10-K: Ameritek Ventures Reports Net Income of $4.5 Million for Fiscal Year 2024 Following Asset Sale

Ameritek Ventures, Inc. reports a significant increase in net income for 2024, driven by a gain on asset disposal from 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.
• The company had no cash as of December 31, 2024, compared to $5,618 as of December 31, 2023, due to the asset sale to ZenaTech.
• Ameritek continues to rely on borrowings to finance its working capital needs.
• As of December 31, 2024, the company had 613,226,791 shares of common stock outstanding.
• 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 sentiment. While the company reports a significant increase in net income due to the asset sale, the decrease in operating revenue and the identified material weaknesses in internal control over financial reporting raise concerns.

Positives

• The company achieved a net income of $4,496,799 in 2024, a significant improvement from the net loss of $58,910 in 2023.
• The sale of Ecker Capital resulted in a substantial gain on asset disposal of $4,439,550.
• Total operating expenses decreased by 44%, indicating improved cost management.

Negatives

• Operating revenue decreased by 29% to $678,300, primarily 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 continues to rely on borrowings to finance its working capital needs.
• Material weaknesses in internal control over financial reporting could lead to misstatements in financial statements.
• 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.

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. The sale of Ecker Capital and its subsidiaries suggests a strategic shift in focus.

Comparison to Industry Standards

• It is difficult to compare Ameritek Ventures to industry standards due to its diversified business model and the limited financial information provided.
• The company's reliance on related party transactions and the material weaknesses in internal control over financial reporting raise concerns about corporate governance and financial transparency.
• Comparable companies in the software and technology sectors typically have more robust internal controls and greater financial transparency.

Legal Proceedings

• Meridian Pacific Holdings, LLC filed a lawsuit against certain directors, officers, affiliates, and the Company for breach of contract and fraud; the judge 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 selling agreement with ZenaTech, Inc., a related party, to sell 100% of Ecker Capital, LLC membership shares on October 14, 2024 with an effective date of October 1, 2024.
• Numerous transactions with Epazz, Inc., including management services agreement and assumption of notes from mergers.
• Stock issuances to related parties, including GG Mars Capital, Inc. and Star Financial Corporation.
• The company reclassified $697,359 advanced to Epazz, Inc. and ZenaTech, Inc. through Ameritek Ventures to offset this accounts payables balance.

Stakeholder Impact

• Shareholders: The increase in net income could be viewed positively, but the material weaknesses in internal control and the reliance on related party transactions may raise concerns.
• Employees: The sale of Ecker Capital and its subsidiaries may have impacted employees of those entities.
• Customers: The sale of Ecker Capital and its subsidiaries may have impacted customers of those entities.
• Creditors: The company's reliance on borrowings to finance its working capital needs may increase risk for creditors.

Key Dates

Keywords

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