American Picture House Corp
For the period ended Sep 30, 2024. Filed Nov 13, 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.
Sep 30, 2024 · Filed Nov 13, 2024
APHPStored price and day change unavailable
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-13.
0001493152-24-031503
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-13.
0001493152-24-045063
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 68 previous paragraphs and 63 current paragraphs.
38 unchanged; 16 reworded; 8 added; 11 removed; 3 previous and 1 current paragraphs rearranged.
Tables are not compared: 4 previous and 4 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 (8)
Current report
Research and development expenses for the three months ended September 30, 2024 were $0 compared to $8,803 for the nine months ended September 30, 2023.
Current report
During the three months ended September 30, 2024, operating activities consumed approximately $31,000 of cash, representing substantially all of the Company’s cash on hand. Accounts payable and accrued expenses increased by approximately $301,000 during the quarter due to a lack of liquidity to meet current obligations as they became due and payable.
Current report
During the three months ended September 30, 2024, net cash provided by financing activities was $26,000 which included approximately $37,000 of related party borrowings net of approximately $11,000 of debt repayments.
Current report
During the three months ended September 30, 2023, net cash provided by financing activities was approximately $700,000 including approximately $803,000 of proceeds from the sale of Common Stock partially offset by net repayments of $103,000 on related party borrowings.
Current report
During the nine months ended September 30, 2024, operating activities consumed substantially all of the Company’s available cash resources of approximately $773,000.
Current report
During the nine months ended September 30, 2023, operating activities used approximately $717,000 of cash, primarily resulting from our net loss of approximately $954,000, partially offset by non-cash charges and changes in our operating assets and liabilities of $238,000.
Current report
During the nine months ended September 30, 2024, net cash provided by financing activities was approximately $601,000 including $169,000 of proceeds from the sale of Common Stock and $432,000 from net related party borrowings.
Current report
During the nine months ended September 30, 2023, net cash provided by financing activities was $1.3 million of proceeds from the sale of Common Stock. Additionally, during 2023 period the Company borrowed and fully repaid $178,500 under a promissory note with the Company’s chief executive officer.
Removed paragraphs (11)
Previous report
Other Income (Expense)
Previous report
During the three months ended June 30, 2024, operating activities used approximately $306,000 of cash, including providing $176,000 of financing to a film production company. During the three months ended June 30, 2023, operating activities consumed approximately $188,000 of cash.
Previous report
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 report
During the three months ended June 30, 2024, net cash provided by financing activities was approximately $310,000 including $154,000 of proceeds from the sale of Common Stock and $1,570,000 of net working capital financing under a master loan agreement from a related party.
Previous report
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 report
General and Administrative Expenses
Previous report
Sales and Marketing Expenses
Previous report
Other Income (Expense)
Previous report
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.
Previous report
During the six months ended June 30, 2024, net cash provided by financing activities was approximately $576,000 including $415,000 of proceeds from the sale of Common Stock and $407,000 of net working capital financing under a master loan agreement from a related party and a commercial line of credit.
Previous report
During the six months ended June 30, 2023, net cash provided by financing activities was approximately $562,000 including $460,000 of proceeds from the sale of Common Stock and $103,000 of net working capital financing under a master loan agreement from a related party and a commercial line of credit.
Reworded paragraphs (16)
Previous wording
General and administrative expenses for the three months ended June 30, 2024 were approximately $380,000 compared to approximately $395,000 for the three months ended June 30, 2023, a decrease of approximately $15,000.
Current wording
General and administrative expenses for the three months ended September 30, 2024 were approximately $316,000 compared to approximately $495,000 for the three months ended September 30, 2023, a decrease of approximately $180,000. The 2023 period included approximately $92,000 of legal and professional fees associated with filing the Company’s Form 10 and $50,000 related to investment due diligence. Additionally, the travel expenses were approximately $21,000 higher during the 2023 period.
Previous 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.
Current wording
Interest Expense. Interest expense for the three months ended September 30, 2024 and 2023 was $12,276 and $2,993, respectively, and was primarily related to ourEconomic Injury Disaster Loan (“EIDL”), commercial line of credit and related party working capital loans.
Previous 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.
Current wording
We had an accumulated deficit of approximately $7.2 million, incurred a net loss of approximately $327,000, and had cash outflows from operations of approximately $773,000 as of and for the three months ended September 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 June 30, 2024, we had cash and cash equivalents of approximately $8,000.
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 September 30, 2024, our cash and cash equivalents were negligible and we were not able to meet our current obligations as they became due and payable.
Previous wording
During the Six months ended June 30, 2023, operating activities consumed approximately $318,000 of cash, primarily resulting from our net loss, net of non-cash charges, of approximately $229,000.
