2023 Q3 Form 10-Q Financial Statement

#000160706223000497 Filed on November 14, 2023

View on sec.gov

Income Statement

Concept 2023 Q3 2023 Q2 2022 Q3
Revenue $58.00K $61.00K $101.0K
YoY Change -42.57% -7.58% -12.93%
Cost Of Revenue $42.00K $41.00K $50.00K
YoY Change -16.0% -79.4% 0.0%
Gross Profit $16.00K $20.00K $51.00K
YoY Change -68.63% -115.04% -22.73%
Gross Profit Margin 27.59% 32.79% 50.5%
Selling, General & Admin $191.0K $196.0K $242.0K
YoY Change -21.07% -8.84% 27.37%
% of Gross Profit 1193.75% 980.0% 474.51%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization
YoY Change
% of Gross Profit
Operating Expenses $191.0K $196.0K $242.0K
YoY Change -21.07% 201.54% 27.37%
Operating Profit -$175.0K -$176.0K -$191.0K
YoY Change -8.38% -11.11% 54.03%
Interest Expense $131.0K -$129.0K $120.0K
YoY Change 9.17% 11.21% -211.11%
% of Operating Profit
Other Income/Expense, Net -$131.0K -$120.0K
YoY Change 9.17% 11.11%
Pretax Income -$306.0K -$305.0K -$311.0K
YoY Change -1.61% -467.47% 34.05%
Income Tax
% Of Pretax Income
Net Earnings -$306.0K -$305.0K -$311.0K
YoY Change -1.61% -467.47% 34.05%
Net Earnings / Revenue -527.59% -500.0% -307.92%
Basic Earnings Per Share -$0.01
Diluted Earnings Per Share -$0.01 -$0.01 -$7.777K
COMMON SHARES
Basic Shares Outstanding 39.99M shares 39.99M shares
Diluted Shares Outstanding 39.99M shares

Balance Sheet

Concept 2023 Q3 2023 Q2 2022 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $53.00K $61.00K $152.0K
YoY Change -65.13% -7.58% -42.42%
Cash & Equivalents $53.00K $0.00 $152.0K
Short-Term Investments
Other Short-Term Assets $4.000K $6.000K $4.000K
YoY Change 0.0% 0.0% 0.0%
Inventory
Prepaid Expenses $4.000K $6.000K $4.000K
Receivables $6.000K $7.000K $7.000K
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $63.00K $74.00K $163.0K
YoY Change -61.35% -6.33% -40.94%
LONG-TERM ASSETS
Property, Plant & Equipment
YoY Change
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets
YoY Change
Total Long-Term Assets $0.00 $0.00 $0.00
YoY Change
TOTAL ASSETS
Total Short-Term Assets $63.00K $74.00K $163.0K
Total Long-Term Assets $0.00 $0.00 $0.00
Total Assets $63.00K $74.00K $163.0K
YoY Change -61.35% -6.33% -40.94%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $303.0K $289.0K $302.0K
YoY Change 0.33% 6.64% -61.82%
Accrued Expenses $67.00K $60.00K $70.00K
YoY Change -4.29% 1.69% 4.48%
Deferred Revenue $29.00K $29.00K $24.00K
YoY Change 20.83% 16.0%
Short-Term Debt $8.153M $7.892M $7.207M
YoY Change 13.13% 14.33% 15.72%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $8.684M $8.389M $7.755M
YoY Change 11.98% 13.98% 8.23%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change -100.0%
Other Long-Term Liabilities $355.0K $355.0K $155.0K
YoY Change 129.03% 129.03% 0.0%
Total Long-Term Liabilities $355.0K $355.0K $155.0K
YoY Change 129.03% 129.03% -43.22%
TOTAL LIABILITIES
Total Short-Term Liabilities $8.684M $8.389M $7.755M
Total Long-Term Liabilities $355.0K $355.0K $155.0K
Total Liabilities $9.039M $8.744M $7.910M
YoY Change 14.27% 16.35% 6.35%
SHAREHOLDERS EQUITY
Retained Earnings -$27.53M -$27.23M -$26.30M
YoY Change 4.67% 4.75%
Common Stock $400.0K $400.0K $400.0K
YoY Change 0.0% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$8.976M -$8.670M -$7.747M
YoY Change
Total Liabilities & Shareholders Equity $63.00K $74.00K $163.0K
YoY Change -61.35% -6.33% -40.94%

