Balance Labs Inc
For the period ended Jun 30, 2024. Filed Aug 12, 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.
Jun 30, 2024 · Filed Aug 12, 2024
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What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-10.
0001493152-24-018584
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-12.
0001493152-24-031278
Item 2. 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 58 current paragraphs.
27 unchanged; 8 reworded; 20 added; 24 removed; 0 previous and 3 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 (20)
Current report
We reported a net loss of $100,700 and $96,753 for the three months ended June 30, 2024 and 2023, respectively. This represents a difference of $3,947, or 4%, primarily due to an increase of approximately $30,000 in salary and wages offset by an increase in unrealized gain on available for sale securities of $12,754 and a reduction in professional fees of $11,648.
Current report
For the three months ended June 30, 2024 and June 30, 2023, we generated $0 and $0, respectively in revenue.
Current report
Net Loss allocated from Equity Method Investees
Current report
Net Loss allocated from Equity Method Investee for the three months ended June 30, 2024 and June 30, 2023 was $0 and $0, respectively.
Current report
Six Months Ended June 30, 2024 Compared with Six Months Ended June 30, 2023.
Current report
For the six months ended June 30, 2024 and June 30, 2023, we generated $0 and $0, respectively in revenue.
Current report
General and administrative expenses were $7,222 and $11,531 for the six months ended June 30, 2024 and 2023, respectively, a decrease of $4,309 or 37% primarily due to an decrease in office expenses.
Current report
Other expenses for the six months ended June 30, 2024 was $94,054. Other expense for the six months ended June 30, 2023 was $106,586. This represents a difference of $12,532 or 12% which was attributable to an unrealized loss from available for sale securities and interest expense, offset by proceeds from sale of investment, accreted interest income and interest income on note receivable.
Current report
Net Loss allocated from Equity Method Investee
Current report
Net Loss allocated from Equity Method Investee for the six months ended June 30, 2024 and June 30, 2023 was $0 and $0, respectively.
Current report
Net cash used in investing activities during the six months ended June 30, 2024 and June 30, 2023 was $0 and $0, respectively.
Current report
Net Cash Provided by Financing Activities
Current report
Net cash provided by financing activities during the six months ended June 30, 2024 and June 30, 2023 was $0 and $0, respectively.
Removed paragraphs (24)
Previous report
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Previous report
The following discussion and analysis of the condensed consolidated results of operations and financial condition of Balance Labs, Inc., and subsidiaries (“Balance Labs” or the “Company”) for the three months ended March 31, 2024 should be read in conjunction with our condensed consolidated financial statements and the notes thereto that are included elsewhere in this Quarterly Report on Form 10-Q. References in this Management’s Discussion and Analysis of Financial Condition and Results of Operations to “us,” “we,” “our,” and similar terms refer to Balance Labs. This Quarterly Report includes forward-looking statements, as that term is defined in the federal securities laws, based upon current expectations that involve risks and uncertainties, such as plans, objectives, expectations, and intentions. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors. Words such as “anticipate,” “estimate,” “plan,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” “may,” “will,” “should,” “could,” and similar expressions are used to identify forward-looking statements. We caution you that these statements are not guarantees of future performance or events and are subject to a number of uncertainties, risks and other influences, many of which are beyond our control, which may influence the accuracy of the statements and the projections upon which the statements are based. Our actual results could differ materially from those anticipated in the forward-looking statements as a result of certain risk factors discussed in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on April 17, 2023. Any one or more of these uncertainties, risks and other influences could materially affect our results of operations and whether forward-looking statements made by us ultimately prove to be accurate. Our actual results, performance and achievements could differ materially from those expressed or implied in these forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether from new information, future events or otherwise.
Previous report
We were incorporated on June 5, 2014, under the laws of the State of Delaware. We are a consulting firm that provides business development and consulting services to start-up and development-stage companies. Our business model is to provide businesses in various industries with customized consulting services to meet their business needs and help them improve their business models, sales and marketing plans and internal operations, as well as introduce these businesses to experienced professional contacts that would be vital to the success of these companies.
