10-Q: Altair International Corp. Reports Net Income of $86,156 for Q3 2024, Despite Ongoing Going Concern Issues

Altair International Corp. reported a net income of $86,156 for the three months ended December 31, 2023, a significant improvement compared to the net loss of $145,768 in the same period of 2022, primarily due to a gain in the fair value of derivatives.

Summary

• Altair International Corp. reported a net income of $86,156 for the three months ended December 31, 2023, a turnaround from a net loss of $145,768 in the same period of 2022.
• The company's net loss for the nine months ended December 31, 2023, was $124,878, a significant decrease from the $664,681 loss in the same period of 2022.
• The improvement in net income is primarily attributed to a gain in the fair value of derivatives, which was $153,332 for the quarter.
• Operating expenses decreased significantly, with compensation expenses dropping from $102,000 to $12,000 for the quarter and from $306,000 to $36,000 for the nine-month period.
• General and administrative expenses also decreased, from $29,159 to $15,427 for the quarter and from $117,399 to $69,793 for the nine-month period.
• The company's cash balance decreased from $28,897 to $12,594 during the nine-month period.
• The company continues to face going concern issues, with an accumulated deficit of $17,241,403 as of December 31, 2023.
• The company is exploring options for commercialization of its energy storage unit (ESU) technology.
• The company has a 10% undivided interest in certain mining claims in Nevada and is exploring options to increase its ownership.
• The company has a license and royalty agreement with St-Georges Eco-Mining Corp. for lithium extraction and EV battery recycling technologies.

Sentiment

Score: 5

Explanation: The document presents a mixed picture. While there's a positive shift to net income for the quarter and reduced losses for the nine-month period, the company's going concern issues, lack of revenue, and ineffective disclosure controls temper the positive aspects. The company's reliance on future financing and the developmental stage of its technology also contribute to a neutral sentiment.

Positives

• The company achieved a net income of $86,156 for the quarter, a significant improvement from the previous year's loss.
• The net loss for the nine-month period decreased substantially compared to the previous year.
• Operating expenses, including compensation and general and administrative costs, were significantly reduced.
• The company is actively exploring commercialization options for its energy storage unit (ESU) technology.
• The company has a 10% undivided interest in mining claims in Nevada and is exploring options to increase its ownership.

Negatives

• The company's cash balance decreased significantly during the nine-month period.
• The company has a substantial accumulated deficit of $17,241,403.
• The company continues to face going concern issues, raising doubts about its ability to continue operations without further financing.
• The company has not generated any revenue to date.
• The company's disclosure controls and procedures were deemed ineffective.

Risks

• The company's ability to continue as a going concern is dependent on generating profitable operations or obtaining necessary financing.
• The company's accumulated deficit of $17,241,403 raises concerns about its long-term financial stability.
• The company's reliance on debt and equity financing may lead to dilution of existing stockholders.
• The company's disclosure controls and procedures were deemed ineffective, indicating potential risks in financial reporting.
• The company's technology is still under development and may not achieve commercial success.

Future Outlook

The company expects to require additional capital to meet its long-term operating requirements and intends to finance operating costs over the next twelve months with existing cash on hand, loans from third parties, and/or private placements of common stock. There is no assurance that such funds will be available.

Management Comments

• Management intends to finance operating costs over the next twelve months with existing cash on hand, loans from third parties and\or private placements of common stock.
• Management believes that the financial statements included in this report fairly present in all material respects our financial condition, results of operations and cash flows for the periods presented.

Industry Context

The company operates in the lithium and battery technology sectors, which are experiencing significant growth and innovation. The company's focus on lithium extraction and battery technology aligns with the increasing demand for these resources in the electric vehicle and energy storage markets. However, the company faces competition from established players and must overcome technological and financial challenges to succeed.

Comparison to Industry Standards

• The company's financial performance is weak compared to established companies in the lithium and battery technology sectors, which typically have significant revenue streams and positive cash flows.
• The company's lack of revenue and reliance on financing is not uncommon for early-stage development companies in these sectors, but the going concern issues and ineffective disclosure controls are significant concerns.
• The company's technology is still in the development phase, and it is difficult to compare its progress to companies with commercially available products.
• The company's royalty agreement with St-Georges Eco-Mining Corp. is a common arrangement in the mining industry, but the success of this agreement depends on the company's ability to extract and sell minerals.
• The company's focus on a solid-state battery technology is in line with industry trends, but the company's technology is still in the early stages of development.

Related Party Transactions

• During the nine months ended December 31, 2023 and 2022, the Company paid Mr. Leonard Lovallo $22,000 and $34,000 for his role as Chief Executive Officer and President of the Company.
• As of December 31, 2023 and March 31, 2023, the Company has accrued $32,000 and $18,000 of compensation due to Mr. Lovallo, respectively.
• As of December 31, 2023, the Company owes Mr. Lovallo $4,000, for expense reimbursement.
• As of December 31, 2023 and March 31, 2023, the Company owes Ramzi Khoury $30,000 and $7,500, respectively, for director fees.
• On February 6, 2024, the Company issued 1,840,000 shares of common stock to Mr. Lovallo in exchange for conversion of all amounts due to Mr. Lovallo through March 31, 2024.
• On February 6, 2024, the Company issued 1,123,334 shares of common stock to Mr. Khoury in exchange for conversion of all amounts due to Mr. Khoury through March 31, 2024.

Stakeholder Impact

• Shareholders may experience dilution due to the company's reliance on equity financing.
• Employees may be affected by the company's financial instability and potential restructuring.
• Customers and suppliers may be impacted by the company's ability to continue operations and fulfill its obligations.
• Creditors face the risk of non-payment due to the company's going concern issues.

Next Steps

• The company will continue to explore options for commercialization of its energy storage unit (ESU) technology.
• The company will continue to explore options to increase its ownership interest in mining claims in Nevada.
• The company will seek additional financing to meet its long-term operating requirements.
• The company will address the material weaknesses in its internal control over financial reporting.

Key Dates

Keywords

financial results, net income, net loss, operating expenses, going concern, convertible debt, derivative liability, lithium, battery technology, energy storage, mining claims