10-Q: Baltic International USA, Inc. Q3 2025: No Revenue, Growing Deficit

Baltic International USA, Inc. reported no revenues for the third quarter of 2025, with a continued operating loss and a substantial accumulated deficit, raising concerns about its going concern status.

Summary

• Baltic International USA, Inc. reported no revenues for the three and nine months ended September 30, 2025.
• The company incurred net losses of $6,347 for the three months and $18,960 for the nine months ended September 30, 2025.
• As of September 30, 2025, the company had an accumulated deficit of $19,093,321.
• The company has a working capital deficit of $5,132,073 as of September 30, 2025.
• Management has stated there is substantial doubt about the company's ability to continue as a going concern.
• The company's current plan is to investigate and acquire a target company or business.

Sentiment

Score: 2

Explanation: StockSavvy.ai views this as a very negative filing due to the company's continued lack of revenue, significant accumulated deficit, and explicit statement of substantial doubt about its ability to continue as a going concern.

Positives

• The company has $2,976 in cash and cash equivalents as of September 30, 2025, which management believes, along with potential financing, will be sufficient to meet its business plan and capital needs for the next 12 months.
• Management believes it can continue to defer certain payable amounts.

Negatives

• No revenues were generated in the three or nine months ended September 30, 2025.
• Operating expenses for the three months ended September 30, 2025, were $3,906, and $11,717 for the nine months ended September 30, 2025.
• The company has an accumulated deficit of $19,093,321 as of September 30, 2025.
• A working capital deficit of $5,132,073 exists as of September 30, 2025.
• There is substantial doubt about the company's ability to continue as a going concern.
• The company has limited cash resources and obligations due or past due.

Risks

• The company has incurred operating losses since inception and has a significant accumulated deficit.
• There is substantial doubt about the company's ability to continue as a going concern.
• The company has limited cash resources and obligations due or past due.
• Management's plan to acquire a target company is complex and extremely risky.
• Any target business selected may be a financially unstable company or an entity in its early stages of development or growth, with inherent risks.
• The company may effect a business combination with an entity in an industry characterized by a high level of risk.
• Disclosure controls and procedures were not effective to provide reasonable assurance that information is recorded, processed, summarized, and reported within required time periods.
• A lack of adequate resources created a deficiency in the design and implementation of the company's review control.

Future Outlook

The company's current business objective for the next 12 months is to investigate and, if warranted, acquire a target company or business. The company anticipates incurring costs related to Exchange Act filings and consummating an acquisition, which it expects to fund with current cash and additional financing.

Management Comments

• Management believes that we will be able to achieve a satisfactory level of liquidity to meets its business plan and capital needs for the next 12 months.
• Management believes we have the ability to obtain additional financing from key officers, directors and certain investors.
• Management also believes that we can continue to defer certain amounts payable by us that are either currently payable or past due.
• Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could be inaccurate, and there can therefore be no assurance that the forward-looking statements included herein will prove to be accurate.
• Our current business objective for the next 12 months is to investigate and, if such investigation warrants, acquire a target company or business seeking the perceived advantages of being a publicly held corporation.

Industry Context

StockSavvy.ai notes that Baltic International USA, Inc. appears to be a shell company whose primary strategy is to find and acquire another business. This is a common strategy for companies that have no active operations, but it carries significant risks, especially given the company's current financial precariousness and lack of revenue.

Corporate Governance

Related Party Transactions

• Short-term debt to officers and directors of $69,481 as of September 30, 2025, and December 31, 2024.

Stakeholder Impact

• Shareholders: The company's financial condition and lack of revenue raise significant concerns about future value and the ability to continue as a going concern.
• Creditors/Suppliers: The company has obligations due or past due and a substantial working capital deficit, which could impact its ability to meet its financial obligations.
• Management/Directors: Management is actively seeking a business combination and has indicated reliance on their own financing and that of other investors.

Next Steps

• Investigate and acquire a target company or business.
• Continue to incur costs related to filing of Exchange Act reports.
• Incur costs relating to consummating an acquisition.

Key Dates

Recommendation

The company has no revenue, a significant and growing accumulated deficit, a working capital deficit, and explicit doubts about its ability to continue as a going concern. The strategy of acquiring another business is high-risk, and the current financial state makes it unlikely to support such a venture without substantial external capital, which is not guaranteed.

Keywords

Shell Company, Going Concern, Acquisition Target, Accumulated Deficit, Working Capital Deficit, Disclosure Controls, Interim Financial Statements, Business Combination