10-K/A: Zeuus Inc. Files Amended 10-K to Correct Liabilities, Expenses, and Stock Issuance

Zeuus, Inc. files an amendment to its annual report on Form 10-K for the fiscal year ended September 30, 2023, to correct previously recorded amounts for certain liabilities, expenses, and stock issued for services.

Summary

• Zeuus, Inc. has filed an amendment to its annual report on Form 10-K for the fiscal year ended September 30, 2023.
• The amendment corrects amounts recorded for certain liabilities, expenses, and stock issued for services.
• The company's primary business activities are focused on ZEUUS Data Centers, ZEUUS Energy, and ZEUUS Cyber Security.
• The company is seeking to purchase data centers and developing wind turbine technology, expecting full commercial production by the end of the fourth quarter of 2024.
• The company is also in negotiations for the acquisition of cyber security companies.
• For the year ended September 30, 2023, the company did not generate any revenue.
• General and administrative expenses were $396,163, a decrease of $122,344 compared to the previous year.
• The company had $194,808 of amortization and depreciation expense, compared to $17,102 in the prior year.
• Professional fees were $157,827, a decrease of $9,148 compared to the previous year.
• Interest expense increased to $127,352 due to an increase in related party loans.
• The net loss for the year ended September 30, 2023, was $876,150, compared to $760,497 for the year ended September 30, 2022.
• At September 30, 2023, the company had total current assets of $365,386 and total current liabilities of $2,416,510.
• The company's auditors have expressed substantial doubt about its ability to continue as a going concern without further financing.
• The financial statements for the years ending September 30, 2023 and 2022, are being restated to correct the accounting for certain balance sheet and statement of operations accounts.

Sentiment

Score: 3

Explanation: The sentiment is negative due to the increased net loss, going concern warning from auditors, ineffective disclosure controls, and reliance on related party loans. However, there are some positive aspects such as decreasing expenses and potential for growth in the wind turbine and cyber security sectors.

Positives

• General and administrative expenses decreased by $122,344 compared to the previous year.
• Professional fees decreased by $9,148 compared to the previous year.
• The company is developing wind turbine technology, expecting full commercial production by the end of the fourth quarter of 2024.
• The company is in negotiations for the acquisition of cyber security companies.

Negatives

• The company did not generate any revenue for the years ended September 30, 2023 and 2022.
• The net loss increased to $876,150 for the year ended September 30, 2023, compared to $760,497 in the previous year.
• The company's auditors have expressed substantial doubt about its ability to continue as a going concern without further financing.
• The company's disclosure controls and procedures were not effective as of September 30, 2023.

Risks

• The company's ability to continue as a going concern is dependent on obtaining additional capital.
• The company has not attained profitable operations and is dependent upon obtaining financing to pursue any extensive activities.
• The company's auditors have expressed substantial doubt about its ability to continue as a going concern without further financing.
• The company's disclosure controls and procedures were not effective as of September 30, 2023.
• The company faces risks from cybersecurity threats that, if realized, are reasonably likely to materially affect the company.

Future Outlook

The company expects full commercial production of Wind Turbines by the end of 4th Quarter 2024 and is in negotiations for the acquisition of cyber security companies. The company's ability to continue as a going concern is dependent on obtaining additional capital.

Management Comments

• Management's plan is to obtain additional capital from management and significant shareholders and seeking third party equity and/or debt financing.
• Management cannot provide any assurances that the Company will be successful in accomplishing any of its plans.

Industry Context

The company operates in the data center, energy, and cyber security industries, which are all experiencing significant growth. The company's focus on sustainable energy consumption at its data center locations aligns with the growing demand for green energy solutions.

Comparison to Industry Standards

• It is difficult to compare Zeuus, Inc. to industry standards due to its lack of revenue and unique business model.
• However, the company's focus on data centers, energy, and cyber security aligns with broader industry trends.
• The company's development of wind turbine technology could potentially disrupt the green energy space, but it is still in the early stages of development.
• The company's reliance on related party loans is not uncommon for early-stage companies, but it also poses a risk to its financial stability.

Related Party Transactions

• The company relies on advances from related parties until such time that the Company can support its operations or attains adequate financing through sales of its equity or traditional debt financing.
• Since March 20, 2016, (inception) through September 30, 2023, Meshal Al Mutawa, the Company's former president, treasurer and director, and son of Bassam Al-Mutawa, has loaned the Company funds to pay for incorporation costs and operating expenses.
• On January 7, 2021, Bassam Al-Mutawa , CEO, loaned the Company $240,000.
• During the year ended September 30, 2022, the Company granted 23,100 shares of common stock to its directors for services.

Stakeholder Impact

• Shareholders face significant risk due to the company's going concern warning and ineffective disclosure controls.
• Employees' jobs are at risk if the company cannot obtain additional capital.
• Customers may be impacted if the company cannot continue to provide its services.
• Suppliers and creditors face the risk of non-payment if the company cannot continue as a going concern.

Next Steps

• The company needs to obtain additional capital to continue as a going concern.
• The company needs to improve its disclosure controls and procedures.
• The company needs to successfully develop and commercialize its wind turbine technology.
• The company needs to successfully acquire cyber security companies.

Key Dates