10-Q: brooqLy Inc. Reports Minimal Revenue in Q1 2024, Faces Going Concern Uncertainty

Sentiment:

Quarterly Report 15 May 2024 4:31 PM

brooqLy Inc. reports minimal revenue of $29 for Q1 2024 and expresses substantial doubt about its ability to continue as a going concern due to a working capital deficit and the need for additional financing.

Capital raiseThe Company has publicly announced that it will raise up to $5,000,000 from Accredited Investors pursuant to a Regulation D/Rule 506(c) offering.The Company completed an agreement on July 31, 2023, with Jahani & Associates (J & A) to act as their advisor for expansion into the Middle East and Southeast Asia.The Company also completed an agreement with Umergence LLC (UMG), a registered broker-dealer, to introduce accredited investors with whom UMG has a pre-existing business relationship.After having made a first required payment of $12,500, because we did not make the second payment of $12,500 as a result of the Companys inability to pay, the broker-dealer has paused in their efforts to procure investors until such time when the second payment is made.

Worse than expectedThe company's revenue is minimal, and it has a significant working capital deficit.There is substantial doubt about the company's ability to continue as a going concern.

Summary

brooqLy Inc. filed its quarterly report on Form 10-Q for the period ended March 31, 2024.
The company reported revenue of $29 for the three months ended March 31, 2024, compared to $1 for the same period in 2023.
Operating expenses decreased to $90,935 from $134,838 in the prior year's quarter, primarily due to lower advertising and marketing expenses.
The company recognized a net loss of $95,656 for the quarter, compared to a net loss of $134,836 in Q1 2023.
The company has a working capital deficit of $315,106 as of March 31, 2024.
There is substantial doubt regarding the company's ability to continue as a going concern due to insufficient liquidity and the need for additional financing.
The company's total indebtedness at March 31, 2024, was $346,321, consisting of current liabilities.
The company issued 100,000 restricted common stock for services at a value of $58,000 and 30,018 restricted common stock as a gift to initial shareholders at value of $17,410 during the quarter.
The company plans to continue upgrading its platform, securing international partnerships, and creating new markets.

Sentiment

Score: 3

Explanation: The document presents a concerning financial situation with minimal revenue, a significant working capital deficit, and substantial doubt about the company's ability to continue as a going concern. While there are some positive aspects, such as decreased operating expenses and net loss compared to the previous year, the overall outlook is negative.

Positives

Operating expenses decreased by $43,903 year-over-year, totaling $90,935 for the quarter.
Net loss for Q1 2024 was $95,656, an improvement from the $134,836 loss in Q1 2023.

Negatives

The company reported minimal revenue of $29 for the three months ended March 31, 2024.
The company has a working capital deficit of $315,106.
There is substantial doubt about the company's ability to continue as a going concern.
The company's total indebtedness at March 31, 2024, was $346,321.

Risks

The company's current liquidity resources are insufficient to fund its anticipated level of operations.
The company's ability to continue operations depends on its ability to generate revenue and access capital markets.
The company expects to continue to incur losses and will need additional financing.
There is no assurance that the company will be successful in raising capital.
Additional equity financing may be dilutive to existing shareholders.
Debt financing may involve restrictive covenants.

Future Outlook

The company anticipates losses from operations will increase during the next twelve months due to anticipated legal and auditing expenses. The company expects to continue to have net losses from operations until revenues become sufficient to offset operating expenses.

Management Comments

Management anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses.
There is no assurance that we will ever be profitable or that debt or equity financing will be available to us.

Industry Context

The company operates in the competitive social networking and online platform space, where generating revenue and achieving profitability can be challenging, especially for early-stage companies. The partnerships in various international markets indicate an effort to expand its reach and user base, which is a common strategy in this industry.

