Dogecoin Cash, Inc.: Form 10-Q for the period ended Sep 30, 2023
Filed with the SEC on Nov 20, 2023 and accepted by EDGAR at Nov 20, 2023, 15:08 ET.
Management's discussion and analysis
As filed, 8,069 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
Certain statements in this Report constitute “forward-looking statements.” Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Factors that might cause such a difference include, among others, uncertainties relating to general economic and business conditions; industry trends; changes in demand for our products and services; uncertainties relating to customer plans and commitments and the timing of orders received from customers; announcements or changes in our pricing policies or that of our competitors; unanticipated delays in the development, market acceptance or installation of our products and services; changes in government regulations; availability of management and other key personnel; availability, terms, and deployment of capital; relationships with third-party equipment suppliers; and worldwide political stability and economic growth. The words “believe,” “expect,” “anticipate,” “intend” and “plan” and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made.
Results of Operations
Three Months Ended September 30, 2023, compared with the Three Months Ended September 30, 2022
| Three Months Ended A September 30, 2023 | B September 30, 2022 | A-B Change | Change % | |
|---|---|---|---|---|
| REVENUE | $271,207 | $383,079 | $(111,872) | (29)% |
| Cost of revenues | 102,472 | 149,943 | (47,471) | (32)% |
| Cost of sales % of total sales | 38% | 39% | (0)% | |
| Gross profit | 168,735 | 233,136 | (64,401) | (28)% |
| Gross profit % of sales | 62% | 61% | ||
| EXPENSES | ||||
| Professional fees | 61,065 | 208,515 | (147,450) | (71)% |
| Depreciation and amortization | 37,989 | 39,440 | (1,451) | (4)% |
| Wages and salaries | 143,935 | 188,622 | (44,687) | (24)% |
| Advertising | 1,637 | 1,599 | 38 | 2% |
| General and administrative | 145,633 | 177,658 | (32,025) | (18)% |
| Total expenses | 390,259 | 615,834 | (225,575) | (37)% |
| NET LOSS FROM CONTINUING OPERATIONS | (221,524) | (382,698) | 161,174 | 42% |
2
Revenue for the three months ended September 30, 2023, decreased 29% compared to the three months ended September 30, 2022. Cost of revenues as a percentage of sales decreased 32% between the periods. The decrease in revenues is primarily a result of the lessening impact COVID-19 as we progressed into 2022. In 2021, COVID-19 and the associated concerns with in-person visits to doctors’ offices caused a surge in the use of telemedicine in general and the Company benefitted from this with an increase in customers seeking medical marijuana cards through telemedicine. The first quarter of 2022 continued to benefit somewhat from this surge but as the public grew more accustomed to the pandemic, and as vaccinations and booster shots became widely available, the demand for remote visits with physicians for medical marijuana cards decreased. This softening in the demand for our service continued during the third quarter of 2023.
Total operating expenses decreased 37% in the three months ended September 30, 2023 compared with the three months ended September 30, 2022. Professional fees, wages and salaries and general and administrated fees decreased. Wages and salaries decreased as a result of the death of our CFO in the fourth quarter of 2022 and our CEO assuming those duties without an increase in salary. Professional fees decreased with continuing efforts at cost reduction. Depreciation and amortization decreased in part due to the discontinuation of GKMP and IBUD, as reflected below. Advertising costs were increased slightly by taking a more focused approach to our target markets.
Nine Months Ended September 30, 2023, compared with the Nine Months Ended September 30, 2022
| Nine Months Ended A September 30, 2023 | B September 30, 2022 | A-B Change | Change % | |
|---|---|---|---|---|
| REVENUE | $939,772 | $1,262,868 | $(323,096) | (26)% |
| Cost of revenues | 328,481 | 479,173 | (150,692) | (31)% |
| Cost of sales % of total sales | 35% | 38% | (3)% | |
| Gross profit | 611,291 | 783,695 | (172,404) | (22)% |
| Gross profit % of sales | 65% | 62% | 3% | |
| EXPENSES | ||||
| Professional fees | 222,963 | 419,923 | (196,960) | (47)% |
| Depreciation and amortization | 113,968 | 124,147 | (10,179) | (8)% |
| Wages and salaries | 468,728 | 559,533 | (90,805) | (16)% |
| Advertising | 9,113 | 33,128 | (24,015) | (73)% |
| General and administrative | 435,221 | 534,022 | (98,801) | (19)% |
| Total expenses | 1,249,933 | 1,670,753 | (420,820) | (25)% |
| NET LOSS FROM CONTINUING OPERATIONS | (638,702) | (887,058) | 248,356 | 28% |
Revenue for the nine months ended September 30, 2023, decreased 26% compared to the nine months ended September 30, 2022. Cost of revenues as a percentage of sales decreased 31% between the periods. The decrease in revenues is primarily a result of the lessening impact COVID-19 as we progressed into 2022. In 2021, COVID-19 and the associated concerns with in-person visits to doctors’ offices caused a surge in the use of telemedicine in general and the Company benefitted from this with an increase in customers seeking medical marijuana cards through telemedicine. The first quarter of 2022 continued to benefit somewhat from this surge but as the public grew more accustomed to the pandemic, and as vaccinations and booster shots became widely available, the demand for remote visits with physicians for medical marijuana cards decreased. This softening in the demand for our service continued during the third quarter of 2023.
