Everything Blockchain, Inc.
For the period ended Oct 31, 2024. Filed Jan 27, 2025.
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.
Oct 31, 2024 · Filed Jan 27, 2025
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What changed in Management’s Discussion and Analysis?
Read the current filingPrevious 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 OperationsCurrent report: 10-Q
Period ended 2024-10-31; filed 2025-01-27.
0001477932-25-000477
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 52 previous paragraphs and 47 current paragraphs.
29 unchanged; 5 reworded; 13 added; 18 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 2 previous and 1 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 (13)
Current report
Everything Blockchain (the "Company") has undergone a significant strategic transformation. Historically, the Company operated as a provider of database management and cybersecurity solutions. Its flagship products included EB Build and EB Control, which facilitated the management of complex database systems for businesses, and EB Control, a cybersecurity platform focused on data security and access management.
Current report
Building on this foundation, the Company has pivoted to become a specialized investment and technology development firm at the intersection of cryptocurrency, and artificial intelligence (AI) sectors. This strategic shift reflects the Company’s commitment to embracing emerging technologies and aligning its operations with high-growth, future-focused industries.
Current report
Everything Blockchain will operate as an actively managed investment vehicle and technology innovator, focusing on two primary operational segments:
Current report
Strategic Investments: The Company identifies and invests in early-stage enterprises within the AI and blockchain domains, targeting ventures that exhibit strong potential for technological innovation, competitive differentiation, and market leadership. Through a disciplined investment strategy, the Company will curate a portfolio of businesses poised for long-term value creation and sustainable growth.
Current report
Proprietary Technology Development: Complementing its investment activities, Everything Blockchain will develop and acquire proprietary AI and blockchain technologies. These efforts span various industries and applications, enabling the Company to create unique value propositions and diversify its revenue streams.
Current report
This dual approach positions Everything Blockchain as both an investor in transformative technologies and a creator of innovative solutions. By leveraging its expertise in blockchain and AI, the Company aims to shape the future of these industries while delivering sustained value to its shareholders.
Current report
All operating expenses were reassigned to discontinued operations.
Current report
Loss from operations for the three months ended October 31, 2024, and 2023, were $0.0 million. All losses are accounted for under discontinued operations.
Current report
Net cash used in operating activities – discontinuing operations was $0.8 million for the nine months ended October 31, 2024, and $2.2 million for the nine months ended October 31,2023.
Current report
Net cash used in operating activities – continuing operations was $0.0 million for the nine months ended October 31, 2024 and 2023.
Current report
Net cash used in investing activities – discontinuing operations was $0 for the nine months ended October 31, 2024, and $697 for the nine months ended October 31, 2023. All cash used in investing activities was in discontinued operations.
Current report
In September 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 751,819 shares of common stock in lieu of payment of $29,815.
Current report
In October 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 459,770 shares of common stock in lieu of payment of $12,000.
Removed paragraphs (18)
Previous report
The Company is primarily engaged in the business of consulting and developing data management, blockchain and cybersecurity related solutions. We are a technology company that is blending blockchain, zero-trust, and database management technology to create a platform to solve real world, practical business problems. Our business model is based on building recurring revenue through software subscriptions, licensing agreements, and transaction fees. Our patent-pending advances in blockchain engineering deliver the essential elements needed for real-world business use: speed, security, and energy efficiency. Currently, our lines of business are EB Advise, BuildDB and EB Control.
Previous report
Operating expenses primarily consist of selling, general and administrative expenses, stock-based compensation expense, and amortization and depreciation expense. Selling, general and administrative expenses primarily consist of personnel costs, consultant fees, professional fees, computer and internet expenses, marketing expenses, utilities expenses, meals and entertainment, office supplies, and reporting fees.
Previous 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.
Previous 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.
Previous 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.
Previous report
Other Expense
Previous report
Other income (expense) consists primarily of fair market value adjustments to cryptocurrency and interest income and expense.
Previous 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.
Previous 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.
Previous report
Adjusted EBITDA
Previous report
The Company reports all financial information required in accordance with GAAP. The Company believes, however, that evaluating its ongoing operating results will be enhanced if it also discloses certain non-GAAP information.
Previous report
Adjusted EBITDA, which is a non-GAAP financial measure, is defined by the Company as net income (loss) plus net interest income, income tax (benefit) expense, depreciation and amortization, and stock-based compensation.
Previous report
Adjusted EBITDA should not be considered an alternative to net income, operating income, net cash provided by operating activities, or any other measure of financial performance or liquidity presented in accordance with GAAP. In addition, Adjusted EBITDA presented by other companies may not be comparable to our presentation since each company may define these terms differently.
Previous report
The table below reconciles Adjusted EBITDA, which is a non-GAAP financial measure, to net loss.
Previous report
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 report
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 report
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 report
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.
Reworded paragraphs (5)
Previous wording
Our operating results for the three and six months ended July 31, 2024 and 2023 are summarized as follows (in thousands):
Current wording
Our operating results for the three and nine months ended October 31, 2024 and 2023 are summarized as follows (in thousands):
Previous wording
Revenue for the three and six months ended July 31, 2024 and 2023 was $0.1 million from consulting services.
Current wording
Revenue for the three and nine months ended October 31, 2024 and 2023 was $0.0 and $0.0 million.
Previous 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.
Current wording
Net cash provided by financing activities was $0.7 million for the nine months ended October 31, 2024, compared to $0.7 million for the nine months ended October 31, 2023. During the nine months ended October 31, 2024, we sold 953,387 shares of common stock for $0.5 million and borrowed an additional $0.3 million, which was partially offset by debt payments of $0.1 million. During the nine months ended October 31, 2023, we received $0.2 million receivable from a stockholder and borrowed an additional $0.9 million, which was offset by debt payments of $0.5 million. Out of the amount mentioned above proceeds from related party of $0.1 million for the nine month ended October 31, 2023 and $0.9 million for the nine months ended October 31, 2024 used in discontinued operations.
Previous wording
We fund operations primarily through cash on hand, cash from sales of Common Stock and Series C Preferred Stock, debt, and exercises of warrants, and the support of Michael Hawkins.
Current wording
We fund operations primarily through cash on hand, cash from sales of Common Stock and Series C Preferred Stock, debt, and exercises of warrants.
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 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.
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 nine months ended October 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.