Nextel Medical Corp.

What they do

The Company is a shell company with no current business operations. It has not generated any revenue since inception and has no operating assets. Management intends to seek business acquisitions, mergers, or combinations, and may participate in ventures of virtually any nature. The Company has entered into non-binding letters of intent for several potential acquisitions but none have closed.

Revenue drivers

• None — The Company has not generated any revenue from operations in any period reported.

Recent performance

For the three months ended January 31, 2021, the Company recognized no revenue and incurred general and administrative expenses of $133,625, resulting in a net loss of $133,625. This compares to a net loss of $242,917 for the three months ended January 31, 2020. As of January 31, 2021, the Company had $128 in cash, total liabilities of $444,776, and a shareholders' deficit of $24,214,683. For fiscal year 2020, the Company reported zero revenue and a net loss of $435,950.

Strategy

The Company's plan is to raise debt and/or equity to fund ongoing expenses and to pursue business acquisitions, mergers, or combinations. Management has not restricted the search to any specific industry or geography. Due diligence has been completed on several acquisition targets, including Pacific Merchant Processing, Inc., Sunshine Hemp, Inc., Microcap Advisors, LLC, and SMLY, Inc., but definitive agreements have not been executed. The Company is dependent on advances from its principal shareholder and may need additional financing.

Risks

• No revenue — The Company has not generated any revenue and has no operating business, making it entirely dependent on external funding.
• Going concern — The Company has minimal cash and a substantial shareholders' deficit, raising substantial doubt about its ability to continue as a going concern.
• Pending acquisitions may not close — Several letters of intent are non-binding and acquisitions are pending execution of definitive agreements, which may not occur.
• Related party transactions — Potential acquisitions involve entities affiliated with the Company's former sole director and majority shareholder, creating conflicts of interest.

Outlook

Management is actively monitoring the COVID-19 outbreak but cannot estimate its impact on future operations. The Company expects to complete due diligence on several acquisition targets and will disclose final agreements on Form 8-K if executed. However, without additional financing, the Company may not be able to fund ongoing operations.