Comparison to Industry Standards

It is difficult to compare brooqLy's results directly to industry standards due to its early stage and unique business model.
However, other social networking and platform companies often focus on user growth, engagement metrics, and monetization strategies such as advertising, subscriptions, or in-app purchases.
Companies like Meta (Facebook), Snap, and Twitter (now X) are established players with significant revenue streams and user bases, while smaller startups often struggle to gain traction and achieve profitability.
The company's reliance on partnerships for market entry is a common strategy, but its success depends on the effectiveness of these partnerships and the ability to generate revenue from them.

Related Party Transactions

The Company has related party transactions with its three executive officers who have contributed from time to time to facilitate cash flow.
The Company has due to related party an amount of $2,797 to the Companys CEO, Panagiotis N. Lazaretos, $3,395 to the Companys Chief Financial Officer, Helen V. Maridakis, and $17,209 to the Companys Chief Operating Officer, , Nikolaos Ioannou, has as of March 31, 2024.

Stakeholder Impact

Shareholders face significant risk due to the company's financial instability and potential dilution from future equity financing.
Employees may be affected by potential cost-cutting measures or the company's inability to continue operations.
Customers may experience disruptions in service if the company faces financial difficulties.
Suppliers and creditors face increased risk of non-payment due to the company's financial challenges.

Next Steps

Continual upgrading, development and integration of platform.
Secure international local partner contracts and create new markets.

Key Dates

Date	Description
2021-02-19	Company incorporated in Nevada as MyTreat, Inc.
2021-05-12	Company changed its name to brooqLy, Inc.
2021-09-17	Start of period where the Company sold 2,000,000 Common Stock Shares to 3 accredited investors.
2021-10-14	Company applied to the US Patent and Trademark Office for the trademark BROOQLY.
2021-10-14	Company applied to the EU Intellectual Property Office for the trademark BROOQLY.
2022-02-01	EU Intellectual Property Office accepted the trademark BROOQLY application.
2022-02-25	Company cancelled 1,000,000 in common shares and warrants issued to an accredited investor.
2023-03-29	Company completed an agreement with REM People for the Turkish Market.
2023-04-05	Company completed a partnership extension for the Romanian Market with Field Insights CEE.
2023-04-12	Company announced a partnership, for the Greek market, with Botilia.gr.
2023-05-10	Eltino, Ltd, provided a loan with a non-interest-bearing promissory note to the Company valued at $25,000.
2023-05-17	Company entered into a Convertible Promissory Note Agreement with Skordilakis & Sia, IKE, who agreed to lend $30,000 to the Company.
2023-07-27	Glendale Securities received notification from FINRA that its 15c2-11 under the Securities Exchange Act of 1934, complied with FINRA Rule 6432 and that we may initiate a price quotation.
2023-07-31	Company completed an agreement with Jahani & Associates (J & A) to act as their advisor for expansion into the Middle East and Southeast Asia.
2023-07-31	Company completed an agreement with Umergence LLC (UMG), a registered broker-dealer, to introduce accredited investors.
2023-08-22	The Note was converted into 500,000 common stock shares on August 22, 2023, the date which the conversion decision was made.
2023-08-29	Company signed a Promissory note with Bridusa-Dominca Kamara for the loan amount of $30,000.
2023-10-17	Company announced a strategic alliance with Enaleia.
2023-10-27	Company reported that it has been approved for DWAC/DRS service.
2024-03-13	Company announced the launch of operations in the Czech Republic.
2024-03-27	Company announced launch of its operations in Sub-Saharan Africa with a base in Zambia.
2024-04-09	Company issued 800,000 restricted common stock shares to Angelo Resos for the conversion on two convertible notes dated February 2, 2024, and March 21, 2024.
2024-04-09	Company issued 200,000 restricted common stock shares to Brindusa Domnica Kamara as per the Promissory noted dated July 22, 2023
2024-05-15	Date of the report, with 25,365,000 common stock shares outstanding.
2024-12-31	Maturity date of several promissory notes.

Keywords

financial statements, going concern, liquidity, capital resources, operating expenses, net loss, revenue, brooqLy

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