10-K: Cancer Capital Corp. Files 2023 Annual Report, Continues Search for Business Opportunity

Cancer Capital Corp.'s 2023 annual report reveals ongoing efforts to identify a suitable business opportunity, with no revenue generated and continued reliance on related-party funding.

Summary

• Cancer Capital Corp. filed its annual report for the fiscal year ended December 31, 2023.
• The company is actively seeking a business opportunity to acquire through merger, asset purchase, or stock exchange.
• Cancer Capital has not generated any revenue in the past two fiscal years and is dependent on external financing.
• The company's cash balance decreased from $22,055 in 2022 to $16,157 in 2023.
• Total liabilities increased to $465,549 in 2023 from $433,654 in 2022, primarily due to increased notes payable and accrued interest.
• The net loss for 2023 was $37,792, compared to a net loss of $42,467 in 2022.
• The company has 6,150,000 common shares outstanding as of March 31, 2024, held by 38 stockholders of record.
• Management acknowledges substantial doubt about the company's ability to continue as a going concern without a successful business combination.

Sentiment

Score: 3

Explanation: The document presents a concerning financial situation with no revenue, increasing liabilities, and a going concern warning. While the company is actively seeking a business opportunity, the current state is weak, leading to a low sentiment score.

Positives

• The company is actively seeking a business opportunity, which could lead to future revenue generation.
• The company's net loss decreased slightly in 2023 compared to 2022.

Negatives

• The company has not generated any revenue for the past two fiscal years.
• The company's cash balance has decreased.
• Total liabilities have increased.
• The company has incurred net losses.
• There is substantial doubt about the company's ability to continue as a going concern.

Risks

• The company's ability to continue as a going concern is dependent on finding a suitable business opportunity.
• The company has limited capital and is dependent on related-party loans.
• The company's management has limited experience with mergers and acquisitions.
• The company's stock is subject to penny stock rules, which may limit trading activity.
• The company has ineffective disclosure controls and procedures due to a lack of personnel.
• The company has no formal cybersecurity policies or procedures.

Future Outlook

The company intends to continue seeking a business opportunity and may need to raise additional capital through the sale of common stock. Management expects net losses to continue until a business opportunity is acquired or a merger is completed.

Management Comments

• Management believes it is possible to negotiate a merger or acquisition with a viable private company.
• Management has unrestricted discretion in seeking and participating in a business opportunity.
• Management acknowledges that the selection of a business opportunity is complex and extremely risky.
• Management expects to rely on advances and loans from management and significant stockholders to conduct investigations and analysis of potential target companies.
• Management anticipates that they will rely upon funds provided by advances and/or loans from management and significant stockholders to conduct investigation and analysis of any potential target companies or businesses.
• Management expects net losses to continue until we acquire or merge with a business opportunity.

Industry Context

The company's strategy of seeking a merger or acquisition with a private company is a common approach for shell companies looking to gain an operating business. The high costs and time associated with going public directly make this an attractive alternative for private companies.

Comparison to Industry Standards

• Cancer Capital's financial situation is not uncommon for a shell company actively seeking a merger or acquisition.
• Many shell companies operate with minimal assets and rely on related-party funding until a transaction is completed.
• The lack of revenue and ongoing losses are typical for companies in this stage of development.
• The reliance on related-party debt is a common practice for shell companies with limited access to external financing.
• The company's situation is similar to other OTC-listed shell companies that are seeking a reverse merger or acquisition to become an operating business.

Related Party Transactions

• First Equity Holdings Corp., a more than 5% shareholder, paid for consulting, administrative, and professional services related to the company's business operations valued at $6,000 for both 2023 and 2022.
• The company owes First Equity $164,125 in notes payable related party with accrued interest related party of $90,153 as of December 31, 2023.
• The company converted accounts payable related party for 2022 owed to First Equity of $6,000 to notes payable related party.

Stakeholder Impact

• Shareholders face significant risk due to the company's financial instability and dependence on finding a suitable business opportunity.
• Employees are not currently impacted as the company has no employees.
• Creditors, particularly related parties, are exposed to risk due to the company's limited ability to repay debts.
• The company's future is uncertain, impacting all stakeholders.

Next Steps

• The company will continue to seek a business opportunity for acquisition or merger.
• The company may need to raise additional capital through the sale of common stock.
• The company will continue to file required reports with the SEC.

Key Dates

Keywords

business opportunity, merger, acquisition, going concern, related party, penny stock, financial statements, operating losses, capital raise, OTC Bulletin Board