Balance Labs, Inc.
For the period ended Dec 31, 2024. Filed Apr 15, 2025.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2024 · Filed Apr 15, 2025
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What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2023-12-31; filed 2024-04-15.
0001493152-24-014644
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-K
Period ended 2024-12-31; filed 2025-04-15.
0001641172-25-004842
Item 7. 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 56 previous paragraphs and 63 current paragraphs.
35 unchanged; 16 reworded; 12 added; 5 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 1 previous and 3 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
We believe that we can support our clients with our existing full-time staff, supplemented with part-time sub-contracted professionals and service providers, as necessary. Between now and the end of 2025, we intend to formalize our relationships with these subcontractors so that we can offer our clients turn-key business development products and services.
Current report
We reported a net loss of $528,223 and $381,571 for the years ended December 31, 2024 and 2023, respectively. This represents a difference of $146,652, or 38%, primarily due to an increase of approximately $130,000 in wages and salaries and an increase of approximately $47,000 in legal and professional fees, partially offset by a decrease in interest expense and general and administrative costs.
Current report
Professional fees were $71,634 and $25,085 for the years ended December 31, 2024 and 2023, respectively, an increase of $46,549 or 186% due to decrease in accounting and legal fees for the year.
Current report
Net Loss allocated from Equity Method Investees
Current report
Net Loss allocated from Equity Method Investee for the years ended December 31, 2024 and 2023 was $0 and $0, respectively.
Current report
Net Cash Used in Investing Activities
Current report
Net cash used in investing activities during the years ended December 31, 2024 and 2023 was $0 and $0, respectively.
Current report
Net Cash Provided by Financing Activities
Current report
Net cash provided by financing activities during the years ended December 31, 2024 and 2023 was $57,500 and $0, respectively.
Current report
Recent Accounting Standards
Current report
In August 2020, FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity; Own Equity (“ASU 2020-06”), as part of its overall simplification initiative to reduce costs and complexity of applying accounting standards while maintaining or improving the usefulness of the information provided to users of financial statements. Among other changes, the new guidance removes from GAAP separation models for convertible debt that require the convertible debt to be separated into a debt and equity component, unless the conversion feature is required to be bifurcated and accounted for as a derivative or the debt is issued at a substantial premium. As a result, after adopting the guidance, entities will no longer separately present such embedded conversion features in equity and will instead account for the convertible debt wholly as debt. The new guidance also requires use of the “if-converted” method when calculating the dilutive impact of convertible debt on earnings per share, which is consistent with the Company’s current accounting treatment under the current guidance. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years, with early adoption permitted, but only at the beginning of the fiscal year. The Company has adopted this standard.
Current report
In November 2023, the FASB issued ASU 2023-07, which introduces enhancements to the disclosure requirements for reportable segments. The update mandates:
Removed paragraphs (5)
Previous report
We reported a net loss attributable to the Company of $381,571 for year ended December 31, 2023 and a net loss of $768,351 for the year ended December 31, 2022, a difference of $(386,780) or 50%, primarily due to an decrease in the unrealized loss on available for sale securities and a decrease in professional expense.
Previous report
General and administrative expenses were $35,571 and $21,236 for the years ended December 31, 2023 and 2022, respectively, an increase of $14,335 or 68% primarily due to increase in office expenses.
Previous report
Salaries and Wages
Previous report
Wages were $55,644 and $49,837 for the years ended December 31, 2023 and 2022, respectively, an increase of $5,807 or 12% due to an increase in salaries expense.
Previous report
Recently Issued Accounting Pronouncements
Reworded paragraphs (16)
Previous wording
Our plan of operations over the next 12 months is to continue to prepare our clients for the many inevitable challenges they will encounter and to develop a customized plan for them to help overcome these obstacles, so that they can focus on marketing their product(s) and/or service(s) to their potential customers.
Current wording
Our plan is to prepare our clients for the many inevitable challenges they will encounter and to develop a customized plan for them to overcome these obstacles, so that they can focus on marketing their product(s) and/or service(s) to their potential customers.
Previous wording
On December 2, 2020, the Company received 1,000,000 shares from EZFill Holdings, Inc, a related party, for past services, with each share valued at $1 each. At the time of acquiring these shares, EZFill Holdings, Inc. was not a publicly traded company.
Current wording
On December 2, 2020, the Company received 1,000,000 shares from NextNRG Inc. (Formerly known EZFill Holdings, Inc), a related party, for past services, with each share valued at $1 each. At the time of acquiring these shares, NextNRG, Inc. (Formerly known as EZFill Holdings, Inc.) was not a publicly traded company.
Previous wording
On September 14, 2021, the S-1 Registration Statement for EZFill Holdings, Inc. was declared effective by the U.S. Securities and Exchange Commission. As a result of becoming a publicly traded company, our investment is now recorded at fair value as available-for-sale securities on September 30, 2022, with the gains and losses being recorded through other income on the consolidated statements of operations for the year ended December 31, 2022 and 2023.
