Balance Labs, Inc.
For the period ended Mar 31, 2025. Filed May 20, 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.
Mar 31, 2025 · Filed May 20, 2025
BLNCStored price and day change unavailable
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-19.
0001493152-24-046598
Item 2. Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-20.
0001641172-25-011637
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 58 previous paragraphs and 54 current paragraphs.
26 unchanged; 5 reworded; 23 added; 26 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 2 previous and 2 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 (23)
Current report
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Current report
Forward-Looking Statements
Current report
Statements in the following discussion and throughout this report that are not historical in nature are “forward-looking statements.” You can identify forward-looking statements by the use of words such as “expect,” “anticipate,” “estimate,” “may,” “will,” “should,” “intend,” “believe,” and similar expressions, although not all forward-looking statements contain these identifying words. Although we believe the expectations reflected in these forward-looking statements are reasonable, such statements are inherently subject to significant risks and uncertainties and we can give no assurances that our expectations will prove to be correct. Actual results could differ materially from those described in this report because of numerous factors, many of which are beyond our control. These factors include, without limitation, those risk factors discussed in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on April 15, 2025. We undertake no obligation to update these forward-looking statements to reflect events or circumstances after the date of this report or to reflect actual outcomes.
Current report
We were incorporated on June 5, 2014, under the laws of the State of Delaware. We are a consulting firm that provides business development and consulting services to start-up and development-stage companies. Our business model is to provide businesses in various industries with customized consulting services to meet their business needs and help them improve their business models, sales and marketing plans and internal operations, as well as introduce these businesses to experienced professional contacts that would be vital to the success of these companies.
Current report
The Company is not a registered investment company under the Investment Company Act of 1940, as amended (the “1940 Act”) and does not engage primarily in the business of investing, reinvesting, or trading in securities. The Company is not managed like an active investment vehicle, is not an investment company registered under the 1940 Act and is not required to register under the 1940 Act.
Current report
Additionally, in accordance with the 1940 Act, Section 3(c)(1), the Company is not an Investment Company as defined by the 1940 Act because the Company does not have outstanding securities beneficially owned by more than one hundred persons and, at this time, the Company is not making and does not presently propose to make a public offering of its securities. Additionally, the Company has not and has no plans to purchase or acquire any securities issued by any registered investment company.
Current report
Our business focuses on providing advisement services to entrepreneurs and assisting business owners so that their ideas can be fully developed and implemented. Due to limited resources, lack of experienced management and competing priorities, start-up and developmental stage companies are not operating as efficiently as they can be, and therefore would, benefit from an outside party that could assist in developing and executing certain strategies. We utilize our knowledge in developing businesses, share practical experiences with our clients and introduce the business owners to experienced professionals who could help these inexperienced entrepreneurs further implement their ideas. Start-ups and development stage businesses across all industries commonly experience these certain “growing pains”.
Current report
Plan of Operations
Current report
Our plan is to prepare our clients for the many inevitable challenges they will encounter and to develop a customized strategy that allows them to navigate these obstacles efficiently. This approach ensures that our clients can focus on scaling their businesses and marketing their products and services to their potential customers. Additionally, as our clients plan for an IPO, we help them align their operations, financial reporting, and compliance measures to meet the rigorous demands of public market investors, ensuring they are well-prepared for the complexities of going public.
Current report
Although we’ve only worked with three clients since inception, our goal is to add and service a minimum of two to three new clients between now and the end of 2025. We’re marketing our services through both personal contact and online by (a) mining our existing network of professional contacts via personal outreach programs, which will also target international prospects that may wish to enter the US market; (b) expanding our network by attending targeted conferences and professional gatherings; and (c) utilizing our website at www.balancelabs.co, plus engaging potential clients on social media, including LinkedIn, Facebook and Twitter. However, because we have a limited budget allocated for an on-line marketing campaign, we anticipate that professionals within our professional network and personal referrals from companies that are satisfied with our professional services are likely to be our most significant and efficient near-term form of marketing.
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
Our primary requirement for funding is for working capital in order to accommodate temporary negative cash flows from operations (see “Liquidity and Capital Resources”).
Current report
Results of Operations
Current report
We reported a net loss of $6,406 and of $116,943 for the three months ended March 31, 2025 and 2024, respectively. This represents a decrease of $110,537, or 95%, primarily due to the cancellation of an accounts payable balance by one of the company’s professional services vendors during the three months ending March 31, 2025.
Current report
General and administrative expenses were $4,262 and $4,040 for the three months ended March 31, 2025 and 2024, respectively, an increase of $222 or 5% primarily due to an increase in dues and subscriptions.
Current report
Other income for the three months ended March 31, 2025 was $72,433. Other expense for the three months ended March 31, 2024 was $51,225. Other income increase due to the cancellation of an outstanding payable balance by a vendor during the three months ended March 31, 2025.
Current report
For the three months ended March 31, 2025, the Company experienced negative cash flows from operating activities totaling $22,659, primarily due to a net loss of $6,406, offset by a $70,575 increase in accounts payable and accrued interest and a $127,579 gain on the settlement of accounts payable.
Current report
For the three months ended March 31, 2024, the Company experienced negative cash flows from operating activities of $37,045, primarily due to a net loss of $116,943, partially offset by a $42,262 increase in accounts payable and accrued interest.
