Mag Mile Capital Inc
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
MMCPStored price and day change unavailable
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious 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 OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-19.
0001493152-24-033064
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 43 previous paragraphs and 59 current paragraphs.
29 unchanged; 12 reworded; 12 added; 2 removed; 0 previous and 6 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 (12)
Current report
Our revenue from commission income for the three months ended June 30, 2024 and 2023, was $1,264,300 and $612,811, respectively, an increase of $651,489 or 106.3%. Revenue in the current period increased due to several new large loans originated through the Commercial Mortgage Backed Securities (“CMBS”).
Current report
Stock based compensation for the three months ended June 30, 2024 was $0 compared to $1,582,072 for the three months ended June 30, 2023, for expense related to the issuance of warrants.
Current report
Net Income (Loss)
Current report
Results of Operations for the Six Months Ended June 30, 2024 Compared to the Six Months Ended June 30, 2023
Current report
Revenue and Gross Profit
Current report
Our revenue from commission income for the six months ended June 30, 2024 and 2023, was $1,796,893 and $1,114,311, respectively, an increase of $682,582 or 61.3%. Revenue in the current period increased due to several new large loans originated through the Commercial Mortgage Backed Securities (“CMBS”).
Current report
Operating Expenses
Current report
Stock based compensation for the six months ended June 30, 2024 was $0 compared to $1,582,072 for the six months ended June 30, 2023, for expense related to the issuance of warrants.
Current report
Other Expense
Current report
We incurred interest expense of $4,386 for the six months ended June 30, 2024, compared to $5,217 for the six months ended June 30, 2023.
Current report
Net Income (Loss)
Current report
We had net income of $415,087 for the six months ended June 30, 2024, compared to a net loss of $2,669,736 for the six months ended June 30, 2023. We had an increase from a net loss in the prior period to new income in the current period due to the reasons discussed above.
Removed paragraphs (2)
Previous 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%.
Reworded paragraphs (12)
Previous 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.
Current wording
Our commission expense – related party, for the three months ended June 30, 2024 and 2023, was $165,990 and $53,900 respectively, a decrease of $112,090 or 208%. 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 $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.
Current wording
Gross Profit is our main revenue metric as it is net of commissions paid. We had a gross profit of $734,022 for the three months ended June 30, 2024, compared to $340,630 for the three months ended June 30, 2023.
Previous 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.
Current wording
Payroll expense for the three months ended June 30, 2024 and 2023, was $88,129 and $84,775, respectively, an increase of $3,345 or 4%. Payroll expense increased due to increase in the Chairman and CEO’s salary and adding an administrative assistant salary.
Previous 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.
Current wording
We incurred interest expense of $2,193 for the three months ended June 30, 2024, compared to $5,217 for the three months ended June 30, 2023.
Previous 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.
Current wording
We had net income of $480,863 for the three months ended June 30, 2024, compared to a net loss of $1,492,890 for the three months ended June 30, 2023. We had an increase from a net loss in the prior period to new income in the current period due to the reasons discussed above.
Previous 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.
Current wording
Our commission expense for the six months ended June 30, 2024 and 2023, was $590,627 and $356,241, respectively, a decrease of $234,386 or 65.8%. We saw an increase in commission expense due to deals closed by loan originators with beneficial commission structures.
Previous 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.
Current wording
Professional fees for the six months ended June 30, 2024 and 2023, were $58,800 and $528,756, respectively, a decrease of $469,956 or 88.9%. 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
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.
Current wording
General and administrative (“G&A”) expenses for the six months ended June 30, 2024 and 2023, were $288,676 and $680,692, respectively, a decrease of $392,016. In the prior period we issued 894,113 shares of common stock for services for total non-cash expense of $447,057.
Previous wording
As of March 31, 2024, we had cash of approximately $9,000 and working capital of approximately $182,000.
Current wording
As of June 30, 2024, we had cash of approximately $123,000 and working capital of approximately $666,000.
Previous 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.
Current wording
During the six months ended June 30, 2024, we used $67,063 of cash in operating activities. Our cash flows used in operating activities is primarily a result of (i) our net income of $415,087, adjusted for non-cash activity of $42,528 and (ii) an increase in draws against commissions and accounts receivable and decrease of accounts payable of $427,448 and $36,896, respectively. During the six months ended June 30, 2023, we used $323,742 of cash in operating activities. Our cash flows used in operating activities is primarily a result of (i) our net loss of $2,669,736, adjusted for non-cash activity of $2,532,910 and (ii) an increase in draws against commissions and accounts receivable and decrease of accounts payable of $163,534 and $23,382, respectively.
Previous wording
We used no cash in investing activities for the three months ended March 31, 2024 and 2023.
Current wording
We used no cash in investing activities for the six months ended June 30, 2024 and 2023.
Previous wording
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.
Current wording
During the six months ended June 30, 2024, we received $90,000 of cash from related party loans, all of which was repaid. In the prior period we received $10,800 from a related party and $831 from a loan payable.
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
Our commission expense for the three months ended June 30, 2024 and 2023, was $364,288 and $218,281, respectively, an increase of $146,007 or 66.9%. We saw an increase in commission expense due to deals closed by loan originators with beneficial commission structures.
Current report — wording carried from elsewhere
Professional fees for the three months ended June 30, 2024 and 2023, were $32,300 and $30,949, respectively, a decrease of $1,351 or 4.4%. Professional fees consist mainly of legal, audit and accounting fees.
Current report — wording carried from elsewhere
General and administrative (“G&A”) expenses for the three months ended June 30, 2024 and 2023, were $130,537 and $130,507, respectively, a decrease of only $30.
Current report — wording carried from elsewhere
Our commission expense – related party, for the six months ended June 30, 2024 and 2023, was $272,155 and $498,000 respectively, a decrease of $225,845 or 45.4%. Related party commission expense decreased due to a new commission agreement that lowered the percentage to 55% of all closed deals.
Current report — wording carried from elsewhere
Gross Profit is our main revenue metric as it is net of commissions paid. We had a gross profit of $934,111 for the six months ended June 30, 2024, compared to $260,070 for the six months ended June 30, 2023.
Current report — wording carried from elsewhere
Payroll expense for the six months ended June 30, 2024 and 2023, was $167,162 and $133,069, respectively, an increase of $34,093 or 25.6%. Payroll expense increased due to increase in the Chairman and CEO’s salary and adding an administrative assistant salary.