2023 Q4 Form 10-K Financial Statement

#000118518523001264 Filed on November 29, 2023

View on sec.gov

Income Statement

Concept 2023 Q4 2023 Q3 2023
Revenue $85.55K $88.29K $309.6K
YoY Change 56.88% 45.05% 37.11%
Cost Of Revenue $74.34K $75.08K $260.8K
YoY Change 174.54% 157.3% 98.65%
Gross Profit $11.21K $13.21K $48.87K
YoY Change -59.16% -58.31% -48.32%
Gross Profit Margin 13.1% 14.96% 15.78%
Selling, General & Admin $116.7K $92.42K $463.7K
YoY Change -21.52% -16.84% -16.16%
% of Gross Profit 1041.0% 699.62% 948.83%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $1.420K $1.420K
YoY Change
% of Gross Profit 10.75% 2.91%
Operating Expenses $116.7K $92.43K $463.7K
YoY Change -21.52% -16.83% -16.16%
Operating Profit -$105.5K -$79.22K -$414.8K
YoY Change -12.99% -0.29% -9.52%
Interest Expense $123.8K $81.85K $313.2K
YoY Change 60.51% -157.69% -18.56%
% of Operating Profit
Other Income/Expense, Net -$290.3K $0.00 -$298.3K
YoY Change 19.24% 77.58%
Pretax Income -$395.8K $2.630K -$713.1K
YoY Change 8.52% -101.19% 13.83%
Income Tax $0.00
% Of Pretax Income
Net Earnings -$395.8K $2.630K -$713.1K
YoY Change 8.52% -101.19% 13.83%
Net Earnings / Revenue -462.6% 2.98% -230.29%
Basic Earnings Per Share $0.00
Diluted Earnings Per Share $0.00 $0.00 $0.00
COMMON SHARES
Basic Shares Outstanding 825.2M shares 825.2M shares 797.3M shares
Diluted Shares Outstanding 797.3M shares

Balance Sheet

Concept 2023 Q4 2023 Q3 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $10.93K $44.52K $44.52K
YoY Change -30.12% 375.64% 375.64%
Cash & Equivalents $10.93K $44.42K
Short-Term Investments
Other Short-Term Assets $470.00 $470.00 $470.00
YoY Change 0.0% 0.0% 0.0%
Inventory
Prepaid Expenses
Receivables $31.59K $20.74K $20.74K
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $42.98K $65.73K $65.73K
YoY Change 17.75% 117.53% 117.5%
LONG-TERM ASSETS
Property, Plant & Equipment $0.00 $0.00
YoY Change -100.0% -100.0%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets
YoY Change
Total Long-Term Assets $1.00 $0.00 $0.00
YoY Change -99.93% -100.0% -100.0%
TOTAL ASSETS
Total Short-Term Assets $42.98K $65.73K $65.73K
Total Long-Term Assets $1.00 $0.00 $0.00
Total Assets $42.98K $65.73K $65.73K
YoY Change 13.34% 107.76% 107.74%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $714.9K $724.3K $724.3K
YoY Change -13.78% -9.43% -9.43%
Accrued Expenses $2.596M $2.503M $2.503M
YoY Change 11.45% 10.37% 10.37%
Deferred Revenue
YoY Change
Short-Term Debt $567.0K $571.1K $571.1K
YoY Change -8.25% -77.78% -77.78%
Long-Term Debt Due $2.620M $2.478M $2.478M
YoY Change 25.24% 27.41%
Total Short-Term Liabilities $6.871M $6.483M $6.483M
YoY Change 8.77% 9.51% 9.51%
LONG-TERM LIABILITIES
Long-Term Debt $27.30K $27.30K $27.30K
YoY Change -37.71% -20.55% -20.55%
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $27.30K $27.30K $27.30K
YoY Change -37.71% -20.55% -20.55%
TOTAL LIABILITIES
Total Short-Term Liabilities $6.871M $6.483M $6.483M
Total Long-Term Liabilities $27.30K $27.30K $27.30K
Total Liabilities $6.898M $6.510M $6.510M
YoY Change 8.45% 9.33% 9.33%
SHAREHOLDERS EQUITY
Retained Earnings -$17.53M -$17.14M
YoY Change 4.13% 4.03%
Common Stock $825.2K $825.2K
YoY Change 4.76% 4.76%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$6.855M -$6.445M -$6.445M
YoY Change
Total Liabilities & Shareholders Equity $42.98K $65.73K $65.73K
YoY Change 13.34% 107.76% 107.74%

Cashflow Statement

Concept 2023 Q4 2023 Q3 2023
OPERATING ACTIVITIES
Net Income -$395.8K $2.630K -$713.1K
YoY Change 8.52% -101.19% 13.83%
Depreciation, Depletion And Amortization $1.420K $1.420K
YoY Change
Cash From Operating Activities -$141.2K -$140.7K -$436.8K
YoY Change 22.85% 6.58% 12.22%
INVESTING ACTIVITIES
Capital Expenditures $0.00 $0.00
YoY Change
Acquisitions
YoY Change
Other Investing Activities $0.00
YoY Change
Cash From Investing Activities $0.00 $0.00 $0.00
YoY Change
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $106.9K 162.1K $471.0K
YoY Change -11.82% 27.99% 21.08%
NET CHANGE
Cash From Operating Activities -$141.2K -140.7K -$436.8K
Cash From Investing Activities $0.00 0.000 $0.00
Cash From Financing Activities $106.9K 162.1K $471.0K
Net Change In Cash -$33.60K 21.44K $35.16K
YoY Change -635.14% -502.25% -8411.35%
FREE CASH FLOW
Cash From Operating Activities -$141.2K -$140.7K -$436.8K
Capital Expenditures $0.00 $0.00
Free Cash Flow -$140.7K -$436.8K
YoY Change 12.22%