Cashflow Statement

Concept 2023 Q3 2023 Q2 2022 Q3
OPERATING ACTIVITIES
Net Income -$306.0K -$305.0K -$311.0K
YoY Change -1.61% -467.47% 34.05%
Depreciation, Depletion And Amortization
YoY Change
Cash From Operating Activities -$137.0K -$206.0K -$98.00K
YoY Change 39.8% 1.98% -30.99%
INVESTING ACTIVITIES
Capital Expenditures
YoY Change
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities
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 $129.0K 139.0K $184.0K
YoY Change -29.89% 75.95% 9.52%
NET CHANGE
Cash From Operating Activities -$137.0K -206.0K -$98.00K
Cash From Investing Activities
Cash From Financing Activities $129.0K 139.0K $184.0K
Net Change In Cash -$8.000K -67.00K $86.00K
YoY Change -109.3% -45.53% 230.77%
FREE CASH FLOW
Cash From Operating Activities -$137.0K -$206.0K -$98.00K
Capital Expenditures
Free Cash Flow
YoY Change

Facts In Submission

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<p id="xdx_84B_eus-gaap--UseOfEstimates_zNzt2r7NPYxw" style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_86A_z8Yd2f07oMFe">Use of Estimates</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Those estimates and assumptions include estimates for reserves of uncollectible accounts, analysis of impairments of long-lived assets, accruals for potential liabilities, assumptions made in valuing stock instruments issued for services, and valuation of deferred tax assets. Actual results could differ from those estimates.</span></p>
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<p id="xdx_84D_eus-gaap--RevenueRecognitionLeasesOperating_zOebswQQ1YaO" style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_862_z9ik6EMGttKN">Revenue Recognition</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Revenues for the Company are classified into management fee revenue and mobile banking technology.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company recognizes revenue in accordance with the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASC 606"). The underlying principle of ASC 606 is to recognize revenue to depict the transfer of goods or services to customers at the amount expected to be collected. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contracts, which includes (1) identifying the contracts or agreements with a customer, (2) identifying the Company’s performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the services it transfers to its clients.</span></p> <p style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Mobile Banking Technology Revenue</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company, as a merchant payment processor and a distributor, recognizes revenue from transaction fees charged to cardholders for the use of its issued mobile debit cards. The fees are recognized on a monthly basis after all cardholder transactions have been summarized and reconciled with third party processors.</span></p> <p style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Other Revenue, Management Fee – Related Party</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On September 30, 2015, the Company sold all of its assets of its Barcode Technology, which was comprised solely of its intellectual property, to The Matthews Group (a related party, see Note 6). The Company subsequently entered into a management services agreement with The Matthews Group to manage all facets of the barcode technology operations through June 30, 2024. The Company earned a fee of 35% of all revenues billed up to September 30, 2023. The Company recognizes management fee revenue as services are performed.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Disaggregation of Net Sales</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following table shows the Company’s disaggregated net sales by product type:</span></p> <table cellpadding="0" cellspacing="0" id="xdx_892_eus-gaap--DisaggregationOfRevenueTableTextBlock_zkU6epgrn9db" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Disaggregated revenue (Details)"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span id="xdx_8BC_zi8TY9L5evv8" style="display: none">Disaggregated revenue</span></td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: right"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: right"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="7" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Three months ended <br/> September 