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Item 1. Financial Statements

2025-05-14 compared with 2025-04-10 · 177 added, 140 removed, 592 unchanged (35% of the section changed)

3 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

December 31, 2024

March 31, 2025

September 30, 2024

15 unchanged sentences

Stockholders' (deficit) equity:

Series A preferred stock - $ .00001 par value;

Series A preferred stock - $.

00001 par value;

512,996 shares

authorized, 512,996 issued and outstanding, respectively.

Series B preferred stock - $ .00001 par value;

Series B preferred stock - $ .

00001 par value;

authorized, 0 shares issued and outstanding, respectively.

Series C preferred stock - $ .00001 par value;

Series C preferred stock - $.

00001 par value;

50,000,000 shares

authorized, 3,133,503 and 3,133,503 shares issued and outstanding, respectively.

Series D preferred stock - $ .00001 par value;

Series D preferred stock - $.

00001 par value;

10,000,000 shares

authorized, 670,904 shares issued and outstanding, respectively.

Series E preferred stock - $ .00001 par value, 10,000,000 shares

Series E preferred stock - $.

00001 par value, 10,000,000 shares

authorized, 3,000,000 shares issued and outstanding, respectively.

Common stock - $ .00001 par value;

5,000,000,000 shares authorized, 229,160,695 and 229,160,695 , shares issued and outstanding, respectively.

Common stock - $.

00001 par value;

5,000,000,000 shares

authorized, 229,160,695 and 229,160,695, shares issued and outstanding, respectively.

Additional paid-in capital

9 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

For the Three Months

December 31, 2024

For the Three Months

December 31, 2023

Cost of Revenue

21 unchanged sentences

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

For the Three Months

December 31, 2024

December 31, 2023

NET (LOSS) INCOME

Cash Flows From Operating Activities

Adjustments to reconcile net income to net cash used in operating activities:

Depreciation and amortization expense

Amortization of operating lease - right-of-use asset

Extinguishment of liabilities

Provision for credit losses

Accounts receivable

Prepaid expenses and other current assets

Increase (decrease) in liabilities:

Accounts payable

Deferred revenue

Operating lease liability

Net Cash (Used in) Provided by Operating Activities

Cash Flows From Investing Activities

Purchase of intangible assets

Net Cash Used in Investing Activities

Cash Flows From Financing Activities

Net increase in cash

Cash at beginning of period

Cash at end of period

SUPPLEMENTAL CASH FLOW INFORMATION:

Cash paid for interest

Cash paid for taxes

The accompanying notes are an integral part of

these consolidated financial statements

CLEARTRONIC, INC.

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES

IN STOCKHOLDERS' EQUITY/(DEFICIT)

FOR THE THREE MONTHS ENDED DECEMBER 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 SIX MONTHS ENDED MARCH 31,

Series A Preferred

Series B Preferred

Preferred Stock

Stockholders'

6 unchanged sentences

$ ( 251,556 )

Net loss for the three months ended March 31, 2025

Balance at March 31, 2025 (Unaudited)

$ ( 15,522,117 )

$ ( 279,648 )

The accompanying notes are an integral part of

4 unchanged sentences

IN STOCKHOLDERS' EQUITY

FOR THE THREE MONTHS ENDED DECEMBER 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 SIX MONTHS ENDED MARCH 31,

Stockholders'

4 unchanged sentences

$ ( 15,219,625 )

Net income for the three months ended March 31, 2024

Balance at March 31, 2024 (Unaudited)

$ ( 15,199,409 )

The accompanying notes are an integral part of

1 unchanged sentence

CLEARTRONIC, INC.

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

For the Six Months

March 31, 2025

March 31, 2024

NET (LOSS) INCOME

Cash Flows From Operating Activities

Adjustments to reconcile net income to net cash used in operating activities:

Depreciation and amortization expense

Amortization of operating lease - right-of-use asset

Provision for credit losses

Accounts receivable

Prepaid expenses and other current assets

Increase (decrease) in liabilities:

Accounts payable

Deferred revenue

Operating lease liability

Net Cash (Used in) Provided by Operating Activities

Cash Flows From Investing Activities

Purchase of fixed assets

Purchase of intangible assets

Net Cash Used in Investing Activities

Cash Flows From Financing Activities

Net increase in cash

Cash at beginning of period

Cash at end of period

SUPPLEMENTAL CASH FLOW INFORMATION:

Cash paid for interest

Cash paid for taxes

CLEARTRONIC, INC.