Current wording
During the three months ended September 30, 2023, operating activities used approximately $398,000 of cash, primarily resulting from our net loss of approximately $507,000, partially offset by non-cash charges and changes in our operating assets and liabilities of $108,000.
Previous wording
Six months ended June 30, 2024 Compared to six months ended June 30, 2023
Current wording
Nine months ended September 30, 2024 Compared to nine months ended September 30, 2023
Previous wording
The following table summarizes our results of operations for the six months ended June 30, 2024 and 2023:
Current wording
The following table summarizes our results of operations for the nine months ended September 30, 2024 and 2023:
Previous 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.
Current wording
During the nine months ended September 30, 2023 and 2022, the Company had revenues of approximately $23,000 and $169,000, respectively. The 2024 revenues were derived from the Company’s interest in theBuffaloed CAMA. The Company’s 2023 revenue came from contracts with customers for consulting services and from the licensing and distribution of film and other entertainment rights.
Previous 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.
Current wording
General and administrative expenses for the nine months ended September 30, 2024 were approximately $2,198,000 compared to approximately $1,074,000 for the nine months ended September 30, 2023, an increase of approximately $1.1M. The increase was primarily attributable to the Company recording approximately $1,258,000 of stock option expense in the 2024 period along with a $43,000 net increase in consulting fees. 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
Research and development expenses for the three months ended June 30, 2024 were approximately $700 compared to $0 for the six months ended June 30, 2023.
Current wording
Research and development expenses for the nine months ended September 30, 2024 were approximately $700 compared to $8,800 for the nine months ended September 30, 2023.
Previous wording
Sales and marketing expenses for the six months ended June 30, 2024 were approximately $25,000 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 period and related expenses.
Current wording
Sales and marketing expenses for the nine months ended September 30, 2024 were approximately $25,000 compared to $0 for the three months ended September 30, 2023. Sales and marketing expenses relate to our engagement of a part-time marketing consultant during the period and related expenses.
Previous wording
*Interest Income.*Interest income for the Six months ended June 30, 2024 and 2023 was approximately $486 and $2,453, respectively, and consisted of interest earned on invested cash balances.
Current wording
*Interest Income.*Interest income for the nine months ended September 30, 2024 and 2023 was $1,818 and $2,793, respectively, and consisted of interest earned on invested cash balances.
Previous wording
Interest Expense. Interest expense for the Six months ended June 30, 2024 and 2023 was approximately $16,000 and $4,000, respectively, and was primarily related to ourEconomic Injury Disaster Loan (“EIDL”), commercial line of credit and related party working capital loans.
Current wording
Interest Expense. Interest expense for the nine months ended September 30, 2024 and 2023 was $28,281 and $6,934, respectively, and was primarily related to ourEconomic Injury Disaster Loan (“EIDL”) and working capital loan.
Previous wording
During the first Six months of 2024, the Company sold 691,000 shares of Common Stock for $0.25 per share resulting in total proceeds of approximately $469,000. During the six months 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. We had an accumulated deficit of approximately $6.9 million, incurred a net loss of approximately $1.9 million, and had cash outflows from operations of approximately $742,000 as of and for the six 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.
Current wording
During the first nine months of 2024, the Company sold 691,000 shares of Common Stock for $0.25 per share resulting in total proceeds of approximately $469,000. During the nine months ended September 30, 2023, the Company sold 7,147,498 shares of Common Stock at prices between $0.15 and $0.20 per share resulting in total proceeds of approximately $716,000. We had an accumulated deficit of approximately $7.2 million, incurred a net loss of approximately $2.2 million, and had cash outflows from operations of approximately $773,000 as of and for the nine months ended September 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 June 30, 2024, we had cash and cash equivalents of approximately $8,000.
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 September 30, 2024, we had cash and cash equivalents of approximately $0.
Previous wording
During the six months ended June 30, 2024 and 2023, investing activities consumed approximately $30,000 and $10,000 of cash. The 2024 period included $22,000 of website development costs and $8,000 of produced and licensed film production costs. Costs during the 2023 period included approximately $10,000 of produced and licensed film production costs.
Current wording
During the nine months ended September 30, 2024 and 2023, investing activities included approximately $10,000 and $37,000 of produced and licensed film production costs. Additionally, during the 2024 and 2023 periods, the Company invested approximately $22,000 and $9,000 in website development costs, respectively.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
During the three months ended September 30, 2024 and 2023, investing activities included approximately $2,000 and $27,000 of produced and licensed film production costs.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
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 report — wording carried elsewhere
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 report — wording carried elsewhere
Research and development expenses for the six months ended June 30, 2024 were approximately $700 compared to $0 for the six months ended June 30, 2023.