Mag Mile Capital Inc
For the period ended Sep 30, 2024. Filed Nov 14, 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 14, 2024
MMCPStored price and day change unavailable
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-19.
0001493152-24-033064
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-14.
0001493152-24-045568
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 59 previous paragraphs and 58 current paragraphs.
32 unchanged; 19 reworded; 7 added; 4 removed; 4 previous and 0 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 (7)
Current report
Our revenue from commission income for the three months ended September 30, 2024 and 2023, was $254,550 and $376,800, respectively, a decrease of $122,250 or 32.4%. Revenue in the current period decreased due to challenging market conditions leading up to the U.S. Presidential Elections and rapid rise in interest rates leading to a slower deal activity in the market.
Current report
Our commission expense for the three months ended September 30, 2024 and 2023, was $216,453 and $103,069, respectively, an increase of $113,069 or 110%. We saw an increase in commission expense due to the timing of revenue receipts for which the commissions were paid on. Additionally, $93,125 was commission paid on a transaction back to the client in form a revenue rebate.
Current report
Our commission expense – related party, for the three months ended September 30, 2024 and 2023, was $250,594 and $35,750 respectively, an increase of $214,844 or 601%. Related party commission expense increaseddue to the timing of revenue receipts for which the commissions were paid on. Related party commission expense is for commission paid to Park River Investments, LLC, a company owned by the Chairman and CEO, where the Chairman and CEO was the procuring cause for the revenue.
Current report
Payroll expense for the three months ended September 30, 2024 and 2023, was $77,120 and $132,556, respectively, a decrease of $55,436 or 41.8%. In the prior period we incurred a bonus expense that was not incurred in the current period.
Current report
Net Loss
Current report
Payroll expense for the nine months ended September 30, 2024 and 2023, was $244,282 and $280,717, respectively, a decrease of $36,435 or 13%. In the prior period we incurred a bonus expense that was not incurred in the current period.
Removed paragraphs (4)
Previous report
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 report
Net Income (Loss)
Previous report
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.
Previous report
Net Income (Loss)
Reworded paragraphs (19)
Previous wording
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 wording
Gross Profit is our main revenue metric as it is net of commissions paid. We had a negative gross profit of $212,497 for the three months ended September 30, 2024, compared to a gross profit of $237,981 for the three months ended September 30, 2023.
Previous wording
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 wording
Professional fees for the three months ended September 30, 2024 and 2023, were $13,900 and $41,032, respectively, a decrease of $27,132 or 66.1%. Professional fees consist mainly of legal, audit and accounting fees. In the current period we had decreases to both audit and legal expense of approximately $18,550 and $10,700, respectively. This is due to better management of the expenses and running efficient operations.
Previous wording
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 wording
General and administrative (“G&A”) expenses for the three months ended September 30, 2024 and 2023, were $144,804 and $144,657, respectively, an increase of only $147.
Previous 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.
Current wording
We incurred interest expense of $2,194 for the three months ended September 30, 2024, compared to $3,655 for the three months ended September 30, 2023.
Previous wording
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.
Current wording
We had a net loss of $450,514 for the three months ended September 30, 2024, compared to a net loss of $83,919 for the three months ended September 30, 2023. We had an increase in our net loss due to the reasons discussed above.
Previous wording
Results of Operations for the Six Months Ended June 30, 2024 Compared to the Six Months Ended June 30, 2023
Current wording
Results of Operations for the Nine Months Ended September 30, 2024 Compared to the Nine Months Ended September 30, 2023
Previous wording
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 wording
Our revenue from commission income for the nine months ended September 30, 2024 and 2023, was $2,051,443 and $1,491,111, respectively, an increase of $560,332 or 37.6%. Revenue in the current period increased due to several new large loans originated through the Commercial Mortgage Backed Securities (“CMBS”).
Previous wording
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 wording
Our commission expense for the nine months ended September 30, 2024 and 2023, was $807,080 and $459,310, respectively, an increase of $347,770 or 75.7%. We saw an increase in commission expense due to deals closed by loan originators with beneficial commission structures.
Previous 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.
Current wording
Our commission expense – related party, for the nine months ended September 30, 2024 and 2023, was $522,749 and $533,750 respectively, a decrease of $11,001 or 2.1%. 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 $734,022 for the three months ended June 30, 2024, compared to $340,630 for the three months ended June 30, 2023.
Current wording
Gross Profit is our main revenue metric as it is net of commissions paid. We had a gross profit of $721,614 for the nine months ended September 30, 2024, compared to $498,051 for the nine months ended September 30, 2023.
Previous wording
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 wording
Stock based compensation for the nine months ended September 30, 2024 was $0 compared to $1,582,072 for the nine months ended September 30, 2023, for expense related to the issuance of warrants.
Previous 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.
Current wording
Professional fees for the nine months ended September 30, 2024 and 2023, were $72,700 and $570,351, respectively, a decrease of $497,651 or 87.3%. 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 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.
Current wording
General and administrative (“G&A”) expenses for the nine months ended September 30, 2024 and 2023, were $433,480 and $815,137, respectively, a decrease of $381,657 or 46.8%. In the prior period we issued 894,113 shares of common stock for services for total non-cash expense of $447,057.
Previous wording
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 wording
We incurred interest expense of $6,580 for the nine months ended September 30, 2024, compared to $8,872 for the nine months ended September 30, 2023.
Previous 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.
Current wording
We had a net loss of $35,428 for the nine months ended September 30, 2024, compared to a net loss of $2,759,098 for the nine months ended September 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
As of June 30, 2024, we had cash of approximately $123,000 and working capital of approximately $666,000.
Current wording
As of September 30, 2024, we had cash of approximately $15,600 and working capital of approximately $241,500.
Previous 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.
Current wording
During the nine months ended September 30, 2024, we used $60,592 of cash in operating activities. Our cash flows used in operating activities is primarily a result of (i) our net loss of $35,428, adjusted for non-cash activity of $72,277 and (ii) an increase in draws against commissions and accounts receivable and decrease of accounts payable of $33,644 and $48,300, respectively. During the nine months ended September 30, 2023, we used $235,104 of cash in operating activities. Our cash flows used in operating activities is primarily a result of (i) our net loss of $2,759,098, adjusted for non-cash activity of $2,667,621 and (ii) an increase of $136,039 in accounts receivable and decrease of accounts payable of $7,588.
Previous wording
We used no cash in investing activities for the six months ended June 30, 2024 and 2023.
Current wording
We used no cash in investing activities for the nine months ended September 30, 2024 and 2023.
Previous 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.
Current wording
During the nine months ended September 30, 2024, we received $110,000 of cash from related party loans, all of which $90,000 was repaid. In the prior period we received $48,060 from a related party and used $45,077 for shareholder distributions.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
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”).
Previous report — wording carried elsewhere
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 report — wording carried 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.
Previous report — wording carried elsewhere
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.