Everything Blockchain Inc
For the period ended Jul 31, 2024. Filed Sep 16, 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.
Jul 31, 2024 · Filed Sep 16, 2024
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What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-04-30; filed 2024-06-14.
0001477932-24-003687
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-07-31; filed 2024-09-16.
0001477932-24-005731
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 49 previous paragraphs and 52 current paragraphs.
36 unchanged; 9 reworded; 6 added; 4 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 2 previous and 2 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
Operating expenses for the three months ended July 31, 2024 were $1.1 million compared to $1.5 million for the three months ended July 31, 2023. The primary reason for the decrease was due to decreases in stock-based compensation of $0.3 million and professional fees of $0.2 million, partially offset by an increase in depreciation and amortization of $0.2 million.
Current report
Operating expenses for the six months ended July 31, 2024 were $2.5 million compared to $3.0 million for the six months ended July 31, 2023. The primary reason for the decrease was due to decreases in stock-based compensation of $0.6 million and professional fees of $0.3 million, partially offset by an increase in depreciation and amortization of $0.3 million.
Current report
Loss from operations for the three months ended July 31, 2024 was $1.0 million compared to $1.4 million for the three months ended July 31, 2023. Loss from operations for the six months ended July 31, 2024 was $2.4 million compared to $2.9 million for the six months ended July 31, 2023. The primary reasons for the decrease in loss from operations were due to the decrease in operating expenses as discussed above.
Current report
Other expense, net for the three months ended July 31, 2024 was $0 million compared to $1.3 million for the three months ended July 31, 2023. Other expense, net for the three months ended July 31, 2023 consists primarily of fair market value expense adjustments related to cryptocurrency of $1.3 million.
Current report
Other expense, net for the six months ended July 31, 2024 was $0.1 million compared to $1.3 million for the six months ended July 31, 2023. Other expense, net for the six months ended July 31, 2023 consists primarily of fair market value expense adjustments related to cryptocurrency of $1.3 million.
Current report
In August 2024, the Company was unable to make a debt payment. The lender chose to take payment in the form of Company common stock. Therefore, the Company issued to the lender 249,031 shares of common stock in lieu of payment of $37,500.
Removed paragraphs (4)
Previous report
Operating expenses for the three months ended April 30, 2024 were $1.4 million compared to $1.6 million for the three months ended April 30, 2023.
Previous report
Loss from operations for the three months ended April 30, 2024 was $1.4 million compared to $1.5 million for the three months ended April 30, 2023.
Previous report
On March 7, 2024, the Company sold 118,585 shares of common stock for $0.1 million to ACES. On April 19, 2024, the Company sold 184,802 shares of common stock for $0.1 million to ACES. On May 16, 2024, the Company sold 200,000 shares of common stock for $0.1 million to ACES. On June 11, 2024, the Company sold 200,000 shares of common stock for $0.1 million to ACES.
Previous report
On May 15, 2024, ACES elected to convert 1,052,632 shares of Series C Preferred Stock into 4,095,948 shares of common stock.
Reworded paragraphs (9)
Previous wording
Our operating results for the three months ended April 30, 2024 and 2023 are summarized as follows (in thousands):
Current wording
Our operating results for the three and six months ended July 31, 2024 and 2023 are summarized as follows (in thousands):
Previous wording
Revenue for the three months ended April 30, 2024 and 2023 was $0.1 million from consulting services.
Current wording
Revenue for the three and six months ended July 31, 2024 and 2023 was $0.1 million from consulting services.
Previous wording
Other income (expense) consists primarily of interest income and expense.
Current wording
Other income (expense) consists primarily of fair market value adjustments to cryptocurrency and interest income and expense.
Previous wording
Net cash used in operating activities – continuing operations was $0.4 million for the three months ended April 30, 2024. We had net loss of $1.4 million from continuing operations, which included stock-based compensation of $0.4 million.
Current wording
Net cash used in operating activities – continuing operations was $0.9 million for the six months ended July 31, 2024. We had net loss of $2.4 million from continuing operations, which included stock-based compensation of $0.8 million.
Previous wording
Net cash used in operating activities – continuing operations was $0.5 million for the three months ended April 30, 2023. We had net loss of $1.5 million from continuing operations, which included stock-based compensation of $0.7 million.
Current wording
Net cash used in operating activities – continuing operations was $0.3 million for the six months ended July 31, 2023. We had net loss of $4.2 million from continuing operations, which included fair value adjustments to cryptocurrency of $1.3 million and stock-based compensation of $1.4 million.
Previous wording
Net cash used in operating activities – discontinued operations was $0.2 million for the three months ended April 30, 2023. We had net loss of $0.3 million from discontinued operations.
Current wording
Net cash used in operating activities – discontinued operations was $0.3 million for the six months ended July 31, 2023. We had net loss of $0.7 million from discontinued operations.
Previous wording
Net cash used in investing activities – continuing operations was $0 for the three months ended April 30, 2024, compared to $0.2 million for the three months ended April 30, 2023. During the three months ended April 30, 2023, we had capital expenditures of $0.2 million.
Current wording
Net cash used in investing activities – continuing operations was $0 for the six months ended July 31, 2024, compared to $0.3 million for the six months ended July 31, 2023. During the six months ended July 31, 2023, we had capital expenditures of $0.5 million, partially offset by proceeds from cryptocurrencies of $0.2 million.
Previous wording
Net cash provided by financing activities was $0.4 million for the three months ended April 30, 2024, compared to $0.1 million for the three months ended April 30, 2023. During the three months ended April 30, 2024, we sold 353,387 shares of common stock for $0.2 million and borrowed an additional $0.2 million, which was partially offset be debt payments of $0.1 million.
Current wording
Net cash provided by financing activities was $0.8 million for the six months ended July 31, 2024, compared to $0.2 million for the six months ended July 31, 2023. During the six months ended July 31, 2024, we sold 953,387 shares of common stock for $0.5 million and borrowed an additional $0.4 million, which was partially offset by debt payments of $0.1 million. During the six months ended July 31, 2023, we received a $0.2 million receivable from a stockholder.
Previous wording
Our financial statements are prepared in accordance with GAAP, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. Because the business is relatively new and has a short history and relatively few sales, no certainty of continuation can be stated. The accompanying consolidated financial statements for the three months ended April 30, 2024 and 2023 have been prepared assuming that we will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business.
Current wording
Our financial statements are prepared in accordance with GAAP, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. Because the business is relatively new and has a short history and relatively few sales, no certainty of continuation can be stated. The accompanying consolidated financial statements for the three and six months ended July 31, 2024 and 2023 have been prepared assuming that we will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
On July 26, 2024, the Company entered into a note for $120,000 with a net payment to the Company of $95,000 after an original issue discount of $20,000 and expenses of $5,000. There is a one-time interest charge of 10% which is paid back along with principal over the term of the note beginning with the first payment due on August 30, 2024. The maturity date of the note is April 30, 2025.