Palisades Venture Plunges to $25K Loss Amid Soaring Expenses

TL;DR

**Palisades Venture is bleeding cash and relying on related party lifelines; steer clear until they prove a viable path to profitability.**

AI Summary

Palisades Venture Inc. reported a significant net loss of $25,550 for the three months ended March 31, 2025, a stark contrast to the net profit of $8,527 during the same period in 2024. This downturn occurred despite a modest increase in gross revenue to $51,101 in Q1 2025 from $47,996 in Q1 2024. The primary driver of the loss was a substantial surge in operating expenses, which more than doubled to $60,175 in Q1 2025 from $23,695 in Q1 2024. The company's accumulated deficit worsened to $464,404 as of March 31, 2025, from $438,854 at December 31, 2024, and it continues to operate with negative working capital of $18,237. Cash increased to $3,454 from $1,103, primarily due to $19,736 in related party advances. The company's ability to continue as a going concern is in substantial doubt, dependent on expanding operations, generating additional revenue, and securing further funding.

Why It Matters

This filing reveals Palisades Venture Inc. is in a precarious financial state, marked by a significant net loss and negative working capital, raising substantial doubt about its ability to continue operations. For investors, this signals high risk and potential for further dilution or even bankruptcy, especially given the reliance on related party advances for cash flow. Employees face job insecurity if the company cannot secure additional funding or improve its financial performance. Customers might experience service disruptions or a decline in quality if the company's financial woes impact its ability to maintain its datacenter and cloud computing infrastructure, potentially benefiting competitors like Cisco, Dell, or Microsoft who are mentioned as technology partners but not direct competitors in this context. The broader market may see this as another example of the challenges faced by smaller, unlisted tech service providers in a competitive landscape.

Risk Assessment

Risk Level: high — The company reported an accumulated deficit of $464,404 and negative working capital of $18,237 as of March 31, 2025. Furthermore, it incurred a net loss of $25,550 for the three months ended March 31, 2025, a significant deterioration from a net profit of $8,527 in the prior year, raising substantial doubt about its ability to continue as a going concern.

Analyst Insight

Investors should exercise extreme caution and avoid Palisades Venture Inc. given the substantial doubt about its going concern status, increasing losses, and reliance on related party financing. Prospective investors should wait for clear evidence of sustained profitability, positive cash flow from operations, and a reduction in related party dependence before considering any investment.

Financial Highlights

debt To Equity

N/A

revenue

$51,101

operating Margin

-33.8%

total Assets

$14,580

total Debt

$371,817

net Income

($25,550)

eps

$0.00

gross Margin

84.0%

cash Position

$3,454

revenue Growth

+6.5%

Revenue Breakdown

Key Numbers

• $25,550 — Net Loss (For the three months ended March 31, 2025, a significant decline from a $8,527 net profit in the prior year.)
• $51,101 — Gross Revenue (For the three months ended March 31, 2025, a slight increase from $47,996 in Q1 2024.)
• $60,175 — Operating Expenses (For the three months ended March 31, 2025, more than doubled from $23,695 in Q1 2024, driving the net loss.)
• $464,404 — Accumulated Deficit (As of March 31, 2025, indicating significant historical losses and worsening from $438,854 at December 31, 2024.)
• $18,237 — Negative Working Capital (As of March 31, 2025, highlighting liquidity challenges.)
• $3,454 — Cash (As of March 31, 2025, an increase from $1,103 at December 31, 2024, primarily due to related party advances.)
• $19,736 — Related Party Advances (Net cash provided by financing activities for the three months ended March 31, 2025, indicating reliance on related party funding.)
• $300,000 — Long-term Note Payable (As of March 31, 2025, owed to CorpTech Holding Inc. for asset acquisition.)
• 109,500,000 — Weighted Average Common Shares Outstanding (For the three months ended March 31, 2025, up from 100,000,000 in Q1 2024.)
• 0.5% — Interest Rate on Long-term Note (The stated interest rate on the $300,000 note payable to CorpTech Holding Inc.)

Key Players & Entities

• Palisades Venture Inc. (company) — registrant
• Mr. Rechtman (person) — CEO and majority owner (75%) of Palisades Venture Inc. and 90% owner of CorpTech Holding Inc.
• CorpTech Holding Inc. (company) — parent company that sold assets to Palisades Venture Inc. and is 90% owned by Mr. Rechtman
• Landmark PMG LLC (company) — subsidiary of CorpTech Holding Inc. whose assets were absorbed by Palisades Venture Inc.
• $25,550 (dollar_amount) — net loss for the three months ended March 31, 2025
• $8,527 (dollar_amount) — net profit for the three months ended March 31, 2024
• $464,404 (dollar_amount) — accumulated deficit as of March 31, 2025
• $18,237 (dollar_amount) — negative working capital as of March 31, 2025
• $19,399 (dollar_amount) — amount owed to Mr. Rechtman (Related Party Payables) as of March 31, 2025
• $300,000 (dollar_amount) — long-term note payable to CorpTech Holding Inc. for asset purchase

