UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~July~~October 31, 2024

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________ to _______________.

Commission file number: 000-56142

Everything Blockchain, Inc.

(Exact name of registrant as specified in its charter)

Florida		82-1091922
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

12574 Flagler Center Blvd, Suite 101 Jacksonville, FL		32258
(Address of principal executive offices)		(Zip Code)

(904) 454-2111

(Registrant’s telephone number, including area code )

(Former name and address, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated Filer	☐	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of ~~August~~December 31, 2024, the Company had 2230,~~468~~896,~~297~~653 shares of common stock, $0.0001 par value outstanding.

Transitional Small Business Disclosure Format Yes ☐ No ☒

Everything Blockchain, Inc.

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements (unaudited)	3
	Consolidated Balance Sheets	4
	Consolidated Statements of Operations	5
	Consolidated Statements of Stockholders’ Equity	6
	Consolidated Statements of Cash Flows	7
	Notes to Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	1817
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	2220
Item 4.	Controls and Procedures	2321
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	2422
Item 1A.	Risk Factors	2422
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	2422
Item 3.	Defaults Upon Senior Securities	2422
Item 4.	Mine Safety Disclosures	2422
Item 5.	Other Information	2422
Item 6.	Exhibits	2523
SIGNATURES		2624

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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

Interim Consolidated Financial Statements and Notes to Interim Financial Statements

The accompanying unaudited consolidated interim financial statements have been prepared in accordance with the instructions tofor Form 10-Q. Therefore, they do not include all information and footnotes necessary for a complete presentation of financial position, results of operations, cash flows, and stockholders’ equity in conformity with generally accepted accounting principles. In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included and all such adjustments are of a normal recurring nature. Operating results for the three and ~~six~~nine months ended ~~July~~October 31, 2024, are not necessarily indicative of the results that can be expected for the year ending January 31, 2025, or any other reporting period. The information included in this Form 10-Q should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended January 31, 2024, filed with the Securities and Exchange Commission (the “SEC”) on May 15, 2024 (the “Annual Report”).

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Everything Blockchain, Inc.
Consolidated Balance Sheets(Amounts in thousands, except share and per share data)
ASSETS
	As of
	July 31,			January 31,
	2024			2024
	(unaudited)
Current assets
Cash	$	4		$	60
Prepaid expenses		172			189
Other assets		298			207
Total current assets	$	474		$	456
Property, plant and equipment, net		1			2
Goodwill		16,504			16,504
Intangible assets, net		4,612			5,017
Other assets		221			221
Total assets	$	21,812		$	22,200
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable and accrued expenses	$	2,143		$	1,843
Current portion of long-term debt		1,627			215
Reserve for legal settlements		154			154
Deferred revenue		250			250
Total current liabilities	$	4,174		$	2,462
Long-term liabilities
Debt		-			1,132
Total long-term liabilities	$	-		$	1,132
Total liabilities	$	4,174		$	3,594
Stockholders’ equity
Series A Preferred stock, $0.0001 par value: 1,000,000 shares authorized; 150,000 shares issued and outstanding as of July 31, 2024 and January 31, 2024		-			-
Series C Preferred stock, $0.0001 par value: 10,000,000 shares authorized; 300,000 shares issued and outstanding as of July 31, 2024; 1,352,632 shares issued and outstanding as of January 31, 2024		-			-
Common stock, $0.0001 par value, 200,000,000 shares authorized; 22,193,616 shares issued and outstanding as of July 31, 2024; 16,902,546 shares issued and outstanding as of January 31, 2024		2			1
Additional paid-in capital		88,471			86,991
Accumulated deficit		(70,835	)		(68,386	)
Total stockholders’ equity	$	17,638		$	18,606
Total liabilities and stockholders’ equity	$	21,812		$	22,200

Everything Blockchain, Inc.

