10-K: Atlantis Glory Inc. Reports Full Year 2023 Results, Focuses on Business Combination

Atlantis Glory Inc., a U.S. holding company, reported its full year 2023 results, highlighting its ongoing efforts to identify a business combination opportunity.

Summary

• Atlantis Glory Inc. is a U.S. holding company that currently has no operating revenue.
• The company is focused on identifying a business opportunity, potentially through a reverse merger or asset purchase.
• For the year ended December 31, 2023, the company reported a net loss of $68,026, compared to a net income of $8,271,378 in 2022.
• The company's general and administrative expenses increased to $68,026 in 2023 from $62,301 in 2022.
• The company had no revenue in either 2023 or 2022.
• As of December 31, 2023, the company had an accumulated deficit of $1,066,728 and no cash or cash equivalents.
• The company's independent auditor has expressed substantial doubt about its ability to continue as a going concern.
• The company has one employee, the Chief Executive Officer, who is responsible for all aspects of the company's operations.
• The company's common stock is quoted on the OTC Pink Market under the symbol AGLY.
• The company has 603,970,000 shares of common stock issued and outstanding as of March 13, 2024.

Sentiment

Score: 3

Explanation: The document presents a concerning financial situation with no revenue, ongoing losses, and an auditor's going concern warning. The company is reliant on a future business combination for its survival, which introduces significant uncertainty.

Positives

• The company is actively exploring business opportunities, including potential acquisitions.
• The company has a clear plan to seek a business combination to generate revenue.
• The company has a sole director and officer who is prepared to devote more time if necessary.

Negatives

• The company has no operating revenue and is currently incurring losses.
• The company has a significant accumulated deficit of $1,066,728.
• The company's auditor has expressed substantial doubt about its ability to continue as a going concern.
• The company has limited capital resources and may need to raise additional funds.
• The company's stock trades on the illiquid OTC Pink Market.
• The company has material weaknesses in its internal control over financial reporting.

Risks

• The company may not be able to identify a suitable business combination.
• The company may not be able to secure sufficient capital to fund its operations.
• The company's stock price may be volatile due to limited trading volume.
• The company faces competition from other firms seeking business opportunities.
• The company's lack of diversification poses a substantial risk.
• The company is dependent on a single officer and director.
• The company's internal controls are not effective.

Future Outlook

Management intends to explore and identify business opportunities, including a potential acquisition of an operating entity through a reverse merger, asset purchase or similar transaction. The company anticipates incurring operating losses in the next 12 months, principally costs related to its SEC reporting obligations.

Management Comments

• Management intends to explore and identify business opportunities, including a potential acquisition of an operating entity.
• Management believes that there are a number of firms seeking business opportunities at this time at discounted rates with which we will compete.
• Management anticipates that it will likely only be able to effect one business combination due to limited capital.
• Management intends to fund working capital requirements through a combination of existing funds and future issuances of debt or equity securities.

Industry Context

The company is operating in a competitive environment where many firms are seeking business opportunities, particularly at discounted rates due to the economic downturn. The company's strategy of seeking a business combination is a common approach for shell companies looking to establish operations.

Comparison to Industry Standards

• The company's financial performance is not comparable to established operating companies due to its lack of revenue and ongoing losses.
• The company's situation is similar to other shell companies or blank check companies that are in the process of identifying a business combination target.
• The company's reliance on a single officer and director is not uncommon for early-stage companies but poses a risk.
• The company's lack of internal controls is a common issue for small companies with limited resources.

Management Changes

Related Party Transactions

• As of December 31, 2023, the balance included $139,949 in-demand loans advanced to the Company by CHENG, Sau Heung, the Company's CEO.

Stakeholder Impact

• Shareholders face significant risk due to the company's financial condition and reliance on a future business combination.
• Employees are limited to the CEO, who is responsible for all aspects of the company's operations.
• Creditors are at risk due to the company's negative working capital and going concern issues.

Next Steps

• The company will continue to explore and identify business opportunities.
• The company will seek to acquire a business through a reverse merger, asset purchase or similar transaction.
• The company will need to raise additional capital to fund its operations and any potential acquisition.

Key Dates

Keywords

business combination, reverse merger, acquisition, operating losses, financial statements, OTC Pink Market, AGLY, going concern, capital raise, internal control