Amesite Inc
For the period ended Mar 31, 2024. Filed May 10, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed May 10, 2024
AMST$0.52-4.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2023-12-31; filed 2024-02-14.
0001213900-24-014049
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2024-03-31; filed 2024-05-10.
0001213900-24-041800
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 55 previous paragraphs and 54 current paragraphs.
35 unchanged; 12 reworded; 6 added; 5 removed; 3 previous and 1 current paragraphs rearranged.
Tables are not compared: 0 previous and 0 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (6)
Current report
Going Concern
Current report
The accompanying condensed financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.
Current report
The Company has considered both quantitative and qualitative factors that are known or reasonably known as of the date of these financial statements are issued and concluded that there are conditions present in the aggregate that raise substantial doubt about the Company’s ability to continue as a going concern. In response to the conditions, management plans include generating cash by completing financing transactions, which may include offerings of common stock. However, these plans are subject to market conditions, and are not within the Company’s control, and therefore, cannot be deemed probable. There is no assurance that the Company will be successful in implementing their plans. As a result, the Company has concluded that management’s plans do not alleviate substantial doubt about the Company’s ability to continue as a going concern. The condensed financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty.
Current report
We generated revenues of $34,000 for the three months ended March 31, 2024 as compared to $205,000 for the three months ended March 31, 2023. We generated revenues of $139,000 for the nine months ended March 31, 2024 as compared to $722,000 for the nine months ended March 31, 2023.
Current report
For the three months ended March 31, 2024, interest income totaled $38,000 as compared to interest income of $18,000 for the three months ended March 31, 2023. For the nine months ended March 31, 2024, interest income totaled $148,000 as compared to interest income of $36,000 for the nine months ended March 31, 2023.
Current report
Our net loss for the three months ended March 31, 2024 was $1,426,000 as compared to a net loss for the three months ended March 31, 2023 of $928,000. Our net loss for the nine months ended March 31, 2024 and March 31, 2023 was $3.2 million. The current quarter and year to date losses include $600,000 from the March 2024 issuance of $600,000 restrictive stock units with no cash outlay, net of savings in other expense areas of $100,000 and $600,000 for the three and nine months ended March 31, 2024 as discussed above.
Removed paragraphs (5)
Previous report
Basis of Presentation
Previous report
We generated revenues of $105,000 for the six months ended December 31, 2023 as compared to $517,000 for the six months ended December 31, 2022.
Previous report
For the six months ended December 31, 2023, interest income totaled $110,000 as compared to interest income of $18,000 for the six months ended December 31, 2022 reflecting raising interest rates on short-term money market investments.
Previous report
Our net loss for the six months ended December 31, 2023 was $1,796,000 as compared to a net loss for the six months ended December 31, 2022 of $2,277,000. The loss was substantially lower during the six months ended December 31, 2023 compared to 2022 as a result of deliberate cost savings measures described above, as we have launched capabilities that are now maintainable and lower cost, adjusted our headcount to reflect the reduced need for staffing, and improved our sales and marketing efficiency with more targeted, effective messaging.
Reworded paragraphs (12)
Previous wording
The following discussion highlights our results of operations and the principal factors that have affected our financial condition as well as our liquidity and capital resources for the six months ended December 31, 2023 and provides information that management believes is relevant for an assessment and understanding of the statements of financial condition and results of operations presented herein. The following discussion and analysis are based on our unaudited condensed financial statements contained in this Quarterly Report on Form 10-Q, which we have prepared in accordance with United States generally accepted accounting principles, or GAAP, and the requirements of the SEC. You should read the discussion and analysis together with such financial statements and the related notes thereto.
Current wording
The following discussion highlights our results of operations and the principal factors that have affected our financial condition as well as our liquidity and capital resources for the nine months ended March 31, 2024 and provides information that management believes is relevant for an assessment and understanding of the statements of financial condition and results of operations presented herein. The following discussion and analysis are based on our unaudited condensed financial statements contained in this Quarterly Report on Form 10-Q, which we have prepared in accordance with United States generally accepted accounting principles, or GAAP, and the requirements of the SEC. You should read the discussion and analysis together with such financial statements and the related notes thereto.
