10-K/A: Ameritek Ventures Reports Net Income of $4.5 Million for 2024 Following Asset Disposal

Ameritek Ventures, Inc. reports a significant increase in net income for 2024, driven by the sale of Ecker Capital to ZenaTech, despite a decrease in operating revenue.

Summary

• Ameritek Ventures, Inc. reported a net income of $4,496,799 for the year ended December 31, 2024, compared to a net loss of $58,910 in 2023.
• Operating revenue decreased by 29% from $949,438 in 2023 to $678,300 in 2024, primarily due to the sale of Interactive Systems and interlinkONE to ZenaTech.
• Total operating expenses decreased by 44% due to the sale of the revenue and expense generating companies.
• The company recognized a gain on asset disposal of $4,439,550 from the sale of Ecker Capital to ZenaTech.
• As of December 31, 2024, the company had no cash compared to $5,618 as of December 31, 2023.
• The company had 613,226,791 shares of common stock outstanding as of December 31, 2024.
• The company's disclosure controls and procedures were deemed not effective as of December 31, 2024, due to material weaknesses in internal control over financial reporting.

Sentiment

Score: 6

Explanation: The document presents a mixed picture. While the company reports a significant increase in net income due to asset disposal, there are concerns about declining revenue, lack of cash, and material weaknesses in internal control. The reliance on related party transactions also raises concerns.

Positives

• The company achieved a significant net income of $4,496,799 in 2024, a substantial improvement from the net loss in 2023.
• Operating expenses were significantly reduced by 44% due to the sale of Ecker Capital.
• The company recognized a substantial gain on asset disposal of $4,439,550 from the sale of Ecker Capital to ZenaTech.

Negatives

• Operating revenue decreased by 29% due to the sale of Interactive Systems and interlinkONE.
• The company had no cash as of December 31, 2024.
• Disclosure controls and procedures were deemed not effective due to material weaknesses in internal control over financial reporting.

Risks

• The company's reliance on borrowings to finance its working capital needs poses a financial risk.
• Material weaknesses in internal control over financial reporting could lead to misstatements in financial statements.
• The pending litigation against the former owner of the company could have an adverse impact on the company's financial position.
• The company's dependence on related party transactions, particularly with Epazz, Inc., could create conflicts of interest.

Future Outlook

The company expects that cash, cash equivalents, short-term investments, and other sources of liquidity, such as issuing equity or debt securities, will be available and sufficient to meet all foreseeable cash requirements.

Industry Context

The company operates in various sectors, including warehouse solutions, medical technology, blockchain technology, augmented reality, and electric bicycles, indicating a diversified business model.

Comparison to Industry Standards

• It is difficult to compare Ameritek Ventures directly to industry standards due to its diverse portfolio of businesses.
• However, the company's reliance on related party transactions and its material weaknesses in internal control over financial reporting raise concerns about its corporate governance practices compared to industry best practices.
• The company's financial performance should be benchmarked against its peers in each of its respective sectors to assess its competitiveness and efficiency.

Legal Proceedings

• Meridian Pacific Holdings, LLC filed a lawsuit against certain directors, officers, affiliates, and the Company for breach of contract and fraud, in the Superior Court of the State of California, County of Los Angeles on May 6, 2019; the judge in this case dismissed all claims against Ameritek Ventures, Inc. on October 19, 2023.
• The Company filed a lawsuit in the Clark County, Nevada, court against Clinton L. Stokes, III, the former owner of the Company, to settle the matter of shares ownership and that of if the asset coming from Fiber Optic Assets was purchased free and clear of any encumberment from Meridian Financial Group, LLC on March 6, 2023; this case is still pending.

Related Party Transactions

• Ameritek entered into a management agreement with Epazz, Inc., a related party, with a minimum annual fee of $350,000.
• The company has various loan payables with related parties, including Epazz, Inc.
• The company issued shares of preferred stock to related parties for debt issuance fees.
• Ameritek sold Ecker Capital, LLC to ZenaTech, Inc., a related party.

Stakeholder Impact

• Shareholders may be concerned about the declining revenue and the material weaknesses in internal control.
• Employees may be affected by the sale of Ecker Capital and the resulting changes in the company's operations.
• Customers may experience changes in the products and services offered by the company due to the asset sale.

Key Dates

Keywords

Ameritek Ventures, financial results, net income, Ecker Capital, ZenaTech, operating revenue, asset disposal, internal control, related party transactions, ATVK