Amesite(AMST) - 2024 Q4 - Annual Report

Financial Performance - The company generated revenues of $166,881 for the year ended June 30, 2024, a decrease from $845,009 for the year ended June 30, 2023, primarily due to a pivot towards growing the customer base while reducing risk and losses [144]. - The net loss for the year ended June 30, 2024, was $4,403,182, compared to a net loss of $4,153,303 for the year ended June 30, 2023, reflecting an increase in loss of $249,879 primarily due to Board Compensation [151]. - General and administrative expenses increased to $2,908,289 for the year ended June 30, 2024, from $2,492,777 in the previous year, an increase of $415,512 [147]. - Technology and content development expenses decreased to $1,074,000 for the year ended June 30, 2024, from $1,523,547 in the previous year, a reduction of $449,219 [149]. - Sales and marketing expenses decreased to $763,915 for the year ended June 30, 2024, from $1,053,193 in the previous year, a decrease of $289,278 [150]. - The company has a history of net losses and negative cash flows from operating activities since inception and expects to continue incurring net losses in the foreseeable future [156]. Cash and Financing - The company has raised net proceeds of approximately $11.76 million from private placement financing transactions from November 14, 2017, to September 30, 2020 [154]. - On September 25, 2020, the company completed an offering of 250,000 shares at $60.00 per share, resulting in total net proceeds of approximately $12.8 million [154]. - The company closed a public offering on September 1, 2022, raising approximately $1.85 million from the sale of 348,485 shares of common stock [156]. - The company sold 63,260 shares to Lincoln Park for a total purchase price of $1.5 million under a purchase agreement dated August 2, 2021 [155]. - The company issued 12,726 shares to Lincoln Park as consideration for its commitment to purchase common stock [155]. - The company may sell up to $16.5 million of shares of common stock under the purchase agreement with Lincoln Park, depending on sales frequency and share prices [155]. Cash Position and Future Outlook - As of June 30, 2024, the company's cash balance totaled $2,171,016 [156]. - Management believes it will have sufficient cash and cash equivalents to maintain planned operations for the next twelve months, but there is uncertainty regarding this forecast [129]. - The company is developing its customer base but has not established a stabilized source of revenue sufficient to cover its expenses [156]. - The company is not currently profitable and has incurred a total net loss of $(37,833,501) since its incorporation on November 14, 2017, through June 30, 2024 [128]. Customer Concentration - Five customers comprised approximately 97% of total revenue for the year ended June 30, 2024, compared to 84% for the year ended June 30, 2023 [140]. Regulatory Classification - The company is classified as a "smaller reporting company" and is not required to provide certain market risk disclosures [157].