Current report
In November 2023, the FASB issued ASU 2023-07, which introduces enhancements to the disclosure requirements for reportable segments. The update mandates:
Current report
● More detailed disclosures regarding significant segment expenses.
Current report
● Alignment of segment reporting requirements with the information regularly reviewed by management.
Current report
● The Company adopted ASU 2023-07 effective January 1, 2024.
Current report
This adoption did not have a material impact on the Company’s consolidated financial statements.
Removed paragraphs (26)
Previous report
We reported a net loss of $192,837 and $68,735 for the three months ended September 30, 2024 and 2023, respectively. This represents a difference of 124,102, or 4%, primarily due to an increase of approximately $30,000 in salary and an increase in unrealized losson available for sale securities of $24,496.
Previous report
For the three months ended September 30, 2024 and September 30, 2023, we generated $0 and $0, respectively in revenue.
Previous report
General and administrative expenses were $4,557 and $8,005 for the three months ended September 30, 2024 and 2023, respectively, an decrease of $3,448 or 43% due to a decrease in printing and utilities expenses.
Previous report
Professional fees were $32,293 and $11,274 for the three months ended September 30, 2024 and 2023, respectively, a decrease of $21,019 or 286% due to decrease in accounting and legal fees for the quarter.
Previous report
Other expenses for the three months ended September 30, 2024 was $109,149. Other expense for the three months ended September 30, 2023 was $34,256. This represents a difference of $74,893 which was attributable to an unrealized loss from available for sale securities, and a slight increase in accrued interest expense on note payable.
Previous report
Net Loss allocated from Equity Method Investees
Previous report
Net Loss allocated from Equity Method Investee for the three months ended September 30, 2024 and September 30, 2023 was $0 and $0, respectively.
Previous report
Nine Months Ended September 30, 2024 Compared with Nine Months Ended September 30, 2023.
Previous report
We reported a net loss of $410,480 and of $252,768 for the nine months ended September 30, 2024 and 2023, respectively. This represents a difference of $157,713, or 63%, primarily due to an increase in salary and wages and by an unrealized gain on available for sale securities of $
Previous report
For the nine months ended September 30, 2024 and September 30, 2023, we generated $0 and $0, respectively in revenue.
Previous report
General and administrative expenses were $11,779 and $19,536 for the nine months ended September 30, 2024 and 2023, respectively, a decrease of $7,757 or 37% primarily due to an decrease in office expenses.
Previous report
Other expenses for the nine months ended September 30, 2024 was $203,204. Other expense for the nine months ended September 30, 2023 was $140,842. This represents a difference of $62,362 or 31% which was attributable to an unrealized loss from available for sale securities and interest expense,.
Previous report
Unrealized loss on available for sale securities for the nine months ended September 30, 2024 was $27,976. Unrealized gain on available for sale securities for the nine months ended September 30, 2023 was $29,894. This represents an increase of $57,870 or 194% attributable to an increase in the stock price of the securities and a reverse stock split.
Previous report
Net Loss allocated from Equity Method Investee
Previous report
Net Loss allocated from Equity Method Investee for the nine months ended September 30, 2024 and September 30, 2023 was $0 and $0, respectively.
Previous report
We experienced negative cash flows from operating activities for the nine months ended September 30, 2024 and September 30, 2023, in the amount of $112,402 and $89,693, respectively.
Previous report
Net cash used in investing activities during the nine months ended September 30, 2024 and September 30, 2023 was $0 and $0, respectively.
Previous report
Net Cash Provided by Financing Activities
Previous report
Net cash provided by financing activities during the nine months ended September 30, 2024 and September 30, 2023 was $30,000 and $0, respectively.
Reworded paragraphs (5)
Previous wording
Professional fees were $56,838 and $50,249 for the nine months ended September 30, 2024 and 2023, respectively, an increase of $6,589 or 12% due to an increase in accounting and legal fees for the quarter.
Current wording
Professional fees were $25,035 and $16,000 for the three months ended March 31, 2025 and 2024, respectively, an increase of $9,035 or 56% due to increase in accounting and legal fees for the quarter.
Previous wording
Unrealized loss on available for sale securities for the three months ended September 30, 2024 was $47,746. Unrealized gain on available for sale securities for the three months ended September 30, 2023 was $23,250. This represents an increase of $70,996 or 305% attributable to an decrease in the stock price of the securities coupled with a reverse stock split of 2.5 to 1.
Current wording
Unrealized gain on available for sale securities for the three months ended March 31, 2025 was $1,594. Unrealized gain on available for sale securities for the three months ended March 31, 2024 was $5,687. This represents a decrease of $4,093 attributable to a smaller increase in the stock price of the securities than in prior periods.
Previous wording
Except for the monthly consulting fee to our CEO and Chairman of the Board and the monthly lease of our virtual office, 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.
Current wording
Except for the monthly consulting fee to our CEO and Chairman of the Board and the monthly lease of our virtual office, 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.
Previous wording
As of September 30, 2024, the Company had a working capital deficiency of $4,953,363 and used cash in operations of $112,402. 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.
Current wording
As of March 31, 2025, the Company had a working capital deficiency of $5,077,512. The Company used cash in operations of $22,659. 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
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 wording
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 is still evaluating the impact of this standard on its financial statements
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Unrealized gain or loss on available for sale securities