AND SUBSIDIARY

Notes to Condensed Consolidated Financial Statements

December 31, 2024

March 31, 2025

NOTE 1 - ORGANIZATION

23 unchanged sentences

of Securities of Form 10-K as filed with the Securities and Exchange Commission (the “Commission”) on March 21, 2025.

results of operations for the three months ended December 31, 2024, are not necessarily indicative of results to be expected for any other

interim period or the fiscal year ending September 30, 2025.

results of operations for the three and six months ended March 31, 2025, are not necessarily indicative of results to be expected for

any other interim period or the fiscal year ending September 30, 2025.

USE OF ESTIMATES

16 unchanged sentences

The Treasury Bills have

remaining terms ranging from four-weeks to thirteen weeks on December 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 December 31, 2024.

remaining terms ranging from four-weeks to thirteen weeks on March 31, 2025.

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, 2025.

ACCOUNTS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES

10 unchanged sentences

The Company provided $ 60,665 and $ 60,665 allowances for doubtful accounts

as of December 31, 2024, and September 30, 2024, respectively.

as of March 31, 2025, and September 30, 2024, respectively.

Inventory consists of components held for assembly and finished goods

5 unchanged sentences

All existing inventory is considered current and usable.

The Company recorded no reserve for obsolete inventory as of December

The Company recorded no reserve for obsolete inventory as of March 31,

2025 and September 30, 2024, respectively.

At December 31, 2024 inventory was $ 35,642 of raw materials and finished

At March 31, 2025 inventory was $ 34,921 of raw materials and finished

At September 30, 2024, inventory was $ 41,532 of raw materials and finished

2 unchanged sentences

subscriber costs and prepaid expenses.

Deferred subscriber costs totaled $ 25,500 and $ 38,250 at December 31, 2024 and September 30, 2024,

Deferred subscriber costs totaled $ 12,750 and $ 38,250 at March 31, 2025 and September 30, 2024,

respectively.

Prepaid expenses totaled $ 75,881 and $ 82,196 at December 31, 2024 and September 30, 2024, respectively.

Prepaid expenses totaled $ 77,213 and $ 82,196 at March 31, 2025 and September 30, 2024, respectively.

PROPERTY AND EQUIPMENT

9 unchanged sentences

of the assets exceeds the fair value of the assets.

There were no impairments recorded during the three months

ended December 31, 2024 and 2023, respectively.

There were no impairments recorded during the three and six

months ended March 31, 2025 and 2023, respectively.

INTANGIBLE ASSETS – FedRamp

4 unchanged sentences

recognized an impairment loss of $ 44,373 for the year ended September 30, 2024.

At December 31, 2024 and September 30, 2024, intangible assets, net,

is as follows:

At March 31, 2025 and September 30, 2024, intangible assets, net, is

Schedule of intangible assets

For the three months

December 31, 2024

For the six months

March 31, 2025

September 30, 2024

31 unchanged sentences

Intangible Assets - Client List

At December 31, 2024 and September 30, 2024, intangible asset –

At March 31, 2025 and September 30, 2024, intangible asset –

client list, net, is as follows:

Schedule of intangible assets

For the three months

December 31, 2024

For the six months

March 31, 2025

September 30, 2024

2 unchanged sentences

Total Intangible Assets, net

Amortization expense for the three months ended December 31, 2024 and

Amortization expense for the six months ended March 31, 2025 and 2023,

was $ 5,000 and $ 0 , respectively.

Estimated future amortization expense for the three months ended December

Estimated future amortization expense for the six months ended March

Schedule of estimated future amortization expense

3 unchanged sentences

institutions.

As of December 31, 2024 and September 30, 2024, the Company had $ 0 and $ 92,982 , respectively, in excess of FDIC insured

As of March 31, 2025 and September 30, 2024, the Company had $ 0 and $ 92,982 , respectively, in excess of FDIC insured limits.

RESEARCH AND DEVELOPMENT COSTS

The Company expenses research and development costs as incurred.

For the three months ended December 31, 2024 and 2023, the Company

had $ 2,000 and $ 13,559 respectively, in research and development costs.

For the three months ended March 31, 2025 and 2024, the Company had

$ 4,000 and $ 3,044 respectively, in research and development costs.

For the six months ended March 31, 2025 and 2024, the Company had $ 6,000

and $ 16,603 respectively, in research and development costs.

