Amesite Inc. — Form 10-Q Summary
Reporting period: Fiscal quarter and six months ended December 31, 2023; filed February 14, 2024. Amesite provides AI-driven online learning platforms and related services to businesses, colleges and universities, and K-12 schools.
Financial performance and position
| Metric | Three months ended Dec. 31, 2023 | Six months ended Dec. 31, 2023 | Comparable 2022 period |
|---|---|---|---|
| Revenue | $41,443 | $104,776 | $237,139 quarter; $517,421 six months |
| Operating expenses | $997,527 | $2,010,850 | $949,131 quarter; $2,811,670 six months |
| Operating loss | $(956,084) | $(1,906,074) | $(711,992) quarter; $(2,294,249) six months |
| Interest income | $50,473 | $109,770 | $12,508 quarter; $17,959 six months |
| Net loss | $(905,611) | $(1,796,304) | $(699,484) quarter; $(2,276,821) six months |
| Cash used in operating activities | Not provided for quarter | $(1,577,832) | $(1,836,562) six months |
- At December 31, cash and cash equivalents were $3.66 million, versus $5.36 million at June 30; total assets were $4.55 million and stockholders’ equity was $4.38 million.
- Current liabilities were $175,964, with no debt reported on the balance sheet. Cash exceeded current liabilities by about 20.8 times.
- Six-month investing cash outflow was $119,366, primarily for $118,200 of capitalized software. There were no financing cash flows in the period.
- Gross margin is not separately presented; the filing does not provide a clear gross-profit figure.
Changes versus prior comparable periods
- Six-month revenue fell about 80% year over year; quarterly revenue fell about 83%.
- Six-month net loss narrowed about 21%, as operating expenses declined about 28% and interest income rose. In contrast, quarterly net loss widened from $699,484 to $905,611, while quarterly operating expenses increased from $949,131 to $997,527.
- Management attributed lower six-month general and administrative and technology costs to headcount reductions and completed platform features requiring less maintenance. Sales and marketing costs also declined as the company refined targeting and lead generation.
- Cash declined by $1.70 million over the six months. Deferred revenue fell to $13,125 from $53,958, and accounts receivable was zero at period-end.
Outlook, risks, and other notable items
- Management said its forecast indicates cash should support planned operations for the 12 months after issuance of the financial statements. The company remains unprofitable, has a history of operating losses and negative operating cash flows, and expects continued losses and cash use; there is no assurance it will become profitable.
- Most cash was held in a short-term U.S. Treasury fund with seven-day liquidity; management reported an approximately 5% return for the six-month period.
- Revenue is concentrated among a small number of customers. The notes report four customers at 21%, 21%, 18%, and 14% of six-month revenue; MD&A separately says five customers accounted for approximately 85%.
- The company reported no material change in previously disclosed risk factors, no legal proceedings, and no subsequent events requiring recognition or disclosure. Management reported effective disclosure controls and no material change in internal control over financial reporting.
- Reported quarterly basic and diluted loss per share is $(0.036), while six-month loss per share is $(0.71). The quarterly figure does not appear consistent with the reported net loss and weighted-average shares; verify against the filed financial statements.
Important facts for investors to verify
- Whether customer-concentration disclosures reconcile: four customers’ stated shares total 74%, while MD&A reports five customers at approximately 85%.
- The reported quarterly loss-per-share figure and its apparent inconsistency with net loss and weighted-average shares.
- Revenue trends, customer renewals and contract pipeline, given the sharp year-over-year decline and low deferred revenue.
- Cash burn, the assumptions underlying management’s 12-month liquidity forecast, and potential need for additional financing.