10-K: GivBux Inc. Files 10-K Report for Fiscal Year 2024, Revealing Increased Revenue and Net Losses

GivBux Inc.'s 2024 10-K filing highlights a significant increase in revenue driven by transactional and subscription growth, alongside a substantial net loss due to increased operating expenses and stock-based compensation.

Summary

• GivBux Inc., a Fin-Tech company operating a Super App, filed its 10-K report for the fiscal year ended December 31, 2024.
• The company's revenue increased significantly from $196,326 in 2023 to $544,327 in 2024, driven by transactional and subscription revenue.
• However, operating expenses also increased substantially, leading to a net loss of $3,316,192 for 2024, compared to a net loss of $1,106,962 in 2023.
• The company's activities are primarily concentrated in the United States.
• GivBux faces challenges related to managing growth, attracting and retaining users, and navigating a competitive Fin-Tech landscape.
• The company is dependent on its key personnel and may face conflicts of interest due to management's involvement in other business activities.
• GivBux is subject to various U.S. laws and regulations, including consumer protection, anti-money laundering, and data privacy laws.
• The company has identified material weaknesses in its internal control over financial reporting.
• There is substantial doubt about the company's ability to continue as a going concern.
• The company is dependent on related party loans and convertible notes payable to fund its operations.

Sentiment

Score: 3

Explanation: The document presents a mixed picture, with revenue growth offset by significant losses and concerns about the company's ability to continue as a going concern. The sentiment is negative due to the financial challenges and risks outlined in the report.

Positives

• The company experienced a significant increase in revenue, indicating growth in its business operations.
• The company is actively working on improving its Super App and recruiting new users and merchants.
• The company has a trademarked name and does not require governmental approval for operations in the US or Mexico.

Negatives

• The company incurred a substantial net loss, indicating financial challenges.
• The company has a significant accumulated deficit and a working capital deficit.
• The company is dependent on related party loans and convertible notes payable, raising concerns about financial stability.
• The company identified material weaknesses in its internal control over financial reporting.
• There is substantial doubt about the company's ability to continue as a going concern.

Risks

• Failure to manage growth effectively could strain operational capacity and negatively impact the business.
• Inability to attract new users, retain existing users, and increase platform usage could harm the business.
• Limited operating history in an evolving industry makes it difficult to evaluate future prospects.
• Dependence on a third-party payment processor poses risks to payment processing services.
• Reliance on revenue from subscription contracts means downturns are not immediately reflected in results.
• Risks associated with notes payable and convertible notes payable, including liquidity and dilution.
• Failure to maintain and enhance brand recognition could harm the business.
• Dependence on key personnel and the potential loss of such personnel.
• Inability to obtain additional financing could hinder operations and growth.
• Exposure to risks associated with handling customer funds.
• Potential for legal proceedings could adversely affect the business.
• Cybersecurity breaches could result in the unauthorized access to or use of sensitive data.
• Interruptions or performance problems associated with technology and infrastructure may adversely affect the business.
• Defects, errors, or vulnerabilities in applications could harm the reputation and brand.
• Intense competition in the markets in which the company participates.
• Reliance on merchants on the platform and potential changes to their operating costs.
• Dependence on the interoperability of the platform across third-party applications and services.
• Exposure to risks associated with government regulation and other compliance requirements.
• Failure to comply with anti-money laundering, economic and trade sanctions regulations, the U.S. Foreign Corrupt Practices Act, or the FCPA, and similar laws could subject the company to penalties and other adverse consequences.
• Potential changes in competitive landscape, including disintermediation from other participants in the payments chain, could harm the business.
• The company's auditor has been charged by the SEC with aiding and abetting violations of the antifraud provisions of federal securities laws.

Future Outlook

Management intends to raise additional operating funds through equity and/or debt offerings and is directing efforts towards the development of the GivBux Super App and pursuing potential new business and/or acquisition opportunities.

Management Comments

• Management believes that being a reporting company under the Exchange Act will enhance the Company's efforts to grow its business and raise additional capital.
• Management intends to devote such time as it deems necessary to carry out our affairs.
• Management believes that we will have sufficient financial resources available from its management to continue to pay accounting and other professional fees and other miscellaneous expenses that may be required until the Company commences business operations following the closing of a transaction.

Industry Context

The overall market for Fin-Tech Super Apps is rapidly evolving and subject to changing technology, shifting customer needs, and frequent introductions of new applications, creating a competitive landscape for GivBux.

Comparison to Industry Standards

• The document does not provide enough information to make a detailed comparison to industry standards.
• The document mentions competitors may enjoy competitive advantages, such as greater name recognition, longer operating histories, greater category share in certain markets, market-specific knowledge, established relationships with larger existing user bases in certain markets, more successful marketing capabilities, more integrated products and/or platforms, and substantially greater financial, technical, sales, and marketing, and other resources than we have.

Related Party Transactions

• During the year ended December 31, 2024, the Company borrowed $37,871 from Bear Bull Market Dividends and repaid $135,976 to Bear Bull Market Dividends.
• As of December 31, 2024, and 2023, the Company had notes payable related parties of $955,165 and $1,026,260 and accrued interest of $68,360 and $54,796, respectively.
• On April 1, 2021, the Company issued a $679,137 3% demand promissory note to Bear Bull Market Dividends, Inc., an entity controlled by Kenyatto Jones, the Company's founder.
• On April 1, 2021, the Company issued a $27,684 3% demand promissory note to GBX International, Inc., an entity controlled by Kenyatto Jones, the Company's founder.
• On April 1, 2021, the Company issued a $286,570 3% demand promissory note to Kenyatto Jones, the Company's founder.

Stakeholder Impact

• Shareholders may experience dilution due to potential equity issuances.
• The company's ability to continue as a going concern is uncertain, which could impact stakeholders.
• Employees may be affected by the company's financial challenges and potential need to curtail or cease operations.
• Customers may be affected by the company's ability to provide services and maintain its platform.
• Creditors face the risk of non-payment due to the company's financial difficulties.

Next Steps

• Management intends to raise additional operating funds through equity and/or debt offerings.
• Management intends to devote such time as it deems necessary to carry out our affairs.
• The company intends to conduct its activities to avoid being classified as an Investment Company under the Investment Company Act.

Key Dates

Keywords

FinTech, Super App, mobile wallet, payment system, GivBux, revenue, net loss, convertible notes, risk factors, financial statements