10-Q: Green Planet Bioengineering Reports Continued Losses in Q2 2024, Remains a Shell Corporation

Green Planet Bioengineering Co., Ltd. reports ongoing losses and no active business operations for the quarter ended June 30, 2024, relying on related party funding.

Summary

• Green Planet Bioengineering Co., Ltd. has released its Form 10-Q for the quarterly period ended June 30, 2024.
• The company reports no active business operations for the periods ended June 30, 2024, and June 30, 2023.
• The company incurred a net loss of $10,863 for the three months ended June 30, 2024, compared to a net loss of $8,528 for the same period in 2023.
• For the six months ended June 30, 2024, the net loss was $17,328, compared to $26,368 for the six months ended June 30, 2023.
• The company's financial statements have been prepared assuming it will continue as a going concern, but there is substantial doubt about its ability to do so.
• The company relies on a related party of the majority stockholder for funding.
• As of June 30, 2024, the company has a working capital deficit of $446,918 and an accumulated deficit of $1,076,538.
• The company had 20,006,402 shares of common stock outstanding as of August 14, 2024.
• The company operates as a public reorganized shell corporation with the purpose to acquire or merge with an existing business operation.

Sentiment

Score: 2

Explanation: The sentiment is very negative due to the company's lack of operations, continued losses, significant deficits, and reliance on related party funding, raising substantial doubt about its ability to continue as a going concern.

Positives

• The net loss for the six months ended June 30, 2024, was lower than the net loss for the same period in 2023 ($17,328 vs $26,368).

Negatives

• The company has no active business operations.
• The company has a significant working capital deficit of $446,918.
• The company has a substantial accumulated deficit of $1,076,538.
• The company's ability to continue as a going concern is dependent on continued support from a related party.
• The company is a public reorganized shell corporation.

Risks

• The company's ability to implement and execute future business plans and generate sufficient business revenue is directly influenced by their ability to secure adequate financing or find profitable business opportunities.
• If business opportunities are not identified in the near term, the company will experience delay in effecting its business plans.
• The company's critical accounting policies are still being applied despite the fact that Company has no ongoing business operations.

Future Outlook

The company will continue to source adequate funding from future investors to execute business opportunities when they arise in the future; however, such funding and business opportunities will rely entirely on the prevailing circumstances when the funding or profitable business opportunities are identified.

Management Comments

• Management believes that their estimates, judgments and assumptions are reasonable based upon historical experience, current trends and other factors.
• Management concluded that, as of the fiscal period end, our disclosure controls and procedures are designed at a reasonable assurance level and are effective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SECs rules and forms.

Industry Context

As a public reorganized shell corporation, Green Planet Bioengineering's performance is not directly comparable to operating companies in the bioengineering sector. Its primary focus is on identifying and merging with an existing business operation, making its financial results more indicative of administrative costs than operational performance.

Comparison to Industry Standards

• It is difficult to compare Green Planet Bioengineering to industry standards due to its status as a shell corporation with no active business operations.
• Typical bioengineering companies are focused on research, development, and commercialization of products, with metrics like R&D spending, revenue growth, and product pipeline progress being key indicators.
• Green Planet Bioengineering's financial statements primarily reflect administrative expenses and related party transactions, which are not standard metrics for evaluating bioengineering companies.

Related Party Transactions

• The Company relies on a related party of the majority stockholder to advance funds to finance its operating expenses.
• The amounts advanced of $442,918 are interest-free, unsecured and are repayable upon demand.

Stakeholder Impact

• Shareholders face significant risk due to the company's lack of operations and dependence on related party funding.
• The company's employees, if any, are subject to job insecurity due to the company's uncertain future.
• The company's creditors face risk due to the company's working capital deficit and dependence on related party funding.

Next Steps

• The company will continue to source adequate funding from future investors to execute business opportunities when they arise in the future.

Key Dates

Keywords

financial statements, shell corporation, going concern, net loss, bioengineering, 10-Q