SMC Entertainment Inc (SMCE) Quarterly 10-Q Report

SMC Entertainment, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.

The filing includes financial statements for the quarter, showing no revenue for the three months ended September 30, 2024, similar to the same period in the previous year.

General and Administrative expenses for the three months ended September 30, 2024, were $62,446, compared to $53,404 for the same period in the previous year. This increase was attributed to a decrease in audit and legal fees.

Compensation Expense – Related Party decreased to $116,000 from $232,800, primarily due to a new consulting agreement for Ronald Hughes, which decreased his monthly compensation.

Development expenses for the three months ended September 30, 2024, amounted to $68,800, which were payments made to Red Matter Capital and Plato Technologies.

Other income for the three months ended September 30, 2024, was $5,939,012, primarily due to a gain of $5,907,520 related to the change in the fair value of derivatives and a $150,384 gain on the forgiveness of debt.

Net income for the three months ended September 30, 2024, was $5,691,766, compared to a net loss of $295,549 in the same period the previous year.

For the nine months ended September 30, 2024, SMC Entertainment reported no revenue, similar to the same period in the previous year.

General and Administrative expenses for the nine months ended September 30, 2024, were $191,612, compared to $188,254 for the same period in the previous year.

Compensation Expense – Related Party for the nine months ended September 30, 2024, was $349,800, down from $521,200 in the previous year, due to stock compensation expenses incurred in the prior period.

Bad debt expense of $300,000 was recorded during the nine months ended September 30, 2024, due to the write-off of a note receivable.

Development expenses for the nine months ended September 30, 2024, were $98,800, attributed to payments made to Red Matter Capital and Plato Technologies.

Other expenses for the nine months ended September 30, 2024, totaled $7,831,621, primarily due to a transaction expense of $7,970,400.

Net loss for the nine months ended September 30, 2024, was $8,771,833, compared to a net loss of $1,085,587 in the previous year.

SMC Entertainment had convertible notes, including accrued interest, due of $9,509,251 as of September 30, 2024, and notes payable to related parties of $1,111,460.

The company reported no off-balance sheet arrangements as of September 30, 2024.

The filing indicates that SMC Entertainment’s auditors have expressed substantial doubt about the company’s ability to continue as a going concern, citing recurring losses and the need for additional financing.

The company plans to address its capital requirements by issuing additional equity and debt securities.

This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the SMC Entertainment Inc quarterly 10-Q report dated November 18, 2024. To report an error, please email earnings@qz.com.