10-K: Bally Corp. Reports Full Year 2024 Results, Navigates Change in Control and Seeks New Business Opportunities

Bally Corp.'s 2024 annual report reveals a year of transition, including a change in control, no revenue generation, and a focus on identifying new business opportunities.

Summary

• Bally Corp., incorporated in Nevada in 2013, is currently seeking new business opportunities through mergers or acquisitions.
• The company experienced a change in control on January 12, 2024, with new shareholders and management taking over.
• For the fiscal year ended September 30, 2024, Bally Corp. reported no revenue and a net loss of $75,191, compared to a net loss of $35,385 in 2023.
• Operating expenses totaled $75,191 in 2024, consisting primarily of professional fees.
• The company's working capital deficiency increased to $252,523 as of September 30, 2024, from $177,332 in 2023.
• Bally Corp. has no current source of revenue and is reliant on loans from affiliated and non-affiliated parties.
• The company has no employees and is relying on its sole director and officer to donate their time.
• There is substantial doubt about the company's ability to continue as a going concern without securing additional financing.
• The company's common stock is quoted on the OTC Markets under the symbol BLYQ.
• As of December 30, 2024, there were 9,850,000 shares of common stock outstanding held by 41 registered shareholders.

Sentiment

Score: 3

Explanation: The document presents a concerning financial picture with no revenue, increasing losses, a significant working capital deficiency, and a going concern warning. While the company is seeking new opportunities, the current situation is precarious.

Positives

• The company is actively seeking new business opportunities through mergers or acquisitions.
• The company is a reporting entity with a class of securities quoted on the OTC Markets, which provides potential benefits such as increased visibility and access to capital markets.
• The new management team has been appointed and is in place following the change in control.
• The company has identified potential benefits of being a reporting company, including the ability to use registered securities for acquisitions and increased visibility in the financial community.

Negatives

• The company has not generated any revenue since inception.
• The company reported a net loss of $75,191 for the year ended September 30, 2024.
• The company has a significant working capital deficiency of $252,523.
• The company has no cash and is reliant on shareholder loans to fund operations.
• There is substantial doubt about the company's ability to continue as a going concern.
• The company has no employees and relies on its sole director and officer to donate their time.
• The company has identified material weaknesses in its internal control over financial reporting.
• The company has an accumulated deficit of $431,903 as of September 30, 2024.

Risks

• The company's ability to continue as a going concern is dependent on securing additional financing.
• The company has no current source of revenue and is reliant on loans from affiliated and non-affiliated parties.
• The company may have difficulties raising capital from other sources until it locates a prospective merger candidate.
• The company has identified material weaknesses in its internal control over financial reporting.
• The company's business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources and possible cost overruns.
• The company has no formal written commitment for continued support by shareholders or directors.
• The company's future success is uncertain and dependent on identifying and executing a successful business opportunity.

Future Outlook

The company is actively seeking new business opportunities and intends to fund operations through equity financing arrangements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements for the year ending September 30, 2025. There is no assurance that future financing will be available on acceptable terms.

Management Comments

• Management of our company is currently evaluating our future strategic business plans.
• Management of our company believes that there are benefits to being a reporting company with a class of securities quoted on the OTC Markets.
• Management concluded that our disclosure controls and procedures were not effective as of September 30, 2024 due to the material weaknesses.
• Management is responsible for establishing and maintaining adequate internal control over financial reporting.

Industry Context

The company's situation is not uncommon for early-stage companies seeking to establish a business presence and identify a viable business model. The focus on mergers and acquisitions is a common strategy for companies looking to quickly scale or enter new markets. The lack of revenue and reliance on shareholder loans is typical for companies in the development stage.

Comparison to Industry Standards

• It is difficult to compare Bally Corp. to industry standards due to its unique situation as a shell company seeking a merger or acquisition target.
• Many early-stage companies in the technology or biotech sectors often have similar financial profiles with no revenue and reliance on external funding, however, they typically have a clear business plan and product development roadmap.
• Unlike established companies, Bally Corp. does not have a comparable peer group in terms of revenue, profitability, or operational metrics.
• The company's lack of employees and reliance on donated time is unusual compared to most public companies, even those in the early stages of development.
• The company's financial metrics are significantly below industry benchmarks for established companies, but are not uncommon for shell companies or those in the very early stages of development.

Management Changes

Corporate Governance

Legal Proceedings

• The company is not involved in any pending legal proceedings or litigation.
• To the best of the company's knowledge, no governmental authority is contemplating any proceeding that would have a material adverse effect on the company.

Related Party Transactions

• The company relies on advances from related parties to fund operations.
• The prior shareholder assigned an outstanding balance of $252,213 to the new shareholders.
• The company is obligated to the current shareholders for a total balance of $279,976 as of September 30, 2024.

Stakeholder Impact

• Shareholders face the risk of losing some or all of their investment if the company is unable to secure adequate capital.
• Employees are not currently impacted as the company has no employees.
• Customers and suppliers are not currently impacted as the company has no operations.
• Creditors are at risk due to the company's significant liabilities and lack of revenue.

Next Steps

• The company will continue to seek new business opportunities with established business entities for merger with or acquisition of a target business.
• The company intends to fund operations through equity financing arrangements.
• The company will need to address the material weaknesses in its internal control over financial reporting.

Key Dates

Keywords

merger, acquisition, OTC Markets, change in control, financial statements, going concern, working capital, net loss, shareholder loans, business opportunities