American Picture House Corp

Previous wording

Sales and marketing expenses for the three months ended March 31, 2024 were approximately $14,000 compared to $0 for the three months ended March 31, 2023. Sales and marketing expenses relate to our engagement of a part-time marketing consultant during the quarter and related expenses.

Current wording

Sales and marketing expenses for the three months ended June 30, 2024 were approximately $11,000 compared to $0 for the three months ended June 30, 2023. Sales and marketing expenses relate to our engagement of a part-time marketing consultant during the quarter and related expenses.

Previous wording

Interest Expense. Interest expense for the three months ended March 31, 2024 and 2023 was approximately $3,200 and $1,900, respectively, and was primarily related to ourEconomic Injury Disaster Loan (“EIDL”) and working capital loans.

Current wording

Interest Expense. Interest expense for the three months ended June 30, 2024 and 2023 was approximately $12,800 and $2,000, respectively, and was primarily related to ourEconomic Injury Disaster Loan (“EIDL”), commercial line of credit and related party working capital loans.

Previous wording

During the quarter ended March 31, 2024, the Company sold 75,000 shares of Common Stock at $0.20 per share to new investors resulting in total proceeds of approximately $15,000.

Current wording

During the quarter ended June 30, 2024, the Company sold 616,000 shares of Common Stock at $0.25 per share resulting in total proceeds of approximately $154,000. During the quarter ended June 30, 2023, the Company sold 3,333,333 shares of Common Stock at $0.15 per share resulting in total proceeds of approximately $500,000.

Previous wording

We had an accumulated deficit of approximately $6.5 million, incurred a net loss of approximately $1.5 million, and had cash outflows from operations of approximately $436,000 as of and for the three months ended March 31, 2024. Further, we expect to continue to incur significant costs in the pursuit of our business plans. We cannot assure you that our plans to raise capital or to complete our film development and production activities will be successful. These factors, among others, raise substantial doubt about our ability to continue as a going concern.

Current wording

We had an accumulated deficit of approximately $6.9 million, incurred a net loss of approximately $405,000, and had cash outflows from operations of approximately $3066,000 as of and for the three months ended June 30, 2024. Further, we expect to continue to incur significant costs in the pursuit of our business plans. We cannot assure you that our plans to raise capital or to complete our film development and production activities will be successful. These factors, among others, raise substantial doubt about our ability to continue as a going concern.

Previous wording

Since our inception, we have incurred significant operating losses. We expect to incur significant expenses and operating losses for the foreseeable future as we develop and produce feature films. To date, we have funded our operations with proceeds from sales of Common Stock and borrowings from related parties under promissory notes. As of March 31, 2024, we had cash and cash equivalents of approximately $25,000.

Current wording

Since our inception, we have incurred significant operating losses. We expect to incur significant expenses and operating losses for the foreseeable future as we develop and produce feature films. To date, we have funded our operations with proceeds from sales of Common Stock and borrowings from related parties under promissory notes. As of June 30, 2024, we had cash and cash equivalents of approximately $8,000.

Previous wording

During the three months ended March 31, 2024 and 2023, investing activities included approximately $5,000 and $10,000 of produced and licensed film production costs. Additionally, during the quarter ended March 31, 2024, the Company invested approximately $3,000 in capitalized software.

Current wording

During the three months ended June 30, 2024 and 2023, investing activities consumed approximately $22,000 and $0 of cash. During the quarter ended June 30, 2024, the Company invested approximately $19,000 in capitalized website development costs.

Previous wording

During the three months ended March 31, 2023, net cash provided by financing activities was $125,000 comprised of working capital financing under a master loan agreement from a related party.

Current wording

During the three months ended June 30, 2023, net cash provided by financing activities was $125,000 comprised of working capital financing under a master loan agreement from a related party and a new commercial line of credit.

Previous wording

During the three months ended March 31, 2024 and 2023, the Company had revenues of approximately $23,000 and $169,000, respectively. During the quarter ended March 31, 2024, the Company reported revenues of $23,003 from theBUFFALOED CAMA. Revenues during the 2023 period were derived from contracts with customers for consulting services.

Current wording

During the six months ended June 30, 2024 and 2023, the Company had revenues of approximately $23,000 and $169,000, respectively. The 2024 revenues were from the Buffaloed CAMA. Revenues during the 2023 period, were from contracts with customers for consulting services.

Previous wording

General and administrative expenses for the three months ended March 31, 2024 were approximately $1,502,000 compared to approximately $184,000 for the three months ended March 31, 2023, an increase of approximately $1.3 million. The increase was primarily attributable to the Company recording $1,258,160 of stock option compensation expense in the quarter ended March 31, 2024. As a public company, we expect general and administrative costs to continue to increase in future periods.

Current wording

General and administrative expenses for the six months ended June 30, 2024 were approximately $1,882,000 compared to approximately $579,000 for the six months ended June 30, 2023, an increase of approximately $1.3M. The increase was primarily attributable to the Company recording approximately $1,258,000 of stock option expense and a $186,000 increase in professional fees in the first half of 2024. The 2023 period included approximately $194,000 of bad debt expense. As a public company, we expect general and administrative costs to continue to increase in future periods.

Previous wording

During the three months ended March 31, 2024, operating activities used approximately $436,000 of cash, including providing a $220,000 of financing to a film production company and payments resulting in a $42,000 reduction in accounts payable and accrued expenses.

Current wording

During the Six months ended June 30, 2024, operating activities used approximately $741,000 of cash including providing $396,000 of financing to film production companies.