FAQ

Risk Factors

• Going Concern Uncertainty [high — financial]: The company's ability to continue as a going concern is in substantial doubt due to significant net losses ($25,550 in Q1 2025), a worsening accumulated deficit ($464,404), and negative working capital ($18,237). This is contingent on expanding operations, generating additional revenue, and securing further funding.
• Reliance on Related Party Advances [high — financial]: Cash increased to $3,454 from $1,103 primarily due to $19,736 in related party advances. This highlights a dependence on related parties for liquidity, which may not be sustainable or available in the future.
• Exploding Operating Expenses [high — operational]: Operating expenses more than doubled to $60,175 in Q1 2025 from $23,695 in Q1 2024. This surge is the primary driver of the net loss and indicates potential issues with cost control or unsustainable operational scaling.
• Significant Accumulated Deficit [medium — financial]: The accumulated deficit has grown to $464,404 as of March 31, 2025, an increase from $438,854 at December 31, 2024. This indicates a history of substantial losses that the company has not yet overcome.
• Negative Working Capital [medium — financial]: The company continues to operate with negative working capital of $18,237 as of March 31, 2025. This suggests short-term liquidity challenges, where current liabilities exceed current assets.
• Long-term Debt Obligation [medium — financial]: A long-term note payable of $300,000 is owed to CorpTech Holding Inc. for asset acquisition. While the interest rate is low at 0.5%, servicing this debt adds to the company's financial obligations.

Industry Context

Palisades Venture Inc. operates in a highly competitive landscape where innovation and efficient cost management are critical for survival. Many companies in this sector face challenges with scaling operations and achieving profitability, often relying on external funding rounds. The current economic climate may also put pressure on revenue generation and increase the cost of capital.

Regulatory Implications

The company's disclosure of substantial doubt regarding its going concern status triggers heightened scrutiny from regulators and investors. Failure to address the financial shortfalls could lead to delisting from exchanges or increased reporting requirements.

What Investors Should Do

1. Monitor closely the company's ability to secure additional funding, as this is critical for its survival.
2. Analyze the drivers behind the significant increase in operating expenses to assess management's control and future cost-reduction strategies.
3. Evaluate the sustainability of related party advances as a primary source of liquidity.
4. Assess the long-term viability of the business model given the persistent accumulated deficit and negative working capital.

Key Dates

• 2025-03-31: End of Q1 2025 — Reported a net loss of $25,550, a significant downturn from Q1 2024, driven by increased operating expenses. Accumulated deficit worsened to $464,404.
• 2024-12-31: End of Fiscal Year 2024 — Accumulated deficit stood at $438,854. Cash balance was $1,103.
• 2024-03-31: End of Q1 2024 — Reported a net profit of $8,527 on gross revenue of $47,996, with operating expenses at $23,695.

Glossary

Accumulated Deficit

The total cumulative net losses of a company since its inception, minus any net profits. It represents a negative balance in retained earnings. (Palisades Venture Inc. has a significant and growing accumulated deficit ($464,404), indicating a history of unprofitability and raising concerns about its long-term viability.)

Working Capital

The difference between a company's current assets and current liabilities. Positive working capital indicates a company can meet its short-term obligations. (Palisades Venture Inc. has negative working capital ($18,237), suggesting potential difficulties in meeting its short-term financial obligations.)

Going Concern

An accounting assumption that a business will continue to operate for the foreseeable future. If substantial doubt exists, it must be disclosed. (The company's financial condition, including its net loss and negative working capital, has led to substantial doubt about its ability to continue as a going concern.)

Related Party Advances

Funds provided by individuals or entities that have a close relationship with the company, such as major shareholders, directors, or affiliated companies. (The increase in cash for Palisades Venture Inc. is heavily reliant on related party advances ($19,736), indicating a dependence on these sources for liquidity.)

Operating Expenses

Costs incurred by a business in its normal course of operations, excluding the cost of goods sold. This includes salaries, rent, utilities, and marketing. (A dramatic increase in operating expenses ($60,175 in Q1 2025 vs. $23,695 in Q1 2024) is the primary reason for the company's shift from profit to a significant net loss.)

Gross Revenue

The total amount of income generated from sales of goods or services before any deductions for returns, allowances, or discounts. (While gross revenue saw a modest increase ($51,101 in Q1 2025 vs. $47,996 in Q1 2024), it was not enough to cover the surge in operating expenses.)

Year-Over-Year Comparison

Compared to the first quarter of 2024, Palisades Venture Inc. has experienced a significant financial deterioration. Gross revenue increased slightly by 6.5% to $51,101, but this was overshadowed by a more than doubling of operating expenses to $60,175, resulting in a net loss of $25,550 compared to a profit of $8,527 in the prior year. The accumulated deficit has also widened, and the company's liquidity position remains precarious with negative working capital.

