10-Q: Ameritek Ventures Reports Significant Loss in Q1 2025 Following Ecker Capital Divestiture

Ameritek Ventures' Q1 2025 results reveal a substantial net loss primarily due to the sale of Ecker Capital, impacting revenue and investment valuations.

Summary

• Ameritek Ventures reported a net loss of $9,059,374 for the three months ended March 31, 2025, compared to a net income of $19,697 for the same period in 2024.
• The company's operating revenue decreased to $0 for Q1 2025 from $215,922 in Q1 2024, primarily due to the sale of Ecker Capital, LLC.
• Operating expenses decreased to $10,287 in Q1 2025 from $153,566 in Q1 2024, reflecting the divestiture of Ecker Capital and its subsidiaries.
• The company recognized a loss of $9,022,095 on its investment in ZenaTech during the first quarter of 2025.
• As of March 31, 2025, the company's total assets were $7,182,640, a significant decrease from $16,207,378 as of December 31, 2024.
• Total liabilities were $2,512,222 as of March 31, 2025, compared to $2,477,586 as of December 31, 2024.
• The company's accumulated deficit increased to $2,080,261 as of March 31, 2025, from $11,139,635 as of December 31, 2024.
• The company had no cash as of March 31, 2025, compared to $2,245 as of March 31, 2024.

Sentiment

Score: 2

Explanation: The document presents a negative outlook due to significant losses, decreased revenue, and a substantial loss on investment. The company's future is uncertain, and its ability to meet its debt obligations is questionable.

Positives

• Operating expenses decreased significantly due to the sale of Ecker Capital, LLC.
• The company has lines of credit with related parties to justify the long-term classification of the current portion of third-party debt.

Negatives

• The company reported a significant net loss of $9,059,374 for the quarter.
• Revenue decreased to $0 due to the sale of Ecker Capital, LLC.
• The company experienced a substantial loss on its investment in ZenaTech.
• Total assets decreased significantly from the end of the previous year.
• The company had no cash as of March 31, 2025.

Risks

• The company's future performance is heavily reliant on the success of DittoMask, Inc., which did not generate significant profit in 2024.
• The company's investment in ZenaTech is subject to market fluctuations and could result in further losses.
• The company's ability to meet its debt obligations depends on its ability to generate sufficient revenue or secure additional financing.
• The company's internal controls are identified as ineffective.

Future Outlook

Management plans to raise equity capital to finance the operating and capital requirements of the Company, which will be used for product development, marketing, property and equipment, and working capital.

Industry Context

The company operates in the software, hardware, and technology sectors, including warehouse solutions, medical devices, blockchain technology, augmented reality, and electric bicycles. The divestiture of Ecker Capital and its subsidiaries reflects a strategic shift in the company's focus.

Comparison to Industry Standards

• It is difficult to compare Ameritek Ventures to industry standards due to its diverse range of business activities and recent divestiture.
• Comparable companies in the software sector, such as Interactive Systems, Inc. and interlinkONE, Inc., typically focus on specific niches and have established revenue streams.
• Companies in the medical device industry, such as DittoMask, Inc., face regulatory hurdles and competition from established players.
• Companies in the blockchain technology and augmented reality sectors are often early-stage ventures with high growth potential but also high risk.
• The electric bicycle market is growing rapidly, but competition is intense from established bicycle manufacturers and new entrants.

Legal Proceedings

• 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.
• Meridian Financial Group, LLC has a claim on the assets in the business of fiber optics previously owned by Clinton L. Stokes III.
• This case is still pending, and there is no trial date set.

Related Party Transactions

• Ameritek sold Ecker Capital, LLC to ZenaTech, Inc., a related party, on October 1, 2024.
• Epazz, Inc. owns over 95% of Ameritek's voting stock and is considered a related party.
• Shaun Passley, PhD, is the CEO of Ameritek and has relationships with several related parties, including Epazz, Inc. and family members.
• The company has several notes payable to Epazz, Inc., including notes assumed from the Bozki and VW Win mergers.
• Ameritek entered into a management agreement with Epazz, Inc., a related party, with a minimum annual fee of $350,000.
• The Company had an accounts payable balance of $317,713 due to Epazz, Inc. as of March 31, 2025.

Stakeholder Impact

• Shareholders may be concerned about the company's significant net loss and decreased revenue.
• Employees may be affected by the company's strategic shift and potential restructuring.
• Customers may experience changes in the company's product offerings and services.
• Suppliers and creditors may be affected by the company's financial difficulties and potential capital raise.

Next Steps

• The company plans to raise equity capital to finance its operations.
• The company will focus on developing its remaining products and services, including DittoMask, Inc.

Key Dates

Keywords

Ameritek Ventures, Ecker Capital, ZenaTech, Financial Results, Divestiture, Net Loss, Revenue, Investments, Related Party Transactions, DittoMask