Previous report
The Company is not a registered investment company under the Investment Company Act of 1940, as amended (the “1940 Act”) and does not engage primarily in the business of investing, reinvesting, or trading in securities. The Company is not managed like an active investment vehicle, is not an investment company registered under the 1940 Act and is not required to register under the 1940 Act.
Previous report
Additionally, in accordance with the 1940 Act, Section 3(c)(1), the Company is not an Investment Company as defined by the 1940 Act because the Company does not have outstanding securities beneficially owned by more than one hundred persons and, at this time, the Company is not making and does not presently propose to make a public offering of its securities. Additionally, the Company has not and has no plans to purchase or acquire any securities issued by any registered investment company.
Previous report
Our business focuses on providing advisement services to entrepreneurs and assisting business owners so that their ideas can be fully developed and implemented. Due to limited resources, lack of experienced management and competing priorities, start-up and developmental stage companies are not operating as efficiently as they can be, and therefore would benefit from an outside party that could assist in developing and executing certain strategies. We utilize our knowledge in developing businesses, share practical experiences with our clients and introduce the business owners to experienced professionals who could help these inexperienced entrepreneurs further implement their ideas. Start-ups and development stage businesses across all industries commonly experience these certain “growing pains”.
Previous report
Plan of Operations
Previous report
Our plan is to prepare our clients for the many inevitable challenges they will encounter and to develop a customized plan for them to overcome these obstacles, so that they can focus on marketing their product(s) and/or service(s) to their potential customers.
Previous report
Although we’ve only worked with three clients since inception, our goal is to add and service a minimum of two to three new clients between now and the end of 2024. We’re marketing our services through both personal contact and online by (a) mining our existing network of professional contacts via personal outreach programs, which will also target international prospects that may wish to enter the US market; (b) expanding our network by attending targeted conferences and professional gatherings; and (c) utilizing our website at www.balancelabs.co, plus engaging potential clients on social media, including LinkedIn, Facebook and Twitter. However, because we have a limited budget allocated for an on-line marketing campaign, we anticipate that professionals within our professional network and personal referrals from companies that are satisfied with our professional services are likely to be our most significant and efficient near-term form of marketing.
Previous report
We believe that we can support our clients with our existing full-time staff, supplemented with part-time sub-contracted professionals and service providers, as necessary. Between now and the end of 2023, we intend to formalize our relationships with these subcontractors so that we can offer our clients turn-key business development products and services.
Previous report
Our primary requirement for funding is for working capital in order to accommodate temporary negative cash flows from operations (see “Liquidity and Capital Resources”).
Previous report
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Previous report
The following discussion and analysis of the condensed consolidated results of operations and financial condition of Balance Labs, Inc., and subsidiaries (“Balance Labs” or the “Company”) for the three months ended March 31, 2024 should be read in conjunction with our condensed consolidated financial statements and the notes thereto that are included elsewhere in this Quarterly Report on Form 10-Q. References in this Management’s Discussion and Analysis of Financial Condition and Results of Operations to “us,” “we,” “our,” and similar terms refer to Balance Labs. This Quarterly Report includes forward-looking statements, as that term is defined in the federal securities laws, based upon current expectations that involve risks and uncertainties, such as plans, objectives, expectations, and intentions. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors. Words such as “anticipate,” “estimate,” “plan,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” “may,” “will,” “should,” “could,” and similar expressions are used to identify forward-looking statements. We caution you that these statements are not guarantees of future performance or events and are subject to a number of uncertainties, risks and other influences, many of which are beyond our control, which may influence the accuracy of the statements and the projections upon which the statements are based. Our actual results could differ materially from those anticipated in the forward-looking statements as a result of certain risk factors discussed in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on April 15, 2024. Any one or more of these uncertainties, risks and other influences could materially affect our results of operations and whether forward-looking statements made by us ultimately prove to be accurate. Our actual results, performance and achievements could differ materially from those expressed or implied in these forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether from new information, future events or otherwise.
