Amesite Inc.

Previous wording

The following discussion and analysis of our financial condition and results of operations should be read together with our unaudited condensed financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q and our audited financial statements and related notes for the year ended June 30, 2024 included in our Annual Report on Form 10-K/A filed with the Securities and Exchange Commission, or SEC, on January 2, 2025. In addition to historical information, this discussion and analysis contains forward-looking statements that involve risks, uncertainties, and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors. We discuss factors that we believe could cause or contribute to these differences below and elsewhere in this Quarterly Report on Form 10-Q, including those factors set forth in the section entitled “Cautionary Statement Regarding Forward-Looking Statements” and in the section entitled “Risk Factors” in Part II, Item 1A.

Current wording

The following discussion and analysis of our financial condition and results of operations should be read together with our unaudited condensed financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q and our audited financial statements and related notes for the year ended June 30, 2024 included in our Annual Report on Form 10-K/A filed with the SEC on January 2, 2025. In addition to historical information, this discussion and analysis contains forward-looking statements that involve risks, uncertainties, and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors. We discuss factors that we believe could cause or contribute to these differences below and elsewhere in this Quarterly Report on Form 10-Q, including those factors set forth in the section entitled “Cautionary Statement Regarding Forward-Looking Statements” and in the section entitled “Risk Factors” in Part II, Item 1A.

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, 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.

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, 2025 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 $2,029,682 for the six months ended December 31, 2024, and we incurred a net loss of $39.9 million for the period from November 14, 2017 (date of incorporation) to December 31, 2024.

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 $2,693,100 for the nine months ended March 31, 2025, and we incurred a net loss of $40.5 million for the period from November 14, 2017 (date of incorporation) to March 31, 2025.

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 $2,029,682 for the six months ended December 31, 2024, and we incurred a net loss of $39.9 million for the period from November 14, 2017 (date of incorporation) to December 31, 2024.

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 $2,693,100 for the nine months ended March 31, 2025, and we incurred a net loss of $40.5 million for the period from November 14, 2017 (date of incorporation) to March 31, 2025.

Previous wording

On January 8, 2025, we closed on a public offering of our common stock and received approximately $3.08 million of cash proceeds, net of underwriting discounts, commissions and other offering costs.

Current wording

On January 8, 2025, we closed on a public offering of our common stock and received approximately $3.1 million of cash proceeds, net of underwriting discounts, commissions and other offering costs.

Previous wording

As of December 31, 2024, our cash and cash equivalent balance totaled $519,706.

Current wording

As of March 31, 2025, our cash and cash equivalent balance totaled $2,858,963.

Previous wording

This management’s discussion and analysis of financial condition and results of operations is based on our condensed financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these condensed financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed financial statements, and the reported amounts of revenue and expenses during the reported period. In accordance with U.S. GAAP, we base our estimates on historical experience and on various other assumptions we believe to be reasonable under the circumstances. Actual results may differ from these estimates if conditions differ from our assumptions. While our significant accounting policies are more fully described in Note 2 in the “Notes to Condensed Financial Statements,” we believe the following accounting policies are critical to the process of making significant judgments and estimates in preparation of our condensed financial statements.

Current wording

This management’s discussion and analysis of financial condition and results of operations is based on our condensed financial statements, which have been prepared in accordance with GAAP. The preparation of these condensed financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed financial statements, and the reported amounts of revenue and expenses during the reported period. In accordance with GAAP, we base our estimates on historical experience and on various other assumptions we believe to be reasonable under the circumstances. Actual results may differ from these estimates if conditions differ from our assumptions. While our significant accounting policies are more fully described in Note 2 in the “Notes to Condensed Financial Statements,” we believe the following accounting policies are critical to the process of making significant judgments and estimates in preparation of our condensed financial statements.

Previous wording

As of December 31, 2024 and June 30, 2024 our cash and cash equivalents totaled $519,706 and $2,071,016 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, 2024 were 5.6% 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, 2025 and June 30, 2024 our cash and cash equivalents totaled $2,858,963 and $2,071,016 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, 2025 and 2024 were 4.9% and 5.0%, respectively, 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 $212,600 and $118,000 and recognized amortization expense of $218,537 and $279,000 for the six months ended December 31, 2024 and 2023, respectively.

