BrooqLy, Inc., a company that has developed a unique platform combining social networking, online food ordering, and gifting, has released its latest 10-K report. The report outlines significant financial and operational highlights, strategic initiatives, and the challenges the company faces as it undergoes a strategic transformation into a drone manufacturing and autonomous logistics company.
Financial Highlights
- Total Revenue: $266, reflecting a significant increase from $5 in the previous year, driven solely by treats from the company’s platform.
- Net Loss: $1,171,439, an increase from $348,288 in the previous year, primarily due to the impairment of the intangible asset, the loss on the conversion of common stock shares, and the loss on the exercise of warrants.
- Net Loss Per Common Stock – basic and fully diluted: $(0.05), compared to $(0.01) in the previous year, indicating a higher loss per share.
Business Highlights
- Corporate History: BrooqLy Inc. was incorporated in Nevada on February 19, 2021, initially as MyTreat, Inc., and later changed its name to BrooqLy Inc. on May 12, 2021.
- Business Overview: The company has developed a technological platform that combines social networking, online food ordering, and gifting, allowing retail shops, consumers, and brands to connect and interact.
- Platform Features: The platform offers three modes for purchasing and sending ‘Treats’: Remote Mode, In-Shop Mode, and At-Home Mode, facilitating interactions between users and shops.
- Future Planning: The company plans to reposition itself as a leader in drone technology and autonomous logistics, focusing on UAV design, engineering, and manufacturing for various markets.
- Geographical Performance: Operations began in Greece, Romania, and Turkey, with plans to expand into Western and Central/Eastern Europe, North & South America, and the Middle East & Africa.
- Platform Benefits: The platform provides benefits such as increased sales and visibility for shops, global connectivity for users, and targeted advertising opportunities for brands.
- Revenue Sources: Revenue is generated from annual shop registration fees, treat commissions, and advertising fees from brands.
- Marketing Strategy: The marketing strategy includes pre-launch, launch, and post-launch stages, utilizing social media, influencer marketing, and CRM processes.
- Operations to Date: Key operations include agreements with Enaleia and Citiwave Systems, Ltd, and the launch of platform version 3 in December 2023.
- Material Agreements: Significant agreements include a pilot agreement in the Czech Republic and a foreign representation agreement in Zambia.
- Future Outlook: BrooqLy Inc. aims to establish itself as a leader in aerospace and autonomous delivery systems, leveraging strategic alliances and capital raises to support its transformation.
Strategic Initiatives
- Strategic Transformation: BrooqLy, Inc. is undergoing a strategic transformation into a drone manufacturing and autonomous logistics company. The company plans to raise new growth capital to fund product development, operational expansion, and the integration of its proprietary BrooqLy software platform.
- Capital Management: The company issued 150,000 shares for cash proceeds of $30,000 from the exercise of warrants and 100,000 shares for services valued at $58,000. Additionally, 1,100,000 shares were issued from a convertible note and interest valued at $680,000. The company also issued 30,018 restricted shares as a gift to initial shareholders. The company has a net operating loss carry forward of approximately $1,286,006 for federal income tax purposes. The company has not declared or paid any cash dividends and does not anticipate doing so in the foreseeable future.
- Future Outlook: BrooqLy, Inc. anticipates that its new UAV sales channels will start producing profitable revenue. The company is leveraging ACP’s capital and banking connections to grow and expects to work with new investment banking partners to add capital structures for additional funding. The acquisition of a controlling position by Aerospace Capital Partners, LLC is seen as a strategic transformation, with plans to pursue multiple aerospace acquisitions to support the new corporate direction.
Challenges and Risks
- Operational and Market Risks: The shift to UAVs and autonomous delivery systems involves entering highly competitive and regulated markets, which may pose challenges in terms of compliance and market acceptance.
- Financial Condition: The company faces substantial risks related to its financial condition, including doubts about its ability to continue as a going concern. The lack of historical performance and profitability, coupled with an unproven business model, heightens investment risk.
- Operational Risks: Potential software errors, data security breaches, and dependency on third-party relationships are significant operational risks.
- Regulatory Risks: Stringent privacy laws and payment transaction regulations could impact operations.
- Market Risks: High competition and the volatility of the company’s stock, which is subject to ‘Penny Stock’ rules, limit liquidity and trading ease.
- Geopolitical Risks: The ongoing war in Ukraine and associated sanctions present geopolitical risks that could exacerbate economic challenges, such as inflation and supply chain disruptions.
- Management Strategies: Management plans to raise new capital to support its strategic shift towards drone technology, which is critical for its long-term vision and market positioning. The company is leveraging ACP’s capital and banking connections to facilitate growth and anticipates new UAV sales channels to generate revenue.
SEC Filing: brooqLy, Inc. [ BRQL ] – 10-K – Mar. 31, 2025
