Bioethics Ltd. Reports Significant Financial Challenges, Net Loss Increases Amid Rising Expenses and Uncertainty Over Merger

Bioethics Ltd. reported significant financial challenges in its 10-Q filing for the nine months ended September 30, 2024. The company, classified as a shell entity with no active business operations, recorded a net loss of $128,668, compared to a net loss of $72,746 for the same period in 2023. This increase in loss is attributed to rising general and administrative expenses, which totaled $89,483 for the nine months ended September 30, 2024, up from $36,843 in the prior year. The expenses primarily consist of legal and accounting fees, taxes, and annual fees necessary to maintain corporate status.

For the three months ended September 30, 2024, the company reported a net loss of $53,083, compared to a net loss of $22,300 for the same period in 2023. General and administrative expenses for this quarter also saw a substantial increase, rising to $39,284 from $10,004 in the previous year.

As of September 30, 2024, Bioethics Ltd. had total current assets of $17,153, a significant increase from $138 at December 31, 2023. However, total current liabilities rose to $880,086 from $776,403 during the same period, resulting in a working capital deficit of $862,933. The company’s accumulated deficit since inception reached $1,406,547.

The company did not generate any revenue during the nine-month periods ending September 30, 2024, or 2023. Cash used in operating activities increased to $78,190 for the nine months ended September 30, 2024, compared to $16,112 in the prior year. In contrast, net cash provided by financing activities surged to $95,205 from $16,300, indicating reliance on external financing to cover operational costs.

On the strategic front, Bioethics Ltd. entered into a merger agreement with SILQ Technologies Corporation on September 20, 2024, although the completion of this merger is uncertain. The company also issued a convertible debenture of $50,000 on October 16, 2024, due in 2025, with a 10% interest rate.

The company’s financial position raises concerns about its ability to continue as a going concern, as it has incurred substantial losses and has no ongoing operations. Management is actively seeking additional funding through loans, stock sales, or potential business combinations. Additionally, the company reported ineffective disclosure controls and procedures, which were noted as a significant concern in its internal control assessment.