General Enterprise Ventures Inc

Previous wording

Our operating results for the three months ended March 31, 2024, and 2023 and the changes between those periods for the respective items are summarized as follows:

Current wording

Our operating results for the three and six months ended June 30, 2024 and 2023 and the changes between those periods for the respective items are summarized as follows:

Previous wording

The Company’s revenue is associated with revenue from MFB which acquired intellectual property to fire suppression in April 2022. The cost of revenue was $89,872 and 13,854 for three months ended March 31, 2024 and 2023, respectively.

Current wording

The Company’s revenue is associated with revenue from Mighty Fire Breaker, LLC, an Ohio limited liability company (“MFB Ohio’) which acquired intellectual property to fire suppression in April 2022. During the three months ended June 30, 2024, the revenue increased $170,314 over the three months ended June 30, 2023, due to MFBs EPA approval and the filing of additional patents. With the EPA approval, MFB started the marketing phase of the Company’s evolution. MFB started selling directly to fire departments and launched its proactive wild-fire defense systems and is gaining momentum with commercial customers, along with attempting to influence the insurance industry to the benefit of consumers.

Previous wording

The increase in operating expenses was primarily attributed to stock -base management compensation of $1,422,750, stock-based services companion of $975,250, marketing expenses of $98,603, depreciation of $63,571 and general and administrative expenses of $45,340.

Current wording

The increase in operating expenses was primarily attributed to cost of revenue of $61,000, professional fees of $257,000, advertising and marketing of $219,000 and general and administrative expenses of $123,000.

Previous wording

For the three months ended March 31, 2024, and 2023, the other expenses consisted of $885 and $175 interest related to convertible note payable and loss on settlement of debt of $882,279 and $0, respectively.

Current wording

For the six months ended June 30, 2024 and 2023, the other expenses consisted of $885 and $759 interest related to convertible note payable and loss on settlement of debt of $882,279 and $0, respectively.

Previous wording

The increase in working capital in 2024 was primarily the result of an increase in accounts receivable of $253,532, prepaid expenses of $792 and a decrease in cash of $178,660 and inventory of 41,406 offset by an increase in accounts payable and accrued liabilities of $15,685, operating lease liability -current portion of $1,915, a decrease in promissory note of $120,000 and convertible note of $54,000.

Current wording

The increase in working capital deficiency in 2024 was primarily the result of an increase in accounts receivable of $223,000, prepaid expenses of $791, deferred offering cost of $35,000 and a decrease in cash of $3,200, inventory of 38,000 offset by an increase in accounts payable and accrued liabilities of $46,000, operating lease liability-current portion of $3,900, advances payable of $695,000 and a decrease in promissory note of $120,000, convertible note of $54,000 and due to related party of $58,000.

Previous wording

As of March 31, 2024, and December 31, 2023, the current assets consisted primarily of cash of $371,095 and $549,755, inventory of $188,791 and $230,197, accounts receivable of $680,965 and $427,433, and prepaid expenses of $11,463 and 10,671, respectively.

Current wording

As of June 30, 2024, and December 31, 2023, the current assets consisted of cash of $547,000 and $550,000, inventory of $192,000 and $230,000, accounts receivable of $651,000 and $427,000, prepaid expenses of $11,000 and $11,000, and deferred offering costs of $35,000 and $0 respectively.

Previous wording

As of March 31, 2024, and December 31, 2023, the current liabilities consisted of accounts payable and accrued liabilities of $70,257 and $54,572, due to related party of $1,309,077 and $1,309,077, convertible note of $0 and $54,000, promissory note of $0 and $120,000 and current portion of operating lease liability of $82,051 and $80,136, respectively.

Current wording

As of June 30, 2024, and December 31, 2023, the current liabilities consisted of accounts payable and accrued liabilities of $101,000 and $55,000, due to related parties of $1.3 million and $1.3 million, convertible note of $0 and $54,000, promissory note of $0 and $120,000, advances of $695,000 and $0, and operating lease liability-current portion of $84,000 and $80,000, respectively.

Previous wording

We have not generated positive cash flows from operating activities. For the three months ended March 31, 2023, net cash flows used in operating activities was $343,660, consisting of a net loss of $3,519,710, reduced by stock-based compensation of $2,398,000, non-cash lease expenses of $19,602, depreciation of $63,835, loss on settlement of debt of $882,279 and increased by changes in operating assets and liabilities of $187,666.

Current wording

For the six months ended June 30, 2024, net cash flows used in operating activities consisted of a net loss of $4.4 million, reduced by stock-based compensation of $2.8 million , non-cash lease expenses of $40,000, amortization and depreciation of $127,000, loss on settlement of debt of $882,000 and increased by net changes in operating assets and liabilities of $148,000.

Previous wording

For the three months ended March 31, 2023, net cash flows used in operating activities was $176,905, consisting of a net loss of $353,611, reduced by stock-based compensation of $86,850, depreciation of $264, non-cash lease expenses of $15,000 and reduced by changes in operating assets and liabilities of $75,592.

Current wording

For the six months ended June 30, 2023, net cash flows used in operating activities consisted of a net loss of $833,000, reduced by stock-based compensation of $147,000, amortization and depreciation of $124,000, non-cash lease expenses of $30,000 and reduced by net changes in operating assets and liabilities of $108,000.

Previous wording

The Company did not use any funds for investing activities during the three months ended March 31, 2024, and 2023.

Current wording

The Company did not use any funds for investing activities during the six months ended June 30, 2024 and 2023.

Previous wording

For the three months ended March 31, 2024, net cash provided by financing activities consisted of $165,000 proceed from issuance Series C Preferred Stock.

Current wording

For the six months ended June 30, 2024, net cash provided by financing activities consisted of $165,000 proceed from issuance Series C Preferred Stock, $695,000 advances received from eleven (11) lenders in cash for issuance of convertible promissory notes and warrants, $35,000 deferred offering cost payment and $65,000 repayment of loan -related party.

Previous wording

For the three months ended March 31, 2023, net cash provided by financing activities consisted of $185,000 received from a related party.

Current wording

For the six months ended June 30, 2023, net cash provided by financing activities consisted of $275,000 received from a related party and $179,600 received from Series C Preferred Stock subscription.