10-Q: Medicale Corp. Reports Q3 2024 Results: Losses Continue as Company Pursues Funding

Medicale Corp. reports a net loss of $41,332 for the nine months ended June 30, 2024, as it continues to seek additional funding.

Summary

• Medicale Corp. filed its Form 10-Q for the quarter ended June 30, 2024.
• The company reported a net loss of $10,461 for the three months ended June 30, 2024, and a net loss of $41,332 for the nine months ended June 30, 2024.
• As of June 30, 2024, the company's total assets were $159, consisting of cash.
• The company's current liabilities were $2,135, with an additional $12,000 in current liabilities from discontinued operations.
• The company has an accumulated deficit of $158,964 as of June 30, 2024.
• The company is dependent on additional investment capital to fund operating expenses and intends to raise funds through the capital markets.
• The company had 5,920,000 shares issued and outstanding as of June 30, 2024.
• The company entered into convertible note agreements with third parties totaling $40,941.
• Management concluded that the company's disclosure controls and procedures were not effective as of June 30, 2024.

Sentiment

Score: 3

Explanation: The document presents a negative outlook due to the company's ongoing losses, accumulated deficit, and dependence on external funding. The ineffective disclosure controls and procedures further contribute to the negative sentiment.

Positives

• The company secured $40,941 through convertible note agreements, providing some capital infusion.

Negatives

• The company reported a net loss of $41,332 for the nine months ended June 30, 2024.
• The company has an accumulated deficit of $158,964 as of June 30, 2024.
• The company's disclosure controls and procedures were deemed ineffective as of June 30, 2024.
• The company has minimal assets, with only $159 in cash as of June 30, 2024.

Risks

• The company's ability to continue as a going concern is subject to substantial doubt.
• The company is dependent on raising additional capital, and there are no assurances it will be successful.
• Additional issuances of equity or convertible debt securities will result in dilution to current shareholders.
• The company's disclosure controls and procedures were not effective, indicating potential weaknesses in financial reporting.

Future Outlook

The company expects to require additional capital to meet its long-term operating requirements and intends to raise additional capital through the sale of equity or debt securities.

Management Comments

• Management anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses.
• Management concluded that our disclosure controls and procedures were not effective as of such date to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms.

Industry Context

The company's plan to offer consulting services and distribution of dietary supplements places it in a competitive market with established players. The company's lack of operations and reliance on external funding make it a high-risk venture.

Comparison to Industry Standards

• Given the company's early stage and lack of revenue, it's difficult to compare it to industry standards.
• Many early-stage companies in the consulting and dietary supplement space rely on venture capital or angel investors for funding.
• The company's accumulated deficit and minimal cash position are concerning compared to industry benchmarks for similar startups.

Management Changes

Related Party Transactions

• As a result of the acquisition of the Shares on December 28, 2022, the previous majority shareholder of Medicale Corp. (the Company) Borisi Alborovi forgive the debt that due to him, with the amount of $ 51,192 .

Stakeholder Impact

• Shareholders face potential dilution from future equity issuances.
• The company's ability to continue operations depends on securing additional funding, impacting all stakeholders.
• The ineffective disclosure controls and procedures raise concerns about the reliability of financial reporting for investors.

Next Steps

• The company intends to position itself to raise additional funds through the capital markets.
• The company will seek to obtain short-term loans from its directors.
• The company will continue to seek additional funding in the form of equity financing from the sale of its common stock.

Key Dates

Keywords

financial statements, convertible note, going concern, net loss, Medicale Corp, 10-Q