The latest quarterly report of Himalaya Technologies, Inc. (HMLA) reveals several interesting financial trends, particularly concerning the company’s convertible notes and stock-based compensation agreements. Based on the presented data, this article will discuss these aspects and analyze their implications for the company’s future prospects.
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Convertibles notes see an increase
One of the most prominent features in the report is the increase in convertible notes. As of April 30, 2023, HMLA had a convertible note agreement with GS Capital Partners LLC and 1800 Diagonal Lending LLC. The former converts at a price of 60% of the lowest trading price for the twenty days prior to the conversion notice, while the latter converts at 61% multiplied by the lowest trading price for the ten-trading day period before the conversion date. These arrangements would potentially convert into 220,454,545 and 35,096,870 common shares, respectively.
In connection with the 1800 Diagonal Lending LLC convertible note, the report also discloses an original issue discount (OID) of $4,250. During the nine months ended April 30, 2023, $2,108 of this discount was amortized as interest expense.
Stock-based compensation arrangements on the rise
Apart from convertible notes, the company has also made significant use of stock-based compensation arrangements during the period. For example, it issued 69,090 shares of Class B Preferred to the CEO for accrued compensation and authorized the issuance of up to 250,000,000 preferred shares in three classes (Class A, B, and C). These shares come with varying conversion rates, voting rights, and issuance statuses.
One of the notable aspects of the report is that by April 30, 2023, third-party lenders had converted $50,005 of principal and interest into 22,520,834 shares of common stock. This highlights the company’s willingness to leverage its stock for financing and maintaining liquidity, a strategy that may become more important in the future as the company continues to grow and expand its operations.
Potential risks and future considerations
However, it’s worth noting that these financial maneuvers also carry potential risks. By relying significantly on convertible notes and stock-based compensation packages, HMLA exposes itself to fluctuations in its stock value and potential dilution of ownership for its existing shareholders.
Overall, Himalaya Technologies, Inc.’s Q3 financial results indicate a strong focus on maintaining financial flexibility through convertible notes and stock-based compensation agreements. As the company continues to develop its operations and expand its market presence, these strategies may prove crucial in attracting investors and securing the necessary capital. However, the potential risks involved with these approaches should not be overlooked, and careful monitoring of stock value and ownership dilution will be essential to ensure that HMLA can maintain a stable and sustainable financial foundation in the long run.
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!