What changed in this filing

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Item 1. Financial Statements

2024-08-13 compared with 2024-05-06 · 131 added, 110 removed, 585 unchanged (29% of the section changed)

3 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

March 31, 2024

June 30, 2024

September 30, 2023

1 unchanged sentence

Cash and cash equivalents

Accounts receivable, net of an allowance for credit losses of $ 78,665 as of March 31, 2024 and $ 63,665 as of September 30, 2023

Accounts receivable, net of an allowance for credit losses of $72,665 as of June 30, 2024 and $63,665 as of September 30, 2023

Prepaid expenses and other current assets

42 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

March 31, 2024

March 31, 2023

March 31, 2024

March 31, 2023

June 30, 2024

June 30, 2023

June 30, 2024

June 30, 2023

Cost of Revenue

21 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

March 31, 2024

March 31, 2023

June 30, 2024

June 30, 2023

Cash Flows From Operating Activities

2 unchanged sentences

Amortization of operating lease - right-of-use asset

Extinguishment of liabilities

Provision for credit losses

27 unchanged sentences

STOCKHOLDERS' EQUITY

FOR THE THREE AND SIX MONTHS ENDED MARCH 31, 2024

Series A Preferred Stock

Series B Preferred Stock

Series C Preferred Stock

Series D Preferred Stock

Series E Preferred Stock

FOR THE THREE AND NINE MONTHS ENDED JUNE 30, 2024

Preferred Stock

Stockholders'

1 unchanged sentence

$ ( 15,237,292 )

Net income for the six months ended March 31, 2024

Balance at March 31, 2024 (Unaudited)

Net income for the nine months ended June 30, 2024

Balance at June 30, 2024 (Unaudited)

$ ( 15,212,860 )

Balance at December 31, 2023

Balance at March 31, 2024

$ ( 15,297,716 )

Net income for the three months ended March 31, 2024

Balance at March 31, 2024 (Unaudited)

Net income for the three months ended June 30, 2024

Balance at June 30, 2024 (Unaudited)

$ ( 15,212,860 )

5 unchanged sentences

STOCKHOLDERS' EQUITY

FOR THE THREE AND SIX MONTHS ENDED MARCH 31, 2023

Series A Preferred Stock

Series B Preferred Stock

Series C Preferred Stock

Series D Preferred Stock

Series E Preferred Stock

Additional paid-in

FOR THE THREE AND NINE MONTHS ENDED JUNE 30, 2023

Preferred Stock

Stockholders'

2 unchanged sentences

Series C Convertible Preferred shares exchanged for common stock

Net income for the six months ended March31, 2023

Balance at March 31, 2023 (Unaudited)

Net income for the nine months ended June 30, 2023

Balance at June 30, 2023 (Unaudited)

$ ( 15,193,315 )

Balance at December 31, 2022

Balance at March 31, 2023

$ ( 15,201,935 )

Net income for the three months ended March 31, 2023

Balance at March 31, 2023 (Unaudited)

Series C Convertible Preferred shares exchanged for common stock

Net income for the three months ended June 30, 2023

Balance at June 30, 2023 (Unaudited)

$ ( 15,193,315 )

4 unchanged sentences

Notes to Condensed Consolidated Financial Statements

March 31, 2024

June 30, 2024

NOTE 1 - ORGANIZATION

24 unchanged sentences

for Registration of Securities of Form 10-K as filed with the Securities and Exchange Commission (the “Commission”) on December

The results of operations for the three and six months ended March 31, 2024, are not necessarily indicative of results to be

The results of operations for the three and nine months ended June 30, 2024, are not necessarily indicative of results to be

expected for any other interim period or the fiscal year ending September 30, 2024.

7 unchanged sentences

in valuation of deferred tax assets, estimated useful life of property and equipment, valuation of inventory and allowance for credit

RECLASSIFICATIONS

Certain prior year amounts have been reclassified

for consistency with the current year presentation.

These reclassifications had no material effect on the consolidated results of operations,

stockholders’ equity, or cash flows.

CASH AND CASH EQUIVALENTS

2 unchanged sentences

The Company has investments Treasury Bills.

Bills have remaining terms ranging from four-weeks to thirteen weeks on March 31, 2024.

Treasury Bills with an original maturity

date of three months or less are included within cash and cash equivalents on the balance sheet at March 31, 2024.

Bills have remaining terms ranging from four-weeks to thirteen weeks on June 30, 2024.

Treasury Bills with an original maturity date of three

months or less are included within cash and cash equivalents on the balance sheet at June 30, 2024.

ACCOUNTS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES

10 unchanged sentences

The Company provided $ 72,665 and $ 63,665 allowances

for doubtful accounts as of March 31, 2024, and September 30, 2023, respectively.

for doubtful accounts as of June 30, 2024, and September 30, 2023, respectively.