Consolidated Balance Sheets

(Amounts in thousands, except share and per share data)

ASSETS
	As of
	October 31,			January 31,
	2024			2024
	(unaudited)
Current assets
Cash	$	-		$	-
Assets of discontinued operations		137			456
Total current assets	$	137		$	456
Intangible assets, net		1,096			1,096
Assets of discontinued operations		3,314			20,648
Total assets	$	4,547		$	22,200

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable and accrued expenses	$	413		$	-
Reserve for legal settlements		154			154
Liabilities of discontinued operations		3,300			2,308
Total current liabilities	$	3,867		$	2,462
Long-term liabilities
Liabilities of discontinued operations		-			1,132
Total long-term liabilities	$	-		$	1,132
Total liabilities	$	3,867		$	3,594
Stockholders’ equity
Series A Preferred stock, $0.0001 par value: 1,000,000 shares authorized; 150,000 shares issued and outstanding as of October 31, 2024 and January 31, 2024		-			-
Series C Preferred stock, $0.0001 par value: 10,000,000 shares authorized; 300,000 shares issued and outstanding as of October 31, 2024; 1,352,632 shares issued and outstanding as of January 31, 2024		-			-
Common stock, $0.0001 par value, 200,000,000 shares authorized; 23,679,886 shares issued and outstanding as of October 31, 2024; 16,902,546 shares issued and outstanding as of January 31, 2024		2			1
Additional paid-in capital		88,930			86,991
Accumulated deficit		(88,252	)		(68,386	)
Total stockholders’ equity	$	680		$	18,606
Total liabilities and stockholders’ equity	$	4,547		$	22,200

See accompanying notes to consolidated financial statements.

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Everything Blockchain, Inc.

Consolidated Statements of Operations

(Amounts in thousands, except share and per share data)

	For the Three Months Ended						For the ~~Six~~Nine Months Ended
	July 31,						July 31,
	October 31,						October 31,
	2024			2023			2024			2023
	(unaudited)
Revenue	$	63-		$	66-		$	~~126~~-		$	~~127~~-
Cost of sales		-			-			-			-
Gross profit		63-			66-			~~126~~-			~~127~~-
Selling, general, and administrative		~~512~~-			~~776~~-			~~1,294~~-			~~1,618~~-
Stock based compensation		~~373~~-			~~650~~-			~~803~~-			~~1,366~~-
Depreciation and amortization		~~203~~-			30-			~~406~~-			61-
Total operating expenses		~~1,088~~-			~~1,456~~-			~~2,503~~-			~~3,045~~-
Loss from operations		~~(1,025~~-	)		~~(1,390~~-	)		~~(2,377~~-	)		~~(2,918~~-	)
Other expense, net		~~(40~~-	)		~~(1,314~~-	)		~~(72~~-	)		~~(1,315~~-	)
Loss continuing operations before income taxes		~~(1,065~~-	)		~~(2,704~~-	)		~~(2,449~~-	)		~~(4,233~~-	)
Income tax expense		-			-			-			7
Income tax benefit (expense)		-			-			-			-
Loss from continuing operations		~~(1,065~~-	)		~~(2,704~~-	)		~~(2,449~~-	)		~~(4,240~~	)
Loss from discontinued operations, net of tax		-			(388	)		-			(670	)
Loss(Gain) from discontinued operations, net of tax		(17,416	)		(1,708	)		(19,865	)		(6,618	)
Net loss	$	(117,~~065~~416	)	$	(31,~~092~~708	)	$	(219,~~449~~865	)	$	(46,~~910~~618	)
Basic and diluted loss per share:
Continuing operations	$	(0.0500	)	$	(0.2700	)	$	(0.1300	)	$	(0.4300	)
Discontinued operations	$	-(0.76	)	$	(0.0412	)	$	-(0.98	)	$	(0.0758	)
Basic and diluted loss per share	$	(0.0576	)	$	(0.3112	)	$	(0.1398	)	$	(0.4958	)
Weighted average shares outstanding – basic and diluted		2122,~~174~~850,~~297~~573			914,~~923~~558,~~904~~009			1920,~~105~~363,~~817~~180			911,~~923~~485,~~304~~182

See accompanying notes to consolidated financial statements.

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Everything Blockchain, Inc.

