10-Q: Atlantis Glory Reports Q3 2025 Loss, Seeks Merger

Atlantis Glory Inc., a dormant shell company, reported a net loss of $7,675 for Q3 2025 and continues to seek a reverse merger while facing significant going concern doubts.

Summary

• Reported a net loss of $7,675 for the three months ended September 30, 2025, and $23,854 for the nine months ended September 30, 2025.
• Has no revenue from continuing operations and has been dormant since May 14, 2020.
• Accumulated deficit reached $1,131,062 as of September 30, 2025.
• Current liabilities increased to $195,283 as of September 30, 2025, up from $171,429 at December 31, 2024.
• Operations are financed by borrowings from related parties, with $187,333 due to a related party as of September 30, 2025.
• Management intends to explore and identify business opportunities, including a potential acquisition of an operating entity through a reverse merger.
• Identified material weaknesses in internal control over financial reporting, including insufficient segregation of duties, lack of an independent board/audit committee, and no written internal control policies.

Sentiment

Score: 2

Explanation: The company is a dormant shell with no operations, increasing losses, zero cash, and significant accumulated deficit. It faces substantial doubt about its ability to continue as a going concern and has material weaknesses in internal controls. While it seeks a reverse merger, this is a highly speculative and risky endeavor with no current prospects identified.

Positives

• Management is actively seeking a business combination to revitalize the company.
• The company has continued financial support from existing stockholders or related parties to meet obligations.

Negatives

• The company has been dormant since May 14, 2020, with no revenue from continuing operations.
• Reported a net loss of $7,675 for the three months ended September 30, 2025, and $23,854 for the nine months ended September 30, 2025.
• Accumulated deficit of $1,131,062 as of September 30, 2025.
• Negative working capital of $195,283 as of September 30, 2025.
• Substantial doubt about the company's ability to continue as a going concern.
• Reliance on related party financing, with $187,333 due to a related party.
• Identified material weaknesses in internal control over financial reporting.

Risks

• Ability to consummate a merger or acquisition.
• Continued services of the Custodian (David Lazar, as mentioned in forward-looking statements).
• Future financial performance and continuation of historical trends (which are negative).
• Sufficiency of resources in funding operations.
• Risks of limited management, labor, and financial resources.
• Ability to establish and maintain adequate internal controls.
• Ability to develop and maintain a market in its securities.
• Ability to obtain financing, if and when needed, on acceptable terms.
• Uncertainties and negative effects of the coronavirus pandemic on the U.S. and global economies.
• Lack of diversification due to likely only effecting one business combination, posing substantial risk.
• Difficulty in comparative investigation and analysis of potential business opportunities due to variety in industries, regions, and stages of development.
• Potential for significant dilution to current shareholders from future equity or convertible debt issuances, especially for a reverse merger.
• Risk that additional financing may not be available upon acceptable terms, or at all.
• Risks inherent in early-stage development companies, including an evolving and unpredictable business model, recognition of revenue sources, and management of growth.

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, primarily related to SEC filing obligations. Future capital requirements are uncertain, and any reverse merger will likely require additional capital and result in significant dilution to current shareholders.

Management Comments

• "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."
• "Management believes the existing stockholders will provide the additional cash to meet with the Company's obligations as they become due."
• "Management believes that the actions presently being taken to obtain additional funding and implement its strategic plan provides the opportunity for the Company to continue as a going concern."
• "Our management has not had any discussions with any representative of any other entity regarding a potential business combination as of the date of this Report."

Industry Context

Atlantis Glory Inc. operates as a shell company, a common vehicle in the microcap market for private companies seeking to go public via a reverse merger. Its dormant status and lack of operations place it squarely within the 'blank check' or 'special purpose acquisition company' (SPAC) segment, albeit without the typical SPAC structure. The company's future is entirely dependent on its ability to identify and successfully execute a business combination, a process that is highly competitive and fraught with risks, especially in a challenging economic environment.

Comparison to Industry Standards

• As a dormant shell company with no revenue and significant accumulated deficit, Atlantis Glory Inc. is not comparable to operating companies in any industry.
• Its financial state is typical for a shell company that has ceased operations and is being maintained solely for the purpose of a reverse merger.
• The identified material weaknesses in internal control over financial reporting are common for small, non-operating entities with limited resources and personnel, but would be a significant red flag for an operating company.
• The reliance on related party financing is a standard practice for shell companies to cover administrative and compliance costs while seeking a merger target.

Management Changes

Corporate Governance

Legal Proceedings

• The company may be involved in certain legal proceedings that arise from time to time in the ordinary course of its business.
• Officers and directors are not aware of any threatened or pending litigation that would have any material, adverse effect on the company.

Related Party Transactions

• The company's operations are principally financed through borrowings from related parties.
• As of September 30, 2025, $187,333 was due to a related party, of which Mr. YUM Edward Liang Hsien is the Managing Director.

Stakeholder Impact

• Shareholders: Face significant dilution risk from future capital raises and a controlling block of securities issued in a reverse merger. Current shares are highly speculative due to the company's dormant status and going concern doubts.
• Creditors (Related Party): Provide ongoing financial support, indicating a vested interest in the company's future success, particularly in securing a business combination.
• Potential Merger Targets: The company offers a public listing vehicle, but its financial weaknesses and internal control issues could be a deterrent or require significant remediation post-merger.

Next Steps

• Explore and identify business opportunities, including potential acquisitions through reverse mergers, asset purchases, or similar transactions.
• Fund working capital requirements through existing funds and future issuances of debt or equity securities.
• Implement an independent board of directors, establish written policies and procedures for internal control, and hire additional accounting personnel upon completion of a reverse merger or similar business acquisition.

Key Dates

Recommendation

Atlantis Glory Inc. is a dormant shell company with no operations, no revenue, zero cash, and a growing accumulated deficit. It faces substantial doubt about its ability to continue as a going concern and relies entirely on related party financing. The company has identified material weaknesses in its internal controls and any future business combination is highly speculative, likely to result in significant shareholder dilution, and carries inherent risks of early-stage development. Without a concrete business plan or identified merger target, the investment carries extreme risk with no fundamental value.

Keywords

Atlantis Glory Inc., AGLY, 10-Q, Quarterly Report, SEC Filing, Shell Company, Reverse Merger, Going Concern, Financial Loss, Accumulated Deficit, Related Party Debt, Internal Control Weaknesses, Corporate Governance, Nevada Corporation, Elevator Technology (historical), Business Combination