30,</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2023</span></td> <td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2022</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 66%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mobile banking technology revenue</span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 3%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td> <td id="xdx_98C_eus-gaap--Revenues_pp0p0_c20230701__20230930__srt--ProductOrServiceAxis__custom--MobileBankingMember_zYKB9fThJJma" style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">21,000</span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 3%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td> <td id="xdx_98F_eus-gaap--Revenues_pp0p0_c20220701__20220930__srt--ProductOrServiceAxis__custom--MobileBankingMember_zEc2ZD35ePbd" style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other revenue, management fee related party</span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td id="xdx_980_eus-gaap--Revenues_pp0p0_c20230701__20230930__srt--ProductOrServiceAxis__custom--OtherRevenueMember_z0E0LlIBPo3D" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Revenue"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">37,000</span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td id="xdx_98A_eus-gaap--Revenues_pp0p0_c20220701__20220930__srt--ProductOrServiceAxis__custom--OtherRevenueMember_zhwv96JLESz4" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Revenue"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">81,000</span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Total revenue</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td> <td id="xdx_981_eus-gaap--Revenues_pp0p0_c20230701__20230930_zXfBeRYgfknA" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Revenue"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">58,000</span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td> <td id="xdx_984_eus-gaap--Revenues_pp0p0_c20220701__20220930_zHAPkDX3rnMR" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Revenue"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">101,000</span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following table shows the Company’s disaggregated net sales by customer type:</span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="7" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Three months ended <br/> September 30,</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2023</span></td> <td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2022</span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; width: 62%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Medical</span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 4%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td> <td id="xdx_98E_eus-gaap--RevenuesNetOfInterestExpense_pp0p0_c20230701__20230930__srt--ProductOrServiceAxis__custom--MedicalMember_zFp5sIJm50cU" style="font: 10pt Times New Roman, Times, Serif; width: 13%; text-align: right" title="Revenue"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">16,000</span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 4%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td> <td id="xdx_985_eus-gaap--RevenuesNetOfInterestExpense_pp0p0_c20220701__20220930__srt--ProductOrServiceAxis__custom--MedicalMember_zxEkRStOLVgk" style="font: 10pt Times New Roman, Times, Serif; width: 13%; text-align: right" title="Revenue"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">15,000</span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Associations</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td id="xdx_983_eus-gaap--RevenuesNetOfInterestExpense_pp0p0_c20230701__20230930__srt--ProductOrServiceAxis__custom--AssociationsMember_zwNLjRJdQOCH" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Revenue"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3,000</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td id="xdx_985_eus-gaap--RevenuesNetOfInterestExpense_pp0p0_c20220701__20220930__srt--ProductOrServiceAxis__custom--AssociationsMember_zr1w78deif23" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Revenue"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3,000</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Education</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td