REVENUE RECOGNITION AND DEFERRED REVENUES

37 unchanged sentences

revenue in proportion to the amount it has the right to invoice for services performed.

As of December 31, 2024 and September 30, 2024, respectively, the Company

As of March 31, 2025 and September 30, 2024, respectively, the Company

recorded $ 1,336,929 and $ 1,373,325 , respectively, in deferred revenue.

3 unchanged sentences

For the three months ended

December 31, 2024

December 31, 2023

March 31, 2025

March 31, 2024

Licensing of ReadyOp Software

Hardware Sales and Consulting

For the six months ended

March 31, 2025

March 31, 2024

Licensing of ReadyOp Software

Hardware Sales and Consulting

DEFERRED REVENUE

The following table provides a summary of the changes included in deferred

revenue during the three months ended December 31, 2024 and year ended September 30, 2024:

revenue during the six months ended March 31, 2025 and year ended September 30, 2024:

Schedule of deferred revenue

For the three months

December 31, 2024

March 31, 2025

September 30, 2024

3 unchanged sentences

( 1,959,423 )

( 3,126,148 )

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 December 31, 2024 and 2023, we had no options and warrants outstanding.

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

Series C Convertible Preferred stock outstanding which are convertible into 15,667,515 and shares of common stock.

As of December 31, 2024 and 2023, we had 670,904 shares of Series D

As of March 31, 2025 and 2024, we had no options and warrants outstanding.

As of March 31, 2025 and 2024, 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 December 31, 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.

As of March 31, 2025 and 2024, we had 3,133,503 shares of Series

C Convertible Preferred stock outstanding which are convertible into 15,667,515 and shares of common stock.

As of March 31, 2025 and 2024, 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, 2025 and 2024, 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 months ended December 31, 2024 and 2023:

per share (“EPS”) for the three and six months ended March 31, 2025 and 2024:

Schedule of diluted earnings per share

For the three months

December 31, 2024

March 31, 2025

For the three months

December 31, 2023

March 31, 2024

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

2 unchanged sentences

The following table sets for the computation of diluted earnings per

Schedule of computation of diluted earnings per share

For the three months

December 31, 2024

For the three months

December 31, 2023

Schedule of computation of diluted earnings

the three months

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

5 unchanged sentences

Diluted earnings per share

For the six months

March 31, 2025

For the six months

March 31, 2024

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

Weighted average number of shares outstanding

Basic earnings per share

The following table sets for the computation of diluted earnings per

the six months

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

Preferred stock dividends

Adjusted net (loss) income

Weighted average number of shares outstanding

Shares issued upon conversion of preferred stock

Weighted average number of common and common equivalent shares

Diluted earnings per share

FAIR VALUE OF FINANCIAL INSTRUMENTS

6 unchanged sentences

of ASC 820 to the Company’s consolidated financial statements.

ASC 820 also describes three levels of inputs that may be used to measure

ASC 820 also describes three levels of inputs that may be used to

measure fair value:

Observable inputs that reflect unadjusted quoted prices

12 unchanged sentences

or credit risks arising from these financial instruments.

As of December 31, 2024 and September 30, 2024, we held no assets that

As of March 31, 2025 and September 30, 2024, 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 months ended December 31, 2024 and year ended September 30, 2024, respectively.

the six months ended March 31, 2025 and year ended September 30, 2024, respectively.

ADVERTISING COSTS

1 unchanged sentence

The Company had advertising

costs of $ 31,540 and $ 22,584 during the three months ended December 31, 2024 and 2023, respectively.

costs of $ 3,784 and $ 38,108 during the three months ended March 31, 2025 and 2024, respectively.

Advertising costs are expensed as incurred.

The Company had advertising

costs of $ 12,237 and $ 60,692 during the six months ended March 31, 2025 and 2024, respectively.

RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS

70 unchanged sentences

The tables below present information regarding the Company’s

operating lease assets and liabilities at December 31, 2024 and September 30, 2024:

operating lease assets and liabilities at March 31, 2025 and September 30, 2024:

Schedule of operating lease assets and liabilities

March 31, 2025

September 30, 2024

11 unchanged sentences

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

At December 31, 2024, the Company has no financing leases as defined

in ASC 842, “Leases.”

