Company: EBZT
Filing Date: 2025-01-27
Form Type: 10-Q
Source: 0001477932-25-000477
Chunk: 32

Company: Everything Blockchain, Inc.
Filing Date: 2025-01-27
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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 We recognize a loss on a contingency when it is probable a loss will be incurred and that the amount of the loss can be reasonably estimated. No loss contingencies have been recorded for the three and six months ended July 31, 2024 and 2023.

Note 9. Legal Proceedings  The Company may be subject to legal proceedings and claims arising from contracts or other matters from time to time in the ordinary course of business. Management is not aware of any pending or threatened litigation where the ultimate disposition or resolution could have a material adverse effect on the Company’s financial position, results of operations or liquidity. 

Note 10. Related Parties and Related Party Transactions Related party balance sheet items (in thousands)   As of October 31, 2024  As of January 31, 2024        Accounts payable and accrued expenses $423  $158 Deferred revenue  250     Loans payable  1,370   1,199 

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Related party income statement items (in thousands)   For the Three Months Ended  For the Nine Months Ended   October 31,   October 31,   2024  2023  2024  2023              Consulting expenses $-  $66  $164  $198 Stock based compensation  -   631   728   1,931 Payroll expenses  147   120   390   358 

 Loans On July 14, 2023, a board director of the Company loaned it $55,000, representing half of the Company’s employee retention credit refund, which the Company expects to receive this year. The note calls for the payment of the principal sum of $55,000 plus interest of $12,500 for a total of $67,500. During the nine months ended October 31, 2024, the director lent the Company additional funds, which increased the outstanding balance to $87,364. The maturity date of the note is upon receipt of the employee retention credit refund. On September 7, 2023, Epic Industry Corp (“Epic”), a wholly owned company of Michael Hawkins the Company’s former Chairman, formalized its loans to the Company in a $1.0 million note. The note includes a mechanism to increase the amount of the note with the mutual consent of Epic and the Company