Consolidated Statements of Stockholders’ Equity

(Amounts in thousands)

	Preferred Stock					Common Stock					Treasury			Additional Paid-in			Receivable from			Accumulated			TotalStockholders'
	Shares			Amount		Shares			Amount		Stock			Capital			Shareholder			Deficit			Equity
	(unaudited)
Balance – January 31, 2023		1,600		$	-		9,923		$	1	$	(1,691	)	$	85,975		$	(200	)	$	(60,535	)	$	23,550
Warrant exercise		-			-		-			-		-			-			200			-			200
Stock based compensation		-			-		-			-		-			1,215			-			-			1,215
Conversion of Series A Preferred into common stock		(50	)				2,500
Net loss		-			-		-			-		-			-			-			(4,910	)		(4,910	)
Conversion of Series B Preferred into common stock		(400	)				4,000
Balance – July 31, 2023		1,600		$	-		9,923		$	1	$	(1,691	)	$	87,190		$	-		$	(65,445	)	$	20,055
Issuance of Series C Preferred		413													340									340
Cancellation of Treasury Stock												1,599			(1,599	)
Cancellation of shares to settle disputed receivable							(49	)				(127	)											(127	)
Sale of Mercury, Inc.		(60	)				(115	)				(216	)											(216	)
Stock issuance in exchange for accounts payable							224								165									165
Stock based compensation															1,792									1,792
Net loss																					(6,618	)		(6,618	)
Balance – October 31, 2023		1,503					16,483					(435	)		86,673						(67,153	)		19,086
Balance – January 31, 2024		1,503		$	-		16,903		$	1	$	-		$	86,991		$	-		$	(68,386	)	$	18,606
Conversion of Series C Preferred into common stock		(1,053	)		-		4,096			-		-			-			-			-			-
Issuance of common stock		-			-		953			1		-			528			-			-			529
Stock issued in exchange for accounts payable		-			-		242			-		-			186			-			-			186
Stock issued in exchange for debt		-			-		1,461			2		-			78			-			-			80
Stock based compensation		-			-		-			-		-			766			-			-			766
Stock issued in exchange for accounts payable		-			-		267			-		-			206			-			-			206
Net loss		-			-		-			-		-			-			-			(2,449	)		(2,449	)
Stock based compensation		-			-		-			-		-			1,125			-			-			1,125
Balance – July 31, 2024		450		$	-		22,194		$	2	$	-		$	88,471		$	-		$	(70,835	)	$	17,638
Net loss		-			-		-			-		-			-			-			(19,865	)		(19,865	)
Balance – October 31, 2024		450		$	-		23,680		$	4	$	-		$	88,928		$	-		$	(88,252	)	$	680

See accompanying notes to consolidated financial statements.

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Everything Blockchain, Inc.
Consolidated Statements of Cash Flows(Amounts in thousands)
	For the Six Months EndedJuly 31,
	2024			2023
	(unaudited)
Cash flows from operating activities:
Net Loss	$	(2,449	)	$	(4,910	)
Adjustments to reconcile net loss to net
cash used in operating activities:
Loss from discontinued operations		-			670
Stock based compensation		803			1,366
Realized net gain on investment in cryptocurrency		-			(9	)
Fair value adjustment to cryptocurrency		-			1,302
Amortization and depreciation		406			61
Changes in operating assets and liabilities:
Prepaid expenses		(20	)		(148	)
Other assets		(90	)		150
Accounts payable to related party		-			591
Accounts payable and accrued expenses		486			671
Cash used in operating activities of continuing operations		(864	)		(256	)
Cash used in operating activities of discontinued operations		-			(348	)
Net cash used in operating activities		(864	)		(604	)
Cash flows from investing activities:
Proceeds from cryptocurrencies, net		-			170
Capital expenditures		-			(510	)
Cash used in investing activities of continuing operations		-			(340	)
Cash used in investing activities of discontinued operations		-			(50	)
Net cash used in investing activities		-			(390	)
Cash flows from financing activities:
Proceeds from debt – related party		163			-
Proceeds from debt		227			-
Payment of debt		(111	)		(9	)
Proceeds from issuance of common stock		529			-
Proceeds from exercise of warrants		-			200
Net cash provided by financing activities		808			191
Net Change in Cash		(56	)		(803	)
Cash, beginning of period – continuing operations		60			657
Cash, beginning of period – discontinued operations		-			167
Cash, end of period		4			21
Cash from discontinuing operations, end of period		-			20
Cash from continuing operations, end of period	$	4		$	1
Supplemental Disclosure of Cash Flows Information:
Cash paid for interest	$	43		$	54
Non-cash Investing and Financing Activities:
Issuance of common stock for services	$	186		$	-
Acquisition of cryptocurrency		-			2,242

Everything Blockchain, Inc.

