Palisades Venture Swings to Loss Amid Soaring Expenses

TL;DR

**Palisades Venture is bleeding cash with expenses out of control, making it a highly speculative bet with significant going concern risk.**

AI Summary

Palisades Venture Inc. reported a significant net loss of $44,950 for the six months ended June 30, 2025, a stark reversal from the net income of $11,446 in the same period of 2024. This decline occurred despite a 12.7% increase in gross revenue, which rose to $101,075 from $89,672 year-over-year. The primary driver of the loss was a substantial surge in operating expenses, which more than doubled to $113,505 in the first half of 2025 from $46,656 in the first half of 2024. The company also faces a going concern risk, evidenced by retained losses of $483,804 and negative working capital of $69,512 as of June 30, 2025. Related party transactions with CEO Mr. Rechtman increased, with $23,896 due to him as of June 30, 2025, compared to $337 due from him at December 31, 2024, and his compensation rose from $0 to $72,000 year-over-year. The company issued 9,500,000 common shares, increasing outstanding shares to 109,500,000 as of June 30, 2025.

Why It Matters

This filing reveals Palisades Venture Inc. is in a precarious financial state, with a significant net loss and negative working capital raising substantial doubt about its ability to continue as a going concern. For investors, this signals high risk and potential for further dilution or even bankruptcy if the company cannot secure additional funding or drastically cut expenses. Employees might face job insecurity, while customers could experience service disruptions if the company's financial health deteriorates further. The competitive landscape in cloud computing and cybersecurity is intense, and Palisades Venture's struggles suggest it's failing to keep pace, potentially opening opportunities for more stable rivals.

Risk Assessment

Risk Level: high — The company has retained losses of $483,804 and negative working capital of $69,512 as of June 30, 2025, indicating severe financial distress. Furthermore, the net loss of $44,950 for the six months ended June 30, 2025, coupled with a more than doubling of operating expenses to $113,505, provides specific evidence of an unsustainable financial trajectory.

Analyst Insight

Investors should avoid Palisades Venture Inc. given the severe going concern risk, substantial net losses, and rapidly increasing operating expenses. Current shareholders should consider divesting, as the company's ability to raise additional funds or achieve profitability is highly uncertain.

Financial Highlights

debt To Equity

N/A

revenue

$101,075

operating Margin

-28.1%

total Assets

$7,957

total Debt

$377,469

net Income

$ -44,950

eps

$0.00

gross Margin

84.2%

cash Position

$1,252

revenue Growth

+12.7%

Executive Compensation

Key Numbers

• $44,950 — Net Loss (For the six months ended June 30, 2025, a significant decline from $11,446 net income in 2024.)
• $101,075 — Gross Revenue (For the six months ended June 30, 2025, up 12.7% from $89,672 in 2024.)
• $113,505 — Operating Expenses (For the six months ended June 30, 2025, more than doubled from $46,656 in 2024.)
• $483,804 — Accumulated Deficit (As of June 30, 2025, indicating substantial retained losses.)
• $69,512 — Negative Working Capital (As of June 30, 2025, highlighting liquidity issues.)
• 109,500,000 — Common Shares Outstanding (As of June 30, 2025, an increase of 9,500,000 shares from December 31, 2024.)
• $72,000 — CEO Compensation (For the six months ended June 30, 2025, up from $0 in the prior year period.)
• $23,896 — Related Party Payables (Amount due to Mr. Rechtman as of June 30, 2025, a significant increase from $337 due from him at December 31, 2024.)

