New Canalys study findings reveal OpenText Cybersecurity products and Secure Cloud platform unlock significant growth for MSPs About OpenText Cybersecurity OpenText Cybersecurity provides comprehensive security solutions for companies and partners of all sizes. From prevention, detection and response to recovery, investigation and compliance, our unified/end-to-end platform helps customers build cyber resilience via a holistic security portfolio. Powered by actionable insights from our real-time and context ...

Core Insights - More than half of organizations have not yet realized the full benefits of AI adoption, indicating a gap between aspiration and actual progress [1][2] - The survey highlights a strong correlation between the maturity of an organization's AI program and the return on investment (ROI) [3][6] - Organizations face various challenges at different stages of AI maturity, which can hinder progress [4][7] AI Maturity Stages - Stage 1: Initial (19%) - Organizations recognize AI's potential but lack strategic initiatives and defined KPIs [5] - Stage 2: Experimentation (32%) - Organizations initiate small-scale AI projects to assess feasibility and benefits [5] - Stage 3: Defined (21%) - AI solutions are integrated into existing processes, enhancing efficiency [5] - Stage 4: Optimization (20%) - AI systems are enhanced for performance and scalability [5] - Stage 5: Transformation (8%) - AI drives significant business transformation [5] ROI and Satisfaction - At Stage 2, 77% of organizations report that their ROI met or exceeded expectations [6] - By Stage 5, 95% of organizations express high satisfaction with their AI investments, with 75% stating that AI exceeds ROI expectations [6] Challenges in AI Adoption - Common challenges include integration with existing systems, understanding impactful use cases, lack of skilled resources, data availability, and regulatory guidance [4] - As organizations progress, integration issues and data access challenges become more prominent, with 28% and 29% citing data availability as a major challenge at Stages 4 and 5, respectively [7] Redefining Success - Organizations need to redefine success in AI, moving from immediate cost savings to strategic growth and innovation [2][9] - Tailored AI strategies aligned with departmental goals are essential for success [8] Innovation and Collaboration - Innovation hubs, such as Protiviti's AI Studio, play a critical role in enabling organizations to explore use cases and accelerate AI implementation [9]

Core Insights - BlackLine's customer Creditsafe has been awarded the 2025 Nucleus Research ROI Award for achieving a 234% return on investment and a 12.4-month payback period through the deployment of BlackLine's financial operations platform [1][2]. Group 1: Impact of BlackLine's Solutions - The implementation of BlackLine's Invoice-to-Cash solution allowed Creditsafe to automate collections and cash allocation processes, leading to improved efficiency, increased visibility, and greater scalability in international operations [2][3]. - Creditsafe reported reduced operational costs, accelerated cash lifecycle, and enhanced customer experience, enabling the finance team to support rapid global expansion without increasing headcount [3][5]. Group 2: Innovation and Development - BlackLine continues to invest in innovation, recently launching a modernized Cash Application user interface that enhances the Invoice-to-Cash journey by providing a more intelligent and streamlined user experience [4]. - The company emphasizes its leadership in delivering AI-enabled, outcome-focused solutions that empower finance, accounting, and credit teams to operate more strategically and efficiently [5][8]. Group 3: Company Overview - BlackLine is recognized as a future-ready platform for the Office of the CFO, driving digital finance transformation through accurate, efficient, and intelligent financial operations [7][8]. - The platform addresses critical processes such as record-to-report and invoice-to-cash, ensuring unified and accurate data, streamlined processes, and real-time insights through visibility, automation, and AI [8].