id="xdx_98F_eus-gaap--RevenuesNetOfInterestExpense_pp0p0_c20230701__20230930__srt--ProductOrServiceAxis__custom--EducationMember_zY3jYzryYXr2" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Revenue"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2,000</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td id="xdx_980_eus-gaap--RevenuesNetOfInterestExpense_pp0p0_c20220701__20220930__srt--ProductOrServiceAxis__custom--EducationMember_zuHRqlAYaGZZ" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Revenue"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2,000</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Other</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td> <td id="xdx_98E_eus-gaap--RevenuesNetOfInterestExpense_pp0p0_c20230701__20230930__srt--ProductOrServiceAxis__custom--OtherMember_zWTKq0g5DKKa" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0348">—</span>  </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td> <td id="xdx_980_eus-gaap--RevenuesNetOfInterestExpense_pp0p0_c20220701__20220930__srt--ProductOrServiceAxis__custom--OtherMember_zQZtYwCh2oGf" style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0349">—</span>  </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other revenue, management fee related party</span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td id="xdx_988_eus-gaap--RevenuesNetOfInterestExpense_pp0p0_c20230701__20230930__srt--ProductOrServiceAxis__custom--OtherRevenueMember_z7hIyqjiCZpW" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Revenue"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">37,000</span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td id="xdx_986_eus-gaap--RevenuesNetOfInterestExpense_pp0p0_c20220701__20220930__srt--ProductOrServiceAxis__custom--OtherRevenueMember_zvsfGE1zZfQ0" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Revenue"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">81,000</span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Total revenue</b></span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td> <td id="xdx_986_eus-gaap--RevenuesNetOfInterestExpense_pp0p0_c20230701__20230930_zBkFhJVbBnxy" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Revenue"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">58,000</span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td> <td id="xdx_984_eus-gaap--RevenuesNetOfInterestExpense_pp0p0_c20220701__20220930_zSkLYb1zMDWj" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Revenue"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">101,000</span></td> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> </tr> </table> <p id="xdx_8AD_z4pPKZgJ6uqO" style="font: 10pt Times New Roman, Times, Serif; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During the three months ended September 30, 2023 and 2022, all of the Company’s Mobile banking technology revenues were earned in the United States of America. </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other revenue, management fee - related party revenue was $<span id="xdx_90C_ecustom--RevenueRelatedParties_pp0p0_c20230701__20230930_zYROZjYcHASa">37,000 </span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span id="xdx_909_ecustom--RevenueRelatedParties_pp0p0_c20220701__20220930_zVTxySV1JaO2">81,000</span> </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">for the three months ended September 30, 2023 and 2022, respectively, and realized from our management services agreement with The Matthews Group, a related party, which requires us to manage The Matthews Group’s barcode technology operations. The Matthews Group’s barcode technology customers are primarily manufacturing companies located in China.</span></p>
CY2023Q3 us-gaap Revenues
Revenues
58000 usd
CY2022Q3 us-gaap Revenues
Revenues
101000 usd
CY2023Q3 us-gaap Revenues Net Of Interest Expense
RevenuesNetOfInterestExpense
58000 usd
CY2022Q3 us-gaap Revenues Net Of Interest Expense
RevenuesNetOfInterestExpense
101000 usd
CY2023Q3 VRTC Revenue Related Parties
RevenueRelatedParties
37000 usd
CY2022Q3 VRTC Revenue Related Parties
RevenueRelatedParties
81000 usd
CY2023Q3 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
30252140 shares
CY2022Q3 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
26970781 shares
