SafeSpace Global Corp
For the period ended Jan 31, 2025. Filed Mar 14, 2025.
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.
Jan 31, 2025 · Filed Mar 14, 2025
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What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-10-31; filed 2024-12-13.
0001493152-24-049910
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-01-31; filed 2025-03-14.
0001493152-25-010277
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 87 previous paragraphs and 96 current paragraphs.
44 unchanged; 22 reworded; 21 added; 21 removed; 0 previous and 9 current paragraphs rearranged.
Tables are not compared: 4 previous and 7 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 (21)
Current report
Overview
Current report
Healthcare Integrated Technologies, Inc. is focused on ambient AI technology solutions, dedicated to enhancing safety and security across various sectors, including healthcare, education, transportation, manufacturing, incarceration, and commercial industries. The company’s mission is to help save lives worldwide by developing advanced AI technologies designed to enhance situational awareness and mitigate risks in critical environments. We are currently marketing five products and solutions, including our initial product, SafeSpace® Fall Monitoring, which utilizes advanced AI monitoring tools to enhance resident safety in senior living, reduce the risk of injuries, and improve overall care efficiency. Additionally, we have expanded our services and offerings beyond senior living facilities, into schools and transportation where we’ve recently launched five more innovative solutions:
Current report
HITC emphasizes world-class executive experience, operational leaders and business development team members who know how to achieve significant results in an expedited fashion. This team has a systematic growth focus maximizing our patented ambient AI innovative technology to help save lives. We have added new technology team members who are IT executives, architects and engineers, who are leveraging AI to maximize global market penetration. The primary objective is to capture substantial market share in existing and emerging verticals, including senior living, schools, transportation, with plans to expand into commercial buildings and prisons, and beyond. A key new strength lies in HITC’s dedicated professional salesforce, passionate about saving lives and harnessing the power of ambient AI technology to help save lives.
Current report
As of the date of this filing, the Company has approximately $9,000,000 in cash and cash equivalents from recent private placements. Management believes this adequately supports the Company’s five-year strategic plan enabling strategic initiatives, such as acquisitions, investments in advanced AI technology, and the expansion of its technology development team. HITC remains committed to driving innovation in healthcare technology, with a focus on solutions that enhance safety, efficiency, and patient outcomes across various care settings.
Current report
Highlighted achievements for the six months ending January 31, 2025 include:
Current report
Our business did not produce revenue during the three-month period ending January 31, 2025. We recognized $21,769 of revenue for professional fees from our contract for the three-month period ending January 31, 2024.
Current report
Rent expense – Rent expense increased $15,458 over the same period in the prior year due to no rent expense in the prior year.
Current report
Other- Other expenses increased $17,002 over the same period in the prior year due to no advertising and marketing expenses during the three months ending January 31, 2024.
Current report
Amortization- Amortization expense increased $67,900, or 122% over the same period in the prior year due to a reduction in the estimated useful life from three years to two years of software development costs.
Current report
Six Months Ending January 31, 2025 Compared to the Six Months Ending January 31, 2024
Current report
Revenues
Current report
Our business did not produce revenue during the six-month period ending January 31, 2025. We recognized $21,769 of revenue for professional fees from our contract for the six-month period ending January 31, 2024.
Current report
Operating Expenses
Current report
Officers’ Salaries - Officers’ salaries increased $104,197, or 60%, over the prior period primarily due to the addition of the President & Chief Strategy Officer and increased pay for the Chief Financial Officer and Chief Executive Officer compared to the previous period, the Company’s officers accepted voluntary pay reductions in the prior comparable period.
Current report
*Advertising and Marketing -*Advertising and marketing costs increased $87,589 over the same period in the prior year due to minimal expenses during the six months ending January 31, 2025.
Current report
Rent expense – Rent expense increased $25,577 over the same period in the prior year due to no rent expense in the prior year.
Current report
Other- Other expenses increased $17,222 over the same period in the prior year due to minimal activity during the prior year.
Current report
Amortization- Amortization expense increased $66,557, or 60% over the same period in the prior year due to a reduction in the estimated useful life from three years to two years of software development costs.
Current report
Other Income (Expense)
Current report
Interest Expense - Interest expense increased $5,588, or 21%, over the same period in the prior year due to a decrease in the average outstanding debt balance during this same period in the prior period.
Current report
There have been no material changes to our critical accounting policies and estimates from the information provided in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” included in our July 31, 2024 Annual Report.