Core Viewpoint - Marvell Technology, Inc. has introduced its Package Integrated Voltage Regulator (PIVR) power solutions, which aim to enhance the performance, efficiency, and return on investment (ROI) for AI and cloud infrastructure, particularly for hyperscalers [1][4]. Group 1: Product Features and Benefits - The PIVR power solutions facilitate a transition from traditional board-level power delivery systems to smaller, faster, integrated silicon chips, which are closely coupled with processors, enabling the development of 4+ kilowatt compute platforms [2]. - This solution reduces high voltages from power supplies to sub-1V levels, filters electrical waveforms, and controls voltage levels, leading to a potential reduction in transmission losses by up to 85% and improved voltage regulation [3]. - The PIVR solution offers higher power densities of 3-4 amperes per square millimeter compared to typical solutions of 1.5-2 amperes per square millimeter, supporting greater compute density and enhancing dynamic voltage scaling for real-time power tuning [3][6]. Group 2: Industry Collaboration and Ecosystem - Marvell's collaboration with partners like Infineon and MPS focuses on developing efficient and scalable Integrated Voltage Regulators, aiming to increase current density and reduce total cost of ownership (TCO) for data centers [5]. - The partnerships emphasize the importance of innovative power delivery architectures to meet the rising power demands in AI data centers, with a shared goal of advancing the data center power ecosystem [5]. - Companies like Empower Semiconductor and Endura Technologies are also collaborating with Marvell to redefine power delivery for AI processors, highlighting the need for high density, efficiency, and thermal management in next-generation AI architectures [7]. Group 3: Strategic Vision - Marvell's custom platform strategy aims to deliver breakthrough results through unique semiconductor designs and innovative approaches, combining expertise in system and semiconductor design with a comprehensive portfolio of semiconductor solutions [8]. - The company emphasizes deep collaboration with customers to transform infrastructure performance, efficiency, and value, positioning itself as a leader in data infrastructure technology [9].

Industry Overview - The telecom sector is experiencing healthy demand trends in 2024, driven by accelerated 5G deployment and increased fiber densification as users seek the latest digital innovations [1] - Despite a challenging macroeconomic environment, telecom stocks have benefited from higher demand for scalable infrastructure to support the proliferation of IoT devices [2] - The evolution of the 5G ecosystem is expected to offer numerous opportunities for innovation across various industries, with significant investments by leading carriers to upgrade network infrastructure [8] 5G Ecosystem - 5G technology is seen as a primary catalyst for Generative AI and next-generation IoT services, including connected cars and smart cities [4] - The deployment of mid-band airwaves, such as the CBand spectrum, provides significant bandwidth and better coverage, enhancing the 5G experience for customers [5] Cloud and Fiber Networks - The industry is adopting a software-driven, data-centric approach to enhance cloud architecture and customer experience, with fiber networks playing a crucial role in deploying small cells for extensive coverage [6] - Telecom service providers are increasingly utilizing fiber optic cables to meet the growing demand for cloud-based services and video streaming [6] Network Convergence - Operators are moving towards converged network structures that combine voice, video, and data communications, enabling rapid scaling of communication functionalities [7] - The proliferation of cloud networking solutions is increasing demand for quality networking equipment as both consumers and enterprises utilize the network [7] Telecom Stocks to Watch - **Arista Networks, Inc. (ANET)**: Focuses on cloud networking solutions and has seen an 88.3% stock gain over the past year, with earnings estimates up 22.2% [12] - **InterDigital, Inc. (IDCC)**: A pioneer in mobile technologies with a stock gain of 77.8% and earnings estimates up 137.1% [15] - **Qualcomm Incorporated (QCOM)**: A leading manufacturer of wireless chipsets, with a stock gain of 11.9% and earnings estimates up 10.5% [18] - **Ubiquiti Inc. (UI)**: Offers networking products with a significant stock gain of 156% [21] - **AST SpaceMobile, Inc. (ASTS)**: Developing a global cellular broadband network in space, with a remarkable stock gain of 341.4% [24]

Core Insights - Nvidia Corporation (NASDAQ: NVDA) experienced a significant increase of 240% year-over-year as of August 2023, leading to a "buy" rating for the stock [1] Company Performance - The stock's performance has raised questions about its sustainability in the market, indicating potential volatility in future valuations [1]