Previous report
We were incorporated on June 5, 2014, under the laws of the State of Delaware. We are a consulting firm that provides business development and consulting services to start-up and development-stage companies. Our business model is to provide businesses in various industries with customized consulting services to meet their business needs and help them improve their business models, sales and marketing plans and internal operations, as well as introduce these businesses to experienced professional contacts that would be vital to the success of these companies.
Previous report
The Company is not a registered investment company under the Investment Company Act of 1940, as amended (the “1940 Act”) and does not engage primarily, in the business of investing, reinvesting, or trading in securities. The Company is not managed like an active investment vehicle, is not an investment company registered under the 1940 Act and is not required to register under the 1940 Act.
Previous report
Additionally, in accordance with the 1940 Act, Section 3€(1), the Company is not an Investment Company as defined by the 1940 Act because the Company does not have outstanding securities beneficially owned by more than one hundred persons and, at this time, the Company is not making and does not presently propose to make a public offering of its securities. Additionally, the Company has not and has no plans to purchase or acquire any securities issued by any registered investment company.
Previous report
Our business focuses on providing advisement services to entrepreneurs and assisting business owners so that their ideas can be fully developed and implemented. Due to limited resources, lack of experienced management and competing priorities, start-up and developmental stage companies are not operating as efficiently as they can be, and therefore would benefit from an outside party that could assist in developing and executing certain strategies. We utilize our knowledge in developing businesses, share practical experiences with our clients and introduce the business owners to experienced professionals who could help these inexperienced entrepreneurs further implement their ideas. Start-ups and development stage businesses across all industries commonly experience these certain “growing pains”.
Previous report
Plan of Operations
Previous report
Our plan is to prepare our clients for the many inevitable challenges they will encounter and to develop a customized plan for them to overcome these obstacles, so that they can focus on marketing their product(s) and/or service(s) to their potential customers.
Previous report
Although we’ve only worked with three clients since inception, our goal is to add and service a minimum of two to three new clients between now and the end of 2024. We’re marketing our services through both personal contact and online by (a) mining our existing network of professional contacts via personal outreach programs, which will also target international prospects that may wish to enter the US market; (b) expanding our network by attending targeted conferences and professional gatherings; and (c) utilizing our website at www.balancelabs.co, plus engaging potential clients on social media, including LinkedIn, Facebook and Twitter. However, because we have a limited budget allocated for an on-line marketing campaign, we anticipate that professionals within our professional network and personal referrals from companies that are satisfied with our professional services are likely to be our most significant and efficient near-term form of marketing.
Previous report
We believe that we can support our clients with our existing full-time staff, supplemented with part-time sub-contracted professionals and service providers, as necessary. Between now and the end of 2024, we intend to formalize our relationships with these subcontractors so that we can offer our clients turn-key business development products and services.
Previous report
Our primary requirement for funding is for working capital in order to accommodate temporary negative cash flows from operations (see “Liquidity and Capital Resources”).
Previous report
Results of Operations
Reworded paragraphs (8)
Previous wording
General and administrative expenses were $4,040 and $3,806 for the three months ended March 31, 2024 and 2023, respectively, an increase of $234 or 6% primarily due to a increase in office expenses.
Current wording
General and administrative expenses were $3,181 and $7,725 for the three months ended June 30, 2024 and 2023, respectively, an increase of $4,544 or 59% due to a decrease in printing and utilities expenses.
Previous wording
Professional fees were $16,000 and $18,782 for the three months ended March 31, 2024 and 2023, respectively, a decrease of $2,782 or 15% due to decrease in accounting and legal fees for the quarter.
Current wording
Professional fees were $8,545 and $20,193 for the three months ended June 30, 2024 and 2023, respectively, a decrease of $11,648 or 58% due to decrease in accounting and legal fees for the quarter.
Previous wording
Other expenses for the three months ended March 31, 2024 was $51,225. Other expense for the three months ended March 31, 2023 was $51,003.
