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

Himalaya Technologies, Inc. reports no revenue for Q2 2024, focusing on developing its social media platform Goccha! and exploring telehealth opportunities.

Summary

• Himalaya Technologies, Inc. reported its financial results for the quarter ended January 31, 2024.
• The company had no operating 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.
• For the six months ended January 31, 2024, the net loss was $464,367, compared to $412,292 for the same period in 2023.
• Operating expenses for the six months ended January 31, 2024 were $359,371, including $260,384 in non-cash stock-based compensation.
• The company is focusing on completing its social site Goccha! and developing telehealth platform businesses.
• As of January 31, 2024, the company had a cash balance of $5,107 and negative working capital of $688,861.
• The company is pursuing additional funding to maintain operations and anticipates needing to raise additional capital in the future.
• The company's third-party loan of $145,500 from GS Capital Partners is currently in default.
• The company is involved in business lawsuits seeking monies owed, fees and penalties of $149,837.85 and $161,631.25 in the State of New York.

Sentiment

Score: 3

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

Positives

• The company is actively pursuing additional funding resources to maintain operations.
• Himalaya Technologies is exploring new business ventures in telehealth and social media.
• The company has appointed several advisors to guide its entry into new markets such as telehealth and medical tourism.

Negatives

• The company reported no revenue for the periods ended January 31, 2024 and 2023.
• Himalaya Technologies 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.
• A third-party loan of $145,500 from GS Capital Partners is currently in default.
• The company is involved in business lawsuits seeking monies owed, fees and penalties of $149,837.85 and $161,631.25 in the State of New York.

Risks

• The company's ability to continue as a going concern is dependent on securing additional capital.
• Failure to raise sufficient capital could require the company to delay or terminate expenditures for certain programs.
• The company faces risks associated with competition, financing, liquidity requirements, and rapidly changing customer requirements.
• The company's shareholder voting control is effectively controlled by its chairman and CEO, Vikram Grover.
• The company is involved in business lawsuits seeking monies owed, fees and penalties.

Future Outlook

The company anticipates needing to raise additional capital to sustain and grow its operations over the next few years and expects expenses to increase.

Management Comments

• The analysis set forth below is provided pursuant to applicable Securities and Exchange Commission regulations and is not intended to serve as a basis for projections of future events.

Industry Context

The company is attempting to pivot into the social media and telehealth industries, which are both highly competitive and rapidly evolving markets.

Comparison to Industry Standards

• Given the lack of revenue, it's difficult to compare Himalaya Technologies to industry standards.
• Companies like Facebook (Meta) and Teladoc Health are leaders in the social media and telehealth spaces, respectively, and have significantly more resources and established market presence.
• The company's ability to compete will depend on its ability to secure funding, develop innovative products, and effectively market its services.

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 12, 2023, the Company purchased 210,000,000 common shares of Peer-to-Peer Network (OTC: PTOP) from FOMO WORLDWIDE, INC. (OTC: FOMC) by issuing FOMO WORLDWIDE, INC. 1,680,000 of our Series A Preferred shares.
• 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.

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.

Next Steps

• The company plans to complete its social site Goccha! and develop telehealth platform businesses.
• Himalaya Technologies intends to pursue additional funding resources to maintain its current and planned operations.
• The company is exploring merging some or all of the Renovi! project into the company.

Key Dates

Keywords

Himalaya Technologies, financial results, Goccha!, telehealth, social media, funding, capital, debt, equity, loss, revenue, operating expenses, default, lawsuits