Company Overview - Amazon's stock has increased by more than 100% since January 2023, indicating strong market performance [1] - The analysis compares Amazon's AWS cloud business favorably against Oracle's offerings, highlighting its competitive edge [1] Analyst Background - The analyst has 10 years of experience in investment banking and 25 years in IT, providing a unique perspective on technology investments [1] - The analyst's research is data-driven, often utilizing analytics and charts to support investment insights [1] Investment Themes - The analyst focuses on themes such as automated supply chains, Generative AI, telecommunications capital expenditures, and the deflationary nature of software [1] - There is a contrarian approach to investment, particularly in sectors like biotech with a "techbio" focus [1]

Core Insights - Google (NASDAQ: GOOGL) was identified as attractively valued following a recent price drawdown of over 10%, leading to a subsequent price increase of 10.3% after a Buy rating was issued [1] Company Analysis - The investment analyst specializes in the technology sector, focusing on areas such as artificial intelligence, semiconductors, software, and renewable energy [1] - The analyst has gained recognition on Seeking Alpha, frequently appearing in the platform's "Must Reads," and has expanded visibility through syndication by GuruFocus to Forbes [1] - The research combines traditional fundamental analysis with advanced proprietary data tools, emphasizing value and growth-at-a-reasonable-price strategies [1] - There is a growing focus on small-cap and micro-cap companies, with an emphasis on high-quality, undervalued businesses that exhibit sustainable growth potential and ethical practices [1]

PART I – FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed consolidated financial statements detail the company's financial position, operational results, and cash flows for the period ended December 31, 2023 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The company's balance sheet shows total assets of $17.0 million and a shareholders' deficit of $(13.6) million, reflecting significant liquidity challenges Condensed Consolidated Balance Sheet Highlights (Unaudited) | Account | Dec 31, 2023 ($) | Mar 31, 2023 ($) | | :--- | :--- | :--- | | **Total Current Assets** | 9,826,738 | 11,815,400 | | **Total Assets** | 16,961,002 | 23,775,517 | | **Total Current Liabilities** | 29,059,982 | 37,192,139 | | **Total Liabilities** | 30,520,765 | 37,719,641 | | **Total Shareholders' Deficit** | (13,559,763) | (13,944,124) | - Cash and cash equivalents increased to **$101,487** from $65,838[13](index=13&type=chunk) - Derivative liabilities significantly decreased to **$1.4 million** from $19.9 million, primarily due to changes in fair value[13](index=13&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported a net loss of $(15.0) million for Q3 2023, a sharp decline from a net income of $2.6 million in the prior-year period Statement of Operations Summary (Unaudited) | Metric | Three Months Ended Dec 31, 2023 ($) | Three Months Ended Dec 31, 2022 ($) | | :--- | :--- | :--- | | Total Revenue | 240,356 | - | | Gross Loss | (1,817,668) | - | | Operating Loss | (10,238,512) | (1,454,507) | | Net (Loss) Income to Common Shareholders | (14,991,881) | 2,649,585 | | Net (Loss) Income Per Share | (3.37) | 2.55 | Nine-Month Performance Summary (Unaudited) | Metric | Nine Months Ended Dec 31, 2023 ($) | Nine Months Ended Dec 31, 2022 ($) | | :--- | :--- | :--- | | Total Revenue | 304,706 | - | | Gross Loss | (1,868,040) | - | | Operating Loss | (28,666,000) | (3,551,885) | | Net (Loss) Income to Common Shareholders | (23,564,185) | (30,873,703) | - A significant factor in the quarterly results was a **$(4.3) million total other expense** in Q3 2023, compared to a $6.2 million other income in Q3 2022[16](index=16&type=chunk) [Condensed Consolidated Statement of Changes in Shareholders' Deficit](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Shareholders'%20Deficit) The shareholders' deficit slightly decreased to $(13.6) million due to share issuances for financing and conversions, offset by a substantial net loss - The number of common shares outstanding increased from **1,383,832 to 10,734,744** due to financing activities and conversions[17](index=17&type=chunk) - The accumulated deficit grew from **$(208.7) million to $(232.2) million** during the nine-month period[17](index=17&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The company used $(20.6) million in operating activities, funded by $20.9 million from financing activities, resulting in a minimal net cash increase Cash Flow Summary (Nine Months Ended Dec 31, 2023) | Cash Flow Activity | Amount ($) | | :--- | :--- | | Net Cash Used in Operating Activities | (20,557,278) | | Net Cash Used in Investing Activities | (322,050) | | Net Cash Provided by Financing Activities | 20,914,977 | | **Net Increase in Cash** | **35,649** | - Financing activities included **$13.3 million** in proceeds from the former parent, **$5.4 million** from a convertible note, and **$2.7 million** from stock sales[20](index=20&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail a corporate rebranding, strategic shift, subsidiary bankruptcy, and significant doubt about the company's ability to continue as a going concern - The company changed its name from BitNile Metaverse Inc. to **RiskOn International, Inc.