Key Players & Entities

• Palisades Venture Inc. (company) — registrant
• Mr. Rechtman (person) — CEO and related party
• Landmark PMG LLC (company) — acquired subsidiary
• CorpTech Holding Inc. (company) — parent company of acquired subsidiary, 90% owned by Mr. Rechtman
• SEC (regulator) — Securities and Exchange Commission
• $44,950 (dollar_amount) — net loss for six months ended June 30, 2025
• $101,075 (dollar_amount) — gross revenue for six months ended June 30, 2025
• $113,505 (dollar_amount) — operating expenses for six months ended June 30, 2025
• $483,804 (dollar_amount) — retained losses as of June 30, 2025
• $69,512 (dollar_amount) — negative working capital as of June 30, 2025

FAQ

Risk Factors

• Going Concern Risk [high — financial]: The company faces substantial going concern risks due to significant retained losses of $483,804 and negative working capital of $69,512 as of June 30, 2025. This indicates a severe liquidity challenge and a potential inability to meet its obligations.
• Deteriorating Profitability [high — financial]: Palisades Venture Inc. reported a net loss of $44,950 for the six months ended June 30, 2025, a significant reversal from a net income of $11,446 in the prior year period. This is driven by a more than doubling of operating expenses.
• Surge in Operating Expenses [high — operational]: Operating expenses more than doubled to $113,505 for the first half of 2025, compared to $46,656 in the same period of 2024. This substantial increase is a primary driver of the company's net loss.
• Increased Related Party Debt [medium — financial]: The amount due to CEO Mr. Rechtman increased dramatically to $23,896 as of June 30, 2025, from $337 due from him at December 31, 2024. This, coupled with his increased compensation, raises concerns about financial transparency and potential conflicts of interest.
• Dilution from Share Issuance [medium — financial]: The company issued 9,500,000 common shares, increasing the total outstanding shares to 109,500,000 as of June 30, 2025. This dilutes existing shareholders' ownership.

Industry Context

The venture capital and investment industry is characterized by high risk and high reward, with a focus on identifying and nurturing early-stage companies. Success often depends on market timing, effective management, and the ability to secure follow-on funding. Companies in this sector can experience rapid growth or significant losses depending on the performance of their portfolio investments.

Regulatory Implications

As a publicly traded entity, Palisades Venture Inc. is subject to SEC regulations and reporting requirements. The company's financial distress and potential going concern issues may attract increased scrutiny from regulators regarding disclosures and financial stability. Any related-party transactions must adhere to strict disclosure and approval standards.

What Investors Should Do

1. Monitor operating expense trends closely to understand if the significant increase in H1 2025 is a one-time event or an ongoing operational shift.
2. Evaluate the company's strategy for addressing its negative working capital and accumulated deficit to ensure long-term viability.
3. Scrutinize future related-party transactions and CEO compensation for fairness and transparency, given the current financial strain.
4. Assess the impact of the recent share issuance on shareholder value and future dilution potential.

Key Dates

• 2025-06-30: End of Second Quarter 2025 — Reporting period for the 10-Q, showing a significant net loss and negative working capital.
• 2024-06-30: End of Second Quarter 2024 — Prior year comparable period, showing net income and positive financial position.
• 2025-01-01: Beginning of Six Months Ended June 30, 2025 — Start of the period marked by a substantial increase in operating expenses and a net loss.

Glossary

Accumulated deficit

The total net losses of a company that have not been offset by net income since its inception. (Indicates the company has incurred more losses than profits over its history, totaling $483,804 as of June 30, 2025.)

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 of $69,512 as of June 30, 2025, signaling potential liquidity issues.)

Going concern

An assumption that a company will continue to operate for the foreseeable future, typically at least 12 months. (The company's financial condition, including its accumulated deficit and negative working capital, raises substantial doubt about its ability to continue as a going concern.)

Related Party Payables

Amounts owed to individuals or entities that have a close relationship with the company, such as its officers or directors. (The significant increase in payables to CEO Mr. Rechtman ($23,896) highlights transactions with insiders.)

Common stock, par value

The nominal value assigned to a share of stock, often a very small amount, used for accounting purposes. (Shows the par value ($0.001) and the large number of shares issued (109,500,000) and authorized (500,000,000).)

