10-Q: Born, Inc. Reports Financial Losses and Operational Inactivity for Q2 2024

Born, Inc. reported continued financial losses and operational inactivity for the second quarter ended June 30, 2024, as it seeks a business combination to resume operations.

Summary

• Born, Inc. reported its financial results for the second quarter ended June 30, 2024.
• The company is currently dormant and has no revenue-generating operations.
• Born, Inc. is exploring potential business combinations, such as a reverse merger or asset purchase.
• For the six months ended June 30, 2024, the company reported a net loss of $4,110.
• Administrative expenses for the same period were $4,110.
• The company's accumulated deficit reached $117,481,233 by June 30, 2024.
• Born, Inc. is being funded by interest-free loans from its Court-appointed custodian, David Lazar, with $17,411 outstanding as of June 30, 2024.

Sentiment

Score: 2

Explanation: The company is in a precarious financial situation with no current operations and substantial doubt about its ability to continue as a going concern. While it is seeking a business combination, the outcome is highly uncertain.

Positives

• The company is actively seeking a business combination to resume operations and potentially generate revenue.
• Custodian Ventures, LLC, controlled by David Lazar, was appointed by the Nevada Court as the custodian of Quture.
• David Lazar is providing interest-free loans to fund the company's current expenses.

Negatives

• The company is currently dormant with no revenue-generating operations.
• Born, Inc. reported a net loss of $4,110 for the six months ended June 30, 2024.
• The company has a substantial accumulated deficit of $117,481,233.
• There is substantial doubt about the company's ability to continue as a going concern without additional funding.
• The company's disclosure controls and internal controls over financial reporting were deemed ineffective as of June 30, 2024.

Risks

• The company faces significant risks due to limited financial resources and the need to secure additional funding.
• There is no guarantee that Born, Inc. will be able to identify and successfully complete a business combination.
• The company's ability to continue as a going concern is in substantial doubt.
• The company's internal controls are inadequate, increasing the risk of financial misstatements.
• The company may face difficulties in attracting and retaining qualified personnel.
• The company may be financially unstable or in the early stages of development.

Future Outlook

The company intends to explore and identify business opportunities, including a potential acquisition, and will require additional funding to continue operations and pursue its business plan.

Management Comments

• Management intends to explore and identify business opportunities within the U.S., including a potential acquisition of an operating entity through a reverse merger, asset purchase or similar transaction.
• Our Chief Executive Officer has experience in business consulting, although no assurances can be given that he can identify and implement a viable business strategy or that any such strategy will result in profits.

Industry Context

The company was originally formed to operate in the healthcare knowledge solution industry, but is currently dormant and seeking to enter a new line of business. The specific industry will depend on the business combination it pursues.

Comparison to Industry Standards

• As the company is currently dormant and has no operations, comparison to industry standards is not applicable at this time.

Management Changes

Legal Proceedings

• The Company may be involved in certain legal proceedings that arise from time to time in the ordinary course of its business.
• The Company's officers and directors are not aware of any threatened or pending litigation to which the Company is a party or which any of its property is the subject and which would have any material, adverse effect on the Company.

Related Party Transactions

• Mr. Lazar, the Company's Court-appointed custodian, is considered a related party.
• During the six months ended June 30, 2024, he extended $1,734 in interest free demand loans to the Company.
• As of June 30, 2024 the amount due to Mr. Lazar was $17,411.

Stakeholder Impact

• Shareholders: Potential for significant dilution from future equity issuances or a reverse merger. High risk of investment loss due to the company's financial condition and uncertain future.
• Employees: No current employees mentioned. Future employment opportunities depend on the success of a business combination.
• Creditors: Related party (David Lazar) is owed $17,411. Recovery of payables is uncertain and depends on the company's ability to secure funding or generate future revenue.
• Customers: Not applicable as the company has no current operations.
• Suppliers: Not applicable as the company has no current operations.

Next Steps

• The company will continue to investigate, evaluate, and negotiate potential business combinations.
• Born, Inc. will seek additional funding through private placements, the sale of securities, or short-term loans.
• The company plans to rectify weaknesses in its internal controls by implementing an independent board of directors, establishing written policies and procedures, and hiring additional accounting personnel after completing a business acquisition.

Key Dates