** on November 1, 2023[24](index=24&type=chunk) - Subsidiary Agora Digital Holdings, Inc. filed for **Chapter 7 bankruptcy** on November 1, 2023, and is treated as a discontinued operation[31](index=31&type=chunk) - Management has **substantial doubt** about the company's ability to continue as a going concern due to significant losses and a working capital deficit[32](index=32&type=chunk)[33](index=33&type=chunk) - The company is facing **delisting from Nasdaq** due to non-compliance with minimum shareholders' equity, bid price, and voting rights rules[121](index=121&type=chunk)[122](index=122&type=chunk) - In November 2023, the company issued Series D preferred stock to Ault Alliance, Inc. (AAI) to settle **$15.1 million** in cash advances[85](index=85&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses its corporate transformation, new business ventures, soaring operating losses, critical liquidity issues, and ongoing Nasdaq compliance challenges [Overview and Business Strategy](index=31&type=section&id=Overview%20and%20Business%20Strategy) The company rebranded to RiskOn International and shifted its strategy to focus on the BitNile.com metaverse, RiskOn360 conferences, and GuyCare health clinics - The company's strategy revolves around creating a seamless platform (**BitNile.com**) for virtual experiences and digital economies[154](index=154&type=chunk) - **RiskOn360** is a global conference series for entrepreneurs, focusing on in-person training and practical application[158](index=158&type=chunk)[160](index=160&type=chunk) [Recent Developments](index=32&type=section&id=Recent%20Developments) Key recent activities include a reverse stock split, securing new financing, divesting a subsidiary, and appealing a pending Nasdaq delisting determination - Executed a **1-for-30 reverse stock split** in May 2023 and increased authorized common shares to 500 million[162](index=162&type=chunk) - Entered into a **$100 million ELOC Purchase Agreement** with Arena, effective October 30, 2023[165](index=165&type=chunk) - Subsidiary Agora and its unit Bitstream filed for **Chapter 7 bankruptcy** on November 1, 2023[165](index=165&type=chunk) - Received multiple non-compliance notices from Nasdaq and has **appealed a delisting determination**, with a hearing scheduled for February 29, 2024[163](index=163&type=chunk) [Consolidated Results of Continuing Operations](index=35&type=section&id=Consolidated%20Results%20of%20Continuing%20Operations) Operating losses from continuing operations surged due to costs from the new RiskOn360 conference and a significant increase in SG&A expenses Three-Month Results of Continuing Operations (YoY) | Metric | Q3 2023 ($) | Q3 2022 ($) | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Gross Loss | (1,817,668) | - | (1,817,668) | 100% | | Total Operating Expenses | 8,420,844 | 1,454,507 | 6,966,337 | 479% | | Operating Loss | (10,238,512) | (1,454,507) | (8,784,005) | 604% | | (Loss) from Continuing Ops | (14,555,254) | 4,754,014 | (19,309,268) | 406% | Nine-Month Results of Continuing Operations (YoY) | Metric | Nine Months 2023 ($) | Nine Months 2022 ($) | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Gross Loss | (1,868,040) | - | (1,868,040) | 100% | | Total Operating Expenses | 26,797,960 | 3,551,885 | 23,246,075 | 654% | | Operating Loss | (28,666,000) | (3,551,885) | (25,114,115) | 707% | | (Loss) from Continuing Ops | (15,780,508) | 5,384,144 | (21,164,652) | 393% | [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) The company's critical liquidity position, with minimal cash on hand, raises substantial doubt about its ability to continue as a going concern - As of December 31, 2023, the company had only **$101,487 in cash** and cash equivalents[186](index=186&type=chunk) - Management has concluded there is **substantial doubt** about the company's ability to continue as a going concern[186](index=186&type=chunk) - For the nine months ended Dec 31, 2023, net cash used in operating activities of continuing operations was approximately **$29 million**[183](index=183&type=chunk) - The company raised capital through **$5 million in convertible notes**, $1 million in term notes, and $1 million from the ELOC agreement during the fiscal year[186](index=186&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section is not applicable to the company's current operations and financial condition - Not applicable[191](index=191&type=chunk) [Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were not effective as of December 31, 2023, due to persistent material weaknesses - The principal executive and financial officers concluded that the company's internal control over financial