10-Q: THEGLOBE.COM Reports Q3 2025 Net Loss Amid Shell Company Status

THEGLOBE.COM, INC. reported a net loss of $59,644 for Q3 2025 and $172,313 for the nine months ended September 30, 2025, continuing its operations as a shell company with no material revenue.

Summary

• THEGLOBE.COM, INC. continues to operate as a shell company with no material operations or assets since the sale of its Tralliance business on September 29, 2008.
• The company reported zero net revenue for both the three and nine months ended September 30, 2025, and 2024.
• Net loss for the three months ended September 30, 2025, was $59,644, an increase from $52,559 in the prior year's comparable quarter.
• Net loss for the nine months ended September 30, 2025, was $172,313, up from $166,303 for the same period in 2024.
• General and administrative expenses increased to $35,692 for Q3 2025 from $30,917 in Q3 2024, primarily due to higher legal and filing expenses.
• Related party interest expense increased to $23,952 for Q3 2025 from $21,642 in Q3 2024, and to $69,425 for the nine months ended September 30, 2025, from $62,733 in the prior year, due to increased loan amounts from Delfin.
• Cash balance as of September 30, 2025, was $31,677, up from $23,750 at December 31, 2024.
• Current liabilities exceeded total assets, resulting in a net working capital deficit of approximately $1,656,000 as of September 30, 2025.
• The company's ability to continue as a going concern beyond the next twelve months is in substantial doubt without additional funding.
• Delfin Midstream LLC, the majority stockholder, continues to fund the company through loans, with the Promissory Note principal balance increasing to $1,220,000 as of September 30, 2025.

Sentiment

Score: 2

Explanation: The company continues to operate as a shell with no revenue, increasing losses, and significant going concern doubts, relying entirely on related-party debt. While cash increased slightly due to financing, the underlying financial health is very poor.

Positives

• Cash balance increased to $31,677 as of September 30, 2025, from $23,750 at December 31, 2024.
• Net cash flows used in operating activities decreased to $99,073 for the nine months ended September 30, 2025, from $105,738 in the prior year.
• Continued funding from Delfin Midstream LLC, the majority stockholder, through an increased promissory note, indicates ongoing support.

Negatives

• Zero net revenue for the reported periods, indicating no active business operations.
• Increased net loss for both the three-month ($59,644 vs. $52,559) and nine-month ($172,313 vs. $166,303) periods compared to the prior year.
• Current liabilities ($1,687,365) significantly exceed total assets ($31,677) as of September 30, 2025.
• Net working capital deficit of approximately $1,656,000 as of September 30, 2025.
• Substantial doubt about the company's ability to continue as a going concern beyond the next twelve months without additional capital.
• Reliance on related party funding (Delfin Midstream LLC) for operations and to cover liabilities.
• Accumulated deficit grew to $(298,691,210) as of September 30, 2025.

Risks

• Inability to raise additional and sufficient capital through debt or equity securities.
• Dependence on continued funding from related parties (Delfin Midstream LLC).
• Uncertainty in successfully estimating the impact of certain accounting and tax matters.
• Risk of not being able to continue as a going concern beyond the next twelve months.
• Potential for filing for protection under the U.S. Bankruptcy Code if additional funds are not secured.
• The Promissory Note with Delfin is a demand note, allowing the Holder to call it at any time.

Future Outlook

The company intends to continue operating as a public company and making all requisite filings under the Exchange Act. Management anticipates continued funding from Delfin Midstream LLC over the next twelve months as it determines the company's future direction. However, without successful additional fundraising through debt or equity, the company may not be able to continue as a going concern beyond the next twelve months.

Management Comments

• "As a shell company, our operating expenses have consisted primarily of, and we expect them to continue to consist primarily of, customary public company expenses, including personnel, accounting, financial reporting, legal, audit and other related public company costs."
• "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."
• "Our Chief Executive Officer and Chief Financial Officer has concluded that, as of September 30, 2025, our disclosure controls and procedures were effective in alerting him in a timely manner to material information regarding us that is required to be included in our periodic reports to the SEC."

Industry Context

The company operates as a shell company with no active business operations or material assets, having sold its last operating business (Tralliance Corporation) in 2008. This places it outside typical industry trends, as its primary activity is maintaining public company status and managing its liabilities, largely through related-party financing. Its situation is unique and not comparable to operating companies within any specific industry.

Comparison to Industry Standards

• The company's financial performance, characterized by zero revenue and recurring net losses, is not comparable to industry standards for operating businesses.
• Its status as a shell company with no material operations means it does not generate revenue or profit from commercial activities, unlike typical publicly traded companies.
• The reliance on related-party debt for funding is a common characteristic of shell companies or distressed entities, rather than a benchmark for healthy operating businesses.

Corporate Governance

Related Party Transactions

• Delfin Midstream LLC, the majority stockholder, provides funding to the company through a Promissory Note.
• The Promissory Note principal balance increased to $1,220,000 as of September 30, 2025.
• Accrued interest due to Delfin Midstream LLC was approximately $435,544 as of September 30, 2025.
• Related party interest expense for the three months ended September 30, 2025, was $23,952, and for the nine months ended September 30, 2025, was $69,425.

Stakeholder Impact

• Shareholders: Face significant risk due to the company's shell status, lack of operations, ongoing losses, and substantial doubt about its ability to continue as a going concern. Value is highly speculative and dependent on future strategic direction or capital raises.
• Creditors (Delfin Midstream LLC): Continues to be the primary funder, increasing its exposure through additional loans. The Promissory Note is a demand note, giving Delfin control over repayment.
• Employees: Limited information, but as a shell company, personnel are likely minimal and primarily focused on public company compliance.

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 beyond the next twelve months.

Key Dates

Recommendation

The company is a shell company with no revenue, increasing net losses, and a significant working capital deficit. It explicitly states "substantial doubt about the Company's ability to continue as a going concern beyond the next twelve months" without additional capital. Operations are entirely dependent on continued funding from a related party (Delfin Midstream LLC), which is a demand note. This presents an extremely high-risk profile with no clear path to profitability or sustainable operations, making it an unsuitable investment for any seasoned investor.

Keywords

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