Global AI, Inc. SEC 10-Q Report

Global AI, Inc., a company focused on developing and acquiring AI-based technology companies and assets, has released its Form 10-Q report for the quarter ended September 30, 2024. The report highlights significant financial declines, strategic initiatives aimed at addressing these challenges, and the risks the company faces in the current macroeconomic environment.

Financial Highlights

• Total Revenues: $0, decreased by approximately 100% during the three months ended September 30, 2024, compared to $2,500 for the same period in 2023 due to a decrease in consulting services provided.
• Total Revenues: $0, for the nine months ended September 30, 2024, compared to $34,000 for the same period in 2023.
• Income (Loss) From Operations: $(117,932), increased approximately 9% during the three months ended September 30, 2024, from a loss of $(108,160) for the same period in 2023, primarily due to an increase in general and administrative expenses.
• Income (Loss) From Operations: $(737,991), increased approximately 562% during the nine months ended September 30, 2024, from a loss of $(111,405) for the same period in 2023, primarily due to an increase in professional fees expense.
• Net Income (Loss): $(117,932), for the three months ended September 30, 2024, compared to $(105,336) for the same period in 2023.
• Net Income (Loss): $(737,991), for the nine months ended September 30, 2024, compared to $(113,298) for the same period in 2023.
• Net Income (Loss) Per Share - Basic and Diluted: $(0.00), for both the three and nine months ended September 30, 2024 and 2023.

Business Highlights

• Company Overview: Global AI, Inc. is focused on developing and acquiring AI-based technology companies and assets, with a particular emphasis on machine learning, deep learning, generative AI, computer vision, and natural language processing. The company aims to integrate and further develop these acquisitions to expand their customer base and enhance their product offerings.
• Business Strategy: The company is actively involved in acquiring scalable AI technologies with revenue models that support tangible growth. It also seeks to leverage synergies across its acquisitions by centralizing back-office functions and sharing knowledge and strategies.
• Operational Focus: Global AI, Inc. is dedicated to using big data and AI to provide solutions for institutional investors, financial and non-financial companies, governments, and international organizations. The company offers bespoke projects and a text analysis platform, as well as alternative data signals for equity and macro analysts.
• Sustainable Development Goals (SDGs): The company is committed to advancing the SDGs by providing data to benchmark progress and inform policymaking, corporate strategy, and investment decisions. It has implemented an SDG Infrastructure Projects-Investors Matchmaking Platform to promote private investment for the SDGs.
• Recent Management Changes: On May 7, 2024, Abhinav Somani resigned as President and CEO, with Nevenka Cresnar Pergar stepping in as acting President and CEO. Additionally, Sebastian Holl resigned from the Board of Directors.
• Macroeconomic Impact: The company is monitoring the effects of geopolitical tensions, foreign currency fluctuations, and macroeconomic conditions on its operations and those of its customers. It does not expect these conditions to have a material impact on its business.
• Future Outlook: Global AI, Inc. is actively seeking to merge with another operating company to address its going concern issues. The company is also pursuing investor funding to support its operations and growth strategy.

Strategic Initiatives

• Strategic Initiatives: Global AI, Inc. is actively seeking to combine or merge with another operating company to enhance its strategic position and address its going concern issues. The company is focused on acquiring, integrating, and developing AI-based technology companies and assets, particularly in areas like machine learning, generative AI, and natural language processing. These acquisitions are aimed at being scalable and having revenue models that provide tangible growth.
• Capital Management: The company executed a 4-for-1 forward stock split on January 29, 2024, to increase the number of shares outstanding and potentially enhance liquidity. During the nine months ended September 30, 2024, the company received $713,336 in funds related to a subscription agreement, which was recorded in additional paid-in capital. The company has a working capital deficit of $76,786 as of September 30, 2024, and is actively seeking investor funding to address its liquidity needs.
• Future Outlook: Global AI, Inc. faces substantial doubt about its ability to continue as a going concern due to its financial position. The company is exploring strategic mergers or combinations with other operating companies to secure the necessary funding and generate sufficient revenues to sustain operations over the next twelve months. The company is also focused on leveraging its acquisitions to increase its customer base and develop existing products and services.

Challenges and Risks

• Macroeconomic Challenges: The company faces significant macroeconomic challenges, including geopolitical tensions, heightened interest rates, monetary policy changes, and foreign currency fluctuations. These factors have disrupted operations for both the company and its customers, particularly impacting early- and growth-stage customers who may struggle to generate sufficient revenues or secure necessary financing. This has affected the company's expected revenue and collections, posing a risk to realizing the full value of commercial contracts.
• Revenue Decline: The company has experienced a 100% decrease in revenue for the three months ended September 30, 2024, compared to the same period in 2023, primarily due to a decrease in consulting services. Operating expenses have increased, leading to a higher loss from operations. For the nine months ended September 30, 2024, the company reported no revenue, with a significant increase in operating expenses due to professional fees, resulting in a substantial net loss from operations.
• Going Concern Issues: The company is actively seeking to merge with another operating company to address its financial challenges, but there is no assurance that sufficient funding will be acquired or that revenues will be generated to sustain operations over the next twelve months. The company's auditors have raised substantial doubt about its ability to continue as a going concern.

SEC Filing: Global AI, Inc. [ GLAI ] - 10-Q - Nov. 14, 2024