Previous wording
We are not currently profitable, and we cannot provide any assurance that we will ever be profitable. We incurred a net loss of $1,796,000 for the six months ended December 31, 2023, and we incurred a net loss of $35.2 million for the period from November 14, 2017 (date of incorporation) to December 31, 2023.
Current wording
We are not currently profitable, and we cannot provide any assurance that we will ever be profitable. We incurred a net loss of $3.2 million for the nine months ended March 31, 2024, and we incurred a net loss of $36.7 million for the period from November 14, 2017 (date of incorporation) to March 31, 2024.
Previous wording
As of December 31, 2023, our cash and cash equivalent balance totaled $3.66 million.
Current wording
As of March 31, 2024, our cash and cash equivalent balance totaled $3 million.
Previous wording
The assessment of the Company’s ability to meet its future obligations is inherently judgmental, subjective, and susceptible to change. Based on their current forecast, management believes that it will have sufficient cash and cash equivalents to maintain the Company’s planned operations for the next twelve months following the issuance of these financial statements.
Current wording
The assessment of the Company’s ability to meet its future obligations is inherently judgmental, subjective and susceptible to change. Based on their current forecast, management believes that it may not have sufficient cash and cash equivalents to maintain the Company’s planned operations for the next twelve months following the issuance of these financial statements.
Previous wording
As of December 31, 2023 and June 30, 2023 our cash and cash equivalents totaled $3.7 million and $5.4 million respectively with the majority invested in a short-term US Treasury Fund returning approximately 5%. The Fund is invested in US Treasuries with a 7-day liquidity. The decision to allocate funds to the short-term US Treasury Fund is based on our investment strategy, which prioritizes liquidity and stability while receiving current rate returns. The returns from the fund for the six months ended December 31, 2023 were 5% and in line with our expectations and the broader market trends for similar investment vehicles. We continuously monitor our investment portfolio, considering market conditions and our liquidity needs, ensuring alignment with our broader financial strategy and risk tolerance.
Current wording
As of March 31, 2024 and June 30, 2023 our cash and cash equivalents totaled $3 million and $5.4 million, respectively with the majority invested in a short-term US Treasury Fund returning approximately 5%. The Fund is invested in US Treasuries with a 7-day liquidity. The decision to allocate funds to the short-term US Treasury Fund is based on our investment strategy, which prioritizes liquidity and stability while receiving current rate returns. The returns from the fund for the nine months ended March 31, 2024 were 5% and in line with our expectations and the broader market trends for similar investment vehicles. We continuously monitor our investment portfolio, considering market conditions and our liquidity needs, ensuring alignment with our broader financial strategy and risk tolerance.
Previous wording
The Company capitalized software of $118,000 and $175,000 and recognized amortization expense of $279,000 and $350,000 for the six months ended December 31, 2023 and 2022, respectively.
Current wording
The Company capitalized software of $227,600 and $369,000 and recognized amortization expense of $395,000 and $657,000 for the nine months ended March 31, 2024 and year ended June 30, 2023, respectively.
Previous wording
We have recorded accounts receivable of $0 and $15,000 as of December 31, 2023 and June 30, 2023, respectively. We have set up deferred revenue liabilities at the end of each period to reflect performance obligations to be performed in future periods for our services delivered over time. Future obligations related to deferred revenue totaled $13,000 and $54,000 as of December 31, 2023 and June 30, 2023 respectively.
Current wording
We have recorded accounts receivable of $0 and $15,000 as of March 31, 2024 and June 30, 2023, respectively. We have set up deferred revenue liabilities at the end of each period to reflect performance obligations to be performed in future periods for our services delivered over time. Future obligations related to deferred revenue totaled $2,000 and $54,000 as of March 31, 2024 and June 30, 2023 respectively.
Previous wording
The majority of our Customers are private and public learning institutions across various domestic regions. For the six months ended December 31, 2023, five Customers comprised approximately 85% of total revenue.
Current wording
The majority of our Customers are private and public learning institutions across various domestic regions. For the nine months ended March 31, 2024, three Customers comprised approximately 72% of total revenue.
