10-Q/A: Dogecoin Cash Inc. Files Amended Quarterly Report After Share Issuance Oversight

Dogecoin Cash, Inc. has filed an amendment to its quarterly report to correct an omission related to a share issuance that occurred after the reporting period.

Summary

• Dogecoin Cash, Inc. filed an amendment to its quarterly report for the period ending September 30, 2024, to include a share issuance that was previously omitted due to an oversight.
• The amendment includes revisions to the subsequent events section to reflect the omitted share issuances.
• The company's revenue decreased by 27% for the three months ended September 30, 2024, compared to the same period in 2023, and 31% for the nine months ended September 30, 2024, compared to the same period in 2023.
• The company experienced a net loss from continuing operations of $181,847 for the three months ended September 30, 2024, and $554,583 for the nine months ended September 30, 2024.
• The company had $41,352 in cash on hand at the end of the third quarter of 2024.
• The company's accumulated deficit was $82,895,826 as of September 30, 2024.
• The company is evaluating whether to acquire a cyber liability insurance policy.
• The company is seeking to raise capital through public or private offerings.
• The company's disclosure controls and procedures were deemed not effective due to material weaknesses related to the small size of the accounting staff.

Sentiment

Score: 3

Explanation: The document reveals significant financial challenges, including declining revenue, substantial losses, and a large accumulated deficit. The company also has material weaknesses in its disclosure controls and procedures. While there are some positives, such as cost reductions, the overall sentiment is negative due to the company's financial instability and operational issues.

Positives

• The company is actively seeking new business opportunities for acquisition and product development.
• Total operating expenses decreased in September 30, 2024 compared with 2023.
• Cost of revenues as a percentage of sales decreased 30% between the three month periods and 23% between the nine month periods.
• The company is evaluating acquiring cyber liability insurance.

Negatives

• The company experienced a significant decrease in revenue for both the three and nine month periods ending September 30, 2024.
• The company has a substantial accumulated deficit of $82,895,826.
• The company's cash on hand is low at $41,352.
• The company's disclosure controls and procedures were deemed ineffective due to material weaknesses.
• The company incurred net losses of $854,454 for the nine months ended September 30, 2024.

Risks

• The company's ability to continue as a going concern is dependent on generating profitable operations or obtaining necessary financing.
• The company faces significant competition in the cannabis telemedicine industry.
• The company's small accounting staff may prevent adequate controls in the future.
• The company may experience dilution to current shareholders if it raises capital through equity offerings.
• The company's current cash on hand does not provide sufficient liquidity to meet immediate operational needs.

Future Outlook

The company is seeking to raise capital through public or private offerings to further its business plan. The company is also actively seeking new business opportunities for acquisition and is continually reviewing opportunities for product and brand development.

Management Comments

• We regret any confusion caused by this omission and appreciate the understanding of our investors and stakeholders as we strive to maintain transparency and accuracy in our financial reporting.
• Management of the Company believes that these material weaknesses are due to the small size of the companys accounting staff.
• As the Company grows, management expects to increase the number of employees, which will enable us to implement adequate segregation of duties within the internal control framework.

Industry Context

The decrease in revenue is primarily attributed to increased competition in the cannabis telemedicine industry, indicating a challenging market environment for the company. The company is pivoting to digital currency and blockchain applications.

Comparison to Industry Standards

• The company's revenue decline of 27% and 31% for the three and nine month periods respectively, indicates a significant underperformance compared to industry leaders in the telemedicine sector, which have generally seen growth or stable revenues.
• Companies like Teladoc Health and Amwell, while facing their own challenges, have not reported such steep revenue declines, suggesting Dogecoin Cash, Inc. is facing unique competitive pressures or operational issues.
• The company's accumulated deficit of $82,895,826 is significantly higher than many of its peers, indicating a need for substantial financial restructuring or capital infusion.
• The material weaknesses in disclosure controls and procedures are a serious concern, as most publicly traded companies in the sector maintain robust internal controls to ensure accurate financial reporting.

Related Party Transactions

• During the nine months ended September 30, 2024 and 2023, David Tobias, the Companys chief executive officer and director, loaned $7,240 and $22,721, respectively to the Company for notes payable bearing interest at the rate of 5% per annum due on December 31, 2024.
• During the nine months ended June 30, 2024, the Company and Cathy Carroll, director, entered into a note payable for $42,500 for compensation due her for services.
• The Company also has an outstanding loan in the amount of $4,000 to a director of the Company which was paid off with stock on May 22, 2024.
• The company has a balance due from MJ Harvest, Inc. of $75,054.
• The company has a balance due from a director of $1,250.

Stakeholder Impact

• Shareholders may experience dilution if the company raises capital through equity offerings.
• Employees may be affected by the company's financial instability and potential restructuring.
• Customers may be impacted by changes in the company's services or operations.
• Creditors may be concerned about the company's ability to repay its debts.
• Suppliers may be affected by the company's financial challenges.

Next Steps

• The company will seek to raise capital through public or private offerings.
• The company will continue to evaluate new business opportunities for acquisition and product development.
• The company will work to improve its internal controls and procedures.
• The company will evaluate acquiring cyber liability insurance.

Key Dates

Keywords

Dogecoin Cash, Cannabis Sativa, share issuance, quarterly report, financial results, telemedicine, debt conversion, capital raise, cybersecurity, material weakness