Company Name Change and Stock Information - BitNile Metaverse, Inc. changed its name to RiskOn International, Inc. and its ticker from BNMV to ROI, then to ROII in February 2024[373]. - A 1-for-30 reverse stock split was executed on May 4, 2023, reducing authorized shares from 100,000,000 to 3,333,333, later increased to 500,000,000[376]. - Common Stock was suspended from trading on the Nasdaq Capital Market on February 28, 2024, and was formally delisted on June 13, 2024[387]. Financial Performance - Revenue for FY 2024 was $332,425, a significant increase from $0 in FY 2023, as operations for BNS, RiskOn360, and GuyCare commenced in 2023 and 2024[389]. - Gross loss for FY 2024 was $1,841,629, with cost of revenues amounting to $2,174,054, compared to $0 in FY 2023[389][390]. - Total operating expenses rose to $35 million in FY 2024 from $6 million in FY 2023, primarily due to increased selling, general and administrative expenses, and higher salaries[391]. - Net loss from continuing operations decreased to $25 million in FY 2024 from approximately $34 million in FY 2023, attributed to a $40 million increase in other income[393]. - Net cash used in operating activities was $38 million for FY 2024, a decrease from $50 million in FY 2023, mainly due to a reduction in net loss and changes in assets and liabilities[395]. - Net cash provided by financing activities for FY 2024 was $29 million, compared to $14 million in FY 2023, primarily from proceeds of senior secured convertible notes and common stock sales[397]. Capital and Financing - A $6,875,000 senior secured convertible promissory note financing was closed on April 27, 2023, with 2,100,905 warrants issued at an exercise price of $3.28[376]. - The company has the right to direct Arena to purchase up to $100,000,000 of shares of Common Stock over a 36-month term under the ELOC Purchase Agreement[379]. - As of July 12, 2024, cash and cash equivalents stood at $215,727, which is insufficient for planned operations for the next year, indicating a need for additional capital[398]. - The company expects to require substantial additional capital to develop askROI, further develop the Metaverse, and expand GuyCare clinics[401]. - The 2023 senior secured convertible notes had an outstanding principal of $4 million as of April 27, 2024, and are currently in default, accruing interest at 18% per annum[404]. Operational Developments - The Metaverse platform went live on March 1, 2023, allowing users to engage in social networking and purchase products while playing 3D immersive games[374]. - Revenue from RiskOn360 for FY 2024 was $239,839, while GuyCare generated $28,236 in revenue during the same period[414][416]. Impairment and Intangible Assets - The company acquired amortizable intangible assets as part of the BNC asset purchase, consisting of trade names and developed technology, with an original useful life of 15 years[425]. - The company reviews intangible assets for impairment whenever business circumstances indicate that the carrying amount might not be recoverable, considering factors such as significant underperformance and negative industry trends[426]. - An impairment loss is recognized when estimated undiscounted future cash flows from an asset are less than its carrying amount, based on the excess of the carrying value over its fair value[426]. Regulatory and Reporting Changes - In November 2023, the Financial Accounting Standards Board issued ASU 2023-07, requiring public entities to disclose significant expenses of reportable segments on an interim and annual basis, effective for fiscal years beginning after December 15, 2023[427]. - The company elected to early adopt ASU 2023-07, which will enhance segment reporting disclosures[427]. - The company does not discuss recent pronouncements that are not anticipated to impact its financial condition or results of operations[428]. - As a smaller reporting company, the quantitative and qualitative disclosures about market risk section is not applicable[429]. Inflation Impact - The company reported a significant impact from inflation on employee salaries and benefits in 2023 and continuing into 2024[386]. Shareholders' Equity - As of March 31, 2023, shareholders' equity was approximately $(13.9) million, failing to meet Nasdaq's requirement of at least $2.5 million[379]. Results of Operations - The results of operations for the fiscal year ended March 31, 2024, do not include discontinued operations, making period comparisons less meaningful[388].
ECOARK HOLDINGS(ZEST) - 2024 Q4 - Annual Report