CY2023Q3 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<p id="xdx_84A_eus-gaap--ConcentrationRiskCreditRisk_zlQdOb0Vdij_zmNVSGSNpcyX" style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span id="xdx_866_zvYkPlXbyOQ4" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Concentrations</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify">During the three months ended September 30, 2023, the Company had one customer that represented <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_dp_c20230701__20230930__srt--MajorCustomersAxis__custom--CustomerOneMember_z2fMzMWnAzVL">64</span>% (related party) of our revenues. During the three months ended September 30, 2022, the Company had one customer that represented <span id="xdx_906_eus-gaap--ConcentrationRiskPercentage1_dp_c20220701__20220930__srt--MajorCustomersAxis__custom--CustomerOneMember_zBtmiaNoi1Sj">80</span>% (related party) of our revenues.</p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify">No other customer represented more than 10% of our revenues.</p>
CY2023Q3 VRTC Convertible Notes Payable In Default
ConvertibleNotesPayableInDefault
67000 usd
CY2023Q2 VRTC Convertible Notes Payable In Default
ConvertibleNotesPayableInDefault
66000 usd
CY2023Q3 VRTC Notes Payable In Default No Relation
NotesPayableInDefaultNoRelation
479000 usd
CY2023Q2 VRTC Notes Payable In Default No Relation
NotesPayableInDefaultNoRelation
475000 usd
CY2023Q3 us-gaap Notes Payable
NotesPayable
30000 usd
CY2023Q2 us-gaap Notes Payable
NotesPayable
29000 usd
CY2023Q3 us-gaap Notes And Loans Payable
NotesAndLoansPayable
576000 usd
CY2023Q2 us-gaap Notes And Loans Payable
NotesAndLoansPayable
570000 usd
CY2023Q3 us-gaap Debt Instrument Convertible Conversion Price1
DebtInstrumentConvertibleConversionPrice1
0.08
CY2023Q2 us-gaap Notes Payable
NotesPayable
29000 usd
CY2023Q3 us-gaap Notes Payable
NotesPayable
30000 usd
CY2023Q3 VRTC Notes Payable Related Parties
NotesPayableRelatedParties
7577000 usd
CY2023Q2 VRTC Notes Payable Related Parties
NotesPayableRelatedParties
7322000 usd
CY2023Q3 us-gaap Increase Decrease In Notes Payable Current
IncreaseDecreaseInNotesPayableCurrent
41000 usd
CY2023Q3 us-gaap Convertible Notes Payable Current
ConvertibleNotesPayableCurrent
410000 usd
CY2023Q3 VRTC Convertible Notes And Notes Payable Related Party In Default
ConvertibleNotesAndNotesPayableRelatedPartyInDefault
244000 usd
CY2023Q3 VRTC Notes Payable Due On Demand
NotesPayableDueOnDemand
166000 usd
CY2023Q3 VRTC Managament Fee Percent Of Revenue
ManagamentFeePercentOfRevenue
0.35 pure
CY2023Q3 VRTC Common Stock To Be Issued Shares
CommonStockToBeIssuedShares
145000 shares
CY2023Q2 VRTC Common Stock To Be Issued Shares
CommonStockToBeIssuedShares
145000 shares
CY2023Q3 VRTC Common Stock To Be Issued
CommonStockToBeIssued
12000 usd
CY2023Q2 VRTC Common Stock To Be Issued
CommonStockToBeIssued
12000 usd
CY2023Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
900000 shares
CY2023Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
0.03
CY2023Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
0 shares
CY2023Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
0
CY2023Q3 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Options Forfeited Number Of Shares
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedNumberOfShares
0 shares
CY2023Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures And Expirations In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice
0
CY2023Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
900000 shares
CY2023Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
0.03
CY2023Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
900000 shares
CY2023Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice
0.03
CY2023Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Aggregate Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingAggregateIntrinsicValue
0 usd
CY2023Q3 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Intrinsic Value1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1
9000 usd
CY2023Q2 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Intrinsic Value1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1
0 usd
CY2023Q3 VRTC Fee Revenue
FeeRevenue
37000 usd
CY2022Q3 VRTC Fee Revenue
FeeRevenue
81000 usd
CY2023Q3 VRTC Agreements With Nugen
AgreementsWithNugen
