 shares of common stock for $4,000 for April compensation.
• On December 22, 2022, Ramzi Khoury, Director, converted $22,500 due to him into 70,000 shares of common stock.
• As of March 31, 2024, Mr. Khoury agreed to accept shares of common stock for his accrued salary through March 31, 2024 and for April Compensation.
• Mr. Khoury received 1,083,334 shares of common stock for $32,500 of accrued salary and 83,334 shares of common stock for $2,500 for April compensation.
• In addition, Mr. Khoury forgave $5,000 that was owed to him.

Stakeholder Impact

• Shareholders face the risk of dilution from further issuances of equity or convertible debt securities.
• Employees are currently limited to the CEO and a director, which may impact the company's ability to execute its business plan.
• Customers are not yet impacted as the company has not generated any revenue.
• Suppliers and creditors face the risk of non-payment if the company is unable to secure additional funding or generate revenue.
• The potential merger with Premier Air Charter could impact all stakeholders.

Next Steps

• The company intends to continue discussions with potential acquisition targets.
• Altair and Premier are working to satisfy the preconditions for the merger.
• The company will continue to develop its battery technology and explore commercialization options.
• Management intends to finance operating costs over the next twelve months with existing cash on hand, loans from third parties and/or private placement of common stock.

Key Dates

Keywords

Altair International Corp, Merger, Acquisition, Lithium, Battery Technology, Mining Claims, Financial Results, Convertible Debt, Going Concern, Internal Controls