10-Q: THEGLOBE.COM Reports Q2 2025 Loss, Shell Status Persists

THEGLOBE.COM, INC. reported a net loss of $56,879 for Q2 2025, continuing its operations as a shell company with no material revenue and significant reliance on related-party debt.

Summary

• THEGLOBE.COM, INC. continues to operate as a shell company with no material operations or assets since September 29, 2008.
• The company reported zero net revenue for the three and six months ended June 30, 2025, and 2024.
• Net loss for the three months ended June 30, 2025, was $56,879, a decrease from $62,512 in the prior year period.
• Net loss for the six months ended June 30, 2025, was $112,669, a slight decrease from $113,744 in the prior year period.
• General and administrative expenses decreased to $33,646 for Q2 2025 and $67,195 for YTD Q2 2025, primarily due to reduced accounting and legal spending.
• Cash balance as of June 30, 2025, was $19,332, down from $23,750 at December 31, 2024.
• Current liabilities of $1,615,376 significantly exceeded total assets of $19,332 as of June 30, 2025.
• A net working capital deficit of approximately $1,596,000 was reported as of June 30, 2025.
• The company is heavily reliant on funding from its majority stockholder, Delfin Midstream LLC, through a promissory note.
• The principal balance of the promissory note with Delfin increased to $1,183,000 as of June 30, 2025, from $1,113,000 at December 31, 2024.
• Accrued interest due to Delfin was $411,593 as of June 30, 2025.

Sentiment

Score: 2

Explanation: The company is a non-operating shell with no revenue, significant accumulated deficit, and a severe working capital deficit. It relies entirely on related-party debt and faces substantial doubt about its ability to continue as a going concern. While net loss slightly decreased due to reduced G&A, the underlying financial health is extremely poor and unsustainable without continuous external funding.

Positives

• Net loss slightly decreased for both the three and six-month periods ended June 30, 2025, primarily due to reduced general and administrative expenses.
• Management believes inflation has not had a significant effect on operations and will not for the remainder of 2025.

Negatives

• The company has no material operations or assets and generates zero revenue.
• Current liabilities of $1,615,376 significantly exceed total assets of $19,332 as of June 30, 2025.
• A net working capital deficit of approximately $1,596,000 as of June 30, 2025, indicates severe liquidity issues.
• Substantial doubt exists about the company's ability to continue as a going concern beyond the next twelve months without additional capital.
• Heavy reliance on a single related party (Delfin Midstream LLC) for continued funding, which is provided through demand notes.
• Related party interest expense increased to $23,233 for Q2 2025 and $45,474 for YTD Q2 2025 due to increased loan amounts.
• Cash balance decreased by $4,418 during the six months ended June 30, 2025.

Risks

• Inability to raise additional and sufficient capital through debt or equity securities.
• Failure to continue receiving funding from related parties, particularly Delfin Midstream LLC.
• Uncertainty regarding the successful estimation of the impact of certain accounting and tax matters.
• Risk of not being able to continue as a going concern beyond the next twelve months, potentially leading to U.S. Bankruptcy Code protection.
• The Promissory Note with Delfin is a demand note, allowing the Holder to call it at any time, requiring immediate repayment.

Future Outlook

Management anticipates continued funding from Delfin Midstream LLC over the next twelve months as it determines the future direction of the company. The company intends to continue operating as a public entity and making all requisite Exchange Act filings, despite significant doubt about its ability to continue as a going concern without additional capital.

Management Comments

• Unless we are successful in raising additional funds through the offering of debt or equity securities, we may not be able to continue to operate as a going concern beyond the next twelve months.
• Notwithstanding the above, we currently intend to continue operating as a public company and making all the requisite filings under the Exchange Act.
• Management anticipates continued funding from Delfin over the next twelve months as it determines the direction of the Company.
• Management believes that inflation has not had a significant effect on our results of operations during 2024 or the six months ended June 30, 2025 and will not for the remainder of 2025.

Industry Context

THEGLOBE.COM, INC. operates as a shell company, a status typically adopted by entities that have ceased primary business operations but maintain their public listing. This allows for potential future acquisitions or new business ventures without the need for a new IPO. However, it also means the company has no active revenue-generating operations and relies entirely on external funding, often from a majority shareholder, to cover minimal public company expenses. This contrasts sharply with active operating companies that generate revenue and cash flow from their core business activities.

Comparison to Industry Standards

• As a shell company, THEGLOBE.COM, INC. has no operational revenue, which is standard for entities in this specific classification.
• Its financial structure, characterized by minimal cash, significant accumulated deficit, and reliance on related-party debt (specifically a demand note from its majority shareholder, Delfin Midstream LLC), is typical for a non-operating shell company maintaining its public listing.
• The ongoing net losses are expected given the absence of revenue and the presence of recurring public company expenses (e.g., accounting, legal, audit).
• The "going concern" warning is a common disclosure for shell companies that lack independent revenue streams and depend on continued external funding.

Related Party Transactions

• Delfin Midstream LLC, the company's majority stockholder, provides funding through a promissory note.
• The principal balance of the Promissory Note increased to $1,183,000 as of June 30, 2025, from $1,113,000 at December 31, 2024.
• Accrued interest due to Delfin was $411,593 as of June 30, 2025, up from $366,119 at December 31, 2024.
• Related party interest expense was $23,233 for the three months ended June 30, 2025, and $45,474 for the six months ended June 30, 2025.
• The Promissory Note accrues interest at 8% per annum and is due upon demand.

Stakeholder Impact

• Shareholders: Existing shareholders face significant dilution risk if new equity is issued, and the value of their investment is highly speculative given the company's shell status, lack of operations, and going concern doubts. The stock has no material underlying business.
• Creditors (Delfin Midstream LLC): Delfin Midstream LLC is the primary creditor and majority shareholder, indicating a high degree of control and exposure to the company's financial distress. Their loans are demand notes, giving them flexibility but also exposing them to the company's inability to repay.
• Employees: The filing mentions "personnel" as part of customary public company expenses, implying a minimal number of employees, likely limited to management. Their job security is tied to the company's ability to secure ongoing funding.

Next Steps

• Management will continue to determine the future direction of the company.
• The company intends to continue operating as a public company and making all requisite filings under the Exchange Act.
• The company needs to raise additional funds through debt or equity securities to continue as a going concern.

Key Dates

Recommendation

The company is a non-operating shell with no revenue, a severe working capital deficit, and explicit "going concern" doubts. It is entirely dependent on a single related party for funding through demand notes, which can be called at any time. There is no underlying business to generate value, and the financial position is deteriorating. Investing in such a company carries extreme risk with virtually no upside potential based on current operations.

Keywords

shell company, SEC filing, 10-Q, financial report, net loss, going concern, related party debt, liquidity, Delfin Midstream, corporate governance, financial reporting, public company expenses