reporting was **not effective** as of December 31, 2023[193](index=193&type=chunk) - Identified material weaknesses include **insufficient segregation of duties**, lack of formal review procedures, and insufficient documentation[194](index=194&type=chunk)[200](index=200&type=chunk) - Planned remediation includes hiring qualified personnel, engaging external advisors, and enhancing policies and procedures[194](index=194&type=chunk) PART II – OTHER INFORMATION [Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) There were no material developments in previously disclosed legal proceedings during the reporting period - There were **no material developments** in the legal proceedings disclosed in the Annual Report on Form 10-K for the year ended March 31, 2023[202](index=202&type=chunk) [Risk Factors](index=40&type=section&id=Item%201A.Risk%20Factors) There are no updates or changes to the risk factors previously disclosed in the company's annual and quarterly reports - **No updates or changes** to the risk factors set forth in the Annual Report on Form 10-K for the year ended March 31, 2023[203](index=203&type=chunk) [Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company reported no activity in this category for the period - None[204](index=204&type=chunk) [Defaults Upon Senior Securities](index=40&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities for the period - None[205](index=205&type=chunk) [Mine Safety Disclosures](index=40&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[206](index=206&type=chunk) [Other Information](index=40&type=section&id=Item%205.%20Other%20Information) The company reported no other information for the period - None[207](index=207&type=chunk) [Exhibits](index=41&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including governance documents, agreements, and required officer certifications - Key exhibits include Certificates of Designation for Preferred Stock, a Securities Purchase Agreement, and CEO/CFO certifications[209](index=209&type=chunk)

PART I – FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company's financials reflect a major transition, a significant net loss improvement due to non-cash gains, and a severe liquidity crisis [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets and liabilities decreased while the shareholders' deficit significantly worsened due to operating losses Condensed Consolidated Balance Sheet Highlights (Unaudited) | Balance Sheet Item | Sep 30, 2023 ($) | Mar 31, 2023 ($) | Change ($) | | :--- | :--- | :--- | :--- | | **Total Assets** | 16,803,924 | 23,775,517 | (6,971,593) | | Cash and cash equivalents | 1,554 | 66,844 | (65,290) | | Derivative liabilities | 2,200,951 | 19,862,226 | (17,661,275) | | **Total Liabilities** | 35,857,107 | 37,719,641 | (1,862,534) | | **Total Shareholders' Deficit** | (19,053,183) | (13,944,124) | (5,109,059) | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net loss improved significantly due to a large non-cash gain on derivative liabilities, despite widening operating losses Statement of Operations Summary (Unaudited) | Metric | Three Months Ended Sep 30, 2023 ($) | Three Months Ended Sep 30, 2022 ($) | Six Months Ended Sep 30, 2023 ($) | Six Months Ended Sep 30, 2022 ($) | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | 19,200 | 0 | 64,350 | 0 | | Operating Loss | (13,747,580) | (7,003,539) | (25,404,835) | (13,939,547) | | Change in fair value of derivative liabilities | 1,862,290 | 3,286,004 | 22,982,843 | 2,892,472 | | Net Loss to Controlling Interest | (14,517,905) | (22,985,608) | (8,572,304) | (33,138,812) | | Net Loss Per Share | (6.47) | (27.42) | (4.70) | (39.80) | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash burn increased while financing activities provided necessary inflows, yet the final cash position dwindled to a critical low Cash Flow Summary for Six Months Ended Sep 30 (Unaudited) | Cash Flow Activity | 2023 ($) | 2022 ($) | | :--- | :--- | :--- | | Net cash used in operating activities | (13,525,359) | (11,009,363) | | Net cash provided by investing activities | 0 | 139,732 | | Net cash provided by financing activities | 13,460,069 | 11,770,856 | | **Net (decrease) increase in cash** | **(65,290)** | **901,225** | | **Cash at end of period** | **1,554** | **986,298** | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail significant corporate changes, a going concern warning, asset impairments, and Nasdaq compliance issues - On November 1, 2023, the company changed its name to RiskOn International, Inc ("ROI") and acquired BitNile.com, Inc (BNC) in a share exchange agreement, which was accounted for as an asset purchase, not a business combination[24](index=24&type=chunk) - The company has a **working capital deficit of $24.5 million** and an **accumulated deficit of $217.2 million** as of September 30, 2023, with only $1,554 in cash, raising substantial doubt about its ability to continue as a going concern[30](index=30&type=chunk)[32](index=32&type=chunk) - On August 25, 2023, the company