At March 31, 2025, 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 December 31, 2024:

or remaining non-cancelable lease terms in excess of one year at March 31, 2025:

Schedule of future minimum lease payments required under leases

5 unchanged sentences

NOTE 3 – PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS

At December 31, 2024 and September 30, 2024, property and equipment,

net, is as follows:

At March 31, 2025 and September 30, 2024, property and equipment, net,

is as follows:

Schedule of property and equipment net

For the three months

December 31, 2024

For the six months

March 31, 2025

September 30, 2024

2 unchanged sentences

Total Property and Equipment, net

Depreciation expense for the three months ended December 31, 2024 and

Depreciation expense for the three months ended March 31, 2025 and

2024, was $ 3,221 and $ 1,490 , respectively.

Depreciation expense for the six months ended March 31, 2025 and 2024,

was $ 6,163 and $ 2,847 , respectively.

NOTE 4 - EQUITY TRANSACTIONS

Preferred Stock Dividends

As of December 31, 2024 and September 30, 2024, the cumulative arrearage

of undeclared dividends for Series A Preferred stock totaled $ 257,672 and $ 247,329 , respectively and $ 10,343 for the three months ended

December 31, 2024.

As of March 31, 2025 and September 30, 2024, the cumulative arrearage

of undeclared dividends for Series A Preferred stock totaled $ 267,790 and $ 247,329 , respectively and $ 20,461 for the six months ended

March 31, 2025.

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

68 unchanged sentences

or discontinued at any time.

As of December 31, 2024 and 2023, no common stock was repurchased.

As of March 31, 2025 and 2023, no common stock was repurchased.

NOTE 5 - RELATED PARTY TRANSACTIONS

During the three months ended December 31, 2024 and 2023, the Company

During the three months ended March 31, 2025 and 2024, the Company

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

During the six months ended March 31, 2025 and 2024, the Company paid

$ 18,000 and $ 21,000 , respectively, to a related party consultant.

As of September 30, 2024, the Company owed $ 1,024 to the Company's

19 unchanged sentences

and increases to $ 2,198 in year two.

The lease expired on December 31, 2024.

The lease expired on March 31, 2025.

On January 1, 2023, upon adoption of ASC 842, the

2 unchanged sentences

has a month-to-month lease.

Rent expense incurred during the three months ended December 31, 2024

and 2023 was $ 5,854 and $ 6,544 , respectively.

Rent expense incurred during the six months ended March 31, 2025 and

2024 was $ 10,106 and $ 12,929 , respectively.

Revenue and Accounts Receivable Concentration

For the three months ended December 31, 2024, one customer accounted

for 8.79 % of the Company’s revenues.

For the three months ended December 31, 2023, one customer accounted

for 12.72 % of the Company’s revenues.

As of December 31, 2024, no customer accounted for more than 10 % of

the Company’s total outstanding accounts receivable.

For the three months ended March 31, 2025, no customer accounted for

more than 10 % of the Company’s revenues.

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

12.72 % of the Company’s revenues.

For the six months ended March 31, 2025, no customer accounted for

more than 10 % of the Company’s revenues.

For the six months ended March 31, 2024, no customer accounted for

more than 10 % of the Company’s revenues.

As of March 31, 2025, no customer accounted for more than 10 % of the

Company’s total outstanding accounts receivable.

As of September 30, 2024, one customer accounted for more than 12 %

1 unchanged sentence

Deferred Revenue Concentration

As of December 31, 2024, one customer accounted for 17 % of the Company’s

total outstanding deferred revenue.

As of March 31, 2025, no customer accounted for more than 10 % of the

Company’s total outstanding deferred revenue.

As of September 30, 2024, no customer accounted for more than 10 % of

28 unchanged sentences

sales of subscriptions to the ReadyOp™, ReadyMed ™ and Alastar ™ platforms and the AudioMate IP gateways.

Our Chief Executive Officer, as the CODM, uses consolidated net loss

to evaluate our expenditures and monitor budget versus actual results.

The monitoring of budget versus actual results and cash on hand

are used in assessing the performance of the segment and in establishing resource allocation across the organization.

Our Chief Executive Officer, as the CODM, evaluates our expenditures

and monitor budget versus actual results.

The monitoring of budget versus actual results and cash on hand are used in assessing the performance

of the segment and in establishing resource allocation across the organization.

Factors used in determining the reportable segment include the nature

1 unchanged sentence

and evaluate financial performance.

Significant expenses within net loss include general and administrative,

professional fees, officers’ salary, research and development, and interest income, which are each separately presented on our consolidated

statements of operations.

Significant expenses include general and administrative, professional

fees, officers’ salary, research and development, and interest income, which are each separately presented on our consolidated statements

of operations.

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