Removed paragraphs (21)
Previous report
This following discussion summarizes the significant factors affecting the interim consolidated financial statements, financial condition, liquidity, and cash flows of Healthcare Integrated Technologies, Inc, for the three months ended October 31, 2024, and 2023. The discussion and analysis should be read in conjunction with the consolidated financial statements and notes thereto included in our most recent Annual Report on Form 10-K for the year ended July 31, 2024, filed with the SEC on October 29, 2024.
Previous report
Healthcare Integrated Technologies, Inc. and its subsidiaries is a healthcare technology company based in Knoxville, Tennessee. We are creating a diversified spectrum of healthcare technology solutions to integrate and automate the continuing care, home care and professional healthcare spaces.
Previous report
Our initial product, SafeSpace™ with AI Vision™, is an ambient fall detection solution designed for continuing care communities and at home use. SafeSpace includes hardware devices utilizing RGB, radar and other sensor technology coupled with our internally developed software to effectively monitor a person remotely. In continuing care communities, SafeSpace detects resident falls and generates alerts to a centralized, intelligent dashboard without the use of wearable devices or any action by the resident. In the home, SafeSpace detects falls and sends alerts directly to designated individuals.
Previous report
We recently introduced and are currently pilot testing two additional products - SafeFace™ and SafeGuard™. SafeFace provides fully automated and ambient time and attendance reporting for facility staff, and an integrated and automatic agency invoice reconciliation feature. SafeGuard is a novel fully ambient elopement detection and alerting system based on our facial recognition technology.
Previous report
In addition to our current product offerings, we are developing a home concierge healthcare service application to provide a virtual assisted living experience for seniors, recently released postoperative patients, and others. The concierge application will enable the consumer to obtain home healthcare services and health and safety monitoring equipment to improve quality of life. We are also working to develop a fully integrated solution for the professional healthcare community that integrates electronic health records, remote patient monitoring, telehealth, and other items where integration is beneficial.
Previous report
Our mission is to grow a profitable healthcare technology company by focusing on our core product, continuing the development of our proprietary software, and developing new uses and product lines for our technology. Our management team is focused on maintaining financial flexibility and assembling the right complement of personnel and outside consultants required to successfully execute our mission.
Previous report
We continue to utilize funds raised from the private sales of our common stock, issuance of debt, and short-term advances from related parties to provide cash for our operations, which has allowed us to continue refining our initial product and readying it for pilot testing, developing future product offerings and adding talented individuals to our management team and on a contract basis. Highlighted achievements for the three months ended October 31, 2024 include:
Previous report
Our business did not produce revenue during the three months ending October 31, 2024, and 2023, respectively, as we continue to develop, refine and evaluate our products.
Previous report
Other- Other expenses increased $929 over 2023 primarily due to an increase in bank charges.
Previous report
Amortization- Amortization expense decreased $1,343, or 2% over 2023. The decrease in amortization expense primarily relates to a reduction of patent cost during the three months ended October 31, 2024.
Previous report
Going Concern Qualification
Previous report
At this time, we cannot provide investors with any assurance that we will be able to obtain sufficient funding from debt financings and/or the sale of our equity securities to meet our obligations over the next twelve months. We are likely to continue using short-term loans from management to meet our short-term funding needs. We have no material commitments for capital expenditures as of October 31, 2024.
Previous report
We have a history of losses, an accumulated deficit, negative working capital and have not generated cash from operations to support a meaningful and ongoing business plan. Our Independent Registered Public Accounting Firm has included a “Going Concern Qualification” in their report for the years ended July 31, 2024 and 2023. The foregoing raises substantial doubt about the Company’s ability to continue as a going concern. We intend on financing our future activities and working capital needs largely from the sale of private and/or public equity securities with additional funding from other traditional financing sources, including term notes, until such time that funds provided by operations are sufficient to fund working capital requirements. There is no guarantee that additional capital or debt financing will be available when and to the extent required, or that if available, it will be on terms acceptable to us. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. The “Going Concern Qualification” might make it substantially more difficult to raise capital.
Previous report
In accordance with ASC 326,Financial Instruments – Credit Losses, we recognize an allowance for credit losses on acquired financial assets with credit deterioration since origination. The allowance of credit losses is measured based on the Current Expected Credit Loss (CECL) model, which requires an estimate of the expected credit losses over the life of the financial asset. This estimate considers historical loss information, current conditions, and reasonable and supportable forecasts. The allowance for credit losses, if any, is recorded as a reduction to the carrying amount of the financial asset, with a corresponding charge to earnings.
