10-Q: Global Arena Holding, Inc. Reports First Quarter 2024 Results

Global Arena Holding, Inc. reported a net loss of $131,018 for the first quarter of 2024, with increased revenues compared to the same period last year.

Summary

• Global Arena Holding, Inc. reported a net loss of $131,018 for the three months ended March 31, 2024, compared to a net loss of $526,395 for the same period in 2023.
• The company's revenue increased to $232,123 in Q1 2024 from $106,192 in Q1 2023.
• Operating expenses decreased to $179,245 in Q1 2024 from $319,933 in Q1 2023.
• The company's total assets were $589,727 as of March 31, 2024, compared to $587,742 as of December 31, 2023.
• Total current liabilities were $9,748,133 as of March 31, 2024, compared to $9,691,929 as of December 31, 2023.
• The company's accumulated deficit increased to $32,629,326 as of March 31, 2024, from $32,498,308 as of December 31, 2023.
• The company issued 258,655,700 shares of common stock for the conversion of debt and accrued interest during the quarter.

Sentiment

Score: 4

Explanation: The document shows some positive trends in revenue and expense reduction, but the company's overall financial position is weak, with significant losses, debt, and internal control issues. The going concern risk is a major concern.

Positives

• The company experienced a significant increase in revenue compared to the same period last year.
• Operating expenses were substantially reduced, contributing to a smaller net loss.
• The company's net loss improved significantly compared to the same period last year.
• The company successfully converted some debt into equity, reducing liabilities.

Negatives

• The company continues to operate at a loss, with a net loss of $131,018 for the quarter.
• The company has a significant accumulated deficit of $32,629,326.
• The company has a working capital deficit of $9,724,556.
• The company's disclosure controls and procedures were deemed not effective as of March 31, 2024.
• Certain of the company's debt is in default as of March 31, 2024.

Risks

• The company's ability to continue as a going concern is dependent on raising additional capital and achieving profitability.
• The company's debt is in default, which could lead to further financial difficulties.
• The company's internal controls are not effective, which could lead to errors in financial reporting.
• The company is involved in ongoing legal proceedings, which could result in significant liabilities.
• The company's business is subject to risks related to cybersecurity and data privacy.

Future Outlook

The company is investigating potential businesses and companies for acquisition to create and/or acquire a sustainable business and plans to use available cash and new financing to develop and execute its new business plan.

Management Comments

• Management is hopeful that with their ability to raise additional funds that the Company should be able to continue as a going concern.
• Management believes that it will be successful in obtaining additional financing, from which the proceeds will be primarily used to execute its new operating plans.

Industry Context

The company operates in the election services industry, which is subject to technological advancements and increasing cybersecurity risks. The company is working to develop and implement secure and efficient election solutions.

Comparison to Industry Standards

• The company's revenue growth indicates a positive trend compared to the previous year, but it is still operating at a loss.
• The company's operating expenses have decreased, which is a positive sign, but further cost reductions may be needed to achieve profitability.
• The company's financial position is weak, with a significant accumulated deficit and working capital deficit, which is not uncommon for early-stage companies in the technology sector.
• The company's reliance on convertible debt financing is a common practice for companies with limited access to traditional funding, but it also carries risks.
• The company's efforts to develop proprietary election software and explore blockchain technology are in line with industry trends, but the success of these initiatives remains to be seen.

Legal Proceedings

• The company is involved in ongoing legal proceedings, including a settlement agreement with a prior attorney, a lawsuit against Tidewater Energy Group Corp., a lawsuit alleging breach of contract and unjust enrichment, and a lawsuit for breach of contract for failures to pay monies owned pursuant to promissory notes.
• The company settled a case with Brett and Christian Pezzuto, agreeing to confession of judgment agreements and issuing warrants.
• The company is facing a lawsuit seeking summary judgment on a promissory note.

Related Party Transactions

• The company has a due to related party liability of $6,700.
• The company had a $6,700 investment from a director during the three months ended March 31, 2023.

Stakeholder Impact

• Shareholders are impacted by the company's ongoing losses and the potential for dilution through the issuance of new shares.
• Employees are impacted by the company's financial instability and the potential for job losses.
• Creditors are impacted by the company's debt defaults and the risk of non-payment.
• Customers are impacted by the company's ability to provide reliable and secure election services.

Next Steps

• The company plans to close Tidewater Energy Group Inc. in the third quarter of 2024.
• The company anticipates the closing of the Election Services Solutions transaction in the third quarter of 2024.
• The company plans to close the joint venture agreement with Voting Portals, LLC in the third quarter of 2024.
• The company anticipates the closing of the Independent Consulting Agreement (ICA) with Magdiel Rodriquez in the third quarter of 2024.

Key Dates

Keywords

financial results, net loss, revenue, operating expenses, convertible debt, common stock, going concern, legal proceedings, election services, financial statements