Ridgedale Holdings Inc. 2024 10-K Review: A Shell Company with Ambitions

Introduction

Ridgedale Holdings Inc., a Delaware corporation, is a publicly quoted shell company. The company is seeking to create value for its shareholders by merging with another entity with experienced management and opportunities for growth in return for shares of its common stock. As of the date of the 10-K filing, no potential merger candidate has been identified.

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Business Description

Ridgedale Holdings Inc. was incorporated in Nevada in 2009 and reincorporated in Delaware in 2011. The company has undergone several changes, including a reverse and forward stock split, and a name change to Ridgedale Holdings, Inc. The company’s primary goal is to merge with another entity to create value for its shareholders. However, it faces substantial competition from other companies with similar goals, many of which have greater financial and human resources.

Financial Overview

Balance Sheet

As of June 30, 2024, Ridgedale Holdings Inc. reported total assets of $4,098, primarily in cash. The company’s liabilities totaled $280,107, resulting in a stockholders’ deficit of $276,009. The company has negative working capital of $265,263 and an accumulated deficit of $3,751,524.

Income Statement

For the fiscal year ended June 30, 2024, Ridgedale Holdings Inc. reported no revenue and a net loss of $109,288. The company’s operating expenses were $53,957, and it incurred an interest expense of $55,332.

Cash Flow

The company’s cash flow from operating activities was negative, with a net cash outflow of $54,549. Financing activities provided $55,000, primarily from notes payable related to Coral Investment Partners, resulting in a net increase in cash of $451.

Risk Factors

Ridgedale Holdings Inc. faces several risks, including:

• Financial Instability: The company has incurred significant losses and anticipates future losses. It has no sources of income to meet its operating expenses and relies on debt and equity financing.
• Competition: The company faces competition from other firms with greater resources in acquiring business opportunities.
• Control by Principal Shareholder: The principal shareholder controls approximately 78% of the company’s common stock, which may lead to decisions that benefit the shareholder rather than other investors.
• Regulatory Risks: The company is subject to SEC reporting requirements and compliance with the Sarbanes-Oxley Act, which are costly and may increase substantially.

Management and Governance

Erik S. Nelson serves as the Chief Executive Officer, President, and Director of Ridgedale Holdings Inc. He is also involved in several other business ventures, which may lead to conflicts of interest. The company does not have an independent board of directors or an audit committee.

Conclusion

Ridgedale Holdings Inc. is a shell company with ambitions to merge with another entity to create value for its shareholders. However, the company faces significant challenges, including financial instability, competition, and regulatory risks. The company’s reliance on debt and equity financing, coupled with its lack of revenue, raises substantial doubt about its ability to continue as a going concern. Investors should exercise caution and conduct thorough due diligence before considering an investment in Ridgedale Holdings Inc.

Investment Potential

Given the company’s current financial position and lack of operational activity, Ridgedale Holdings Inc. presents a high-risk investment opportunity. The company’s future success is heavily dependent on its ability to identify and merge with a suitable business entity. Until such a merger occurs, the company’s stock may remain thinly traded and subject to significant volatility. As such, potential investors should carefully weigh the risks and uncertainties before investing in Ridgedale Holdings Inc.