Previous report
Related Parties
Previous report
The Company follows subtopic ASC 850-10 for the identification of related parties and disclosure of related party transactions. Pursuant to Section 850-10-20, the related parties include: (a) affiliates of the Company (“Affiliate” means, with respect to any specified person, any other person that, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with such person, as such terms are used in and construed under Rule 405 under the Securities Act); (b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825-10-15, to be accounted for by the equity method by the investing entity; (c) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; (d) principal owners of the Company; (e) management of the Company; (f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and (g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.
Previous report
Contract Liabilities
Previous report
The Company receives payments from customers based upon contractual billing schedules. Contract liabilities include payments received in advance of performance under the contract. Contract assets include amounts related to the Company’s contractual right to consideration for completed performance obligations not yet invoiced. Our contract assets and liabilities are reported on an individual contract basis at the end of each reporting period. Contract liabilities are classified as current or noncurrent based on the timing of when we expect to recognize revenue. The Company expects to recognize all outstanding contract liabilities over the next 12 months.
Previous report
Contract Combination
Previous report
The Company may execute more than one contract or agreement with a single customer. The Company evaluates whether the agreements were negotiated as a package with a single objective, whether the amount of consideration to be paid in one agreement depends on the price and/or performance of another agreement, or whether the goods or services promised in the agreements represent a single performance obligation. The conclusions reached can impact the allocation of the transaction price to each performance obligation and the timing of revenue recognition related to those arrangements. The Company applied the revenue model to a portfolio of contracts with similar characteristics where we expected that the financial statements would not differ materially from applying it to the individual contracts within that portfolio.
Previous report
Often contracts contain more than one performance obligation. Performance obligations are the unit of accounting for revenue recognition and generally represent the distinct goods or services that are promised to the customer. Revenue is recognized net of any taxes collected and subsequently remitted to governmental authorities. If we determine that we have not satisfied a performance obligation, we defer recognition of the revenue until the performance obligation is satisfied. The agreements are generally non-cancellable or contain significant penalties for early cancellation, although customers typically have the right to terminate their contracts for cause if we fail to perform material obligations. However, if non-standard acceptance periods, non-standard performance criteria, or cancellation or right of refund terms are required, revenue is recognized upon the satisfaction of such criteria.
Reworded paragraphs (22)
Previous wording
Three Months Ended October 31, 2024 Compared to the Three Months Ended October 31, 2023
Current wording
Three Months Ending January 31, 2025 Compared to the Three Months Ending January 31, 2024
Previous wording
The table below presents a comparison of our operating expenses for the three months ended October 31, 2024 and 2023:
Current wording
The table below presents a comparison of our operating expenses for the three months ending January 31, 2025 and 2024:
Previous wording
Officers’ Salaries - Officers’ salaries increased $50,370, or 58%, over 2023 and is primarily due to the addition of our new Chief Strategy Officer and our Chief Executive Officer’s increased pay over the previous period, the Company’s officers accepted voluntary pay reductions in the prior comparable period.
Current wording
Officers’ Salaries - Officers’ salaries increased $53,827, or 62%, over the prior period primarily due to the addition of the President & Chief Strategy Officer and increased pay for the Chief Financial Officer and Chief Executive Officer compared to the previous period, the Company’s officers accepted voluntary pay reductions in the prior comparable period.
Previous wording
Contract labor – Contract labor increased $36,011 over 2023 and is attributable to the addition of new finance and accounting personnel.
Current wording
Contract labor – Contract labor increased $30,942 over the prior period and is attributable to the addition of new finance and accounting personnel.
Previous wording
*Professional Fees -*Professional fees increased $29,813, or 70%. over the same period in the prior year primarily due to increased accounting and legal fees and the addition of a grant writing consultant.
Current wording
*Professional Fees -*Professional fees increased $36,400, or 306% over the same period in the prior year primarily due to increased accounting and legal fees and the addition of a grant writing consultant.
Previous wording
Software Development – Software development expenses increased $29,806 over 2023 due to an increase in the use of independent contractors for specific development projects.
Current wording
Software Development – Software development expenses increased $34,504, or 788% over the same period in the prior year due to an increase in the use of independent contractors for specific development projects.
Previous wording
*Travel and entertainment –*Travel and entertainment expense increased $23,915, or 2,847%, over the same period in the prior year. The increase is primarily due to increased business travel by the senior management team.
Current wording
*Travel and entertainment –*Travel and entertainment expense increased $60,176 over the same period in the prior year. The increase is primarily due to increased business travel by the senior management team.
Previous wording
*Advertising and Marketing -*Advertising and marketing costs increased $15,017, or 563%, over the same period in the prior year primarily due to increased expenses related to conferences and trade show attendance.
Current wording
*Advertising and Marketing -*Advertising and marketing costs increased $72,572 over the same period in the prior year due to no advertising and marketing expenses during the three months ending January 31, 2025.
