In a recent Securities and Exchange Commission (SEC) report, Nfiniti Inc. (ticker: NFTN), a Nevada-based company incorporated in 2012, disclosed its financial statements for the quarter ended April 30, 2023. The company has not generated any revenue since its inception and has an accumulated deficit of $185,934 as of April 30, 2023. The financial statements also show an increase in total current liabilities from $116,363 as of October 31, 2022, to $125,934 as of April 30, 2023.
Nfiniti Inc. was initially established to engage in the acquisition, exploration, and development of oil and gas properties. However, it has not commenced any exploration activities to date. The company remains in the exploration stage, with limited operations and minimal expenses. Despite this, management has noted that Nfiniti Inc.’s current cash holdings are insufficient to cover expenses for the next twelve months or until additional funding is raised.
As of April 30, 2023, the company had no cash and an overall working capital deficit of $125,934. This is compared to a working capital deficit of $116,363 and zero cash as of October 31, 2022. The increase in liabilities is primarily due to increased loans payable to shareholders and the company’s president, Michael Noble. These loans are non-interest-bearing, with no specific repayment terms. As of the latest report, $6,744 is owed to Michael Noble, while $110,519 is owed to shareholders.
The financial statements included in the SEC filing are presented on a going concern basis, which assumes that Nfiniti Inc. will continue its operations in the normal course of business. However, the company’s limited operations and accumulated deficit raise substantial doubt about its ability to continue as a going concern.
The financial statements do not include any adjustments relating to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should Nfiniti Inc. be unable to continue. Despite these challenges, the company’s management is determined to persevere and navigate through potential difficulties.
Management has not formulated a policy for the resolution of potential conflicts of interest that may arise between the company and its president, Michael Noble. This raises concerns regarding the future operations and opportunities for Nfiniti Inc. and its stakeholders.
As Nfiniti Inc. continues to face financial challenges in its pursuit of growth and exploration activities, it remains crucial for the company to secure additional funding and establish a clear direction for its business activities. Without a defined plan and source of revenue, Nfiniti Inc.’s ongoing viability and ability to thrive remain uncertain.
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