PREPAID EXPENSES AND OTHER CURRENT ASSETS

1 unchanged sentence

primarily of deferred subscriber costs and prepaid expenses.

Deferred subscriber costs totaled $ 12,750 and $ 38,250 at March 31, 2024 and

Deferred subscriber costs totaled $ 51,000 and $ 38,250 at June 30, 2024 and

September 30, 2023, respectively.

Prepaid expenses totaled $ 95,689 and $ 68,522 at March 31, 2024 and September 30, 2023, respectively.

Prepaid expenses totaled $ 71,523 and $ 68,522 at June 30, 2024 and September 30, 2023, respectively.

PROPERTY AND EQUIPMENT

5 unchanged sentences

paid to outside consulting services and employees that are assisting us in obtaining FedRAMP certification.

At March 31, 2024, the Company

At June 30, 2024, the Company

had intangible assets with a cost of approximately $248,618, with finite lives.

The Company amortizes intangible assets with

finite lives over the shorter of their estimated useful or legal life.

The Company amortizes intangible assets with finite lives

over the shorter of their estimated useful or legal life.

The useful life is reevaluated for each reporting period.

six months ended March 31, 2024, no amortization expense was recorded due to the software not placed in service and still in the process

of being completed.

For the nine months

ended June 30, 2024, no amortization expense was recorded due to the software not placed in service and still in the process of being

The Company evaluates intangible assets with finite

1 unchanged sentence

The Company determined

that none of its intangible assets were impaired during the six months ended March 31, 2024.

that none of its intangible assets were impaired during the nine months ended June 30, 2024.

CONCENTRATION OF CREDIT RISK

3 unchanged sentences

all FDIC-insured institutions.

As of March 31, 2024 and September 30, 2023, the Company had $ 0 and $ 118,140 , respectively, in excess of

FDIC insured limits.

As of June 30, 2024 and September 30, 2023, the Company had $ 129,161 and $ 118,140 , respectively, in excess

of FDIC insured limits.

RESEARCH AND DEVELOPMENT COSTS

The Company expenses research and development costs

For the three months ended March 31, 2024 and 2023,

For the three months ended June 30, 2024 and 2023,

the Company had $ 2,000 and $ 2,000 respectively, in research and development costs.

For the six months ended March 31, 2024 and 2023,

For the nine months ended June 30, 2024 and 2023,

the Company had $ 18,603 and $ 25,815 respectively, in research and development costs.

44 unchanged sentences

has paid the Company for the gateways in advance and the deposit is accounted for in deferred revenue.

The estimated completion date for

the project is August 31, 2024.

As of March 31, 2024 and September 30, 2023, respectively,

As of June 30, 2024, the Company

delivered 250 units of its AudioMate AM360 Radio gatewayws and recognized hardware and sales revenue of $250,000.

The estimated completion

date for the project is August 31, 2024.

As of June 30, 2024 and September 30, 2023, respectively,

the Company recorded $ 1,479,678 and $ 1,177,680 , respectively, in deferred revenue.

4 unchanged sentences

For the three months ended

March 31, 2024

March 31, 2023

June 30, 2024

June 30, 2023

Licensing of ReadyOp Software

Hardware Sales and Consulting

For the six months ended

March 31, 2024

March 31, 2023

For the nine months ended

June 30, 2024

June 30, 2023

Licensing of ReadyOp Software

2 unchanged sentences

The following table provides a summary of the changes

included in deferred revenue during the six months ended March 31, 2024 and year ended September 30, 2023:

included in deferred revenue during the nine months ended June 30, 2024 and year ended September 30, 2023:

Schedule of deferred revenue

4 unchanged sentences

( 1,881,112 )

( 2,131,955 )

Ending balance

33 unchanged sentences

shares assumed issued and the number of shares assumed purchased) shall be included in the denominator of the diluted EPS computation.

As of March 31, 2024 and 2023, we had no options and

As of June 30, 2024 and 2023, we had no options and

warrants outstanding.

As of March 31, 2024 and 2023, we had 512,996 shares

As of June 30, 2024 and 2023, we had 512,996 shares

of Series A Convertible Preferred stock outstanding, which are convertible into 51,299,600 shares of common stock.

As of March 31, 2024 and 2023, we had 3,133,503 shares

As of June 30, 2024 and 2023, we had 3,133,503 shares

of Series C Convertible Preferred stock outstanding which are convertible into 15,947,515 and shares of common stock.

As of March 31, 2024 and 2023, we had 670,904 shares

As of June 30, 2024 and 2023, we had 670,904 shares

of Series D Preferred stock outstanding which are convertible into 3,354,520 shares of common stock.

As of March 31, 2024 and 2023, we had 3,000,000 shares

As of June 30, 2024 and 2023, we had 3,000,000 shares

of Series E Convertible Preferred stock outstanding which are convertible into 300,000,000 shares of common stock.

The table below details the computation of basic and

diluted earnings per share (“EPS”) for the three and six months ended March 31, 2024 and 2023:

diluted earnings per share (“EPS”) for the three and nine months ended June 30, 2024 and 2023:

Schedule of diluted earnings per share

1 unchanged sentence

For the three

Net income attributable to common stockholders for the period

Net income (loss) attributable to common stockholders for the period

Weighted average number of shares outstanding

Basic earnings per share

Net income attributable to common stockholders for the period

Net (loss) income attributable to common stockholders for the period

Weighted average number of shares outstanding

5 unchanged sentences

For the three

Net income attributable to common stockholders for the period

Net income (loss) attributable to common stockholders for the period

Preferred stock dividends

4 unchanged sentences

Diluted earnings per share

Net income attributable to common stockholders for the period

Net (loss) income attributable to common stockholders for the period

Preferred stock dividends

28 unchanged sentences

significant currency or credit risks arising from these financial instruments.

As of March 31, 2024 and September 30, 2023, we held

As of June 30, 2024 and September 30, 2023, we held

no assets that were required to be measured at fair value on a recurring basis.

There were no transfers between levels in the fair value

hierarchy during the three and six months ended March 31, 2024 and year ended September 30, 2023, respectively.

hierarchy during the three and nine months ended June 30, 2024 and year ended September 30, 2023, respectively.

Inventory consists of components held for assembly

8 unchanged sentences

The Company recorded no reserve for obsolete inventory

as of March 31, 2024 and September 30, 2023, respectively.

At March 31, 2024 inventory was $ 31,173 of raw materials

as of June 30, 2024 and September 30, 2023, respectively.

At June 30, 2024 inventory was $ 129,910 of raw materials

and finished goods.

3 unchanged sentences

Advertising costs are expensed as incurred.

had advertising costs of $ 38,108 and $ 17,618 during the three months ended March 31, 2024 and 2023, respectively.

had advertising costs of $ 94,974 and $ 46,693 during the three months ended June 30, 2024 and 2023, respectively.

Advertising costs are expensed as incurred.

had advertising costs of $ 60,692 and $ 30,767 during the six months ended March 31, 2024 and 2023, respectively.

had advertising costs of $ 157,266 and $ 77,460 during the nine months ended June 30, 2024 and 2023, respectively.

RECENT ADOPTED ACCOUNTING PRONOUNCEMENTS

59 unchanged sentences

The tables below present information regarding the

Company’s operating lease assets and liabilities at March 31, 2024 and September 30, 2023:

Company’s operating lease assets and liabilities at June 30, 2024 and September 30, 2023:

Schedule of operating lease assets and liabilities

March 31, 2024

June 30, 2024

September 30, 2023

11 unchanged sentences

Right-of-use asset obtained in exchange for new operating lease liability

At March 31, 2024, the Company has no financing leases

as defined in ASC 842, “Leases.”

At June 30, 2024, the Company has no financing leases as defined in ASC

842, “Leases.”

Future minimum lease payments required under leases

that have initial or remaining non-cancelable lease terms in excess of one year at March 31, 2024:

that have initial or remaining non-cancelable lease terms in excess of one year at June 30, 2024:

Schedule of future minimum lease payments required under leases

5 unchanged sentences

Long-term operating lease liability

NOTE 3 – PROPERTY, EQUIPMENT AND INTANGIBLE

At March 31, 2024 and September 30, 2023, property

NOTE 3 – PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS

At June 30, 2024 and September 30, 2023, property

and equipment, net, is as follows:

Schedule of property and equipment net

March 31, 2024

June 30, 2024

September 30, 2023

2 unchanged sentences

Total Property and Equipment, net

Depreciation expense for the three months ended March

Depreciation expense for the three months ended June

30, 2024 and 2023, was $ 2,293 and $ 1,332 , respectively.

Depreciation expenses for the six months ended March

Depreciation expenses for the nine months ended June

30, 2024 and 2023, was $ 5,140 and $ 3,694 , respectively.

At March 31, 2024 and September 30, 2023, intangible

At June 30, 2024 and September 30, 2023, intangible

assets, net, is as follows:

Schedule of intangible assets

March 31, 2024

June 30, 2024

September 30, 2023

1 unchanged sentence

Total Intangible Assets, net

Amortization expense for the three and six months

ended March 31, 2024 and 2023, was $ 0 and $ 0 , respectively.

Amortization expense for the three and nine months

ended June 30, 2024 and 2023, was $ 0 and $ 0 , respectively.