Current wording

The Company capitalized software of $292,200 and $227,600 and recognized amortization expense of $312,709 and $395,165 for the nine months ended March 31, 2025 and 2024, respectively.

Previous wording

We have recorded accounts receivable of $0 and $30,060 as of December 31, 2024 and June 30, 2024, 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 $15,925 and $0 as of December 31, 2024 and June 30, 2024 respectively.

Current wording

We have recorded accounts receivable of $4,440 and $30,060 as of March 31, 2025 and June 30, 2024, 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 $3,835 and $0 as of March 31, 2025 and June 30, 2024 respectively.

Previous wording

We have strongly pivoted to grow our customer base while reducing risk and losses, resulting in a larger client base, a short-term reduction in overall revenue and a dramatic reduction in cash burn. Larger, cash-upfront deals were struggling to produce sustainable revenue, as administrative barriers within nonprofits, high price points set by customers, and inability or unwillingness of customers to partner with schools, businesses and other entities to purchase products hampered growth.

Current wording

We have strongly pivoted to growing our customer base while reducing risk and losses, resulting in a larger client base, a short-term reduction in overall revenue and a dramatic reduction in cash burn. Larger, cash-upfront deals were struggling to produce sustainable revenue, as administrative barriers within nonprofits, high price points set by customers, and inability or unwillingness of customers to partner with schools, businesses and other entities to purchase products hampered growth.

Previous wording

We continue to believe that AI-powered learning programs, priced affordably, will supplant other academic products in the mid to long term, but have defocused on securing “change agent” customers, and are now offering our academic platform for use by any community college on a fee-per-course basis. The incremental cost to Amesite in delivering the system isde minimis, as the system is turnkey, and the technology stack is robust. We have focused all new development work on delivering AI tools to markets hungry for increased capability that immediately impacts both their performance and their bottom line. The NurseMagic TM app is the first of these and has already gained traction with larger entities.

Current wording

We continue to believe that AI-powered B2B and B2C solutions, priced affordably, will supplant other similar products in the mid to long term. We have focused all new development work on delivering AI tools to markets hungry for increased capability that immediately impacts both their performance and their bottom line. The NurseMagic TM app is the first of these and has already gained traction with larger entities.

Previous wording

Technology and content development expenses for the six months ended December 31, 2024 were approximately $352,000 as compared to approximately $664,000 for the six months ended December 31, 2023. The decrease is 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, 2025 were approximately $172,000 as compared to approximately $224,000 for the three months ended March 31, 2024. Technology and content development expenses for the nine months ended March 31, 2025 were approximately $524,000 as compared to $889,000 for the nine months ended March 31, 2024. The decrease is principally related to reductions in headcount and associated administrative costs, reflecting thecompletion of certain programs that are now offered to our customers and require less staffing to maintain than to build.

Previous wording

Sales and marketing expenses for the six months ended December 31, 2024 were approximately $293,000 as compared to approximately $464,000 for the six months ended December 31, 2023. 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, 2025 were approximately $118,000 as compared to approximately $139,000 for the three months ended March 31, 2024. Sales and marketing expenses for the nine months ended March 31, 2025 were approximately$411,000 as compared to $603,000 for the nine months ended March 31, 2024. 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.

Previous wording

Our net loss for the six months ended December 31, 2024 was approximately $2,030,000 as compared to a net loss for the six months ended December 31, 2023 of approximately $1,796,000. The loss was about 11% higher during the six months ended December 31, 2024 compared to 2023 as a result of increased Board stock compensation and professional fees, offset by decreases in technology and content development and sales and marketing.

Current wording

Our net loss for the three months ended March 31, 2025 was approximately $663,000 as compared to a net loss for the three months ended March 31, 2024 of approximately $1.4 million. The loss for the nine months ended March 31, 2025 was approximately $2.7 million, as compared to $3.2 million for the nine months ended March 31, 2024. The loss was about 16% lower during the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024 as a result of decreased stock compensation and decreases in technology and content development and sales and marketing as discussed above.

Previous wording

During the six months ended December 31, 2024 and 2023, we had capital asset additions of $212,600 and $118,000 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 nine months ended March 31, 2025 and 2024, we had capital asset additions of $292,200 and $228,000, respectively, 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 platform.