10-Q/A: GivBux Inc. Reports Increased Revenue but Continues to Face Losses in Q3 2024

GivBux Inc.'s Q3 2024 shows revenue growth driven by app beta testing and sales associate recruitment, but the company still reports a net loss and going concern uncertainties.

Summary

• GivBux Inc. has filed an amended quarterly report on Form 10-Q/A for the quarter ended September 30, 2024, to include proper disclosures and certifications.
• The company experienced a net loss of $3,019,598 during the nine months ended September 30, 2024, and has an accumulated deficit of $7,006,264 as of the same date.
• Current liabilities exceed current assets by $3,162,237 as of September 30, 2024.
• Revenue increased by 294% to $257,920 for the three months ended September 30, 2024, compared to $65,470 for the same period in 2023, attributed to beta testing of the GivBux App and increased sales associates.
• The company is seeking additional funding through equity and/or debt offerings.
• There is substantial doubt about the company's ability to continue as a going concern.
• The company identified material weaknesses in its internal control over financial reporting.
• The company intends to increase its board members from 3 to 5 in the first quarter of 2025.

Sentiment

Score: 4

Explanation: The document presents a mixed picture. While there is significant revenue growth, the company is still operating at a loss and faces substantial financial challenges, including doubts about its ability to continue as a going concern. The material weaknesses in internal controls also raise concerns.

Positives

• Revenue increased by 294% for the three months ended September 30, 2024, compared to the same period in 2023.
• The increase in revenue is attributed to beta testing of the GivBux App and increased sales associates.
• The number of sales associates increased from less than 100 to over 1000 during the quarter.

Negatives

• The company experienced a net loss of $3,019,598 during the nine months ended September 30, 2024.
• The accumulated deficit is $7,006,264 as of September 30, 2024.
• Current liabilities exceed current assets by $3,162,237 as of September 30, 2024.
• There is substantial doubt about the company's ability to continue as a going concern.
• The company identified material weaknesses in its internal control over financial reporting.

Risks

• There is substantial doubt about the company's ability to continue as a going concern due to net losses and an accumulated deficit.
• The company may not be successful in raising additional operating funds through equity and/or debt offerings.
• The company identified material weaknesses in its internal control over financial reporting, which could lead to inaccurate financial reporting.
• The company's common stock is considered a penny stock, which may make it more difficult to sell.
• There is very limited liquidity of the company's common stock.
• There are significant limitations on a shareholder's ability to re-sell shares of the company's common stock.
• The company's senior management team has limited experience managing a public company.
• The company is subject to rules and regulations established by the SEC and PCAOB regarding internal control over financial reporting.

Future Outlook

The company expects to see continual revenue growth as they ramp up operations over the next few quarters and intends to raise additional operating funds through equity and/or debt offerings.

Management Comments

• As we ramp up over the next few quarters we expect to see continual revenue growth.
• Net losses for period are down 29.5% for the quarter in comparison to the same period in 2023 but as we grow we will need to hire more personnel and staff properly the operations.

Industry Context

The company operates in the technology sector, specifically with a mobile application. The increase in revenue and sales associates suggests a growing interest in the company's product. However, the continued net losses and going concern uncertainties indicate that the company faces significant challenges in achieving profitability and sustainability.

Comparison to Industry Standards

• Given the limited information, it's difficult to provide a detailed comparison to industry standards.
• However, early-stage tech companies often experience losses as they invest in growth.
• The key will be to monitor the company's ability to convert revenue growth into profitability and manage its debt obligations.
• Comparable companies in the mobile app space include those focused on similar services or target markets, but their financial performance would need to be assessed individually to determine relative performance.

Legal Proceedings

• There are no legal proceedings against the company at this time

Related Party Transactions

• During the nine months ended September 30, 2024, and 2023, the Company obtained $ 31,940 and $ 148,988 loan from our related parties, repaid $ 98,047 and $ 109,950 to our related parties and recognized interest of $ 20,326 and $ 21,560 , respectively.
• As of September 30, 2024, and December 31,2023, the Company had notes payable related parties of $ 868,747 and $ 934,854 and accrued interest of $ 111,732 and $ 91,406 , respectively.
• The notes are unsecured, 3 % interest bearing and due on demand.
• As of September 30,2024, and December 31,2023, the Company had due to related party of $ 3,275 .
• During the nine months ended September 30,2023, the Company issued 25,000 shares of common stock for compensation -management of $ 37,500 .

Stakeholder Impact

• Shareholders face the risk of dilution due to potential equity issuances.
• Employees face uncertainty due to the company's going concern issues.
• Creditors face increased risk due to the company's high liabilities and potential inability to repay debts.

Next Steps

• The company intends to increase its board members from 3 to 5 in the first quarter of 2025.
• Management is currently evaluating the steps to address these material weaknesses.
• The company intends to provide the specified current information under the Exchange Act.

Key Dates

Keywords

financial statements, revenue, net loss, convertible notes, going concern, internal control, GivBux, liabilities, assets, stock