Mag Mile Capital Inc
For the period ended Mar 31, 2024. Filed May 15, 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 15, 2024
MMCPStored price and day change unavailable
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2023-09-30; filed 2024-02-12.
0001493152-24-005865
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-03-31; filed 2024-05-15.
0001493152-24-019702
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 59 previous paragraphs and 43 current paragraphs.
30 unchanged; 11 reworded; 2 added; 15 removed; 3 previous and 0 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 (2)
Current report
Our revenue from commission income for the three months ended March 31, 2024 and 2023, was $532,593 and $501,500, respectively, an increase of $31,093 or 6.2%.
Current report
During the three months ended March 31, 2024, we received $25,000 of cash from related party loans. In the prior period we used $2,193 to make payments on a loan payable.
Removed paragraphs (15)
Previous report
Mag Mile Capital’s business is lumpy and has long sales cycles. Some larger and complex development deals can take a long time from initial contact with the Sponsor to proposal to underwriting and packaging to going to market to find appropriate capital to funding and closing. We don’t get paid until the closing. In some cases, we also get paid a piece of the revenue after the closing based on successful securitization of the loan. The typical closing timeframe from initial contact is about four to six months.
Previous report
Our revenue from commission income for the three months ended September 30, 2023 and 2022, was $376,800 and $1,227,880, respectively, a decrease of $851,080 or 69.3%. The decrease was driven mainly due to the decrease in revenue due to lower transaction volume resulting from a rapid rise in interest rates.
Previous report
Professional fees for the three months ended September 30, 2023 and 2022, were $41,032 and $27,548, respectively, an increase of $13,484 or 48.9%. Professional fees increased mainly due to an increase of legal fees of $16,682 and $19,000 in audit fees. These increases were offset by a $22,188 decrease of accounting fees.
Previous report
Results of Operations for the Nine Months Ended September 30, 2023 Compared to the Nine Months Ended September 30, 2022
Previous report
Revenue and Gross Profit
Previous report
Our revenue from commission income for the nine months ended September 30, 2023 and 2022, was $1,491,111 and $2,562,037, respectively, a decrease of $1,070,926 or 41.8%. The decrease was driven mainly by the rise in interest rates and the drop in transaction activity.
Previous report
Our commission expense for the nine months ended September 30, 2023 and 2022, was $459,310 and $917,567, respectively, a decrease of $458,257 or 49.9%. Commission expenses decreased in conjunction with our large decrease in revenue.
Previous report
Our commission expense – related party, for the nine months ended September 30, 2023 and 2022, was $533,750 and $495,625, respectively, an increase of $38,125 or 7.7%. Related party commission expense increased during the reverse merger when the related party commission agreement was put in place at 55% of all closed deals. Prior to the reverse merger, the related party was 100% owner of the company, some of the commission expense was left in the company and paid out as dividends.
Previous report
Operating Expenses
Previous report
For the nine months ended September 30, 2023. We recognized $1,582,072 for the fair value of warrants issued. We had no similar expense in the prior period.
Previous report
Payroll expense for the nine months ended September 30, 2023 and 2022, was $280,717 and $212,160, respectively, an increase of $68,557 or 32.3%. Our payroll expense increased in the current period due to the increase in Chairman and CEO salary along with the hiring of an administrative assistant and a business intern who assisted in marketing.
Previous report
Other Expense
Previous report
Net Loss
Previous report
We had a net loss of $2,759,098 for nine months ended September 30, 2023, compared to net income of $572,588 for the nine months ended September 30, 2022. The large net loss in the current period is the result of the $1,582,072 of non-cash expense incurred for the issuance of warrants.
Previous report
During the nine months ended September 30, 2023, we received $48,060 of cash from related party loans, and used $45,077 for shareholder distributions. In the prior period we received $77,649 of cash from related party loans and used $87,490 for shareholder distributions.
Reworded paragraphs (11)
Previous wording
Our commission expense for the three months ended September 30, 2023 and 2022, was $103,069 and $497,680, respectively, a decrease of $394,611 or 79.3%. We saw a decrease in commission expense due to deals closed by loan originators with beneficial commission structures.
Current wording
Our commission expense for the three months ended March 31, 2024 and 2023, was $226,339 and $337,960, respectively, a decrease of $111,621 or 33%. We saw a decrease in commission expense due to deals closed by loan originators with beneficial commission structures.
Previous wording
Our commission expense – related party, for the three months ended September 30, 2023 and 2022, was $35,750 and $226,800, respectively, a decrease of $191,050 or 8432%. Related party commission expense decreased due to the decrease in income and due to a new commission agreement, that lowered the percentage to 55% of all closed deals.