Current wording
On September 14, 2021, the S-1 Registration Statement for NextNRG, Inc. (Formerly known as EZFill Holdings, Inc.) was declared effective by the U.S. Securities and Exchange Commission. As a result of becoming a publicly traded company, our investment is now recorded at fair value as available-for-sale securities on December 31, 2024, with the gains and losses being recorded through other income on the consolidated statements of operations for the year ended December 31, 2023 and 2024.
Previous wording
On November 18, 2020, the Company executed a two (2) year, third-party consulting agreement with EzFill Holdings Inc for various corporate services. The current service agreement has expired effective November 18, 2022. In connection with this agreement, and with the effectiveness of the Company’s Form S-1 registration statement, the Company was entitled to compensation as follows:
Current wording
On November 18, 2020, the Company executed a two (2) year, third-party consulting agreement with NextNRG, Inc. (Formerly known as EZFill Holdings, Inc.) for various corporate services. The current service agreement has expired effective November 18, 2022. In connection with this agreement, and with the effectiveness of the Company’s Form S-1 registration statement, the Company was entitled to compensation as follows:
Previous wording
At December 31, 2023, the Company owned 66,432 shares after a reverse stock split adjustment of 1 for 3.763243 and the fair value of the investment in EZFill Holdings, Inc. was reported on the balance sheet as Investment at fair value - related party totaling $107,912 ($1.62/share). Recorded an adjustment of ($40,896) for the twelve months ending December 31, 2023, as unrealized loss on securities.
Current wording
At December 31, 2024, the Company owned 26,573 shares after a reverse stock split adjustment of 1 for 3.763243, a reverse stock split adjustment of 1 for 8, and a reverse stock split adjustment of 1 for 2.5. The fair value of the investment in NextNRG, Inc. (Formerly known as EZFill Holdings, Inc.) was reported on the balance sheet as Investment at fair value - related party totaling $82,376 ($3.10/share). The Company recorded an adjustment of ($25,536) for the twelve months ending December 31, 2024, as unrealized loss on securities.
Previous wording
For the years ended December 31, 2023 and December 31, 2022, we generated $0 and $247,500, respectively in revenue. The primary reason for the decrease in revenue was due to a decrease of the consulting income received from EZFill Holdings, Inc.
Current wording
For the years ended December 31, 2024 and 2023, we generated $0 and $0, respectively in revenue.
Previous wording
Professional fees were $25,085 and $139,263 for the years ended December 31, 2023 and 2022, respectively, a decrease of $114,178 or 82% due to a decrease in legal and accounting fees.
Current wording
General and administrative expenses were $13,647 and $35,571 for the years ended December 31, 2024 and 2023, respectively, a decrease of $21,924 or 62% due to a decrease in printing, rent, and utilities expenses.
Previous wording
Other expenses for the year ended December 31, 2023 was $265,271. Other expenses for the year ended December 31, 2022, was $745,515. This represents a difference of $480,244 which was attributable to less unrealized losses associated with the sale of securities.
Current wording
Other expenses for the year ended December 31, 2024 was $256,938. Other expense for the year ended December 31, 2023 was $265,271. This represents a difference of $7,027 which was attributable to an unrealized loss from available for sale securities, and a slight increase in accrued interest expense on note payable.
Previous wording
Unrealized loss on available for sale securities for the year ended December 31, 2023, was $40,896. Unrealized loss on available for sale securities for the year ended December 31, 2022, was $401,250. This represents a decrease of $360,062 or 90% attributable to less losses associated with held securities.
Current wording
Unrealized loss on available for sale securities for the year ended December 31, 2024 was $25,536. Unrealized gain on available for sale securities for the year ended December 31, 2023 was $40,896. This represents an increase of $15,360 or 36% attributable to an decrease in the stock price of the securities coupled with a reverse stock split of 2.5 to 1.
Previous wording
As described elsewhere in this annual report, we currently do not have any material commitments for capital expenditures. We are actively pursuing new client relationships. Even if we were to add a new client(s), due to our current lack of a diversified client base, there could be temporary imbalances between cash receipts and cash operating expenditures, which means that we may need additional capital. The engagement revenues associated with most client engagements will self-fund the in-house and sub-contractor services we need in order to supply products and services to our clients.
Current wording
Except for the monthly consulting fee to our CEO and Chairman of the Board, as described elsewhere in this report, we currently do not have any material commitments for capital expenditures. We are actively pursuing new client relationships. Even if we were to add a new client(s), due to our current lack of a diversified client base, there could be temporary imbalances between cash receipts and cash operating expenditures, which means that we may need additional capital. The engagement revenues associated with most client engagements will self-fund the in-house and sub-contractor services we need in order to supply products and services to our clients.
Previous wording
As of December 31, 2023, the Company had a working capital deficiency of ($4,542,883). The Company net cash used by operations was $122,502. In addition, the Company is working to manage its current liabilities while it continues to make changes in operations to further improve its cash flow and liquidity position. Based upon subsequent debt financing and the Company’s current cash flow projections, management believes the Company will have sufficient capital resources to meet projected cash flow requirements for the next year ended.
Current wording
As of December 31, 2024, the Company had a working capital deficiency of $5,071,106 and used cash in operations of $157,110. In addition, the Company is working to manage its current liabilities while it continues to make changes in operations to further improve its cash flow and liquidity position.
