Amesite Inc. — Form 10-Q Summary
Reporting period: Fiscal third quarter and nine months ended March 31, 2023, compared with the periods ended March 31, 2022. The filing was signed May 15, 2023. Although the request metadata says “2022 Q3,” the filing itself covers 2023 Q3.
Business and financial performance
Amesite provides an AI-driven online learning platform and related services to businesses, colleges and universities, and K-12 schools. The company operates in one segment and is not yet profitable.
| Metric | Three months ended March 31 | Nine months ended March 31 |
|---|---|---|
| Revenue, 2023 | $204,589 | $722,010 |
| Revenue, 2022 | $209,518 | $539,383 |
| Operating expenses, 2023 | $1,150,067 | $3,961,738 |
| Operating expenses, 2022 | $2,421,788 | $7,457,922 |
| Net loss, 2023 | $927,997 | $3,204,819 |
| Net loss, 2022 | $2,216,112 | $6,916,507 |
| Cash used in operating activities | Not separately stated for the quarter | $2,583,495 in 2023; $5,088,820 in 2022 |
Quarterly revenue decreased about 2% year over year, while nine-month revenue increased about 34%, primarily due to contract renewals. Gross margin is not separately presented in the filing. For the nine months, net loss improved by approximately $3.7 million, reflecting lower expenses; basic and diluted loss per share was $1.31 versus $3.80.
Liquidity, capital, and balance sheet
- Cash and cash equivalents were $6.13 million at March 31, 2023, down from $7.16 million at June 30, 2022. Nine-month net cash decrease was $1.03 million.
- Nine-month investing cash outflow was $293,763, including $288,209 invested in capitalized software. Financing cash inflow was $1,850,501, net proceeds from common stock issuance.
- Total current assets were $6.35 million and current liabilities were $311,171, including $105,980 of deferred revenue. Stockholders’ equity was $6.96 million.
- The balance sheet reports no debt; total liabilities shown are current liabilities. Management forecast cash sufficient for planned operations for 12 months after issuance of the statements. The company nevertheless expects ongoing losses and operating cash use and may need additional capital to execute its plan.
Changes, outlook, risks, and notable items
- General and administrative, technology and content development, and sales and marketing expenses all declined year over year. Management attributed reductions to headcount and other cost controls, completion of platform features and learning programs, and more focused marketing. It reported increased marketing-qualified leads while lowering marketing spend.
- No numeric revenue or earnings guidance was provided. Management said it expects continued losses and cash use in the foreseeable future.
- Revenue concentration is significant: three customers represented approximately 70% of nine-month 2023 revenue, with one customer representing approximately 34%.
- On February 21, 2023, the company effected a 1-for-12 reverse stock split. Nasdaq notified the company on March 8 that it had regained compliance with the minimum bid-price requirement.
- The filing says earlier going-concern conditions no longer raised substantial doubt based on current operations and available cash, while also identifying continued access to capital and execution of its business plan as dependencies. No legal proceedings or subsequent events were reported.
- Management concluded disclosure controls were effective. It reported actions to address material weaknesses in internal controls identified previously, including a COSO-based risk assessment and enhanced monitoring.
Important facts for investors to verify
- Cash runway assumptions and whether operating cash burn or financing needs differ from management’s forecast.
- Renewal, retention, and expansion trends, especially dependence on a small number of customers.
- Whether expense reductions can be sustained without impairing platform development, sales, or customer service.
- Share-count and dilution disclosures: the cover page reports 2,545,440 shares outstanding, while the balance sheet reports 2,542,440 at March 31, 2023.
- Progress in remediating previously identified internal-control weaknesses and the effect of stock issuance or other financing on shareholders.