20-F: ChineseWorldNet.com Inc. Reports Net Loss for Fiscal Year 2023, Continues Search for New Business Opportunities

ChineseWorldNet.com Inc. reported a net loss of $61,991 for the year ended December 31, 2023, and is still seeking opportunities to acquire or invest in new businesses.

Summary

• ChineseWorldNet.com Inc. reported a net loss of $61,991 for the fiscal year ended December 31, 2023, compared to a net loss of $359,999 in the previous year.
• The company had no revenues in Fiscal 2023 or Fiscal 2022.
• Operating expenses for Fiscal 2023 were $63,872, slightly higher than the $61,453 recorded in Fiscal 2022.
• As of December 31, 2023, the company had cash held in trust of $113,602 and a working capital deficiency of $120,091.
• The company is currently seeking opportunities to acquire or invest in other business opportunities after selling its subsidiaries in 2014.
• The company's common shares are quoted on the OTC Pink under the symbol CWNOF.
• The company has identified a material weakness in internal controls related to insufficient written policies and procedures for accounting and financial reporting.
• The company's Board of Directors serves as the audit committee but does not have an audit committee financial expert.

Sentiment

Score: 3

Explanation: The sentiment is low due to the company's continued losses, lack of revenue, and status as a shell company. However, the decrease in net loss and active search for new business opportunities provide a slight glimmer of hope.

Positives

• The net loss decreased significantly from $359,999 in 2022 to $61,991 in 2023, primarily due to the absence of a loss on note receivable and a foreign exchange gain.
• The company is actively seeking new business opportunities to revitalize its operations.

Negatives

• The company reported no revenues for Fiscal 2023.
• The company has a working capital deficiency of $120,091 as of December 31, 2023.
• The company has a material weakness in internal controls over financial reporting.
• The company is currently a shell company, which means it has no or nominal operations and either no or nominal assets or assets consisting solely of cash and cash equivalents.

Risks

• The company's ability to continue as a going concern is uncertain due to accumulated losses and the need for additional funding.
• Trading of the company's common shares may be restricted by the Securities and Exchange Commission's penny stock regulations.
• The company's status as a shell company makes it ineligible for public broker-dealer quotations on the Pink Market after March 28, 2024 unless it becomes an operating company or satisfies the information review requirement and files a Form 211 with FINRA.
• Shareholders may face difficulties in protecting their interests because the company is incorporated under Cayman Islands law.
• There is uncertainty as to shareholders' ability to enforce civil liabilities in the Cayman Islands.
• The company does not maintain a robust cybersecurity risk management framework.

Future Outlook

The Company is now looking for opportunities to acquire or invest in other business opportunities.

Management Comments

• The Report contains forward-looking statements that reflect the managements current expectations and assumptions with respect to the general economic and business conditions, our operation and business strategies, products, services and competition, future financial position and results, and various other factors, both referenced and not referenced in this Report.

Industry Context

As a shell company actively seeking new business opportunities, ChineseWorldNet.com's situation is not unique; many companies go through periods of restructuring or searching for new ventures. However, its success will depend on identifying and capitalizing on emerging market trends and opportunities.

Comparison to Industry Standards

• It is difficult to compare ChineseWorldNet.com to industry standards due to its current status as a shell company with no active operations.
• Companies in a similar situation would be assessed based on their ability to identify and execute a successful business acquisition or investment strategy.
• Key metrics for comparison would include the size and growth potential of the target business, the terms of the acquisition or investment, and the expected return on investment.

Related Party Transactions

• In January 2023, $220,650 cash held in trust by a financial institution has been transferred to a director, $107,048 of which was used as repayment of due to the directors.
• The remaining balance was held by the director and pay the operating costs on behalf of the Company.
• As at December 31, 2023, the Company has non-interest bearing loan from the stockholders and directors in the amount of $218,629.
• As at December 31, 2023, the Company accrued director fees in the amount of $216,000.

Stakeholder Impact

• Shareholders face uncertainty due to the company's financial condition and status as a shell company.
• Employees are not directly impacted as the company currently has no employees.
• The company's creditors are at risk due to the working capital deficiency and uncertainty about its ability to continue as a going concern.

Next Steps

• The company will continue to seek opportunities to acquire or invest in other business opportunities.

Key Dates

Keywords

financial reporting, net loss, business acquisition, internal controls, shell company, OTC Pink, CWNOF, ChineseWorldNet.com