Previous wording
Office expense- Office expense increased $19,909 over 2023 and primarily relates to increases in office rent expense and supplies.
Current wording
Office expense- Office expense increased $45,209 primarily due to increases in office activities over the same period in the prior year.
Previous wording
*Stock-based Compensation -*Stock-based compensation expense increased $234,440, or 1,068%, from the same period in the prior year. The increase results from the amortization of the grant date fair value of new restricted stock awards.
Current wording
*Stock-based Compensation -*Stock-based compensation expense increased $620,472 from the same period in the prior year. The increase results from the amortization of the grant date fair value of new restricted stock awards.
Previous wording
Impairment of intangibles- Amortization expense increased $15,678 over 2023. The impairment expense relates to the abandonment of certain patent applications and the establishment of an impairment reserve on active patent applications.
Current wording
*Impairment of intangibles –*Impairment of intangibles increased $30,547 over the same period in the prior year. The impairment expense relates to the abandonment of certain patent applications and the establishment of an impairment reserve on active patent applications.
Previous wording
The table below presents a comparison of our other income (expense) for the three months ended October 31, 2024 and 2023:
Current wording
The table below presents a comparison of our other income (expense) for the three months ending January 31, 2025 and 2024:
Previous wording
Interest Expense - Interest expense increased $1,093, or 9%, over the same period in the prior year. Interest expense increased due to an increase in the outstanding debt balance.
Current wording
Interest Expense - Interest expense increased $4,495, or 34%, over the same period in the prior year due to an increase in the average outstanding debt balance during the same period in the prior year.
Previous wording
Current assets for the interim period ended October 31, 2024 increased $2,044,100 as compared to the fiscal year ended July 31, 2024. The increase is primarily due to the receipt of $2,452,000 in net proceeds from the sale of our common stock at an average price of $0.10 per share during the three months ending October 31, 2024.
Current wording
Current assets for the interim period ending January 31, 2025 increased $6,772,654 as compared to the fiscal year ended July 31, 2024. The increase is primarily due to the receipt of $6,998,900 in net proceeds from the sale of our common stock at an average price of $0.114 per share during the six months ending January 31, 2025.
Previous wording
Current liabilities for the interim period ended October 31, 2024 decreased $78,299 as compared to the fiscal year ended July 31, 2024. The decrease is due to decreases in accounts payable and accrued expenses and a reduction in payroll liabilities.
Current wording
Current liabilities for the interim period ending January 31, 2025 decreased $173,119 as compared to the fiscal year ended July 31, 2024. The decrease is primarily due to decreases in accounts payable and accrued expenses and a reduction in the Notes payable, related party.
Previous wording
We currently do not have a revenue source and will continue to have negative cash flow from operations for the near future. The factors in determining operating cash flows are largely the same as those that affect net earnings, except for non-cash expenses such as depreciation and amortization, stock-based compensation, and impairment of intangibles, which affect earnings but do not affect operating cash flow. Net cash used by operating activities was $378,667 for the three months ended October 31, 2024 as compared to net cash provided by operating activities of $3,049 for the three months ended October 31, 2023. The increase in cash used by operating activities is primarily attributable to an increase in operating costs and the payment of accounts payable and accrued expenses, including related party items.
Current wording
We currently do not have a revenue source and will continue to have negative cash flow from operations for the near future. The factors in determining operating cash flows are largely the same as those that affect net earnings, except for non-cash expenses such as depreciation and amortization, stock-based compensation, and impairment of intangibles, which affect earnings but do not affect operating cash flow. Net cash used by operating activities was $873,002 for the six months ended January 31, 2025 as compared to net cash provided by operating activities of $187,571 for the six months ended January 31, 2024. The increase in cash used by operating activities is primarily attributable to an increase in operating costs and the payment of accounts payable and accrued expenses, including related party items.
Previous wording
Net cash provided by financing activities was $2,216,767 for the three months ended October 31, 2024, which represents a $2,213,998 increase over the same period of 2023. The increase is primarily due to the receipt of $2,452,000 in net proceeds from the sale of our common stock at an average price of $0.10 per share during the three months ending October 31, 2024.
Current wording
Net cash provided by financing activities was $6,903,656 for the six months ending January 31, 2025, which represents a $6,775,859 increase over the same period in the prior year. The increase is primarily due to the receipt of $6,998,900 in net proceeds from the sale of our common stock at an average price of $0.114 per share during the six months ending January 31, 2025.
