10-Q: Global Innovative Platforms Reports Q1 Loss, Cites Going Concern Uncertainty

Global Innovative Platforms Inc. reports a net loss for the quarter ended December 31, 2023, and expresses substantial doubt about its ability to continue as a going concern.

Summary

• Global Innovative Platforms Inc. reported its financial results for the quarter ended December 31, 2023.
• The company incurred a net loss of $49,469 for the quarter, compared to a net loss of $87,166 for the same period in 2022.
• The company's operating loss for the quarter was $49,469.
• The company recognized no revenue during the quarter.
• General and administrative expenses totaled $49,469, including business consulting, settlement costs, public entity costs, and professional fees.
• As of December 31, 2023, the company had total current assets of $1,685 and total liabilities of $198,200.
• The company's liabilities include $11,837 in accounts payable and $186,363 in loans payable to related parties.
• The company issued 26,691,027 shares of common stock during the quarter ended December 31, 2023.
• The company's independent registered public accounting firm included a going concern explanatory paragraph in their report.
• The company's plan of operation is to obtain debt or equity finance to meet ongoing operating expenses and opportunities for growth in return for shares of common stock to create value for shareholders.
• The company is dependent on raising additional equity and/or debt to meet ongoing operating expenses.
• The company had a federal net operating loss carryforward of approximately $450,000 as of December 31, 2023.
• The company entered into a Patent and Know-How License Agreement with Defiant Technologies Inc. on August 18, 2023, granting the company exclusive rights to certain patents and know-how relating to animal testing.

Sentiment

Score: 2

Explanation: The document presents a negative outlook due to the company's net loss, going concern warning, and ineffective internal controls. The company's reliance on future capital raises adds to the uncertainty.

Positives

• The net loss decreased from $87,166 in Q1 2022 to $49,469 in Q1 2023.
• The company secured a Patent and Know-How License Agreement with Defiant Technologies Inc., potentially opening up new revenue streams in the animal testing market.

Negatives

• The company reported a net loss of $49,469 for the quarter ended December 31, 2023.
• The company's auditor has expressed substantial doubt about its ability to continue as a going concern.
• The company has minimal assets and significant liabilities.
• The company has no revenue.
• The company is dependent on raising additional equity and/or debt to meet ongoing operating expenses.

Risks

• The company's ability to continue as a going concern is uncertain.
• The company is dependent on raising additional capital, and there is no assurance that it will be able to do so.
• The company has no revenue and is incurring losses.
• The company's internal controls over financial reporting are not effective.
• The company's plan to merge with another entity may not be successful.

Future Outlook

The company plans to obtain debt or equity finance to meet ongoing operating expenses and opportunities for growth in return for shares of common stock to create value for shareholders. The company will need substantial additional capital to support its budget. The company has no committed source for any funds as of date hereof.

Management Comments

• Our Chief Executive Officer and Chief Financial Officer has concluded, based upon the evaluation described above, that, as of December 31, 2023, our disclosure controls and procedures were not effective due to the material weakness in internal control over financial reporting described below.

Industry Context

The company is pursuing opportunities for growth in the business of measuring gas outflow in pets and agriculture for diagnosis treatment of illness. This is a niche market within the broader animal health and agricultural technology sectors.

Comparison to Industry Standards

• It's difficult to compare Global Innovative Platforms to industry standards due to its early stage and lack of revenue.
• Companies in the animal health and agricultural technology sectors often have significant R&D expenses and require substantial capital investment.
• Similar early-stage companies often rely on venture capital or angel investors for funding.

Management Changes

Legal Proceedings

• We were not subject to any legal proceedings during the three months ended December 31, 2023 or December 31, 2022 and, to the best of our knowledge, no legal proceedings are pending or threatened.

Related Party Transactions

• As of December 31, 2023 and September 30, 2023, we owed $ 100,000 , $ 50,000 , and $ 36,363 to principal shareholders (plus an additional $ 175,000 that was owed to a shareholder on September 30, 2023 but converted to common stock In November 2023) by way of loans to finance our working capital requirements.
• That same day we also issued 2,160,000 shares of common stock in conversion of a $216,000 debenture we owed to Jeffrey D. Conley, a related party.

Stakeholder Impact

• Shareholders face significant risk due to the company's financial condition and going concern uncertainty.
• Employees' job security is uncertain due to the company's financial difficulties.
• The company's ability to fulfill its obligations to suppliers and creditors is questionable.

Next Steps

• The company intends to raise capital to finance its future operations.
• The company intends to seek to raise debt and/or equity financing to meet ongoing operating expenses and attempt to expand our opportunities for growth in return for shares of our common stock to create value for our shareholders`.
• The company is dependent upon the receipt of capital investment or other financing to fund its ongoing operations and to execute its business plan to merge with another entity with experienced management and opportunities for growth in return for shares of our common stock to create value for our shareholders`.

Key Dates

Keywords

financial statements, going concern, net loss, common stock, liabilities, assets, revenue, expenses, operations, liquidity, capital, debt, equity, patent, license