<p id="xdx_803_ecustom--AgreementsWithNugen_zpkt1kLA8gbg" style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><b>NOTE 7 – <span id="xdx_82F_zGNWOaYlRIaN">AGREEMENTS WITH NUGEN</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; background-color: white">On July 4, 2022, the Company entered a Memorandum of Understanding (the “MOU”) for the purpose of forming a strategic partnership between the Company and Nugen Universe, LLC (“Nugen”), a corporation located in Wrightsville Beach, North Carolina. Nugen seeks the Company to modify, create, or build a “private label” system for Nugen, with an initial interest in the Company’s blinxPay technology and Bio-ID verification system. Nugen paid the Company $<span id="xdx_903_eus-gaap--IncreaseDecreaseInDeferredRevenue_c20220701__20220930_znSljL3Yitdu">50,000</span> at the date of the MOU signing and during the year ended June 30, 2023, the Company completed its performance obligations, and recorded the $50,000 payment as Mobile banking technology revenue during the year ended June 30, 2023. Nugen further agreed to pay the Company a 5% ongoing royalty for licensing the Company’s blinxPay technology and Bio-ID verification system. As of September 30, 2023, no royalties have been realized under the MOU.</p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; background-color: white">On October 10, 2022, the Company entered into a License and Distributor Agreement (“License Agreement”) with Nugen. The License Agreement became effective on receipt of $<span id="xdx_90C_eus-gaap--DeferredRevenueNoncurrent_iI_c20230930_zBDervIErr8c">200,000</span> in December 2022 and extends through August 31, 2027. The License Agreement grants Nugen a Worldwide license and distribution for the Company’s blinxPay Close-Loop Virtual Wallet and blinxPay Open-Loop Visa Debit and all hardware products of the Company. Per the terms of the License Agreement, Nugen agrees to pay the Company a one-time license payment of $1,000,000 for the right to market the Company’s products noted above, of which $<span id="xdx_90C_eus-gaap--DeferredRevenueNoncurrent_iI_c20230930_zQUTvDpWnvFD">200,000</span> was received by the Company in December 2022. The initial $<span id="xdx_90C_eus-gaap--DeferredRevenueNoncurrent_iI_c20230930_zrNW1JSHRvIo">200,000</span> has been recorded as deferred revenue in the Consolidated Balance Sheet. The deferred revenue balance of $<span id="xdx_90C_eus-gaap--DeferredRevenueNoncurrent_iI_c20230930_zyWj1ap66Jgp">200,000</span> at September 30, 2023, will begin being amortized to Mobile banking technology revenue starting once the Company has met its performance obligations under the License Agreement through the remaining term of the License Agreement, which expires on August 31, 2027. The remaining balance of $800,000 is scheduled to be paid as follows: $100,000 when the Company’s identifies a domestic sponsor bank, $350,000 to integrate the Company’s blinxPay software platform, and interface blinxPay with a sponsor foreign bank, and $350,000 on the completion of the final stage of testing, installation, and launch. In addition to the one-time license payment, Nugen agrees to pay a minimum monthly support fee plus 5% royalty from all sales of products noted above. As of September 30, 2023, no royalty related revenues have been realized under the License Agreement.<span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
CY2022Q3 us-gaap Increase Decrease In Deferred Revenue
IncreaseDecreaseInDeferredRevenue
50000 usd
CY2023Q3 us-gaap Deferred Revenue Noncurrent
DeferredRevenueNoncurrent
200000 usd
CY2023Q3 us-gaap Deferred Revenue Noncurrent
DeferredRevenueNoncurrent
200000 usd
CY2023Q3 us-gaap Deferred Revenue Noncurrent
DeferredRevenueNoncurrent
200000 usd
CY2023Q3 us-gaap Deferred Revenue Noncurrent
DeferredRevenueNoncurrent
200000 usd
CY2016Q3 VRTC Convertible Note Payable Relinquished
ConvertibleNotePayableRelinquished
365000 usd
CY2016Q3 VRTC Shares To Be Returned
SharesToBeReturned
500000 shares
CY2022Q2 VRTC Program Setup Fee
ProgramSetupFee
10000 usd
CY2021Q4 VRTC Sales Commissions
SalesCommissions
0.15 pure
CY2021Q4 us-gaap Stock Issued During Period Shares Issued For Services
StockIssuedDuringPeriodSharesIssuedForServices
500000 shares
CY2021Q4 us-gaap Sale Of Stock Consideration Received On Transaction
SaleOfStockConsiderationReceivedOnTransaction
2000000 usd
CY2008Q4 VRTC Incentive Compensation Plan Percentage
IncentiveCompensationPlanPercentage
0.10 pure
CY2008Q4 VRTC Incentive Compensation Bonus Minimum Threshold
IncentiveCompensationBonusMinimumThreshold
3000000 usd
CY2008Q4 us-gaap Termination Loans
TerminationLoans
1000000 usd
CY2023Q3 us-gaap Payments To Employees
PaymentsToEmployees
38000 usd
us-gaap Payments To Employees
PaymentsToEmployees
38000 usd

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