10-K: Coyni Inc. Files 10-K Report for Fiscal Year 2023, Cites Ongoing Search for Business Opportunities

Coyni Inc., a company with no current operations, filed its 10-K report for the fiscal year ended December 31, 2023, highlighting a net loss and ongoing efforts to identify new business opportunities.

Summary

• Coyni Inc., formerly Logicquest Technology, Inc., is a Nevada corporation that previously operated as a broadband network service provider.
• The company ceased its internet connectivity business in June 2014 and currently has no operations.
• For the year ended December 31, 2023, Coyni reported a net loss of $350,088, which is $122,992 more than the net loss of $227,096 for the year ended December 31, 2022.
• The increased loss was primarily due to higher stock-based compensation and professional fees, partially offset by a decrease in interest expenses.
• As of December 31, 2023, the company had no cash, total current liabilities of $158,848, and a total stockholders' deficit of $156,837.
• The company's board is actively seeking investment opportunities to sustain operations.
• There is no assurance that the company will find suitable business opportunities, secure necessary financing, or achieve profitability.
• The company's independent auditor has expressed substantial doubt about its ability to continue as a going concern.
• The company's common stock is quoted on the OTC Pink Market under the symbol LOGQ.

Sentiment

Score: 2

Explanation: The document paints a very negative picture of the company's current state, with no operations, significant losses, a going concern warning, and material weaknesses in internal controls. The only positive is the search for opportunities, but the risks are substantial.

Positives

• The company is actively seeking investment opportunities to sustain operations.
• RYVYL Inc. has become the major and controlling shareholder, providing potential access to resources and expertise.

Negatives

• The company has no current operations and has not generated any revenue for the years ended December 31, 2023 and 2022.
• The company reported a significant net loss of $350,088 for the year ended December 31, 2023.
• The company has a substantial working capital deficit of $156,837 as of December 31, 2023.
• The company's auditor has expressed substantial doubt about its ability to continue as a going concern.
• The company has material weaknesses in its internal control over financial reporting.
• The company has no full-time employees and relies on the oversight and management of its majority shareholder and its officers.

Risks

• The company may not be able to locate compatible business opportunities.
• The company may not be able to secure adequate capital to continue its business.
• Shareholders may lose some or all of their investment if the company fails.
• The company's growth is dependent on acquiring an operating business or assets, attaining revenues, and/or raising capital.
• The company has very limited capital and will depend on its parent company to provide necessary funds.
• The company is a blank check company and a shell company, which carries inherent risks.
• The company has material weaknesses in its internal control over financial reporting.

Future Outlook

The company intends to deploy new product offerings, business verticals, or seek the acquisition of, or merger with, an existing company for strategic purposes, but there is no assurance of success.

Management Comments

• The company's board is currently seeking investment opportunities to sustain operations.
• Management has concluded that the company's disclosure controls and procedures were not effective as of December 31, 2023, due to material weaknesses in internal control over financial reporting.

Industry Context

The company's situation as a blank check and shell company is not uncommon, but it faces significant challenges in finding a suitable business opportunity and securing funding. The company's lack of operations and financial resources puts it at a disadvantage compared to established companies in any industry it may enter.

Comparison to Industry Standards

• It is difficult to compare Coyni's results to industry standards due to its lack of operations and status as a blank check company.
• Most companies in the technology sector, even startups, typically have some level of revenue generation and operational activity.
• Coyni's financial metrics, such as the significant net loss and lack of cash, are far below industry benchmarks for companies with ongoing operations.
• The company's reliance on related party transactions and the going concern qualification from its auditor are also not typical for established companies.

Related Party Transactions

• During the year ended December 31, 2023, RYVYL Inc., the controlling shareholder of the Company, paid operating expenses of $82,142 on behalf of the Company.
• As of December 31, 2023, $39,423 is payable by the company to Logicquest Technology Limited in regards to expenses that were paid on the company's behalf.

Stakeholder Impact

• Shareholders face a high risk of losing their investment if the company fails to secure funding or find a viable business opportunity.
• Employees are not directly impacted as the company has no full-time employees.
• Creditors face a risk of non-payment due to the company's financial difficulties.
• The company's future is uncertain, and its ability to impact customers or suppliers is dependent on finding a new business.

Next Steps

• The company will continue to seek investment opportunities.
• The company will consider raising capital through additional sales of common stock and/or debt securities.
• The company will attempt to reduce cash operating expenses.

Key Dates

Keywords

business opportunities, investment, capital raise, net loss, going concern, financial reporting, OTC Pink Market, blank check company, shell company, RYVYL Inc.