Previous wording
General and administrative expenses for the six months ended December 31, 2023 were $882,000 as compared to $1,293,000 for the six months ended December 31, 2022. The decrease reflects deliberate cost reductions, including reductions in headcount and associated administrative costs. These reductions were made possible by completion of certain features and platform capabilities that require less staffing to maintain than to build.
Current wording
General and administrative expenses for the three months ended March 31, 2024 were $1,135,000 as compared to $653,000 for the three months ended March 31, 2023. The increase between the three-month periods is due to the March 2024 issuance of $600,000 restricted stock units with no cash outlay, net of general and administrative expense savings of $118,000. General and administrative expenses for the nine months ended March 31, 2024 were $2,017,000 as compared to $1,946,000 for the nine months ended March 31, 2023 which also reflects the March 2024 issuance of $600,000 restricted stock units with no cash outlay, net of general and administrative expense savings of $529,000. The savings are primarily due to deliberate cost reductions, including reductions in headcount and associated administrative costs. These reductions were made possible by completion of certain features and platform capabilities that require less staffing to maintain than to build.
Previous wording
Technology and content development expenses for the six months ended December 31, 2023 were $664,000 as compared to $912,000 for the six months ended December 31, 2022. The decrease is also principally related to reductions in headcount and associated administrative costs, reflecting the completion of certain learning programs that are now offered by our customers and require less staffing to maintain than to build.
Current wording
Technology and content development expenses for the three months ended March 31, 2024 were $224,000 as compared to $279,000 for the three months ended March 31, 2023. Technology and content development expenses for the nine months ended March 31, 2024 were $889,000 as compared to $1,191,000 for the nine months ended March 31, 2023. The decreases between the three-month periods and the nine-month periods in technology are also principally related to reductions in headcount and associated administrative costs, since these costs scale with staff. The reductions in the three-month and nine-month periods in content development are principally due to completion of certain learning programs that are now offered by our Customers and require less staffing to maintain than to build.
Previous wording
Sales and marketing expenses for the six months ended December 31, 2023 were $464,000 as compared to $607,000 for the six months ended December 31, 2022. The decrease is principally related to refinement of sales and marketing processes to those that focus messaging directly to our key markets and offer improved lead generation. We have seen increases in marketing qualified leads (MQLs) in both periods, while reducing the overall sales and marketing spends.
Current wording
Sales and marketing expenses for the three months ended March 31, 2024 were $139,000 as compared to $218,000 for the three months ended March 31, 2023. Sales and marketing expenses for the nine months ended March 31, 2024 were $603,000 as compared to $825,000 for the nine months ended March 31, 2023. The decrease between the three-month periods and the nine-month periods in sales and marketing are principally related to refinement of sales and marketing processes to those that focus messaging directly to our key markets and offer improved lead generation. We have seen increases in marketing qualified leads (MQLs) in both periods, while reducing the overall sales and marketing spend.
Previous wording
During the six months ended December 31, 2023 and 2022, we had capital asset additions of $118,000 and $175,000 in capitalized technology and content development. We will continue to capitalize significant software development costs, comprised primarily of internal payroll, payroll related and contractor costs, as we build out and complete our technology platforms.
Current wording
During the three months ended March 31, 2024 and 2023, we had capital asset additions of $109,000 and $113,000, respectively. During the nine months ended March 31, 2024 and 2023, we had capital asset additions of $228,000 and $288,000 in capitalized technology and content development. We will continue to capitalize significant software development costs, comprised primarily of internal payroll, payroll related and contractor costs, as we build out and complete our technology platforms.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
The Company is developing its customer base and has not completed its efforts to establish a stabilized source of revenue sufficient to cover its expenses. The Company has had a history of net losses and negative cash flows from operating activities since inception and expects to continue to incur net losses and use cash in its operations in the foreseeable future.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
The financial statements contained herein have been prepared in accordance with GAAP and the requirements of the SEC.
Previous report — wording carried elsewhere
We are not currently profitable, and we cannot provide any assurance that we will ever be profitable, as indicated by our losses noted above.
Previous report — wording carried elsewhere
The assessment of the Company’s ability to meet its future obligations is inherently judgmental, subjective, and susceptible to change. Based on their current forecast, management believes that it will have sufficient cash and cash equivalents to maintain the Company’s planned operations for the next twelve months following the issuance of these financial statements.