Current wording
Other expenses for the three months ended June 30, 2024 was $42,828. Other expense for the three months ended June 30, 2023 was $55,583. This represents a difference of $12,755 which was attributable to an unrealized gain from available for sale securities, offset by accrued interest expense on note payable.
Previous wording
Unrealized gain on available for sale securities for the three months ended March 31, 2024 was $5,687. Unrealized gain on available for sale securities for the three months ended March 31, 2023 was $5,315. This represents an increase of $664 attributable to an increase in the stock price of the securities.
Current wording
Unrealized gain on available for sale securities for the three months ended June 30, 2024 was $14,083. Unrealized loss on available for sale securities for the three months ended June 30, 2023 was $1,329. This represents an increase of $12,754 or 960% attributable to an increase in the stock price of the securities.
Previous wording
We reported a net loss of $116,943 and of $87,280 for the three months ended March 31, 2024 and 2023, respectively. This represents a difference increase of $29,663, or 34%, primarily due to an increase in the executive salary of the Company’s CEO of $30,000 for the three months ending March 31, 2024.
Current wording
We reported a net loss of $217,643 and of $184,033 for the six months ended June 30, 2024 and 2023, respectively. This represents a difference of $33,610, or 18%, primarily due to an increase in salary and wages offset by an unrealized gain on available for sale securities of $12,754
Previous wording
Except for the monthly consulting fee to our CEO and Chairman of the Board and the monthly lease of our virtual office, as described elsewhere in this annual report, we currently do not have any material commitments for capital expenditures. We are actively pursuing new client relationships. Even if we were to add a new client(s), due to our current lack of a diversified client base, there could be temporary imbalances between cash receipts and cash operating expenditures, which means that we may need additional capital. The engagement revenues associated with most client engagements will self-fund the in-house and sub-contractor services we need in order to supply products and services to our clients.
Current wording
Except for the monthly consulting fee to our CEO and Chairman of the Board and the monthly lease of our virtual office, as described elsewhere in this report, we currently do not have any material commitments for capital expenditures. We are actively pursuing new client relationships. Even if we were to add a new client(s), due to our current lack of a diversified client base, there could be temporary imbalances between cash receipts and cash operating expenditures, which means that we may need additional capital. The engagement revenues associated with most client engagements will self-fund the in-house and sub-contractor services we need in order to supply products and services to our clients.
Previous wording
As of March 31, 2024, the Company had a working capital deficiency of $4,659,826. The Company used cash in operations of $37,045. In addition, the Company is working to manage its current liabilities while it continues to make changes in operations to further improve its cash flow and liquidity position.
Current wording
As of June 30, 2024, the Company had a working capital deficiency of $4,760,526 and used cash in operations of $69,015. In addition, the Company is working to manage its current liabilities while it continues to make changes in operations to further improve its cash flow and liquidity position.
Previous wording
We experienced negative cash flows from operating activities for the three months ended March 31, 2024 and March 31, 2023, in the amount of $37,045 and $14,246, respectively. This was primarily due to a net loss of $116,943 primarily offset by an unrealized gain on the value of an investment by $5,687, change in accounts payable and accrued expenses by $82,751, and amortization of debt discount $2,834.
Current wording
We experienced negative cash flows from operating activities for the six months ended June 30, 2024 and June 30, 2023, in the amount of $69,015 and $52,911, respectively. This was primarily due to a net loss of $217,643 primarily offset by an unrealized gain on the value of an investment by $19,770, change in accounts payable and accrued expenses by $162,729, and amortization of debt discount $5,669.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
Professional fees were $24,545 and $38,975 for the six months ended June 30, 2024 and 2023, respectively, a decrease of $13,430 or 34% due to decrease in accounting and legal fees for the quarter.
Current report — wording carried from elsewhere
Unrealized gain or loss on available for sale securities
Current report — wording carried from elsewhere
Unrealized gain on available for sale securities for the six months ended June 30, 2024 was $19,770. Unrealized gain on available for sale securities for the six months ended June 30, 2023 was $6,644. This represents an increase of $13,126 or 198% attributable to an increase in the stock price of the securities.