sold 100% of Zest Labs to a related party, Zest Labs Holdings, LLC, owned by a board member, recording a **gain on disposal of $683,152**[26](index=26&type=chunk)[55](index=55&type=chunk) - The company **impaired $3.9 million of net property and equipment** related to its subsidiaries Agora and Bitstream as of September 30, 2023, deeming the assets valueless, with both subsidiaries subsequently filing for Chapter 7 bankruptcy[70](index=70&type=chunk)[71](index=71&type=chunk)[158](index=158&type=chunk) - The company is **not in compliance with Nasdaq listing rules** due to its shareholders' equity being below the $2.5 million minimum and its stock bid price falling below $1.00 per share, creating a risk of delisting[142](index=142&type=chunk)[143](index=143&type=chunk)[165](index=165&type=chunk) - Subsequent to the quarter end, the company entered into a **$100 million Equity Line of Credit (ELOC)** purchase agreement and a securities purchase agreement with a related party to sell **$15.1 million of new Series D Convertible Preferred Stock**[146](index=146&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the strategic shift to metaverse development, widening operating losses, and severe liquidity challenges [Results of Operations](index=40&type=section&id=Results%20of%20Operations) Operating losses widened year-over-year, but a large non-cash gain on derivative liabilities reduced the overall loss from continuing operations Continuing Operations Comparison for the Three Months Ended September 30 | Metric | 2023 ($) | 2022 ($) | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 19,200 | 0 | 19,200 | 100% | | Operating Loss | (13,747,580) | (7,003,539) | (6,744,041) | -96% | | Total other (expense) income | (1,810,880) | 2,433,332 | (4,244,212) | -174% | | Loss from continuing operations | (15,558,460) | (4,570,207) | (10,988,253) | -240% | Continuing Operations Comparison for the Six Months Ended September 30 | Metric | 2023 ($) | 2022 ($) | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 64,350 | 0 | 64,350 | 100% | | Operating Loss | (25,404,835) | (13,939,547) | (11,465,288) | -82% | | Total other income | 17,026,743 | 2,002,972 | 15,023,771 | 750% | | Loss from continuing operations | (8,378,092) | (11,936,575) | (3,558,483) | -30% | [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is critical with minimal cash, relying entirely on external financing to sustain operations and facing a going concern risk - As of September 30, 2023, the company had **only $1,554 in cash** and cash equivalents[203](index=203&type=chunk) - Management states that current cash is **insufficient for the next year of operations**, raising substantial doubt about the company's ability to continue as a going concern[203](index=203&type=chunk) - **Net cash used in operating activities for continuing operations was approximately $16 million** for the six months ended September 30, 2023, an increase from $14 million in the prior year period[201](index=201&type=chunk) - Financing activities provided **$13.5 million in cash**, primarily from $7.5 million in advances from AAI, $5.5 million in gross proceeds from convertible notes, and $1.8 million from an ATM offering[202](index=202&type=chunk)[203](index=203&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company has indicated that this item is not applicable - Not applicable[210](index=210&type=chunk) [Item 4. Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were ineffective due to persistent material weaknesses - The principal executive officer and principal financial officer concluded that the company's internal control over financial reporting was **not effective** as of September 30, 2023[212](index=212&type=chunk) - **Material weaknesses identified** include insufficient segregation of duties, lack of formal review procedures, insufficient written documentation of internal controls, and reliance on an outside financial consultant[213](index=213&type=chunk) - Planned remediation includes hiring additional accounting personnel, enhancing controls over revenue recognition and complex financial instruments, and improving documentation and review processes[214](index=214&type=chunk)[215](index=215&type=chunk)[216](index=216&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material developments in previously disclosed legal proceedings - There were no material developments in previously disclosed legal proceedings during the reporting period[223](index=223&type=chunk) [Item 1A. Risk Factors](index=46&type=section&id=Item%201A.Risk%20Factors) No updates or changes were made to the risk factors previously disclosed in the company's prior reports - No updates or changes were made to the previously disclosed risk factors[224](index=224&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company reported no activity for this item during the reporting period - None[225](index=225&type=chunk) [Item 6. Exhibits](index=47&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including charters, agreements, and certifications