Consolidated Statements of Cash Flows

(Amounts in thousands)

	For the Nine Months Ended October 31,
	2024			2023
	(unaudited)
Cash flows from operating activities:
Net Loss	$	-		$	-
Adjustments to reconcile net loss to net
cash used in operating activities:
		-			-
Changes in operating assets and liabilities:
		-			-
Cash used in operating activities of discontinued operations		(768	)		(2,185	)
Net cash used in operating activities		(768	)		(2,185	)
Cash flows from investing activities:
Cash received in investing activities of discontinued operations		-			697
Net cash received in investing activities		-			697
Cash flows from financing activities:
Proceeds from debt		227			-
Payment of debt		(111)			(467)
Proceeds from issuance of common stock		529			-
Proceeds from exercise of warrants		-			200
Cash received in finance activities of continued operations		645			(267)
Cash received in finance activities of discontinued operations		63			944
Net cash provided by financing activities		708			677
Net Change in Cash		(60	)		(811	)
Cash, beginning of period – continuing operations		60			657
Cash, beginning of period – discontinued operations		-			167
Cash, end of period		-			13
Cash from discontinuing operations, end of period		-			-
Cash from continuing operations, end of period	$	-		$	13

Supplemental Disclosure of Cash Flows Information:
Cash paid for interest	$	43		$	24

Non-cash Investing and Financing Activities:
Issuance of common stock for services	$	206		$	166
Acquisition of cryptocurrency		-			2,242
Issuance of Series C Preferred for cryptocurrency		-			250
Issuance of Series C Preferred		-			90
Settlement of disputed receivables for common stock		-			127
Retirement of treasury stock		-			1,599
Sale of subsidiary		-			217

See accompanying notes to consolidated financial statements.

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Everything Blockchain, Inc.

Notes to Consolidated Financial Statements

(Unaudited)

Note 1. Organization and Basis of Presentation

The accompanying unaudited consolidated financial statements of Everything Blockchain, Inc. (“EBI”) and its consolidated subsidiaries (collectively, the “Company”, “we”, “our”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and the rules of the Securities and Exchange Commission (the “SEC”). All significant intercompany accounts and transactions have been eliminated in consolidation.

Description of Business

~~The~~Everything Blockchain (the "Company") ishas ~~primarily~~undergone ~~engaged~~a insignificant strategic transformation. Historically, the ~~business~~Company operated as a provider of ~~consulting~~database management and ~~developing~~cybersecurity ~~data~~solutions. ~~management~~Its flagship products included EB Build and EB Control, ~~blockchain~~which facilitated the management of complex database systems for businesses, and EB Control, a cybersecurity ~~related~~platform ~~solutions~~focused on data security and access management.

Building on this foundation, the Company has pivoted to become a specialized investment and technology development firm at the intersection of cryptocurrency, and artificial intelligence (AI) sectors. This strategic shift reflects the Company’s commitment to embracing emerging technologies and aligning its operations with high-growth, future-focused industries.

Everything Blockchain will operate as an actively managed investment vehicle and technology innovator, focusing on two primary operational segments:

Strategic Investments: The Company identifies and invests in early-stage enterprises within the AI and blockchain domains, targeting ventures that exhibit strong potential for technological innovation, competitive differentiation, and market leadership. Through a disciplined investment strategy, the Company will curate a portfolio of businesses poised for long-term value creation and sustainable growth.

Proprietary Technology Development: Complementing its investment activities, Everything Blockchain will develop and acquire proprietary AI and blockchain technologies. These efforts span various industries and applications, enabling the Company to create unique value propositions and diversify its revenue streams.

This dual approach positions Everything Blockchain as both an investor in transformative technologies and a creator of innovative solutions. By leveraging its expertise in blockchain and AI, the Company aims to shape the future of these industries while delivering sustained value to its shareholders.

Subsidiaries of the Company

The subsidiaries of the Company are Render Payment Corp., DataStone, Inc., Vengar Technologies, Inc., Everything Blockchain Technology Corporation, and EBI International, Inc.

