BIOETHICS LTD SEC 10-Q Report

Bioethics Ltd., a shell company with no active business operations, has released its Form 10-Q report for the nine months ended September 30, 2024. The report highlights the company's ongoing financial struggles, strategic initiatives aimed at reversing its status as a shell company, and the significant challenges it faces in its quest for operational viability.

Financial Highlights

• Net Revenues: $0. The company did not generate revenues during the nine-month periods ending September 30, 2024, or 2023.
• Loss from Operations: $(89,483). The company incurred general and administrative expenses of $89,483 during the nine months ended September 30, 2024, compared to $36,843 during the nine months ended September 30, 2023.
• Net Loss: $(128,668). The company incurred a net loss of $128,668 during the nine months ended September 30, 2024, compared to a net loss of $72,746 during the nine months ended September 30, 2023.
• Basic and Diluted Loss Per Share: $(0.11). The basic and diluted loss per share for the nine months ended September 30, 2024, was $(0.11), compared to $(0.06) for the nine months ended September 30, 2023.

Business Highlights

• Company Overview: Bioethics Ltd. is a shell company with no active business operations, seeking business opportunities for acquisition or participation.
• Operational Status: The company did not conduct any operations during the nine-month periods ended September 30, 2024, or 2023.
• Future Outlook: The company is engaged in a potential merger with SILQ Technologies Corporation, which could significantly alter its operational landscape. However, there are no assurances that the merger will be consummated due to various conditions that need to be met.
• Management's Focus: The management is focused on identifying and acquiring a suitable business opportunity to initiate active operations.
• Going Concern: The company has incurred losses since inception and has no ongoing operations, raising substantial doubt about its ability to continue as a going concern. Management is exploring options to raise additional funds through loans, sales of common stock, or a possible business combination.

Strategic Initiatives

• Strategic Initiatives: Bioethics Ltd. is actively seeking business opportunities for acquisition or participation, as evidenced by the agreement and plan of merger with SILQ Technologies Corporation. This strategic move aims to potentially reverse the company's status as a shell company and engage in active business operations.
• Capital Management: The company issued 620,000 shares of Series A Preferred Stock, raising $42,000 with a subscription receivable of $20,000. Additionally, Bioethics Ltd. engaged in financing activities by issuing new promissory notes totaling $30,000 and receiving $23,205 from related parties. The company also issued a convertible debenture of $50,000 in October 2024. These activities are part of the company's efforts to manage its capital and address its working capital deficit.
• Future Outlook: Bioethics Ltd. faces substantial doubt about its ability to continue as a going concern due to ongoing losses and lack of operations. The company plans to raise additional funds through loans, sales of common stock, or a business combination. The potential merger with SILQ Technologies Corporation could significantly alter the company's operational landscape, though there are no assurances of its completion.

Challenges and Risks

• Operational Risks: The company is a shell company with no active business operations, which presents a significant operational risk as it seeks business opportunities for acquisition or participation. The Report of Independent Registered Public Accounting Firm highlights an uncertainty about the company's ability to continue as a going concern due to incurred losses and no ongoing operations.
• Financial Instability: As of September 30, 2024, the company had a working capital deficit of $862,933 and an accumulated deficit of $1,406,547, indicating financial instability. The company incurred net losses of $128,668 for the nine months ended September 30, 2024, compared to $72,746 for the same period in 2023, reflecting an increasing trend in losses.
• Dependence on External Funding: The company is dependent on external funding sources such as sales of securities, loans, or contributions from stockholders to cover operating costs, which poses a financial risk.
• Merger Uncertainty: The potential acquisition of SILQ Technologies Corporation through a reverse triangular merger introduces uncertainty, as there are no assurances that the merger will be consummated due to conditions outside the parties' control.
• Liquidity Constraints: The company's liquidity is constrained, with net cash used by operating activities amounting to $78,190 during the nine months ended September 30, 2024. The company relies on loans from related and unrelated parties, which amounted to $95,205 during the same period, to sustain operations. The lack of revenue generation and reliance on external funding sources highlight significant financial risks.

SEC Filing: BIOETHICS LTD [ BOTH ] - 10-Q - Nov. 19, 2024