Previous wording
Our consolidated financial statements and related public financial information are based on the application of U.S. GAAP. U.S. GAAP requires the use of estimates; assumptions, judgments and subjective interpretations of accounting principles that have an impact on the assets, liabilities, revenues and expense amounts reported. These estimates can also affect supplemental information contained in our external disclosures including information regarding contingencies, risk and financial condition. We believe our use of estimates and underlying accounting assumptions adhere to U.S. GAAP and are consistently and conservatively applied. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ materially from these estimates under different assumptions or conditions. We continue to monitor significant estimates made during the preparation of our financial statements.
Current wording
Our interim consolidated financial statements and related public financial information are based on the application of U.S. GAAP. U.S. GAAP requires the use of estimates; assumptions, judgments and subjective interpretations of accounting principles that have an impact on the assets, liabilities, revenues and expense amounts reported. These estimates can also affect supplemental information contained in our external disclosures including information regarding contingencies, risk and financial condition. We believe our use of estimates and underlying accounting assumptions adhere to U.S. GAAP and are consistently and conservatively applied. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ materially from these estimates under different assumptions or conditions. We continue to monitor significant estimates made during the preparation of our financial statements.
Previous wording
Our significant accounting policies are summarized in Note 1 of our consolidated financial statements.
Current wording
Our significant accounting policies are summarized in Note 1 of our interim consolidated financial statements.
Previous wording
We believe the following critical policies impact our more significant judgments and estimates used in the preparation of our consolidated financial statements.
Current wording
We believe the following critical policies impact our more significant judgments and estimates used in preparation of our interim consolidated financial statements.
Previous wording
The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is reassessed at the end of each reporting period. Equity instruments that are initially classified as equity that become subject to reclassification are reclassified to liability at the fair value of the instrument on the reclassification date. Derivative instrument liabilities will be classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument is expected within 12 months of the balance sheet date.
Current wording
The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period. Equity instruments that are initially classified as equity that become subject to reclassification are reclassified to liability at the fair value of the instrument on the reclassification date. Derivative instrument liabilities will be classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument is expected within 12 months of the balance sheet date.
Previous wording
Revenue is recognized under ASC 606, “Revenue from Contracts with Customers” using the modified retrospective method. Under this method, the Company follows the five-step model provided by ASC Topic 606 in order to recognize revenue in the following manner: 1) Identify the contract; 2) Identify the performance obligations of the contract; 3) Determine the transaction price of the contract; 4) Allocate the transaction price to the performance obligations; and 5) Recognize revenue. An entity recognizes revenue for the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services.
Current wording
Revenue is recognized under ASC 606, “Revenue from Contracts with Customers” using the modified retrospective method. Under this method, the Company follows the five-step model provided by ASC Topic 606 in order to recognize revenue in the following manner: 1) Identify the contract; 2) Identify the performance obligations of the contract; 3) Determine the transaction price of the contract; 4) Allocate the transaction price to the performance obligations; and 5) Recognize revenue. An entity recognizes revenue for the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. The Company’s revenue recognition policies remained unchanged as a result of the adoption of ASC 606, and there were no significant changes in business processes or systems.
Rearranged current paragraphs (9)
Current report — wording carried from elsewhere
The table below presents a comparison of our operating expenses for the six months ending January 31, 2025 and 2024:
Current report — wording carried from elsewhere
Contract labor – Contract labor increased $66,953 over the prior period and is attributable to the addition of new finance and accounting personnel.
Current report — wording carried from elsewhere
*Professional Fees -*Professional fees increased $66,213, or 121%. over the same period in the prior year primarily due to increased accounting and legal fees and the addition of a grant writing consultant.
Current report — wording carried from elsewhere
Software Development – Software development expenses increased $64,310, or 777% over the same period in the prior year due to an increase in the use of independent contractors for specific development projects.
Current report — wording carried from elsewhere
*Travel and entertainment –*Travel and entertainment expense increased $84,091 over the same period in the prior year. The increase is primarily due to increased business travel by the senior management team.
Current report — wording carried from elsewhere
Office expense- Office expense increased $55,708 primarily due to increases in office activities over the same period in the prior year.
Current report — wording carried from elsewhere
*Stock-based Compensation -*Stock-based compensation expense increased $854,912 from the same period in the prior year. The increase results from the amortization of the grant date fair value of new restricted stock awards.
Current report — wording carried from elsewhere
*Impairment of intangibles –*Impairment of intangibles increased $46,225 over the same period in the prior year. The impairment expense relates to the abandonment of certain patent applications and the establishment of an impairment reserve on active patent applications.
Current report — wording carried from elsewhere
The table below presents a comparison of our other income (expense) for the six months ended January 31, 2025 and 2024: