Filing Impact
(Moderate)
Filing Sentiment
(Neutral)
Form Type
10-Q
Rhea-AI Filing Summary
Baltic International USA, Inc. (BISA) reports that as of June 30, 2026 it had total assets of $2,976, all in cash, against total liabilities of $5,272,436, resulting in a shareholders’ deficit of $5,269,460. The company has incurred cumulative losses, with an accumulated deficit of $19,230,708, and continues to operate with a working capital deficit of $5,269,460.
The company does not currently generate positive cash flow and is focused on identifying and potentially acquiring a target business seeking the advantages of being publicly held. Management plans to fund ongoing reporting costs and acquisition search activities using existing cash and additional financing from officers, directors and investors, and by deferring certain payables. However, the company states there is substantial doubt about its ability to continue as a going concern. Its Chief Executive Officer and Chief Financial Officer concluded that disclosure controls and procedures were not effective due to inadequate resources, although no significant changes in internal control over financial reporting occurred during the quarter.
Positive
- None.
Negative
- The company discloses substantial doubt about its ability to continue as a going concern due to minimal cash, large working capital deficit and obligations that are due or past due.
- Management reports a material weakness in disclosure controls and procedures, stating they were not effective because of a lack of adequate resources to design and implement proper review controls.
- Baltic has a working capital deficit of $5,269,460 and only $2,976 in cash, indicating severe liquidity constraints and reliance on insider financing and deferred payables.
