Amesite(AMST) - 2025 Q1 - Quarterly Report

PART I – FINANCIAL INFORMATION Unaudited Q3 2024 financial statements, management's analysis, and disclosures, noting net losses and going concern doubts - Amesite Inc. specializes in B2C and B2B AI-driven solutions, including a higher education platform and the NurseMagic™ mobile healthcare app[22] - The company has a history of net losses and negative cash flows, raising substantial doubt about its ability to continue as a going concern[27][30] - Management plans to generate cash through financing transactions, such as common stock offerings, but these are not guaranteed[30] ITEM 1. FINANCIAL STATEMENTS Presents unaudited Q3 2024 and 2023 condensed financial statements, including balance sheets, operations, equity, cash flows, and notes - The financial statements are unaudited and prepared in accordance with GAAP and SEC requirements[23][24] - Interim results are not necessarily indicative of results for a full year[24] Condensed Balance Sheets (unaudited) Balance sheets show slight decreases in total assets and equity, increased current liabilities, and a significant drop in cash from June to September 2024 Condensed Balance Sheet Highlights (Unaudited) | Metric | September 30, 2024 | June 30, 2024 | Change (Absolute) | Change (%) | | :-------------------------- | :----------------- | :------------ | :---------------- | :--------- | | Cash and cash equivalents | $1,434,753 | $2,071,016 | $(636,263) | -30.72% | | Total current assets | $2,496,774 | $2,604,565 | $(107,791) | -4.14% | | Total noncurrent assets | $739,336 | $709,612 | $29,724 | 4.19% | | Total assets | $3,236,110 | $3,314,177 | $(78,067) | -2.36% | | Total current liabilities | $843,003 | $798,465 | $44,538 | 5.58% | | Total stockholders' equity | $2,393,107 | $2,515,712 | $(122,605) | -4.87% | Condensed Statements of Operations (unaudited) Operations statements show a significant revenue decrease for Q3 2024, leading to a slightly higher net loss despite reduced operating expenses Condensed Statements of Operations Highlights (Unaudited) | Metric | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Change (Absolute) | Change (%) | | :-------------------------- | :------------------------------ | :------------------------------ | :---------------- | :--------- | | Net Revenue | $11,250 | $63,333 | $(52,083) | -82.24% | | Total Operating Expenses | $938,594 | $1,013,323 | $(74,729) | -7.37% | | Loss from Operations | $(927,344) | $(949,990) | $22,646 | -2.38% | | Interest Income | $19,299 | $59,297 | $(39,998) | -67.46% | | Net Loss | $(908,045) | $(890,693) | $(17,352) | 1.95% | | Basic and diluted loss per share | $(0.34) | $(0.35) | $0.01 | -2.86% | | Weighted average shares outstanding | 2,707,275 | 2,542,440 | 164,835 | 6.48% | Condensed Statements of Stockholders' Equity (unaudited) Stockholders' equity decreased from July 1 to September 30, 2024, primarily due to net loss, partially offset by stock issuance and compensation - Total stockholders' equity decreased from $2,515,712 on July 1, 2024, to $2,393,107 on September 30, 2024[18] - Net loss of $(908,045) contributed to the decrease in equity[18] - Issuance of 250,000 common shares for consulting services added $720,000 to additional paid-in capital[18] - Stock-based compensation expense was $65,440 for the quarter[18] Condensed Statements of Cash Flows (unaudited) Cash flows show a net decrease in cash for Q3 2024, driven by operating and investing activities, including significant capitalized software investment Condensed Statements of Cash Flows Highlights (Unaudited) | Metric | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Change (Absolute) | Change (%) | | :------------------------------------------ | :------------------------------ | :------------------------------ | :---------------- | :--------- | | Net cash used in operating activities | $(488,263) | $(658,779) | $170,516 | -25.88% | | Net cash used in investing activities | $(148,000) | $(65,200) | $(82,800) | 127.00% | | Net decrease in cash and cash equivalents | $(636,263) | $(723,979) | $87,716 | -12.11% | | Cash and cash equivalents - End of period | $1,434,753 | $4,636,682 | $(3,201,929) | -69.05% | Notes to Condensed Financial Statements (unaudited) These notes detail business operations, accounting policies, and financial items, reiterating liquidity concerns and going concern uncertainty - Financial statements are prepared in accordance with GAAP and SEC requirements, with certain disclosures condensed or omitted[23][25] - The company's ability to continue as a going concern is uncertain due to historical losses and negative cash flows[26][27][28][30] Note 1 - Nature of Business and Liquidity Amesite Inc. develops AI-driven solutions but faces liquidity challenges, with ongoing net losses raising substantial doubt about its going concern ability - Amesite Inc. develops and markets B2C and B2B AI-driven solutions, including a higher education platform and the NurseMagic™ mobile healthcare app[22] - The company has a history of net losses and negative cash flows from operating activities since inception[27] - Management believes it may not have sufficient cash for planned operations for the next twelve months, raising substantial doubt about its going concern ability[28] Note 2 - Significant Accounting Policies This note outlines accounting principles, including basis of presentation, going concern, estimates, and policies for cash, property, software, revenue, and taxes Basis of Presentation Condensed financial statements adhere to GAAP and SEC requirements, with interim results not necessarily indicative of full-year performance - Statements adhere to GAAP and SEC rules[23] - Interim results may not predict full-year outcomes[24] Going Concern The company's history of net losses and negative cash flows raises substantial doubt about its ability to continue as a going concern, with financing plans uncertain - History of net losses and negative operating cash flows[27] - Substantial doubt exists regarding the company's ability to continue as a going concern[30] - Management plans to seek financing, but success is not assured[30] Use of Estimates Financial statements rely on management's estimates and assumptions, and actual results may differ from these projections - Financial statements rely on management estimates and assumptions[31] - Actual results could vary from estimates[31] Cash and Cash Equivalents Cash equivalents include short-term investments, with the company