Year-Over-Year Comparison

Compared to the six months ended June 30, 2024, Palisades Venture Inc. has experienced a significant financial downturn. Gross revenue increased by 12.7% to $101,075, but this was overshadowed by a more than doubling of operating expenses to $113,505, resulting in a net loss of $44,950 versus a net income of $11,446. The company's financial position has also weakened, with negative working capital of $69,512 and an increased accumulated deficit of $483,804, raising going concern issues not present in the prior period.

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. 7 Accounts Receivable A
• $5,000 m — erms including no payments for 5 years, $5,000 monthly payments for additional 5 years a
• $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 — ober 12, 2024, 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 109,50
• $5,000 — an additional convertible debt loan of $5,000 on September 15, 2025 with the Robert P

Filing Documents

• palisades_i10q-063025.htm (10-Q) — 368KB
• palisades_ex3101.htm (EX-31.1) — 10KB
• palisades_ex3201.htm (EX-32.1) — 4KB
• 0001683168-25-007331.txt ( ) — 2516KB
• none-20250630.xsd (EX-101.SCH) — 18KB
• none-20250630_cal.xml (EX-101.CAL) — 27KB
• none-20250630_def.xml (EX-101.DEF) — 61KB
• none-20250630_lab.xml (EX-101.LAB) — 193KB
• none-20250630_pre.xml (EX-101.PRE) — 162KB
• palisades_i10q-063025_htm.xml (XML) — 294KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1

Financial Statements

Financial Statements 3 Balance Sheets as of June 30, 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 14 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 16 Item 4

Controls and Procedures

Controls and Procedures 16

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1

Legal Proceedings

Legal Proceedings 18 Item 1A

Risk Factors

Risk Factors 18 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 18 Item 3 Defaults upon Senior Securities 18 Item 4 Mine Safety Disclosures 18 Item 5 Other Information 18 Item 6 Exhibits 18

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Item 1. Financial Statements PALISADES VENTURE, INC. BALANCE SHEETS June 30, 2025 December 31, 2024 Unaudited Assets Current Assets Cash $ 1,252 $ 1,103 Receivables 6,705 10,615 Total Current Assets 7,957 11,718 Total Assets $ 7,957 $ 11,718 Liabilities and Stockholders Equity Current Liabilities Accrued expenses $ 14,177 $ 11,867 Accounts Payable 396 – Related Party Payables 23,896 ( 337 ) Convertible Note Payable 39,000 39,000 Total Current Liabilities 77,469 50,530 Long Term note Payable 300,000 300,000 Convertible Note Payable – – Total Liabilities 377,469 350,530 Stockholders Deficit Common stock, $ .001 par value, 500,000,000 shares authorized, 109,500,000 and 100,000,000 shares issued and outstanding, respectively 109,500 100,000 Additional Paid in capital 4,792 42 Accumulated deficit ( 483,804 ) ( 438,854 ) Total Stockholders Deficit ( 369,512 ) ( 338,812 ) Total Liabilities and Stockholders Deficit $ 7,957 $ 11,718 The accompanying notes are an integral part of these unaudited financial statements. 3 PALISADES VENTURE, INC. MONTHS ENDED JUNE 30, 2025 AND 2024 (Unaudited) For the Three Months Ended For the Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Gross Revenue $ 49,974 $ 41,676 $ 101,075 $ 89,672 Cost of Sales 7,764 7,836 15,960 15,702 Gross Profit 42,210 33,840 85,115 73,970 Operating Expenses 53,330 22,961 113,505 46,656 Total Expenses 53,330 22,961 113,505 46,656 Profit/(Loss) from Operations ( 11,120 ) 10,879 ( 28,390 ) 27,314 Interest Expense 8,280 7,960 16,560 15,868 Provision for Income Tax – – – – Net Income/(loss) $ ( 19,400 ) $ 2,919 $ ( 44,950 ) $ 11,446 Earnings Per Common Share Basic $ 0.00 $ 0.00 $ 0.00 $ 0.00 Diluted $ 0.00 $ 0.00 $ 0.00 $ 0.00 Weighted Average C

Management's Discussion and Analysis of Financial

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.

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

View Full Filing

View this 10-Q filing on SEC EDGAR