10-Q: Yale Transaction Finders Reports Q1 2025 Results: Net Loss Remains Consistent as Company Seeks Business Combination

Yale Transaction Finders, a shell company seeking a business combination, reports a net loss of $9,200 for the quarter ended March 31, 2025, slightly higher than the $8,762 loss in the same period last year.

Summary

• Yale Transaction Finders, Inc., formerly Yacht Finders, Inc., reported its financial results for the quarter ended March 31, 2025.
• The company is currently a shell company focused on finding a business combination target.
• For the three months ended March 31, 2025, the company reported a net loss of $9,200, compared to a net loss of $8,762 for the same period in 2024.
• The company had cash on hand of $6,282 as of March 31, 2025, down from $11,167 at the end of 2024.
• The company's accumulated deficit as of March 31, 2025, was $1,366,420.
• The company's liabilities totaled $142,439, resulting in a negative working capital of $136,157.
• The company's plan of operation over the next twelve months is to seek and, if possible, acquire an operating business or valuable assets by entering into a business combination.
• The company's auditors have raised substantial doubt about the company's ability to continue as a going concern.

Sentiment

Score: 3

Explanation: The sentiment is negative due to the company's net losses, negative working capital, going concern uncertainty, and ineffective disclosure controls and procedures. The company's reliance on related party loans and potential need for future capital raises further contribute to the negative outlook.

Positives

• The company is actively seeking a business combination to create value for shareholders.
• Management believes that the material weaknesses in internal controls did not have an effect on the company's financial results.

Negatives

• The company reported a net loss of $9,200 for the three months ended March 31, 2025.
• Cash on hand decreased to $6,282 as of March 31, 2025.
• The company's accumulated deficit reached $1,366,420 as of March 31, 2025.
• The company has a negative working capital of $136,157.
• The company's auditors have raised substantial doubt about the company's ability to continue as a going concern.
• The company's disclosure controls and procedures are not effective.

Risks

• The company's ability to continue as a going concern is dependent on working capital advances from its majority shareholder and obtaining additional financing.
• The company faces risks related to a general economic downturn and downturn in the securities markets.
• Federal or state laws or regulations could have an adverse effect on proposed transactions.
• Securities and Exchange Commission regulations affect trading in the securities of penny stocks.
• The company's lack of a functioning audit committee and inadequate segregation of duties could result in material misstatements in its financial statements.
• The company may be unable to raise necessary funds from outside sources, which could lead to severe consequences.

Future Outlook

The company's plan of operation over the next twelve months is to seek and, if possible, acquire an operating business or valuable assets by entering into a business combination.

Management Comments

• Management believes that the material weaknesses in internal controls did not have an effect on the company's financial results.
• Management members or shareholders will loan funds to us as needed for operations prior to completion of an acquisition.

Industry Context

As a shell company actively seeking a merger partner, Yale Transaction Finders operates in a space with numerous other entities pursuing similar strategies. The success of such companies hinges on their ability to identify and secure suitable acquisition targets, navigate regulatory hurdles, and ultimately deliver value to shareholders through the combined entity.

Comparison to Industry Standards

• It is difficult to compare Yale Transaction Finders to industry standards due to its status as a shell company with no ongoing operations.
• Comparable companies would be other shell companies or special purpose acquisition companies (SPACs) in the pre-acquisition phase.
• However, financial metrics such as cash on hand and operating expenses can be compared to those of similar entities to assess the company's financial health and efficiency.
• For example, a SPAC with a similar market capitalization might have a higher cash balance and lower operating expenses, indicating a stronger financial position.

Legal Proceedings

• There are no legal proceedings which are pending or have been threatened against us or any of our officers, directors or control persons of which management is aware.

Related Party Transactions

• The company had loans and notes outstanding from Ironbound Partners Fund, LLC, Moyo Partners LLC and Dakota Group LLC in the aggregate amount of $118,500 and $73,000, respectively, plus accrued interest of $11,362 and $5,463, respectively.
• On May 2, 2025, the Company issued convertible promissory notes (the May 2025 Notes) in the aggregate principal amount of $17,500 to (i) Ironbound Partners Fund, LLC, an affiliate of the Company's Chief Executive Officer, (ii) Moyo Partners, LLC, an affiliate of the Company's President and Treasurer, and (iii) Dakota Group, LLC.

Stakeholder Impact

• Shareholders face the risk of further dilution if the company raises additional capital.
• The company's employees (if any) face uncertainty due to the company's going concern issue.
• The company's creditors face the risk of non-payment if the company is unable to secure additional financing or complete a business combination.

Next Steps

• The company will continue to seek a business combination target.
• The company will need to address its going concern issue by securing additional financing or completing a merger with a financially stable partner.

Key Dates

Keywords

business combination, shell company, financial results, net loss, going concern, liquidity, capital resources, working capital, accumulated deficit, internal controls