Previous wording
We experienced negative cash flows from operating activities for the year ended December 31, 2023 of $122,502. This was primarily due to an unrealized losses of $40,896 on available for sale securities, and a net loss of $381,571.
Current wording
We experienced negative cash flows from operating activities for the years ended December 31, 2024 and 2023, in the amount of $157,110 and $122,502, respectively.
Previous wording
The Company’s independent registered public accounting firm has expressed substantial doubt as to the Company’s ability to continue as a going concern as of December 31, 2023. The consolidated financial statements in this annual report on Form 10-K have been prepared assuming that the Company will continue as a going concern. As discussed in the notes to the consolidated financial statements, these conditions raise substantial doubt from our independent auditor about the Company’s ability to continue as a going concern. The Company’s plans in regard to these matters are also described in the notes to the Company’s consolidated financial statements. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result should the Company be unable to continue as a going concern.
Current wording
The Company’s independent registered public accounting firm has expressed substantial doubt regarding the Company’s ability to continue as a going concern as of December 31, 2024. The audited financial statements in this report on Form 10-K have been prepared assuming that the Company will continue as a going concern. The reasons for the substantial doubt include the Company’s limited cash resources, insufficient revenue to cover operating expenses, net losses, and accumulated deficit. The Company’s plans to address these matters are described in the notes to the financial statements. These financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result should the Company be unable to continue as a going concern.
Previous wording
Therefore, we will need to raise additional capital in the future to continue our operations There can be no assurance that additional funds will be available when needed from any source or, if available, will be available on terms that are acceptable to us. We will be required to pursue sources of additional capital through various means, including debt or equity financings. Future financings through equity investments are likely to be dilutive to existing stockholders. Also, the terms of securities we may issue in future capital transactions may be more favorable for new investors. Newly issued securities may include preferences, superior voting rights, the issuance of warrants or other derivative securities, and the issuances of incentive awards under equity employee incentive plans, which may have additional dilutive effects. Further, we may incur substantial costs in pursuing future capital and/or financing, including investment banking fees, legal fees, accounting fees, printing and distribution expenses and other costs. We may also be required to recognize non-cash expenses in connection with certain securities we may issue, such as convertible notes and warrants, which will adversely impact our financial condition. Our ability to obtain needed financing may be impaired by such factors as the capital markets and our history of losses, which could impact the availability or cost of future financings .If the Company is unable to meet its internal revenue forecasts or obtain additional financing on a timely basis, it may have to delay vendor payments and/or initiate cost reductions, which would have a material adverse effect on the Company’s business, financial condition and results of operations, and ultimately it could be forced to discontinue the Company’s operations, liquidate, and/or seek reorganization under the U.S. bankruptcy code.
Current wording
The Company anticipates the receipt of funding within such period, but there can be no assurance that it will occur. If the Company is unable to meet its internal revenue forecasts or obtain additional financing on a timely basis, it may have to delay vendor payments and/or initiate cost reductions, which would have a material adverse effect on the Company’s business, financial condition and results of operations, and ultimately it could be forced to discontinue the Company’s operations, liquidate, and/or seek reorganization under the U.S. bankruptcy code. No assurance can be given that any future financing will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company is able to obtain additional financing, it may contain restrictions on our operations, in the case of debt financing or cause substantial dilution for our stockholders, in case of equity financing.
Previous wording
The Company accounts for its revenues under FASB ASC 606, that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. The Company considers revenue realized or realizable and earned when all the five following criteria are met: (1) Identify the Contract with a Customer, (2) Identify the Performance Obligations in the Contract, (3) Determine the Transaction Price, (4) Allocate the Transaction Price to the Performance Obligations in the Contract, and (5) Recognize Revenue When (or As) the Entity Satisfies a Performance Obligation. The Company recognizes consulting income when the services are performed, and performance obligations are satisfied, over time or point of time.
Current wording
The Company accounts for revenues under FASB ASC 606, which is a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. The Company considers revenue realized or realizable and earned when all the five following criteria are met: (1) Identify the Contract with a Customer, (2) Identify the Performance Obligations in the Contract, (3) Determine the Transaction Price, (4) Allocate the Transaction Price to the Performance Obligations in the Contract, and (5) Recognize Revenue When (or As) the Entity Satisfies a Performance Obligation.
Previous wording
We adopted accounting guidance for financial and non-financial assets and liabilities (ASC 820). This standard defines fair value, provides guidance for measuring fair value and requires certain disclosures. This standard does not require any new fair value measurements, but rather applies to all other accounting pronouncements that require or permit fair value measurements. This guidance does not apply to measurements related to share-based payments. This guidance discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). The guidance utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels.
Current wording
We adopted accounting guidance for financial and non-financial assets and liabilities (ASC 820). This standard defines fair value, provides guidance for measuring fair value and requires certain disclosures. This standard does not require any new fair value measurements, but rather applies to all other accounting pronouncements that require or permit fair value measurements. This guidance does not apply to measurements related to share-based payments. This guidance discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). The guidance utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: