What changed in this filing

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Item 2. Management’s Discussion and Analysis

2024-08-13 compared with 2024-05-14 · 108 added, 42 removed, 122 unchanged (55% of the section changed)

94 unchanged sentences

of Operations

Months Ended March 31, 2024 Compared to Three Months Ended March 31, 2023

following table summarizes our results of operations for the three months ended March 31, 2024 and 2023:

Months Ended March 31,

Months Ended June 30, 2024 Compared to Three Months Ended June 30, 2023

following table summarizes our results of operations for the three months ended June 30, 2024 and 2023:

Months Ended June 30,

Cost of revenues

Operating Expenses:

General and administrative

administrative

Research and development

and marketing

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Net income (loss)

$ (1,495,987 )

$ (1,443,648 )

and Cost of Revenues

the three months ended March 31, 2024 and 2023, the Company had revenues of approximately $23,000 and $169,000, respectively.

the quarter ended March 31, 2024, the Company reported revenues of $23,003 from the BUFFALOED CAMA.

Revenues during the 2023 period

were derived from contracts with customers for consulting services.

Company did not have any revenues during the quarters ended June 30, 2024 and 2023.

and Administrative Expenses

and administrative expenses for the three months ended March 31, 2024 were approximately $1,502,000 compared to approximately $184,000

for the three months ended March 31, 2023, an increase of approximately $1.3 million.

The increase was primarily attributable to the

Company recording $1,258,160 of stock option compensation expense in the quarter ended March 31, 2024.

As a public company, we expect

general and administrative costs to continue to increase in future periods.

and administrative expenses for the three months ended June 30, 2024 were approximately $380,000 compared to approximately $395,000 for

the three months ended June 30, 2023, a decrease of approximately $15,000.

and Development Expenses

and development expenses for the three months ended June 30, 2024 were approximately $700 compared to $0 for the six months ended June

and Marketing Expenses

and marketing expenses for the three months ended March 31, 2024 were approximately $14,000 compared to $0 for the three months ended

March 31, 2023.

and marketing expenses for the three months ended June 30, 2024 were approximately $11,000 compared to $0 for the three months ended

June 30, 2023.

Sales and marketing expenses relate to our engagement of a part-time marketing consultant during the quarter and related

Income (Expense)

Interest income for the three months ended March 31, 2024 and 2023 was minimal and consisted of interest earned on invested

Interest income for the three months ended June 30, 2024 and 2023 was minimal and consisted of interest earned on invested

cash balances.

Interest expense for the three months ended March 31, 2024 and 2023 was approximately $3,200 and $1,900, respectively, and

was primarily related to our Economic Injury Disaster Loan (“EIDL ”) and working capital loans.

Interest expense for the three months ended June 30, 2024 and 2023 was approximately $12,800 and $2,000, respectively, and

was primarily related to our Economic Injury Disaster Loan (“EIDL ”), commercial line of credit and related party working

capital loans.

and Capital Resources

the quarter ended March 31, 2024, the Company sold 75,000 shares of Common Stock at $0.20 per share to new investors resulting in total

the quarter ended June 30, 2024, the Company sold 616,000 shares of Common Stock at $0.25 per share resulting in total proceeds of approximately

During the quarter ended June 30, 2023, the Company sold 3,333,333 shares of Common Stock at $0.15 per share resulting in total

proceeds of approximately $500,000.

had an accumulated deficit of approximately $6.5 million, incurred a net loss of approximately $1.5 million, and had cash outflows from

operations of approximately $436,000 as of and for the three months ended March 31, 2024.

Further, we expect to continue to incur significant

costs in the pursuit of our business plans.

We cannot assure you that our plans to raise capital or to complete our film development

and production activities will be successful.

These factors, among others, raise substantial doubt about our ability to continue as a

going concern.

had an accumulated deficit of approximately $6.9 million, incurred a net loss of approximately $405,000, and had cash outflows from operations

of approximately $3066,000 as of and for the three months ended June 30, 2024.

Further, we expect to continue to incur significant costs

in the pursuit of our business plans.

We cannot assure you that our plans to raise capital or to complete our film development and production

activities will be successful.

These factors, among others, raise substantial doubt about our ability to continue as a going concern.

our inception, we have incurred significant operating losses.

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from related parties under promissory notes.

As of March 31, 2024, we had cash and cash equivalents of approximately $25,000.

the three months ended March 31, 2024, operating activities used approximately $436,000 of cash, including providing a $220,000 of financing

to a film production company and payments resulting in a $42,000 reduction in accounts payable and accrued expenses.

the three months ended March 31, 2023, operating activities consumed approximately $130,000 of cash, primarily resulting from $52,000

operating loss and payment of approximately $42,000 in accounts payable and accrued expenses.

the three months ended March 31, 2024 and 2023, investing activities included approximately $5,000 and $10,000 of produced and licensed

film production costs.

Additionally, during the quarter ended March 31, 2024, the Company invested approximately $3,000 in capitalized

the three months ended March 31, 2024, net cash provided by financing activities was approximately $265,000 including $15,000 of proceeds

from the sale of Common Stock and $250,000 of working capital financing under a master loan agreement from a related party.

the three months ended March 31, 2023, net cash provided by financing activities was $125,000 comprised of working capital financing

under a master loan agreement from a related party.

As of June 30, 2024, we had cash and cash equivalents of approximately $8,000.

the three months ended June 30, 2024, operating activities used approximately $306,000 of cash, including providing $176,000 of financing

to a film production company.

During the three months ended June 30, 2023, operating activities consumed approximately $188,000 of cash.

the three months ended June 30, 2024 and 2023, investing activities consumed approximately $22,000 and $0 of cash.

During the quarter

ended June 30, 2024, the Company invested approximately $19,000 in capitalized website development costs.

the three months ended June 30, 2024, net cash provided by financing activities was approximately $310,000 including $154,000 of proceeds

from the sale of Common Stock and $1,570,000 of net working capital financing under a master loan agreement from a related party.

the three months ended June 30, 2023, net cash provided by financing activities was $125,000 comprised of working capital financing under

a master loan agreement from a related party and a new commercial line of credit.

months ended June 30, 2024 Compared to six months ended June 30, 2023

following table summarizes our results of operations for the six months ended June 30, 2024 and 2023:

Months ended June 30,

Cost of revenues

Operating Expenses:

General and administrative

Research and development

and marketing

Operating Expenses

Net Operating Loss

Other Income (Expenses):

Interest income

Other Income (Expenses)

Loss before income taxes

$ (1,452,757 )

and Cost of Revenues

the six months ended June 30, 2024 and 2023, the Company had revenues of approximately $23,000 and $169,000, respectively.

The 2024 revenues

were from the Buffaloed CAMA.

Revenues during the 2023 period, were from contracts with customers for consulting services.

and Administrative Expenses

and administrative expenses for the six months ended June 30, 2024 were approximately $1,882,000 compared to approximately $579,000 for

the six months ended June 30, 2023, an increase of approximately $1.3M.

The increase was primarily attributable to the Company recording

approximately $1,258,000 of stock option expense and a $186,000 increase in professional fees in the first half of 2024.

The 2023 period

included approximately $194,000 of bad debt expense.

As a public company, we expect general and administrative costs to continue to increase

in future periods.

and Development Expenses

and development expenses for the six months ended June 30, 2024 were approximately $700 compared to $0 for the six months ended June

and Marketing Expenses

and marketing expenses for the six months ended June 30, 2024 were approximately $25,000 compared to $0 for the three months ended June

Sales and marketing expenses relate to our engagement of a part-time marketing consultant during the period and related expenses.

Income (Expense)

Interest income for the Six months ended June 30, 2024 and 2023 was approximately $486 and $2,453, respectively, and consisted

of interest earned on invested cash balances.

Interest expense for the Six months ended June 30, 2024 and 2023 was approximately $16,000 and $4,000, respectively, and

was primarily related to our Economic Injury Disaster Loan (“EIDL ”), commercial line of credit and related party working

capital loans.

and Capital Resources

the first Six months of 2024, the Company sold 691,000 shares of Common Stock for $0.25 per share resulting in total proceeds of approximately

During the six months ended June 30, 2023, the Company sold 3,333,333 shares of Common Stock at $0.15 per share resulting in

total proceeds of approximately $500,000.

We had an accumulated deficit of approximately $6.9 million, incurred a net loss of approximately

$1.9 million, and had cash outflows from operations of approximately $742,000 as of and for the six months ended June 30, 2024.

we expect to continue to incur significant costs in the pursuit of our business plans.

We cannot assure you that our plans to raise capital

or to complete our film development and production activities will be successful.

These factors, among others, raise substantial doubt

about our ability to continue as a going concern.

our inception, we have incurred significant operating losses.

We expect to incur significant expenses and operating losses for the foreseeable

future as we develop and produce feature films.

To date, we have funded our operations with proceeds from sales of Common Stock and borrowings

from related parties under promissory notes.

As of June 30, 2024, we had cash and cash equivalents of approximately $8,000.

the Six months ended June 30, 2024, operating activities used approximately $741,000 of cash including providing $396,000 of financing

to film production companies.

the Six months ended June 30, 2023, operating activities consumed approximately $318,000 of cash, primarily resulting from our net loss,

net of non-cash charges, of approximately $229,000.

the six months ended June 30, 2024 and 2023, investing activities consumed approximately $30,000 and $10,000 of cash.

The 2024 period

included $22,000 of website development costs and $8,000 of produced and licensed film production costs.

Costs during the 2023 period

included approximately $10,000 of produced and licensed film production costs.

the six months ended June 30, 2024, net cash provided by financing activities was approximately $576,000 including $415,000 of proceeds

from the sale of Common Stock and $407,000 of net working capital financing under a master loan agreement from a related party and a

commercial line of credit.

the six months ended June 30, 2023, net cash provided by financing activities was approximately $562,000 including $460,000 of proceeds

from the sale of Common Stock and $103,000 of net working capital financing under a master loan agreement from a related party and a

commercial line of credit.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis