10-Q: Coretag, Inc. Reports Q2 2024 Results: No Revenue, Increased Losses, and Going Concern Uncertainty

Coretag, Inc. reports no revenue and increased net losses for the six months ended March 31, 2024, while facing substantial doubt about its ability to continue as a going concern.

Summary

• Coretag, Inc., a Nevada corporation, filed its quarterly report on Form 10-Q for the period ended March 31, 2024.
• The company is considered a shell company and has limited operating activities.
• For the six months ended March 31, 2024, Coretag reported no revenue.
• Operating expenses were $21,772, compared to $17,429 for the same period in 2023.
• The net loss for the six months ended March 31, 2024, was $(21,772), compared to a net loss of $(17,429) for the same period in 2023.
• The company has an accumulated deficit of $166,136 as of March 31, 2024.
• There is substantial doubt about the company's ability to continue as a going concern.
• The company's management plans to finance operating costs through loans from directors and/or private placement of common stock.
• On April 10, 2024, a 2,500-to-1 reverse stock split was approved and became effective.
• As of March 31, 2024, the company had total liabilities of $91,442 and no cash.

Sentiment

Score: 2

Explanation: The sentiment is very negative due to the company's lack of revenue, increasing losses, going concern uncertainty, and ineffective disclosure controls.

Positives

• The company has net operating loss carryforwards that may reduce future taxable income.
• Management intends to finance operating costs over the next twelve months with loans from directors and/or private placement of common stock.

Negatives

• The company is a shell company with no revenue.
• The company has incurred losses since inception, resulting in an accumulated deficit of $166,136 as of March 31, 2024.
• The company has current liabilities in excess of current assets and a stockholders' deficit.
• There is substantial doubt about the company's ability to continue as a going concern.
• The company's disclosure controls and procedures were deemed ineffective as of March 31, 2024, due to limited resources and lack of employees.

Risks

• The company's ability to continue as a going concern is dependent on generating profitable operations or obtaining necessary financing.
• The company's reliance on related party advances may not be sustainable.
• The company's lack of diversification due to its plan to effect only one business combination is a substantial risk.
• The company's management has identified control deficiencies regarding inadequate accounting resources, the lack of segregation of duties and the need for a stronger internal control environment.
• The company's returns are open to examination by the Internal Revenue Services for all tax years since inception.

Future Outlook

The company is attempting to locate and negotiate with eligible portfolio companies to acquire an interest in them and assist them with raising capital and offer them substantial managerial assistance needed to succeed. Management intends to finance operating costs over the next twelve months with loans from directors and/or private placement of common stock.

Management Comments

• Management believes that the public company status that results from a combination with the Company will provide such company greater access to the capital markets, increase its visibility in the investment community, and offer the opportunity to utilize its stock to make acquisitions.
• Management intends to finance operating costs over the next twelve months with existing cash on hand and loans from directors and/or private placement of common stock.

Industry Context

As a blank check company, Coretag's performance is heavily reliant on its ability to identify and merge with a suitable target. The company operates in a competitive market with a small number of business opportunities.

Comparison to Industry Standards

• It is difficult to compare Coretag to industry standards due to its status as a shell company and lack of operations.
• Blank check companies are generally compared based on their ability to secure a merger target and the subsequent performance of the merged entity.
• Given the lack of revenue and going concern issues, Coretag is underperforming compared to other active companies seeking a merger.

Related Party Transactions

• Joseph Passalaqua, an officer and Related Party, advanced the Company $14,970 to cover the Company's expenses.
• Lyboldt-Daly, Inc; its sole officer is Joseph Passalaqua, who is also an officer and Related Party of Nine Alliance Science and Technology Group, Inc., provided the internal accounting for the Company in the amount of $3,000.
• The Company currently operates out of an office of a related party free of rent.

Stakeholder Impact

• Shareholders face significant risk due to the company's financial instability and going concern uncertainty.
• The company's lack of employees limits its operational capacity.
• The company's ability to attract a merger target will impact its future prospects.

Next Steps

• The company will continue to seek a merger target.
• The company will file a Super 8K with the SEC following the approval of the reverse split.
• The company will continue to file all required annual and quarterly reports on schedule.

Key Dates

Keywords

financial statements, going concern, shell company, reverse stock split, related party transactions, net loss, operating expenses, Coretag Inc., Form 10-Q