Amesite Inc. — Form 10-Q Summary
Business context and reporting period
Amesite provides AI-driven online learning platforms and related services to businesses, colleges and universities, and K–12 schools. This Form 10-Q covers the three months ended September 30, 2023, the first quarter of the company’s fiscal year ending June 30, 2024. Figures are unaudited; comparisons are with the quarter ended September 30, 2022 unless noted.
Financial performance and position
| Metric | Quarter ended September 30, 2023 | Prior-year quarter |
|---|---|---|
| Revenue | $63,333 | $280,282 |
| Operating expenses | $1,013,323 | $1,862,540 |
| Operating loss | $(949,990) | $(1,582,258) |
| Interest income | $59,297 | $5,451 |
| Net loss | $(890,693) | $(1,577,338) |
| Basic and diluted loss per share | $(0.35) | $(0.69) |
| Operating cash used | $(658,779) | $(809,766) |
Revenue fell approximately 77% year over year. Operating expenses declined approximately 46%, and net loss narrowed approximately 44%. The filing does not provide a separate gross profit or gross margin figure.
At September 30, 2023, cash and cash equivalents were $4.64 million, down from $5.36 million at June 30, 2023. Total current assets were $4.73 million and current liabilities were $263,325. Stockholders’ equity was $5.25 million. The balance sheet lists no debt. Cash used in investing activities was $65,200, primarily for capitalized software; there were no financing cash flows in the quarter. Management said most cash was held in a short-term U.S. Treasury fund with seven-day liquidity and a reported 5% return.
Material changes, outlook and risks
- Management attributed the revenue decline to completion of the earning cycle for several large multi-year clients during the fiscal year ended June 30, 2023.
- Lower general and administrative, technology and content development, and sales and marketing costs reflected reductions in personnel and contractor costs, professional fees, insurance, vendors, and other expenses.
- The company remains unprofitable, with a cumulative net loss of approximately $34.3 million since incorporation and a history of operating losses and negative operating cash flows. Management expects continued losses and cash use but believes current cash will fund planned operations for at least 12 months after issuance of the financial statements.
- Five customers represented approximately 95% of quarterly revenue, indicating significant customer concentration. Deferred revenue was $24,375 and was expected to be recognized over the next seven months.
- Risks include the need to establish a stable revenue base and obtain future funding, early-stage operating risks, reliance on third parties and key personnel, technology and intellectual-property risks, and competition and regulation. The filing reports no material changes to previously disclosed risk factors and no legal proceedings.
- The company completed a 1-for-12 reverse stock split in February 2023 and subsequently regained Nasdaq’s minimum bid-price compliance. It reported 2,542,440 common shares outstanding as of November 10, 2023.
Important facts for investors to verify
- Whether Amesite can replace revenue from completed multi-year contracts and reduce its dependence on a small number of customers.
- Actual cash burn, investment liquidity and returns, and whether the stated 12-month liquidity forecast remains achievable.
- Progress toward recurring revenue sufficient to cover operating costs, including the status and timing of customer contracts and deferred revenue.
- Potential dilution from outstanding options and warrants; the filing reports 521,038 warrants and approximately 236,277 outstanding options at September 30, 2023.