Crypto Co
For the period ended Jun 30, 2024. Filed Aug 19, 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 19, 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 2024-05-20.
0001493152-24-020676
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-19.
0001493152-24-032964
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 47 previous paragraphs and 57 current paragraphs.
38 unchanged; 7 reworded; 9 added; 2 removed; 0 previous and 3 current paragraphs rearranged.
Tables are not compared: 1 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 (9)
Current report
On June 7, 2024, the Company completed the sale of AllFi Technologies, a majority owned subsidiary of the Company, to AllFi Holdings. AllFi Holdings purchased all of the issued and outstanding shares of common stock of the Company’s subsidiary, AllFi Technologies. This sale was designed to optimize both companies’ focus on their respective areas of expertise. As a result of this transaction, The Crypto Company received back from AllFi Holdings, its previously issued and committed shares, which totaled approximately 10% of The Crypto Company. In return, AllFi Holdings obtained full ownership of AllFi Technologies, including the trademarks and IP associated therewith.
Current report
Comparison of the six months ended June 30, 2024 and June 30, 2023
Current report
Revenue
Current report
General and Administrative Expenses
Current report
Amortization expense was $21,666 for the six months ended June 30, 2024 and June 30, 2023, respectively. Depreciation expense was $0 and $0 for the six months ended June 30, 2024 and June 30, 2023, respectively.
Current report
Share-based compensation was $1,706,700 and $506,479 for the six months ended June30, 2024 and June 30, 2023, respectively.
Current report
Other Income (Expense)
Current report
Interest Expense
Current report
During the six months ended June 30, 2024, interest expense was $393,349 compared to $2,317,315 during the six months ended June 30, 2023. The decrease is primarily attributed to the less issuances of warrant debt discounts during the 2024 period.
Removed paragraphs (2)
Previous report
COVID-19
Previous report
The continuing effect of the COVID-19 virus has resulted in a slowdown in economic activity, disrupting supply chains, and reducing workforces, increasing market volatility and consequently, impacting our operational and financial performance. It is impossible to predict the ultimate degree to which future variants of COVID-19 and their spread could lead to continuing significant and material disruptions in economic activity, and could have a material adverse effect on our results of operations.
Reworded paragraphs (7)
Previous wording
Revenues for the three months ended March 31, 2024 and March 31, 2023, were $15,806 and $156,895, respectively. The decrease in revenue was due to less of a demand for blockchain training services. Revenue for the 2024 period consisted primarily of fees received for blockchain training and consulting generated by the Company’s BTA subsidiary which was acquired in April 2021.
Current wording
Revenues for the three months ended June 30, 2024 and June 30, 2023, were $9,841 and $106,610, respectively. The decrease in revenue was due to less of a demand for blockchain training services. Revenue for the 2024 period consisted primarily of fees received for blockchain training and consulting generated by the Company’s BTA subsidiary which was acquired in April 2021.
Previous wording
For the three months ended March 31, 2024, our general and administrative expenses were $442,830, an increase of $11,781 compared to $431,049 for the period ended March 31, 2023. General and administrative expenses consist primarily of costs relating to professional services, payroll, and payroll-related expenses. Professional services included in general and administrative expenses consist primarily of contracting fees, consulting fees, and accounting fees.
Current wording
For the three months ended June 30, 2024, our general and administrative expenses were $243,823, a decrease of $76,677 compared to $320,500 for the period ended June 30, 2023. General and administrative expenses consist primarily of costs relating to professional services, payroll, and payroll-related expenses. Professional services included in general and administrative expenses consist primarily of contracting fees, consulting fees, and accounting fees.
Previous wording
Share-based compensation was $463,198 and $386,560 for the three months ended March 31, 2024 and March 31, 2023, respectively.
Current wording
Share-based compensation was $439,487 and $119,919 for the three months ended June 30, 2024 and June 30, 2023, respectively.
Previous wording
During the three months ended March 31, 2024, interest expense was $200,157 compared to $1,970,913 during the three months ended March 31, 2023. The decrease is primarily attributed to the issuance of promissory notes payable during the 2023 period.
Current wording
During the three months ended June 30, 2024, interest expense was $193,192 compared to $346,402 during the three months ended June 30, 2023. The decrease is primarily attributed to the less issuances of warrant debt discounts during the 2024 period.
Previous wording
Net cash used in operating activities was $344,504 for the three months ended March 31, 2024, compared to net cash used by operating activities of $287,557 for the three months ended March 31, 2023. The increase in net cash used in operating activities during the 2024 period was primarily due to an increase in general and administrative expenses of $11,781 for the three months ended March 31, 2024 and a decrease of $60,000 in deferred revenue compared to the three month ended March 31, 2023.
Current wording
Net cash used in operating activities was $601,383 for the six months ended June 30, 2024, compared to net cash used by operating activities of $590,630 for the six months ended June 30, 2023. The increase in net cash used in operating activities during the 2024 period was primarily due to an increase in accounts payable and accrued expenses of $101,840 for the six months ended June 30, 2024.
Previous wording
Net cash used in investing activities was $0 and $0 for the three months ended March 31, 2024 and March 31, 2023.
Current wording
Net cash used in investing activities was $0 and $0 for the six months ended June 30, 2024 and June 30, 2023.
Previous wording
Net cash from financing activities for the three months ended March 31, 2024, was $293,423, compared to $193,628 for the three months ended March 31, 2023. The increase in net cash from financing activities was mainly due to the resulting issuance of promissory notes during the three months ended March 31, 2023.
Current wording
Net cash from financing activities for the six months ended June 30, 2024, was $559,799, compared to $497,705 for the six months ended June 30, 2023. The increase in net cash from financing activities was mainly due to the resulting issuance of promissory notes during the six months ended June 30, 2024.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
Revenues for the six months ended June 30, 2024 and June 30, 2023, were $25,647 and $255,202, respectively. The decrease in revenue was due to less of a demand for blockchain training services. Revenue for the 2024 period consisted primarily of fees received for blockchain training and consulting generated by the Company’s BTA subsidiary which was acquired in April 2021.
Current report — wording carried from elsewhere
For the six months ended June 30, 2024, our general and administrative expenses were $686,653, a decrease of $78,872 compared to $765,525 for the period ended June 30, 2023. General and administrative expenses consist primarily of costs relating to professional services, payroll, and payroll-related expenses. Professional services included in general and administrative expenses consist primarily of contracting fees, consulting fees, and accounting fees.
Current report — wording carried from elsewhere
During the six months ended June 30, 2024 and June 30, 2023, other income was $0.