Current wording
Our commission expense – related party, for the three months ended March 31, 2024 and 2023, was $106,165 and $244,100, respectively, a decrease of $137,935 or 56.5%. Related party commission expense decreased due to a new commission agreement that lowered the percentage to 55% of all closed deals.
Previous wording
Gross Profit is our main revenue metric as it is net of commissions paid. We had a gross profit of $237,981 for the three months ended September 30, 2023, compared to $503,400 for the three months ended September 30, 2022.
Current wording
Gross Profit is our main revenue metric as it is net of commissions paid. We had a gross profit of $200,089 for the three months ended March 31, 2024, compared to a negative gross margin of $80,560 for the three months ended March 31, 2023.
Previous wording
Professional fees for the nine months ended September 30, 2023 and 2022, were $570,351 and $57,588, respectively, an increase of $512,763. Professional fees increased mainly because of legal fees associated with our acquisition. We also issued 894,113 shares of common stock to an attorney for total non-cash expense of $447,057.
Current wording
Professional fees for the three months ended March 31, 2024 and 2023, were $26,500 and $447,057, respectively, a decrease of $867,614. Professional fees consist mainly of legal, audit and accounting fees. In the prior year we issued 894,113 shares of common stock to an attorney for total non-cash expense of $447,057.
Previous wording
Payroll expense for the three months ended September 30, 2023 and 2022, was $132,556 and $71,674, respectively, an increase of $60,882 or 84.9%. Payroll expense increased due to increase in the Chairman and CEO’s salary and adding an administrative assistant salary.
Current wording
Payroll expense for the three months ended March 31, 2024 and 2023, was $79,033 and $48,294, respectively, an increase of $30,739 or 63.6%. Payroll expense increased due to increase in the Chairman and CEO’s salary and adding an administrative assistant salary.
Previous wording
General and administrative expenses for the nine months ended September 30, 2023 and 2022, were $815,137 and $306,509, respectively, an increase of $508,628 or 165.9%. In the current period we issued 1,234,113 shares of common stock for services for total non-cash expense of $617,057. This was offset with a decrease in expenses associated with public relations and recruiting expense of $24,834 and a decrease for contract labor of $30,638.
Current wording
General and administrative (“G&A”) expenses for the three months ended March 31, 2024 and 2023, was $147,689 and $550,185, respectively, a decrease of $402,496 or 73.2%. In the prior period we issued 894,113 shares of common stock for services for total non-cash expense of $447,057.
Previous wording
We incurred interest expense of $3,655 for the three months ended September 30, 2023, compared to $0 for the three months ended September 30, 2022.
Current wording
We incurred interest expense of $2,193 for the three months ended March 31, 2024, compared to $0 for the three months ended March 31, 2023.
Previous wording
We had a net loss of $83,919 for the three months ended September 30, 2023, compared to net income of $294,094 for the three months ended September 30, 2022.
Current wording
We had a net loss of $65,776 for the three months ended March 31, 2024, compared to $1,176,846 for the three months ended March 31, 2023. We had a decrease to our net loss for the reasons discussed above.
Previous wording
As of September 30, 2023, we had cash of approximately $142,000 and working capital of $813,470.
Current wording
As of March 31, 2024, we had cash of approximately $9,000 and working capital of approximately $182,000.
Previous wording
During the nine months ended September 30, 2023, we used $235,104 of cash in operating activities. Our cash flows used in operating activities is primarily a result of (i) our net loss of $2,759,098, adjusted for non-cash activity of $2,667,621 and (ii) an increase in accounts receivables and decrease of accounts payable of $136,039 and $7,588, respectively. In the prior period operating activities provided $459,117 of cash.
Current wording
During the three months ended March 31, 2024, we used $72,427 of cash in operating activities. Our cash flows used in operating activities is primarily a result of (i) our net loss of $65,776, adjusted for non-cash activity of $25,243 and (ii) an increase in draws against commissions and decrease of accounts payable of $16,319 and $15,575, respectively. In the prior period operating activities used $336,883 of cash.
Previous wording
We used no cash in investing activities for the nine months ended September 30, 2023 and 2022.
Current wording
We used no cash in investing activities for the three months ended March 31, 2024 and 2023.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
General and administrative (“G&A”) expenses for the three months ended September 30, 2023 and 2022, was $144,657 and $110,124, respectively, an increase of $34,533 or 31.4%.
Previous report — wording carried elsewhere
Gross Profit is our main revenue metric as it is net of commissions paid. We had a gross profit of $498,051 for the nine months ended September 30, 2023, compared to $1,148,845 for the nine months ended September 30, 2022.
Previous report — wording carried elsewhere
We incurred interest expense of $8,872 for the nine months ended September 30, 2023, compared to $0 for the nine months ended September 30, 2022.