Born, Inc., a dormant shell company with no current operations or revenue, has released its Form 10-K report for the fiscal year ended December 31, 2023. The report outlines the company's financial performance, strategic initiatives, and the challenges it faces as it seeks to identify viable business opportunities within the U.S.
Financial Highlights
- Operating Expenses: $21,221 (The company reported total operating expenses of $21,221 for the year ended December 31, 2023, which includes administrative expenses related to related parties.)
- Net Loss: $21,221 (The company reported a net loss of $21,221 for the year ended December 31, 2023, compared to a net loss of $4,752 for the year ended December 31, 2022.)
- Basic and Diluted (Loss) Per Common Share: $(0.00) (The basic and diluted loss per common share remained at $(0.00) for both the years ended December 31, 2023, and December 31, 2022.)
Business Highlights
- Corporate History and Business Overview: Born, Inc., formerly known as Quture International, Inc., was established in April 2011 as a healthcare knowledge solution company. The company aimed to transform healthcare by developing standards for measuring clinical performance and outcomes through medical software and analytics.
- Dormancy and Reactivation: The company was dormant from March 22, 2013, to December 26, 2019. It was reactivated on December 27, 2019, when Custodian Ventures, LLC was appointed as the custodian by the Nevada Court.
- Change in Business Focus: On November 24, 2020, the company changed its name to Born, Inc. in anticipation of entering a new line of business operations. This included a reverse stock split and a reduction in authorized common shares.
- Share Exchange Agreement: On February 16, 2021, Born, Inc. entered into a share exchange agreement with Alkeon Creators, Inc., a UK corporation. However, this transaction was voided in February 2021, leading the company to be considered a dormant shell until July 2023.
- Current Status: As of the date of the report, Born, Inc. is a dormant shell company with no operations or revenue. The management is exploring business opportunities within the U.S., including potential acquisitions through reverse mergers or similar transactions.
- Future Outlook: The company plans to explore and identify viable business opportunities within the U.S., including seeking to acquire a business through a reverse merger. The management acknowledges risks and uncertainties, including the impact of the coronavirus pandemic on potential business operations.
Strategic Initiatives
- Liquidity Improvement: The company is focused on improving its liquidity by reducing outstanding debt and exploring new business opportunities within the U.S., including potential acquisitions through reverse mergers or asset purchases. Management is actively seeking to identify and implement a viable business strategy to enhance the company's financial position.
- Capital Management: The company has not paid any dividends since its incorporation and does not anticipate paying dividends in the foreseeable future, opting instead to retain earnings for development and market expansion. The company has authorized 500,000,000 shares of Common Stock and 10,000,000 shares of Preferred Stock, with a focus on maintaining flexibility for future capital raising activities.
- Future Outlook: The company anticipates incurring operating losses in the next 12 months due to costs related to SEC reporting obligations and potential business combinations. Management plans to fund working capital requirements through existing funds and future issuances of debt or equity securities. The company is exploring alternative sources of financing to support its strategic initiatives and address its working capital deficit.
Challenges and Risks
The company is currently a dormant shell with no operations or revenue, which presents a significant risk as it seeks to identify viable business opportunities within the U.S. The lack of a defined business model and reliance on future acquisitions or mergers to establish operations pose substantial uncertainty.
Management has highlighted the challenge of identifying and implementing a viable business strategy due to limited capital resources. The company anticipates incurring costs related to potential business combinations and SEC reporting obligations. The ongoing impact of the coronavirus pandemic on the U.S. and global economies adds further uncertainty to the company's ability to execute its business plan. Additionally, the company faces risks associated with potential business combinations, including the possibility of acquiring financially unstable or early-stage entities, which could heighten operational risks.
The company acknowledges that it may only be able to effect one business combination due to limited capital, increasing the risk of lack of diversification. This could result in heightened exposure to industry-specific or geographical risks. Management plans to fund working capital requirements through existing funds and future issuances of debt or equity securities but acknowledges that additional financing may not be available on acceptable terms.
SEC Filing: