What changed in this filing

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Item 2. Management’s Discussion and Analysis

2024-08-13 compared with 2024-05-06 · 67 added, 64 removed, 108 unchanged (55% of the section changed)

57 unchanged sentences

capabilities to clients and usually refers to the platform as ReadyOp to avoid confusion in the marketplace of two products.

FOR THE THREE MONTHS ENDED MARCH 31, 2024 COMPARED

TO THE THREE MONTHS ENDED MARCH 31, 2023

FOR THE THREE MONTHS ENDED JUNE 30, 2024 COMPARED

TO THE THREE MONTHS ENDED JUNE 30, 2023

Revenues increased 79.35% to $1,005,050 for the three

months ended March 31, 2024 as compared to $510,668 for the three months ended March 31, 2024.

The primary reason for the increase was

due to an increase in revenue from the ReadyOp platform from $492,969 in 2023 to $550,418 in 2024.

Sales of ReadyOp hardware products

increased from $17,968 in 2023 to $21,595 in 2024.

Consulting fees and related income decreased from $350 in 2023 to $0 in 2024 due to

less training activity.

months ended June 30, 2024 as compared to $560,374 for the three months ended June 30, 2023.

The primary reason for the increase was due

to an increase in revenue from the ReadyOp platform from $527,074 in 2023 to $702,446 in 2024.

In addition, Sales of ReadyOp hardware

products increased from $15,200 in 2023 to $288,204 in 2024.

Consulting fees and related income decreased from $18,100 in 2023 to $14,400

in 2024 due to less training activity.

Cost of Revenue

Cost of revenues increased to $319,728 for the three

months ended March 31, 2024 as compared to $71,546 for the three months ended March 31, 2023.

months ended June 30, 2024 as compared to $132,312 for the three months ended June 30, 2023.

Gross profits were $685,322 and $428,062

for the three months ended March 31, 2024 and 2023, respectively.

for the three months ended June 30, 2024 and 2023, respectively.

The primary reason for the increase was due to an increase in ReadyOp

hardware product sales.

Operating Expenses

Operating expenses increased 44.41% to $606,721 for

the three months ended March 31, 2024 compared to $364,971 for the three months ended March 31, 2023.

the three months ended June 30, 2024 compared to $420,128 for the three months ended June 30, 2023.

The increase was primarily due increases

in administrative expense and selling expenses.

Administrative expenses increased by $65,120 or 22.09% as a result of an increase in consulting

expenses and employee salaries, due to new hires.

For the three months ended March 31, 2024, selling expenses were $87,501 compared to

$66,831 for the three months ended March 31, 2023, due to an increase in commissions expense and an increase in advertising and travel

expenses in connection with trade show appearances.

Research and development expenses were $3,044 for the three months ended March 31,

2024, as compared to $2,000 for the three months ended March 31, 2023.

This minimal increase was primarily maintenance costs associated

with existing patent license.

Administrative expenses increased by $168,592 or 47.64% as a result of an increase in

consulting expenses and employee salaries, due to new hires.

For the three months ended June 30, 2024, selling expenses were $79,913 compared

to $62,873 for the three months ended June 30, 2023, due to an increase in advertising and travel expenses in connection with trade show

Research and development expenses were $2,000 for the three months ended June 30, 2024, as compared to $2,000 for the three

months ended June 30, 2023.

Other Income/(Expenses)

The Company’s other income increased by $5,569

from other income of $678 during the three months ended March 31, 2023, as compared to $9,356 for the three months ended March 31, 2024.

from other income of $686 during the three months ended June 30, 2023, as compared to $6,255 for the three months ended June 30, 2024.

This increase was an increase in interest income on note receivable due from a related party and interest income on treasury bill investments.

1 unchanged sentence

The Company’s income before income taxes was

$21,327, during the three months ended March 31, 2024, as compared to income of $74,829 for the three months ended March 31, 2023.

decrease was primarily due to an increase in cost of revenues, administrative and selling expenses, and offset by an increase in sales

of ReadyOp licenses and hardware.

The increased costs were partially due to an increase in the costs of the hardware sold and administrative

expenses due to salaries.

$84,856, during the three months ended June 30, 2024, as compared to income of $8,620 for the three months ended June 30, 2023.

was primarily due to an increase in cost of revenues, administrative and selling expenses, and offset by an increase in sales of ReadyOp

licenses and hardware.

The increased costs were partially due to an increase in the costs of the hardware sold and administrative expenses

due to salaries.

Net Income Attributable to Common Stockholders

Net income attributable to common stockholders was

$11,096 for the three months ended March 31, 2024 as compared to a net income of $64,710 for the three months ended March 31, 2023.

decrease was primarily due to an increase in sales of ReadyOp licenses and hardware and offset by an increase in cost of revenues, administrative

$74,625 for the three months ended June 30, 2024 as compared to a net loss of $1,611 for the three months ended June 30, 2023.

was primarily due to an increase in sales of ReadyOp licenses and hardware and offset by an increase in cost of revenues, administrative

and selling expenses.

1 unchanged sentence

due to salaries.

FOR THE SIX MONTHS ENDED MARCH 31, 2024 COMPARED

TO THE SIX MONTHS ENDED MARCH 31, 2023

Revenues increased 15.80% to $1,178,060 for the six

months ended March 31, 2024 as compared to $1,017,318 for the six months ended March 31, 2023.

FOR THE NINE MONTHS ENDED JUNE 30, 2024 COMPARED

TO THE NINE MONTHS ENDED JUNE 30, 2023

Revenues increased 38.37% to $2,183,110 for the nine

months ended June 30, 2024 as compared to $1,577,692 for the nine months ended June 30, 2023.

The primary reason for the increase was

2 unchanged sentences

increased from $37,325 in 2023 to $326,299 in 2024.

Consulting fees and related income decreased from $40,631 in 2023 to $0 in 2024 due

to less training activity.

Consulting fees and related income decreased from $60.080 in 2023 to $14,400 in 2024

due to less training activity.

Cost of Revenue

Cost of revenues increased to $203,660 for the six

months ended March 31, 2024 as compared to $149,037 for the six months ended March 31, 2023.

Cost of revenues increased to $592,975 for the nine

months ended June 30, 2024 as compared to $324,363 for the nine months ended June 30, 2023.

Gross profits were $1,590,135 and $1,253,329

for the six months ended March 31, 2024 and 2023, respectively.

for the nine months ended June 30, 2024 and 2023, respectively.

The primary reason for the increase was due to an increase in ReadyOp

hardware product sales.

Operating Expenses

Operating expenses increased 27.72% to $993,162 for

the six months ended March 31, 2024 compared to $777,595 for the six months ended March 31, 2023.

The increase was primarily due to increases

in administrative and selling expenses.

General and Administrative expenses increased by $149,220 or 24.19% as a result of an increase

in consulting expenses and employee salaries, due to new hires.

For the six months ended March 31, 2024, selling expenses were $207,736

compared to $134,662 for the six months ended March 31, 2024 due to an increase in commissions expense, allowance for credit losses and

an increase in advertising and travel expenses in connection with trade show apperances.

Research and development expenses were $16,603

for the six months ended March 31, 2024, as compared to $23,815 for the six months ended March 31, 2023.

This decrease was primarily indirect

research and development costs.

Operating expenses increased 41.14% to $1,629,714

for the nine months ended June 30, 2024 compared to $1,154,709 for the nine months ended June 30, 2023.

The increase was primarily due

to increases in administrative and selling expenses.

General and Administrative expenses increased by $417,230 or 42.98% as a result of

an increase in consulting expenses and employee salaries, due to new hires.

For the nine months ended June 30, 2024, selling expenses

were $218,062 compared to $154,521 for the nine months ended June 30, 2024 due to an increase allowance for credit losses and advertising

and travel expenses in connection with trade show appearances.

Research and development expenses were $18,603 for the nine months ended

June 30, 2024, as compared to $25,815 for the nine months ended June 30, 2023.

This decrease was primarily indirect research and development

Other Income/(Expenses)

The Company’s other income increased by $62,098

from other income of $1,227 during the six months ended March 31, 2023, as compared to $57,756 for the six months ended March 31, 2024.

from other income of $1,913 during the nine months ended June 30, 2023, as compared to $64,011 for the nine months ended June 30, 2024.

This increase was an increase in interest income on a note receivable due from a related party, interest income on treasury bill investments

2 unchanged sentences

The Company’s income before income taxes was

$38,994, during the six months ended March 31, 2024, as compared to income of $91,913 for the six months ended March 31, 2023.

$24,432, during the nine months ended June 30, 2024, as compared to income of $100,533 for the nine months ended June 30, 2023.

was primarily due to an increase in cost of revenues, administrative and selling expenses, and offset by an increase in sales of ReadyOp

3 unchanged sentences

Net Income Attributable to Common Stockholders

Net income attributable to common stockholders was

$18,420 for the six months ended March 31, 2024 as compared to a net income of $71,450 for the six months ended March 31, 2023.

was primarily due to an increase in sales of ReadyOp licenses and hardware and offset by an increase in cost of revenues, administrative

and selling expenses.

Net loss attributable to common stockholders was $6,373

for the nine months ended June 30, 2024 as compared to a net income of $69,839 for the nine months ended June 30, 2023.

The decrease was

primarily due to an increase in sales of ReadyOp licenses and hardware and offset by an increase in cost of revenues, administrative and

selling expenses.

The increased costs were partially due to an increase in the costs of the hardware sold and administrative expenses

1 unchanged sentence

LIQUIDITY AND CAPITAL RESOURCES

For the six months ended March 31, 2024, net cash

For the nine months ended June 30, 2024, net cash

provided by operations of $398,421 was the result of a net income of $24,432, depreciation expense of $5,140, amortization of operating

lease of $17,948, extinguishment of liabilities of $44,052, increase in provision for credit losses of $9,000, increase in prepaid expenses

of $28,658, an increase in accounts receivable of $49,283, an increase in inventory of $9,260 .

These were offset by a decrease in accounts

of $5,137, a decrease in accounts receivable of $129,880, an increase in inventory of $107,997 .

These were offset by an increase in accounts

payable of $85,411 and an increase in deferred revenue of $301,988.

For the six months ended March 31, 2023, net cash

For the nine months ended June 30, 2023, net cash

used in operations of $35,234 was the result of a net income of $100,533, depreciation expense of $3,694, amortization of operating lease

of $5,983, an increase in accounts payable of $4,585, and a decrease in prepaid expenses of $18,652.

These were offset by an increase

in accounts receivable of $7,006, an increase in inventory of $973 and a decrease in deferred revenue of $202,147.

of $11,966, an increase in accounts payable of $11,942, and a decrease in inventory of $668.

These were offset by an increase in accounts

receivable of $71,083, increase in prepaid expenses of $39,745 and a decrease in deferred revenue of $42,137.

Net cash used in investing activities was $126,185

and $6,435 for the nine months ended June 30, 2024 and 2023, respectively, which was for the purchase of intangible and fixed assets.

Critical Accounting Estimates

6 unchanged sentences

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