Business Context and Reporting Period
Company: Marathon Bar Corp. (Note: Input metadata referenced "Lipocine Inc.", but the filing text identifies the registrant as Marathon Bar Corp.)
Reporting Period: Fiscal year ended December 31, 2011 (Inception: October 13, 2011)
Status: Development stage company with no operating history, no products, and no customers.
Business Plan: Intends to import and sell organic energy health bars in Israel through third-party suppliers, utilizing a website and distribution at sporting events. The company currently has no manufacturing capabilities and relies on a virtual office address.
Key Financial Metrics
| Metric | Value (USD) |
|---|---|
| Revenue | $0 |
| Total Expenses | $5,162 |
| Net Loss | $(5,162) |
| Cash and Cash Equivalents | $22,943 |
| Total Assets | $32,443 |
| Total Liabilities | $7,605 |
| Stockholders' Equity | $24,838 |
| Shares Outstanding | 3,000,000 |
Capital Structure: 3,000,000 shares of common stock issued to the sole director/officer at $0.01 per share ($30,000 total). No debt financing other than a $238 related-party loan.
Material Changes and Operational Status
As a newly incorporated entity (October 2011), there is no prior comparable period. The company has incurred losses solely from formation and registration costs (legal, auditing, filing fees). No revenue has been generated. The company has not yet implemented its business plan, having only secured a web domain and created a website template.
Outlook, Risks, and Management Commentary
- Going Concern: Independent auditors have issued a "going concern" opinion, stating substantial doubt exists about the company's ability to continue operations for the next 12 months without additional financing.
- Liquidity: Current cash ($22,943) is insufficient to meet planned business objectives. The company must raise capital to implement its marketing plan and maintain reporting status.
- Financing Plan: The company has filed a Form S-1 to register 1,500,000 shares at $0.10 per share (potential proceeds up to $150,000). No shares have been sold under this registration as of the filing date.
- Management Contingency: The sole officer, Mr. Israel Menahem Vizel, has verbally indicated a willingness to provide a non-secured loan to maintain reporting status if no other proceeds are obtained, though no written agreement exists.
- Risks: High risk of failure due to lack of operating history, unproven business model, reliance on unidentified third-party suppliers, and concentration of ownership (100% held by the CEO/Director).
Investor Verification Checklist
- Capital Raise Status: Verify if the Form S-1 offering has been completed and if the anticipated $150,000 in proceeds has been received.
- Going Concern Resolution: Confirm if the company has secured the additional funding required to satisfy the auditor's going concern warning.
- Supplier Agreements: Verify if the company has identified and contracted with third-party suppliers for the organic energy bars, as none were in place at the time of filing.
- Website Development: Check if the website (www.m-bar.co) has moved from a template to a functional sales platform.
- Related Party Loans: Confirm the status of the verbal agreement for the CEO to fund operations and whether any formal loan agreements have been executed.