10-Q/A: Himalaya Technologies Reports Q2 2024 Results: Focus Shifts to Social Media and Telehealth

Himalaya Technologies, Inc. reports its financial results for the quarter ended January 31, 2024, highlighting a shift in business strategy towards social media and telehealth, alongside ongoing efforts to secure additional funding.

Summary

• Himalaya Technologies, Inc. released its financial results for the quarter ended January 31, 2024.
• The company reported no revenue for both the three and six months ended January 31, 2024 and 2023.
• The net loss for the three months ended January 31, 2024 was $362,854, compared to a net loss of $228,949 for the same period in 2023.
• The net loss for the six months ended January 31, 2024 was $464,367, compared to a net loss of $412,292 for the same period in 2023.
• Operating expenses for the six months ended January 31, 2024 were $359,371, which included $260,384 in non-cash stock-based compensation.
• As of January 31, 2024, the company had a cash balance of $5,107 and a negative working capital of $690,612.
• The company is focusing on completing its Goccha! social site, developing a FOMO healthy energy drink, launching its ERC20 EVEREST crypto token, and developing telehealth platform businesses.
• The company is pursuing additional funding to maintain current and planned operations.
• The company's CEO effectively controls shareholder voting due to his ownership of Series C, A, and B preferred stock.

Sentiment

Score: 3

Explanation: The sentiment is low due to the lack of revenue, significant losses, negative working capital, and dependence on future financing. While there are some positive developments in terms of new business ventures, the overall financial situation is precarious.

Positives

• The company is actively pursuing new business ventures in the telehealth and social media sectors.
• The company is seeking additional funding to support its operations and growth.
• The company has appointed new members to its Advisory Board to guide its entry into new markets.

Negatives

• The company reported no revenue for the periods ended January 31, 2024 and 2023.
• The company has a significant accumulated deficit of $9,101,618 as of January 31, 2024.
• The company has negative working capital of $690,612 as of January 31, 2024.
• The company is dependent on future debt or equity investments to sustain its operations.
• The company's third-party loan of $145,500 from GS Capital Partners is currently in default.

Risks

• The company's ability to continue as a going concern is dependent on securing additional capital.
• The company faces risks associated with competition, financing, liquidity requirements, and rapidly changing customer requirements.
• The company's third-party loan of $145,500 from GS Capital Partners is currently in default.
• The company may be required to delay or terminate expenditures for certain programs if adequate funds are not available.
• The company's CEO's control over shareholder voting could lead to decisions that are not in the best interest of all shareholders.
• The company has been named in business lawsuits by Swift Funding Source Inc. and Globex Funding LLC.

Future Outlook

The company plans to complete its Goccha! social site, develop a FOMO healthy energy drink, launch its ERC20 EVEREST crypto token, and develop telehealth platform businesses. The company anticipates needing to raise additional capital to sustain and grow its operations over the next few years.

Management Comments

• The Companys shareholder voting control is effectively controlled by its chairman and CEO, Vikram Grover, due to his ownership of (i) all 1,000,000 of the outstanding shares of the Companys Series C Preferred Stock which has voting power of 100,000 votes per share, (ii) 5,962,179 shares of the Companys Series A Preferred Stock directly (61.8% of that classs outstanding shares) and 6,680,000 shares of the Companys Series A Preferred Stock indirectly through a Company he controls (38.2%) which have 50 votes per share. and (iii) 247,094 shares of the Companys Series B Preferred Stock directly (31.0% of that classs outstanding shares) and 352,801 shares of the Companys Series B Preferred Stock indirectly through a Company he controls (44.2%) which have 1,000 votes per share.
• With this voting power, Mr. Grover can determine the outcome of any matter put to a shareholder vote including taking corporate actions by shareholder consent.

Industry Context

The company's shift towards social media and telehealth aligns with current industry trends, as these sectors are experiencing significant growth and demand. The company's focus on niche vertical markets within social media and its development of telehealth platforms could provide a competitive advantage.

Comparison to Industry Standards

• Given the lack of revenue and significant losses, Himalaya Technologies' financial performance is substantially below industry standards for comparable technology companies.
• Companies like Zoom and Teladoc, in the telehealth space, generate billions in revenue annually, a stark contrast to Himalaya's current financial state.
• Similarly, established social media platforms like Facebook and Twitter have massive user bases and advertising revenue streams, which Himalaya's Goccha! platform aims to emulate but has yet to achieve.
• The company's reliance on debt and equity financing to sustain operations is also a concern, as it indicates a lack of organic revenue generation, unlike more established companies that fund growth through profits.

Legal Proceedings

• The company has been named in a business lawsuit by Swift Funding Source Inc. seeking monies owed, fees and penalties of $149,837.85 in the State of New York.
• The company has been named in a business lawsuit by Globex Funding LLC seeking monies owed, fees and penalties of $161,631.25 in the State of New York.

Related Party Transactions

• On June 28, 2021, the Company received a loan of $25,000, subsequently amended to a credit line of $100,000, from FOMO WORLWIDE, INC. (FOMO), a related party.
• During the six months ended January 31, 2024, FOMO WORLDWIDE, INC. converted $38,028 of a loan and $20,087 in accrued interest to us into 278,442 of our Series B Preferred shares.
• On May 10, 2023, the Company sold 100 % of Everest Networks, Inc. (formerly KANAB CORP) from Himalaya for partial forgiveness of $ 17,017 loaned to the business on June 28, 2021 and as amended on November 9, 2021 and September 1, 2022.
• The transaction was subsequently unwound on June 15, 2023 thereby returning 100 % of Everest Networks, Inc. (formerly KANAB CORP) to the Company.
• During the six months ended January 31, 2024, the Company issued 1,184,402 shares of Class A Preferred Stock to the Companys CEO for the conversion of accrued compensation of $40,000.
• During the six months ended January 31, 2024, the Company issued 278,442 shares of Class B Preferred Stock to the Companys CEO for the conversion of accrued compensation of $10,000.

Stakeholder Impact

• Shareholders face potential dilution from future equity offerings.
• Employees' job security is uncertain due to the company's financial instability.
• The company's ability to execute its business plan and deliver value to customers is dependent on securing additional funding.
• Creditors face the risk of non-payment due to the company's financial difficulties.

Next Steps

• The company plans to complete its Goccha! social site.
• The company plans to develop a FOMO healthy energy drink.
• The company plans to launch its ERC20 EVEREST crypto token.
• The company plans to develop telehealth platform businesses.
• The company will seek additional funding through equity or debt financing.

Key Dates

Keywords

financial results, Himalaya Technologies, social media, telehealth, funding, Goccha!, FOMO, EVEREST, convertible debt, operating loss