Note 2. Summary of Significant Accounting Policies

Principles of Consolidation

The consolidated financial statements include the accounts of EBI and its wholly owned subsidiaries.

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Unaudited Interim Financial Information

The Company’s unaudited consolidated financial statements have been prepared in accordance with GAAP and pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted from this report, as is permitted by such rules and regulations. Accordingly, these consolidated financial statements should be read in conjunction with the audited financial statements as of and for the year ended January 31, 2024, and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended January 31, 2024, filed with the SEC on May 15, 2024 (the “2024 Annual Report”). The results for any interim period are not necessarily indicative of results for any future period.

The unaudited consolidated financial statements have been prepared on the same basis as the audited financial statements. In the opinion of the Company’s management, the accompanying unaudited consolidated financial statements contain all adjustments that are necessary to present fairly the Company’s financial position and results of operations for the interim periods presented. The results for the three and ~~six~~nine months ended ~~July~~October 31, 2024, are not necessarily indicative of the results for the year ending January 31, 2025, or for any future period.

As of ~~July~~October 31, 2024, there have been no material changes in the Company’s significant accounting policies from those that were disclosed in the 2024 Annual Report.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The most significant estimates and judgments relate to revenue recognition; allowance for doubtful accounts; valuation of long-lived assets and finite-lived intangible assets; recoverability of goodwill; acquisition method of accounting; contingencies; and income taxes.

On a regular basis, management reviews its estimates utilizing currently available information, changes in facts and circumstances, historical experience, and reasonable assumptions. After such reviews, and if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates.

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Revenue Recognition Policies

Our revenue is derived from the subscription, non-software related hosted services, term-based and perpetual licensing of software products, associated software maintenance and support plans, consulting services, training, and technical support. Most of our customer arrangements involve multiple solutions and various license rights, bundled with post-contract customer support and other meaningful rights that together provide a complete end-to-end solution to the customer.

Services revenue. We generate services revenue via consulting services and software development. The Company is engaged in developing, engineering, and designing blockchain projects.

We recognize revenue when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services.

We determine revenue recognition through the following steps:

	·	identification of the contract, or contracts, with a customer;

	·	identification of the performance obligations in the contract;

	·	determination of the transaction price;

	·	allocation of the transaction price to the performance obligations in the contract; and

	·	recognition of revenue when, or as, we satisfy a performance obligation.

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Concentration of Credit Risk and Significant Customers

Financial instruments which potentially subject the Company to a concentration of credit risk consist principally of temporary cash investments and accounts receivable.

The Company establishes an allowance for doubtful accounts when events and circumstances regarding the collectability of its receivables or the selling of its commodities warrant based upon factors such as the credit risk of specific customers, historical trends, other information, and past bad debt history. The outstanding balances are stated net of an allowance for doubtful accounts.

Our cash balances are maintained in accounts held by major banks and financial institutions located in the United States. The Company may occasionally maintain amounts on deposit with a financial institution that are in excess of the federally insured limit of $250,000. The risk is managed by maintaining all deposits in high-quality financial institutions. The Company had $0 in excess of federally insured limits on ~~July~~October 31, 2024, and January 31, 2024.

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Cash and Cash Equivalents

The Company includes in cash and cash equivalents all short-term, highly liquid investments that mature within three months of the date of purchase. Cash equivalents consist principally of investments in interest-bearing demand deposit accounts and liquidity funds with financial institutions and are stated at cost, which approximates fair value. The Company had no cash equivalents as of ~~July~~October 31, 2024, and January 31, 2024.

Basic and Diluted Net Earnings (Loss) Per Share

The Company follows ASC Topic 260 – Earnings Per Share, and FASB 2015-06, Earnings Per Share to account for earnings per share. Basic earnings per share (“EPS”) calculations are determined by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted EPS calculations are determined by dividing net income (loss) by the weighted average number of common shares outstanding plus the dilutive effect, calculated using (i) the “treasury stock” method for warrants and (ii) the “if converted” method for the preferred stock if their inclusion would not have been anti-dilutive.

Fair Value Measurements

The Company measures assets and liabilities at fair value based on an expected exit price as defined by the authoritative guidance on fair value measurements, which represents the amount that would be received on the sale of an asset or paid to transfer a liability, as the case may be, in an orderly transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. The authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value on either a recurring or nonrecurring basis whereby inputs, used in valuation techniques, are assigned a hierarchical level.

