Company: EBZT
Filing Date: 2025-01-27
Form Type: 10-Q
Source: 0001477932-25-000477
Chunk: 4

Company: Everything Blockchain, Inc.
Filing Date: 2025-01-27
Form: 10-Q
Item: Part I, Item 8
Chunk 4
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 and equity financing and generating revenue. There are no assurances the Company will receive the funding or generate the revenue necessary to fund operations. The financial statements contain no adjustments for the outcome of this uncertainty.

Table of Contents 

Note 4. Discontinued Operations  Subsequent to this reporting period, on November 22, 2024 the Board of Directors approved, and the Company completed the sale of its assets EB Control and Build DB.  As a consequence of this, the Company has reported all the financials for the quarter as discontinued operations. The Company recognized a gain of $105,844 in discontinued operations during the quarter through a refund of payroll taxes from the Internal Revenue Service. The refunds under the ERC program were for the calendar quarters ending June 30, 2020; June 30, 2021; and October 31, 2020. On October 31, 2023, the Board of Directors approved, and the Company completed, the sale of Mercury to Chris Carter, founder and CEO of Mercury. In the consolidated statements of cash flows, the cash flows of discontinued operations were separately classified or aggregated under operating and investing activities. The remaining notes to the consolidated financial statements were updated to reflect the impact of these discontinued operations. All discussions and amounts in the consolidated financial statements and related notes for all periods presented relate to continuing operations, unless otherwise noted. The following table summarizes the results of discontinued operations (in thousands).   For the quarter ended  For the 9 months ended   October 31,  October 31,   2024  2023  2024  2023              Revenue from discontinued operations $-  $61  $126  $188 Cost of sales  -   -   -   - Gross profit from discontinued operations $-  $61  $126  $188 Selling, general, and administrative  385   667   1,679   2,285 Stock-based compensation  448   651   1,251   2,017 Amortization and depreciation  203   21   609   82 Total operating expenses  1,036   1,339   3,539   4,384 Loss from operations of discontinued operations  (1,036)  (1,278)  (3,413