Key Financial Figures

• $300,000 — ares of our restricted common stock and $300,000, through an Asset Purchase Agreement, d
• $145 — ill provide these services at a rate of $145 per hour. Accounts Receivable Accou
• $5,000 m — erms including no payments for 5 years, $5,000 monthly payments for additional 5 years a
• $12,000 — r a period of five years at a salary of $12,000 per month. If any amount is due and unp
• $4,000 — and an interest rate of 8 % per annum. $4,000 was the remaining balance from an older
• $0.0096 — Venture, Inc. with conversion price of $0.0096 per share within 60 days following the
• $1,000 — over 18 months with minimum payments of $1,000 per month and a balloon at the end of t
• $0 — 00,000 shares of common stock par value $0 .001 . Total Shares outstanding 100,00

Filing Documents

• palisades_i10q-033125.htm (10-Q) — 368KB
• palisades_ex3101.htm (EX-31.1) — 10KB
• palisades_ex3201.htm (EX-32.1) — 4KB
• 0001683168-25-007007.txt ( ) — 2551KB
• none-20250331.xsd (EX-101.SCH) — 19KB
• none-20250331_cal.xml (EX-101.CAL) — 26KB
• none-20250331_def.xml (EX-101.DEF) — 62KB
• none-20250331_lab.xml (EX-101.LAB) — 193KB
• none-20250331_pre.xml (EX-101.PRE) — 163KB
• palisades_i10q-033125_htm.xml (XML) — 309KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION PALISADES VENTURE, INC. FORM 10-Q Three Month Period Ended March 31, 2025 TABLE OF CONTENTS Page

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1

Financial Statements

Financial Statements 3 Balance Sheets as of March 31, 2025 (unaudited) and December 31, 2024 (audited) 3 4 5 6 Notes to the Financial Statements (Unaudited) 7 Item 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 16 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 17 Item 4

Controls and Procedures

Controls and Procedures 18

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1

Legal Proceedings

Legal Proceedings 19 Item 1A

Risk Factors

Risk Factors 19 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 19 Item 3 Defaults upon Senior Securities 19 Item 4 Mine Safety Disclosures 19 Item 5 Other Information 19 Item 6 Exhibits 19

SIGNATURES

SIGNATURES 20 2 PART I - FINANCIAL INFORMATION

Financial

Item 1. Financial PALISADES VENTURE, INC. BALANCE SHEETS March 31, 2025 (Unaudited) December 31, 2024 Assets Current Assets Cash $ 3,454 $ 1,103 Receivables 11,126 10,615 Total Current Assets 14,580 11,718 Total Assets $ 14,580 $ 11,718 Liabilities and Stockholders Equity Current Liabilities Accrued expenses $ 13,022 $ 11,867 Accounts Payables 396 – Related Party Payables 19,399 ( 337 ) Total Current Liabilities 32,817 11,530 Long term Note Payable 300,000 300,000 Convertible Note payable 39,000 39,000 Total Liabilities 371,817 350,530 Stockholders Equity Common Stock, $ .001 par value, 500,000,000 shares authorized, 100,000,000 and 100,000,000 shares issued and outstanding, respectively 100,000 100,000 Additional Paid in capital 7,167 42 Accumulated Deficit ( 464,404 ) ( 438,854 ) Total Stockholders Equity ( 357,237 ) ( 338,812 ) Total Liabilities and Stockholders Deficit $ 14,580 $ 11,718 The accompanying notes are an integral part of these unaudited financial statements. 3 PALISADES VENTURE, INC. FOR THE THREE MONTHS ENDED March 31, 2025 (Unaudited) March 31, 2024 (Unaudited) Gross Revenue $ 51,101 $ 47,996 Cost of Sales 8,196 7,866 Profit from Operations 42,905 40,130 Operating Expenses 60,175 23,695 Total Expenses 60,175 23,695 Profit/(Loss) from Operations ( 17,270 ) 16,435 Interest Expense 8,280 7,908 Provision for Income Tax – – Net Profit $ ( 25,550 ) $ 8,527 Earnings per common share Basic $ 0.00 $ 0.00 Diluted $ 0.00 $ 0.00 Weighted Average common shares outstanding Basic 109,500,000 100,000,000 Diluted 109,500,000 100,000,000 The accompanying notes are an integral part of these unaudited financial statements. 4 PALISADES VENTURE, INC. DEFICIT FOR THE THREE MONTHS ENDED MARCH 31, 2025 (Unaudited) and MARCH 31, 2024 (Unaud

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This quarterly report on form 10-Q (the "Quarterly Report") of Palisades Venture, Inc. ("the Company", "we", "us") contains forward-looking statements, which can be identified by the use of words such as such "estimate," "project," "believe," "intend," "anticipate," "plan," "seek," "expect," "will," "would," "should," "could" or "may," and words of similar meaning. These forward-looking statements include, but are not limited to: estimates of our risks and future costs and

View Full Filing

View this 10-Q filing on SEC EDGAR