10-Q: BALLY, CORP. Reports Net Loss and Change in Control for Quarter Ended December 31, 2023

BALLY, CORP. reports a net loss of $36,950 for the quarter ended December 31, 2023, and announces a change in control with the sale of 99.5% of its outstanding shares.

Summary

• BALLY, CORP. filed its Form 10-Q for the quarter ended December 31, 2023.
• The company reported a net loss of $36,950 for the three months ended December 31, 2023, compared to a net loss of $23,090 for the same period in 2022.
• The company has not generated any revenue since inception.
• Operating expenses for the quarter were $36,950, consisting primarily of professional fees.
• As of December 31, 2023, the company's working capital deficiency was $214,282 and its accumulated deficit was $393,662.
• On January 12, 2024, a change in control occurred with the sale of 99.5% of the company's outstanding shares to eight buyers.
• Following the change in control, there were changes in the company's officers and directors.
• The company is currently seeking new business opportunities for merger or acquisition.
• The company's ability to continue as a going concern is dependent on its ability to raise adequate financing.
• The company had $33,120 in current assets and $247,402 in current liabilities as of December 31, 2023.

Sentiment

Score: 3

Explanation: The sentiment is negative due to the company's ongoing losses, lack of revenue, significant working capital deficiency, and dependence on raising additional financing. The change in control adds uncertainty, and the identified material weaknesses in internal controls are concerning.

Positives

• The company is actively seeking new business opportunities for merger or acquisition, which could potentially improve its financial situation.
• The company has identified potential benefits to being a reporting company with securities quoted on the OTC Markets.

Negatives

• The company has not generated any revenue since inception.
• The company reported a net loss of $36,950 for the quarter ended December 31, 2023.
• The company has a significant working capital deficiency of $214,282.
• The company has an accumulated deficit of $393,662.
• The company's ability to continue as a going concern is dependent on raising additional financing.
• The company's disclosure controls and procedures were not effective as of the end of the period covered by this quarterly report.
• The company lacks a functioning audit committee and a majority of outside directors.

Risks

• The company's ability to continue as a going concern is dependent on its ability to raise adequate financing.
• There is no assurance that future financing will be available on acceptable terms.
• Equity financing could result in additional dilution to existing shareholders.
• The company's internal controls are weak, which could result in material misstatements in future financial statements.
• The selection of a business opportunity in which to participate will be complex and without certainty of success.
• The company may have difficulties raising capital from other sources until it locates a prospective merger candidate.
• Shareholders may lose some or all of their investment if the company is unable to secure adequate capital.

Future Outlook

The company is seeking new business opportunities with established business entities for merger or acquisition. The company's future is dependent on its ability to raise adequate financing and commence profitable operations.

Management Comments

• Management believes that the material weaknesses set forth above did not have an effect on our financial results.
• Management intends to raise additional funds through public or private placement offerings.

Industry Context

The company's strategy of seeking a merger or acquisition target is a common approach for smaller reporting companies looking to create value. The success of this strategy depends on identifying a suitable target and securing the necessary financing.

Comparison to Industry Standards

• It is difficult to compare BALLY, CORP.'s results to industry standards due to its lack of revenue and ongoing search for a business opportunity.
• Many shell companies or special purpose acquisition companies (SPACs) follow a similar path, but their financial performance varies widely depending on their ability to find and complete a successful merger or acquisition.
• Without a specific industry focus, benchmarking against competitors is not feasible.

Management Changes

Legal Proceedings

• The company is not involved in any pending legal proceeding or litigation.

Related Party Transactions

• During the three months ended December 31, 2023, the company's shareholder and sole officer advanced to the company an amount of $63,720 by paying for expenses on behalf of the company.
• As of December 31, 2023, the company was obligated to the shareholder and sole officer for a balance of $246,213, which is unsecured, non-interest-bearing, and due on demand.
• Pursuant to the change in control, Haiping Hu assigned the outstanding balance due from the Company through the change of control in amount of $252,213 to new shareholders.

Stakeholder Impact

• Shareholders face the risk of dilution if the company raises additional equity financing.
• Shareholders may lose some or all of their investment if the company is unable to secure adequate capital.
• Employees may be impacted by the change in control and any potential restructuring or changes in business strategy.
• The company's creditors face the risk of non-payment if the company is unable to raise sufficient capital.

Next Steps

• The company will continue to seek new business opportunities for merger or acquisition.
• The company intends to raise additional funds through public or private placement offerings.
• The company needs to address the identified material weaknesses in its internal controls.

Key Dates

Keywords

financial statements, net loss, going concern, merger, acquisition, change in control, liquidity, capital resources, BALLY, CORP.