Facts In Submission

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The Company had recognized $49,500 of accrued expenses as a general reserve for legal fees with no identifiable law firm or vendors in fiscal 2011.  No law firms or similar vendors have made a claim regarding this accrual or other legal expenses since fiscal 2011, and accordingly, the Company believes that this accrued expense was recorded in error.  The error resulted in an overstatement of accounts payable and accrued expenses as of August 31, 2022 and accumulated deficit as of August 31, 2021.  This error did not impact the Company’s consolidated statement of operations and comprehensive income and consolidated  statement of cash flows.  The accounts payable and accrued expenses and accumulated deficit in the accompanying consolidated balance sheets and consolidated statements of changes in stockholders’ deficit have been restated as of August 31, 2022 and August 31, 2021, respectively, to reflect the correction of the error.
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<p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><b>Use of Estimates</b></p><p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Included in these estimates are assumptions about the collection of its accounts receivable, converted amount of cash denominated in a foreign currency, and estimated amounts of cash, the derivative liability could settle, if not in common shares. Actual results could differ from those estimates.</p>
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CY2023 us-gaap Concentration Risk Credit Risk
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<p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><b>Customer Concentration</b></p><p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">Four and three of the Company's customers accounted for approximately 94% and 94% of its revenues during fiscal 2023 and 2022, respectively.</p>
CY2023Q3 us-gaap Property Plant And Equipment Gross
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CY2022Q3 us-gaap Property Plant And Equipment Gross
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22500 usd
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CY2022Q3 us-gaap Debt Instrument Carrying Amount
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546571 usd
CY2023 us-gaap Debt Instrument Convertible Terms Of Conversion Feature
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The convertible debentures are convertible at ratios varying between 45% and 50% of the closing price at the date of conversion through, at its most favorable terms for the holders, the average of the three lowest closing bids for a period of 5-30 days prior to conversion.
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76216 usd
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85515 usd
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CY2022Q3 us-gaap Share Price
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CY2021Q3 us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis With Unobservable Inputs
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506360 usd
CY2022 us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Inputs Reconciliation Transfers Net
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CY2022Q3 us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis With Unobservable Inputs
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281932 usd
CY2023 us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Inputs Reconciliation Transfers Net
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CY2023Q3 us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis With Unobservable Inputs
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206476 usd
CY2023Q3 us-gaap Employee Related Liabilities Current
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CY2023 us-gaap Income Tax Reconciliation Other Adjustments
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CY2022 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
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-108000 usd
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76216 usd
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7500000 shares
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CY2022Q1 us-gaap Gains Losses On Extinguishment Of Debt
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CY2023 us-gaap Stock Issued During Period Shares New Issues
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CY2023 us-gaap Stock Issued During Period Value New Issues
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CY2023 us-gaap Other Income
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46255 usd
CY2022 us-gaap Other Income
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CY2023 us-gaap Operating Lease Expense
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26781 usd
CY2022 us-gaap Operating Lease Expense
OperatingLeaseExpense
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CY2023Q2 us-gaap Gains Losses On Extinguishment Of Debt
GainsLossesOnExtinguishmentOfDebt
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CY2022 dbmm Consulting Agreement Annual Amount
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150000 usd
CY2023 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
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CY2023Q3 us-gaap Deferred Tax Assets Operating Loss Carryforwards
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1845000 usd
CY2022Q3 us-gaap Deferred Tax Assets Operating Loss Carryforwards
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1638000 usd
CY2023Q3 us-gaap Deferred Tax Assets Tax Deferred Expense Compensation And Benefits Employee Compensation
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333000 usd
CY2022Q3 us-gaap Deferred Tax Assets Tax Deferred Expense Compensation And Benefits Employee Compensation
DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsEmployeeCompensation
349000 usd
CY2023Q3 us-gaap Deferred Tax Assets Valuation Allowance
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2178000 usd
CY2022Q3 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
1987000 usd
CY2023Q3 us-gaap Deferred Tax Assets Net
DeferredTaxAssetsNet
0 usd
CY2022Q3 us-gaap Deferred Tax Assets Net
DeferredTaxAssetsNet
0 usd
CY2023 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
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CY2023 us-gaap Revenues
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CY2023Q3 us-gaap Assets
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65730 usd
CY2022 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
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CY2022 us-gaap Revenues
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CY2022Q3 us-gaap Assets
Assets
31637 usd
CY2023 dei Amendment Flag
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false
CY2023 dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
FY
CY2023 dei Entity Central Index Key
EntityCentralIndexKey
0001127475

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