10-Q: Coretag, Inc. Reports Q3 2024 Results: No Revenue, Continued Losses, and Going Concern Uncertainty

Coretag, Inc. reports no revenue and a net loss of $25,737 for the nine months ended June 30, 2024, with substantial doubt about its ability to continue as a going concern.

Summary

• Coretag, Inc., formerly Coretag Holdings, Inc. and Nine Alliance Science and Technology Group, filed its quarterly report on Form 10-Q for the period ended June 30, 2024.
• The company reported no revenue for both the three and nine months ended June 30, 2024 and 2023.
• The net loss for the three months ended June 30, 2024, was $3,965, compared to a net loss of $9,071 for the same period in 2023.
• For the nine months ended June 30, 2024, the net loss was $25,737, compared to $26,500 for the same period in 2023.
• Operating expenses for the nine months ended June 30, 2024, were $25,737.
• The company has an accumulated deficit of $170,101 as of June 30, 2024.
• There is substantial doubt about the company's ability to continue as a going concern due to recurring losses and a stockholders' deficit.
• The company is seeking a merger target and evaluating various opportunities.
• A 2,500-to-1 reverse stock split was approved on April 10, 2024.
• As of August 29, 2024, there were 93,300 shares of common stock outstanding.

Sentiment

Score: 2

Explanation: The sentiment is very negative due to the lack of revenue, continued losses, going concern uncertainty, and material weaknesses in internal controls.

Positives

• The net loss decreased for the three months ended June 30, 2024, compared to the same period in 2023 ($3,965 vs $9,071).
• Operating expenses decreased for the three months ended June 30, 2024, compared to the same period in 2023.
• The company is actively seeking a merger target, which could provide future opportunities.

Negatives

• The company reported no revenue for the three and nine months ended June 30, 2024.
• The company has incurred significant losses, resulting in an accumulated deficit of $170,101 as of June 30, 2024.
• The company has a working capital deficit of $95,407 as of June 30, 2024.
• The company's auditor has expressed substantial doubt about its ability to continue as a going concern.
• The company is currently a shell company with no significant operations.

Risks

• The company's ability to continue as a going concern is uncertain and dependent on obtaining financing or achieving profitable operations.
• The company's lack of diversification due to its intent to effect only one business combination is a substantial risk.
• The selection of a business combination target is complex and risky.
• The company's management has identified material weaknesses in its internal controls over financial reporting.
• The company is reliant on related party advances to cover expenses.

Future Outlook

The company is seeking a merger target and intends to assist portfolio companies with raising capital and managerial assistance. 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 ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or obtaining the necessary financing to meet its obligations.
• Management intends to finance operating costs over the next twelve months with loans from directors and/or private placement of common stock.

Industry Context

As a blank check company, Coretag, Inc. is operating in a competitive market where it seeks to identify and acquire a suitable business combination target. The company's success depends on its ability to find a target and complete a merger, which is subject to various risks and uncertainties.

Comparison to Industry Standards

• It is difficult to compare Coretag's performance to industry standards due to its status as a shell company with no current operations.
• Blank check companies are generally compared based on their ability to identify and acquire a target company, and their subsequent performance after the acquisition.
• Comparable companies would be other blank check companies or companies in similar stages of development seeking a merger or acquisition.

Related Party Transactions

• Joseph Passalaqua, an officer and related party, advanced the Company $14,970 to cover expenses.
• $64,909 is outstanding and included in Note Payable Related Party due to Joseph Passalaqua.
• Lyboldt-Daly, Inc., whose sole officer is Joseph Passalaqua, provided internal accounting for the Company in the amount of $3,000.
• $15,638 is outstanding and included in Related Party Payable due to Lyboldt-Daly Inc.
• 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 condition and uncertainty about its future.
• The company's ability to continue as a going concern is uncertain, which could impact stakeholders.

Next Steps

• The company will continue to seek a merger target.
• The company will attempt to raise capital through equity financing or related party advances.
• The company will continue to file required annual and quarterly reports.

Key Dates

Keywords

Coretag Inc, 10-Q, Quarterly Report, Financial Results, Going Concern, Reverse Stock Split, Shell Company, Merger Target, Net Loss, Operating Expenses