Total operating expenses decreased 25% in the nine months ended September 30, 2023 compared with the nine months ended September 30, 2022. Professional fees, wages and salaries and general and administrated fees decreased. Wages and salaries decreased as a result of the death of our CFO in the fourth quarter of 2022 and our CEO assuming those duties without an increase in salary, however $88,200 was paid out in bonuses. Professional fees decreased with continuing efforts at cost reduction. Depreciation and amortization decreased in part due to the discontinuation of GKMP and IBUD, as reflected below. Advertising costs were reduced by taking a more focused approach to our target markets.
3
Liquidity and Capital Resources
Cash used in operating activities was $31,960 and $120,730 in the nine months period ended September 30, 2023 and 2022, respectively. In the nine months period ended September 30, 2023, financing activities provided $59,775, consisting of net proceeds from related party notes and convertible notes payable. We ended the third quarter of 2023 with $114,912 in cash on hand.
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. We incurred net losses of $995,109 and $505,520, respectively, for the nine months ended September 30, 2023, and 2022 and had an accumulated deficit of $81,686,225 as of September 30, 2023. The Company may seek to raise money for working capital purposes through a public offering of its equity capital or through a private placement of equity capital or convertible debt. It will be important for the Company to be successful in its efforts to raise capital in this manner if it is going to be able to further its business plan in an aggressive manner. Raising capital in this manner will cause dilution to current shareholders.
The amount of cash on hand the Company has does not provide sufficient liquidity to meet the immediate needs of our current operations.
Off Balance Sheet Arrangements
None
Controls and procedures
As filed, 1,832 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
Disclosure Controls and Procedures
Conclusions of Management Regarding Effectiveness of Disclosure Controls and Procedures
At the end of the period covered by this Quarterly Report on Form 10-Q, an evaluation was carried out under the supervision and with the participation of the Company’s management, including the Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), of the effectiveness of the design and operations of the Company’s disclosure controls and procedures (as defined in Rule 13a – 15(e) and Rule 15d – 15(e) under the Exchange Act). Based on that evaluation, the CEO and the CFO have concluded that as of the end of the period covered by this report, the Company’s disclosure controls and procedures were not effective as it was determined that there were material weaknesses affecting our disclosure controls and procedures.
Management of the Company believes that these material weaknesses are due to the small size of the company’s accounting staff. The small size of the Company’s accounting staff may prevent adequate controls in the future, such as segregation of duties, due to the cost/benefit of remediation. To mitigate the current limited resources and limited employees, we rely heavily on direct management oversight of transactions, along with the use of external legal and accounting professionals. As the Company grows, management expects to increase the number of employees, which will enable us to implement adequate segregation of duties within the internal control framework.
Changes in Internal Control over Financial Reporting
There was no change in our internal control over financial reporting during the quarter ended September 30, 2023, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
4
Figures reported in this filing
Standardized line items from the XBRL in this filing, for the period ended 2023-09-30. Comparative periods it repeats are left out.
| Line item | Period | Value | XBRL concept |
|---|---|---|---|
| Revenue | 3 months2023-07-01 to 2023-09-30 | $271.2k | us-gaap:Revenues |
| Revenue | 9 months2023-01-01 to 2023-09-30 | $939.8k | us-gaap:Revenues |
| Cost of revenue | 3 months2023-07-01 to 2023-09-30 | $102.5k | us-gaap:CostOfRevenue |
| Cost of revenue | 9 months2023-01-01 to 2023-09-30 | $328.5k | us-gaap:CostOfRevenue |
| Gross profit | 3 months2023-07-01 to 2023-09-30 | $168.7k | us-gaap:GrossProfit |
| Gross profit | 9 months2023-01-01 to 2023-09-30 | $611.3k | us-gaap:GrossProfit |
| Operating income | 3 months2023-07-01 to 2023-09-30 | −$221.5k | us-gaap:OperatingIncomeLoss |
| Operating income | 9 months2023-01-01 to 2023-09-30 | −$638.7k | us-gaap:OperatingIncomeLoss |
| Interest expense | 3 months2023-07-01 to 2023-09-30 | $37.3k | us-gaap:InterestExpense |
| Interest expense | 9 months2023-01-01 to 2023-09-30 | $56.4k | us-gaap:InterestExpense |
| Income tax | 3 months2023-07-01 to 2023-09-30 | $0 | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 9 months2023-01-01 to 2023-09-30 | $0 | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months2023-07-01 to 2023-09-30 | −$178.7k | us-gaap:NetIncomeLoss |
| Net income | 9 months2023-01-01 to 2023-09-30 | −$995.1k | us-gaap:NetIncomeLoss |
| Operating cash flow | 9 months2023-01-01 to 2023-09-30 | −$32.0k | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 9 months2023-01-01 to 2023-09-30 | $0 | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Current assets | At period end2023-09-30 | $162.6k | us-gaap:AssetsCurrent |
| Total assets | At period end2023-09-30 | $2.1m | us-gaap:Assets |
| Current liabilities | At period end2023-09-30 | $431.3k | us-gaap:LiabilitiesCurrent |
| Total liabilities | At period end2023-09-30 | $1.1m | us-gaap:Liabilities |
| Shareholders' equity | At period end2023-09-30 | −$352.9k | us-gaap:StockholdersEquity |
Source: SEC EDGAR, the filing index for accession 0001096906-23-002233. Last ingested by Listed: Oct 24, 2026, 15:11 ET. Listed shows no prices and gives no investment advice.