The following are the hierarchical levels of inputs to measure fair value:

- Level 1:	Quoted prices in active markets for identical instruments;
- Level 2:	Other significant observable inputs (including quoted prices in active markets for similar instruments);
- Level 3:	Significant unobservable inputs (including assumptions in determining the fair value of certain investments).

The carrying values for cash and cash equivalents, accounts receivable, other current assets, accounts payable and accrued liabilities, and deferred revenue approximate their fair value due to their short maturities.

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Note 3. Going Concern

The Company’s consolidated financial statements are prepared in accordance with GAAP, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. Because the business is new and has a limited history, no certainty of continuation can be stated. The accompanying financial statements for the three and ~~six~~nine months ended ~~July~~October 31, 2024 and 2023 have been prepared to assume that we will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business.

The Company has had historically negative cash flow and net losses. ~~Though the year ended January 31, 2022 resulted in positive cash flow and net income, there are no assurances the Company will generate a profit or obtain positive cash flow in the future.~~ The Company has sustained its solvency through the ~~support~~debt ~~of its shareholder~~ and ~~chairman,~~the ~~Michael~~raising ~~Hawkins,~~of ~~or companies controlled by Michael Hawkins~~capital, which raise substantial doubt about its ability to continue as a going concern.

Management is taking steps to raise additional funds to address its operating and financial cash requirements to continue operations in the next twelve months. Management has devoted a significant amount of time to the raising of capital from additional debt and equity financing. However, the Company’s ability to continue as a going concern is dependent upon raising additional funds through debt 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.

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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 Three Months Ended July 31,2023			For the Six Months Ended July 31,2023
	For the quarter ended						For the 9 months ended
Revenue	$	404		$	605
	October 31,						October 31,
Cost of sales		80			131
	2024			2023			2024			2023
Gross profit		324			474
Revenue from discontinued operations	$	-		$	61		$	126		$	188
Selling, general, and administrative		662			1,050
Cost of sales		-			-			-			-
Depreciation and amortization		29			57
Gross profit from discontinued operations	$	-		$	61		$	126		$	188
Total operating expenses		691			1,107
Selling, general, and administrative		385			667			1,679			2,285
Loss from operations		(367	)		(633	)
Stock-based compensation		448			651			1,251			2,017
Other expense, net		(21	)		(37	)
Amortization and depreciation		203			21			609			82
Loss before income taxes		(388	)		(670	)
Total operating expenses		1,036			1,339			3,539			4,384
Income tax benefit		-			-
Loss from operations of discontinued operations		(1,036	)		(1,278	)		(3,413	)		(4,196	)
Net loss	$	(388	)	$	(670	)
Other income(expenses) from discontinued operations, net		(16,380	)		(430	)		(16,452	)		(2,408	)
Loss from discontinued operations	$	(17,416	)	$	(1,708	)	$	(19,865	)	$	(6,618	)

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Note 5. Intangible Assets

Intangible assets consist of the following:

As of July 31, 2024

As of October 31, 2024

Gross Amount

Accumulated Amortization

Net Carrying Amount

(in thousands)

IP/Technology

5,163

~~551~~753

4,~~612~~410

	As of January 31, 2024
	Gross Amount		Accumulated Amortization		Net Carrying Amount
	(in thousands)
IP/Technology	$	5,163	$	146	$	5,017

The Company’s IP/Technology is amortized over five years.

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Note 6. Property, Plant and Equipment

Property, plant and equipment consisted of the following (in thousands):

	As of
	July 31, 2024			January 31, 2024
	October 31, 2024			January 31, 2024
Computer equipment and computer software	$	19		$	19
Less: Accumulated depreciation		(18	)		(17	)
Total property, plant and equipment, net	$	1		$	2

Note 7. Debt

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 ~~six~~nine months ended ~~July~~October 31, 2024, the director lent the Company additional funds, which increased the outstanding balance to $8587,364. The maturity date of the note is upon receipt of the employee retention credit refund.

