Table of Contents
Introduction
Everything Blockchain, Inc., a company specializing in blockchain and cybersecurity solutions, recently released its quarterly report for the period ending April 30, 2023. The report revealed that the company incurred a net loss of $1.8 million during the first quarter of 2023. This loss was primarily attributed to increased operating expenses and a decline in revenue.
Financial Statements
Revenue and Cost of Sales
According to the financial statements, Everything Blockchain generated $262,000 in revenue during the quarter, a slight increase compared to the same period last year when the company reported $255,000 in revenue. However, the cost of sales also increased, reaching $52,000, compared to $15,000 in Q1 2022. As a result, the gross profit declined from $240,000 to $210,000.
Operating Expenses
Operating expenses for the quarter amounted to $2.0 million, up from $1.9 million in the previous year. The increase was primarily driven by higher selling, general, and administrative expenses, which reached $1.2 million. The company also incurred $716,000 in stock-based compensation expenses and $59,000 in depreciation and amortization.
Net Loss and Income Taxes
Apart from operating expenses, Everything Blockchain also faced other expenses, resulting in a net loss before income taxes of $1.8 million. This represents a slight improvement compared to the net loss of $1.9 million in the same quarter last year. The report also indicated that the company recorded an income tax benefit of $7,000 for the quarter.
Balance Sheet
In terms of balance sheet positions, Everything Blockchain’s total assets declined from $25.7 million to $24.9 million during the quarter. This decrease was primarily due to a decline in cash and cash equivalents, which fell from $824,000 to just $6,000. Other current assets, such as accounts receivable, inventory, and prepaid expenses, also decreased slightly.
On the liability side, the company reported total liabilities of $2.5 million, compared to $2.1 million in the previous quarter. The increase was mainly driven by higher accounts payable and accrued expenses, which reached $1.5 million.
Despite the net loss, Everything Blockchain’s shareholders’ equity stood at $22.5 million, down from $23.6 million at the end of the previous quarter. This decline was primarily due to accumulated deficits resulting from the net loss.
Conclusion
Overall, Everything Blockchain, Inc. faced challenges during the first quarter of 2023, with increased operating expenses and a decline in revenue contributing to a net loss of $1.8 million. The company will need to carefully manage its expenses and explore opportunities to generate additional revenue to improve its financial performance in the upcoming quarters.
Note that we may hold securities mentioned in this article. All data is based on recent SEC filings. Even though we have implemented various manual and automatic fact-checking and data acquisition processes, some incorrect information may have slipped through (false positive). Let us know if you find any inconsistencies!