10-Q/A: Global Arena Holding Reports Q3 2023 Results Amidst Ongoing Financial Challenges

Global Arena Holding's Q3 2023 report reveals increased revenue but continued net losses and reliance on debt financing.

Summary

• Global Arena Holding, Inc. reported its financial results for the third quarter of 2023, showing a net loss of $994,500 for the nine months ended September 30, 2023.
• The company's revenue increased to $612,468 for the nine months ended September 30, 2023, compared to $559,911 for the same period in 2022.
• Operating expenses totaled $988,355 for the nine months ended September 30, 2023, a decrease from $1,270,375 in the same period of 2022.
• The company continues to rely on convertible promissory notes for financing, with a net balance of $4,343,897 as of September 30, 2023.
• Global Arena Holding has an accumulated deficit of $32,300,548 and a working capital deficit of $9,541,888 as of September 30, 2023.
• The company's ability to continue as a going concern is dependent on raising additional capital and achieving positive cash flows.

Sentiment

Score: 3

Explanation: The document reveals significant financial challenges, including substantial losses, a large accumulated deficit, and reliance on debt financing. While there are some positive aspects, such as increased revenue, the overall sentiment is negative due to the company's precarious financial position and going concern risk.

Positives

• The company experienced an increase in revenue for the nine months ended September 30, 2023.
• Operating expenses decreased for the nine months ended September 30, 2023 compared to the same period in 2022.
• The company has made progress in reducing its operating expenses.

Negatives

• The company continues to incur net losses, with a loss of $994,500 for the nine months ended September 30, 2023.
• The company has a significant accumulated deficit of $32,300,548.
• The company has a working capital deficit of $9,541,888.
• The company is heavily reliant on convertible promissory notes for financing.
• Certain of the company's debt is in default as of September 30, 2023.

Risks

• The company's ability to continue as a going concern is in doubt due to recurring losses and cash flow deficits.
• The company's operations are dependent on raising additional capital and obtaining financing.
• The company faces risks related to its ability to acquire or develop a sustainable business.
• The company is involved in ongoing legal proceedings, which could have a material impact on its financial position.
• The company's internal controls over financial reporting are not effective.

Future Outlook

The company's future operations are dependent on its ability to raise additional capital, obtain financing, and generate positive cash flows. Management is hopeful that with their ability to raise additional funds that the Company should be able to continue as a going concern.

Management Comments

• Management anticipates the closing of the transaction with Election Services Solutions will occur in the first quarter of 2024.
• Management believes there is an opportunity in conducting United States and Foreign Government Elections.
• Management believes that it will be successful in obtaining additional financing, from which the proceeds will be primarily used to execute its new operating plans.

Industry Context

The company operates in the election services industry, which has seen increased attention due to concerns about election security and the use of mail-in ballots. The company is also exploring opportunities in blockchain technology and energy sectors.

Comparison to Industry Standards

• The document does not provide specific comparable companies or projects to benchmark against.
• The company's financial performance, particularly its net losses and reliance on debt, suggests it is underperforming compared to industry standards for established companies.
• The company's focus on blockchain technology for election services is a unique approach, but its success is yet to be determined.
• The company's ongoing legal issues and internal control weaknesses are not typical of well-managed companies in the industry.

Legal Proceedings

• The company is involved in ongoing legal proceedings related to a settlement agreement with a prior attorney.
• The company is involved in ongoing legal proceedings related to a lawsuit filed in the Supreme Court of the State of New York.
• The company is involved in ongoing legal proceedings related to a complaint filed in the United States District Court for the Southern District of New York.
• The company is involved in ongoing legal proceedings related to a Memorandum of Law filed in the Supreme Court of the State of New York.

Related Party Transactions

• The company has a due to related party liability of $6,700 as of September 30, 2023.
• The company issued 480,000 shares of Series C Preferred Stock to directors and officers on July 29, 2022.

Stakeholder Impact

• Shareholders face significant risk due to the company's financial instability and going concern uncertainty.
• Employees may be affected by potential cost-cutting measures or operational changes.
• Customers may be impacted by the company's ability to provide services due to its financial challenges.
• Creditors face the risk of non-payment due to the company's debt defaults and financial difficulties.

Next Steps

• The company plans to close the acquisition of Election Services Solutions in the first quarter of 2024.
• The company plans to close Tidewater Energy Group Inc. in the first quarter of 2024.
• The company will continue to seek additional financing to fund its operations.
• The company will continue to work with note holders to complete the terms of settlements.

Key Dates

Keywords

financial results, election services, convertible debt, net loss, revenue, operating expenses, going concern, promissory notes, share issuance, legal proceedings