Financial Performance - The company incurred a net loss of $2,029,682 for the six months ended December 31, 2024, and a cumulative net loss of $39.9 million since its incorporation on November 14, 2017[91][96]. - Revenue for the six months ended December 31, 2024, was approximately $24,000, a significant decrease from $105,000 for the same period in 2023[114]. - Interest income for the six months ended December 31, 2024, was approximately $28,500, compared to $110,000 for the same period in 2023[124]. - One customer accounted for approximately 94% of total revenue for the six months ended December 31, 2024[112]. Cash and Financing - As of December 31, 2024, the company's cash and cash equivalents totaled $519,706, down from $2,071,016 as of June 30, 2024[107]. - The company has raised approximately $11,760,000 from private placement financing transactions since its inception, with a public offering on January 8, 2025, generating approximately $3.08 million in cash proceeds[97][100]. Expenses - General and administrative expenses increased to approximately $1,438,000 for the six months ended December 31, 2024, compared to approximately $882,000 for the same period in 2023[119]. - Technology and content development expenses decreased to approximately $352,000 for the six months ended December 31, 2024, from approximately $664,000 in the same period in 2023[121]. - Sales and marketing expenses were approximately $293,000 for the six months ended December 31, 2024, down from approximately $464,000 for the same period in 2023[123]. - Capital asset additions for the six months ended December 31, 2024, were $212,600, compared to $118,000 in the same period of 2023, indicating a significant increase in capital expenditures[126]. Compliance and Regulatory Issues - The Company received a Nasdaq deficiency letter on November 26, 2024, due to non-compliance with the Stockholders' Equity Requirement of $2,500,000[127]. - The Company submitted a plan to regain compliance on January 10, 2025, and believes it has regained compliance following a public offering[128]. - Nasdaq confirmed compliance with the Stockholders' Equity Requirement on January 23, 2025, but warned of potential delisting if compliance is not evidenced in the next periodic report[128]. Internal Controls - Management concluded that disclosure controls and procedures were not effective due to identified material weaknesses in internal control over financial reporting[132]. - Specific material weaknesses included deficiencies in reviewing and approving journal entries and ensuring accurate stock compensation expense calculations[134]. - The Company is taking steps to remediate material weaknesses, including documenting processes and controls for business transactions[138]. - There were no changes in internal control over financial reporting that materially affected the Company's controls during the period ended December 31, 2024[137]. - The Company plans to formalize processes for monitoring internal control over financial reporting to improve overall effectiveness[138]. - There is no assurance that current or planned remediation measures will be sufficient to address identified material weaknesses[136]. Going Concern - The company has substantial doubt about its ability to continue as a going concern due to ongoing net losses and negative cash flows[92][105].
Amesite(AMST) - 2025 Q2 - Quarterly Report