NOTE 4 - EQUITY TRANSACTIONS

Preferred Stock Dividends

As of March 31, 2024 and September 30, 2023, the cumulative

arrearage of undeclared dividends for Series A Preferred stock totaled $ 226,756 and $ 205,658 , respectively and $ 20,574 for the six months

ended March 31, 2024.

As of June 30, 2024 and September 30, 2023, the cumulative

arrearage of undeclared dividends for Series A Preferred stock totaled $ 236,463 and $ 205,658 , respectively and $ 30,805 for the nine months

ended June 30, 2024.

As of the date of this report, we have 200,000,000

45 unchanged sentences

Rent expense incurred during the three months ended

March 31, 2024 and 2023 was $ 0 and $ 0 , respectively (See Note 6).

Rent expense incurred during the six months ended

March 31, 2024 and 2023 was $ 0 and $ 2,343 , respectively (See Note 6).

During the three months ended March 31, 2024 and 2023,

June 30, 2024 and 2023 was $ 0 and $ 0 , respectively (See Note 6).

Rent expense incurred during the nine months ended

June 30, 2024 and 2023 was $ 0 and $ 2,343 , respectively (See Note 6).

During the three months ended June 30, 2024 and 2023,

the Company paid $ 9,000 and $ 9,000 , respectively, to a related party consultant.

During the six months ended March 31, 2024 and 2023,

During the nine months ended June 30, 2024 and 2023,

the Company paid $ 30,000 and $ 27,000 , respectively, to a related party consultant.

As of March 31, 2024, the Company advanced $ 53,302

As of June 30, 2024, the Company advanced $ 53,302

to VoiceInterop, the Company’s former wholly owned subsidiary and now 96 % owned by our shareholders.

The advance was related

to certain expenses paid on VoiceInterop behalf by the Company.

The advance was related to

certain expenses paid on VoiceInterop behalf by the Company.

The amount is included in due from related party on the consolidated balance

The amount is due on September 30, 2024, and bears interest at 5 % effective October 1, 2023.

As of March 31, 2024, the Company

recorded $ 4,139 in interest receivable – related party.

As of June 30, 2024, the Company recorded

$ 4,860 in interest receivable – related party.

NOTE 6 - COMMITMENTS AND CONTINGENCIES

18 unchanged sentences

on November 30, 2023 .

Rent expense incurred during the six months ended

March 31, 2024 and 2023 was $ 12,929 and $ 9,247 , respectively.

Rent expense incurred during the three months ended

June 30, 2024 and 2023 was $ 8,536 and $ 6,793 , respectively.

Rent expense incurred during the nine months ended

June 30, 2024 and 2023 was $ 21,266 and $ 19,944 , respectively.

Revenue and Accounts Receivable Concentration

For the three months ended March 31, 2024, one customer

For the three months ended June 30, 2024, one customer

accounted for 27 % of the Company’s revenues.

For the six months ended March 31, 2024, one customer

For the nine months ended June 30, 2024, two customer

accounted for 22.95 % of the Company’s revenues.

For the six months ended March 31, 2023, one customer

For the nine months ended June 30, 2023, one customer

accounted for 17.23 % of the Company’s revenues.

As of March 31, 2024, no customer accounted for more

As of June 30, 2024, no customer accounted for more

than 10 % of the Company’s total outstanding accounts receivable.

2 unchanged sentences

Deferred Revenue Concentration

As of March 31, 2024, one customer accounted for more

As of June 30, 2024, one customer accounted for more

than 16.90 % of the Company’s total outstanding deferred revenue.

25 unchanged sentences

offered to other purchasers in such financing.

As of March 31, 2024 and 2023, the Company has recorded $ 10,010 and $ 5,640 for the minimum

As of June 30, 2024 and 2023, the Company has recorded $ 12,010 and $ 7,640 for the minimum

royalty for the fiscal year ended 2024 and 2023.

NOTE 7 – EXTINGUISHMENT OF LIABILITIES

During the six months ended March 31, 2024, the Company

During the nine months ended June 30, 2024, the Company

recorded a gain on extinguishment of liabilities $ 44,052 related to amounts due to vendors.

NOTE 8 – SUBSEQUENT EVENT

On August 1, 2024, the Company announced that it had

completed the acquisition of the assets, client list, and employee group of Alastar, Inc.

(“Alastar”), a company formerly

owned jointly by Advanced Technology International and the South Carolina Research Authority, a South Carolina nonprofit corporation.

Through this transaction, the Compnay acquired all intellectual properties, trademarks, software platforms, and other assets of Alastar,

along with its clients and employee group.

The immediate financial impact on the Company will be an increase in revenue and cash, which

will be offset by an increase in deferred revenue.

No liabilities of Alastar were assumed by the Company.

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 1. Financial Statements