On12 ~~September~~Table ~~7, 2023, Epic Industry Corp (“Epic”), a wholly owned company~~ of Michael Hawkins the Company’s 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. As of July 31, 2024, the note balance is $1.3 million. Monthly interest only payments at an annual rate of 4% will be made through the maturity date of February 1, 2025. If interest payments are made late after the cure period, the interest due shall be recalculated at the highest rate authorized by Florida law, which is 18% per annum. Epic in its sole discretion, at any time prior to the maturity date, may convert the principal, partial principal, and/or interest due into shares of the Company’s common stock at a static price of $1.00 per share. Contents

On ~~November~~September 277, 2023, Epic Industry Corp (“Epic”), a wholly owned company of Michael Hawkins the Company’s ~~entered~~former ~~into~~Chairman, formalized its loans to the Company in a $1.0 million note. ~~for~~The ~~$149,500~~note ~~with~~includes a ~~net~~mechanism ~~payment~~ to increase the ~~Company~~amount of ~~$125,000~~the ~~after~~note anwith ~~original~~the ~~issue~~mutual ~~discount~~consent of ~~$19,500~~Epic and ~~expenses~~the Company. As of $5October 31,~~000.~~ ~~There~~2024, the note balance is a$1.3 ~~one-time~~million. Monthly interest ~~charge~~only payments at an annual rate of 114% ~~which~~will isbe ~~paid~~made ~~back~~through ~~along~~the ~~with~~maturity ~~principal~~date ~~over~~of ~~nine~~February ~~monthly~~1, 2025. If interest payments ~~beginning~~are ~~with~~made late after the ~~first~~cure ~~payment~~period, the interest due onshall ~~December~~be 30recalculated at the highest rate authorized by Florida law, ~~2023~~which is 18% per annum. ~~The~~Epic in its sole discretion, at any time prior to the maturity date, may convert the principal, partial principal, and/or interest due into shares of the ~~note~~Company’s iscommon ~~August~~stock ~~30,~~at ~~2024~~a static price of $1.00 per share.

On November 27, 2023, the Company entered into a note for $149,500 with a net payment to the Company of $125,000 after an original issue discount of $19,500 and expenses of $5,000. There is a one-time interest charge of 11% which is paid back along with principal over nine monthly payments beginning with the first payment due on December 30, 2023. The maturity date of the note is August 30, 2024. This note is paid in full.

On March 21, 2024, the Company entered into a note for $83,300 with a net payment to the Company of $65,000 after an original issue discount of $13,300 and expenses of $5,000. There is a one-time interest charge of 14% which is paid back along with principal over the term of the note beginning with the first payment due on September 30, 2024. The maturity date of the note is December 30, 2024.

On July 26, 2024, the Company entered into a note for $120,000 with a net payment to the Company of $95,000 after an original issue discount of $20,000 and expenses of $5,000. There is a one-time interest charge of 10% which is paid back along with principal over the term of the note beginning with the first payment due on August 30, 2024. The maturity date of the note is April 30, 2025.

Note 8. Commitments and Contingencies

The Company reports and accounts for its commitments and contingencies in accordance with ASC 440 – Commitments and ASC 450 – Contingencies. 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.

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Note 10. Related Parties and Related Party Transactions

Related party balance sheet items (in thousands)
	As of July 31, 2024		As of January 31, 2024
	As of October 31, 2024		As of January 31, 2024
Accounts payable and accrued expenses	$	~~245~~423	$	158
Loans payable		1,363		1,199
Deferred revenue		250
Loans payable		1,370		1,199

Related party income statement items (in thousands)
	For the Three Months Ended				For the Six Months Ended
	July 31,				July 31,
	2024		2023		2024		2023
Consulting expenses	$	66	$	66	$	164	$	132
Stock based compensation		354		650		728		1,300
Payroll expenses		146		120		236		239

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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 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. As of ~~July~~October 31, 2024, the note balance is $1.3 million. Monthly interest only payments at an annual rate of 4% will be made through the maturity date of February 1, 2025. If interest payments are made late after the cure period, the interest due shall be recalculated at the highest rate authorized by Florida law, which is 18% per annum. Epic in its sole discretion, at any time prior to the maturity date, may convert the principal, partial principal, and/or interest due into shares of the Company’s common stock at a static price of $1.00 per share.

Equity

During the ~~six~~nine months ended ~~July~~October 31, 2024, in a series of transactions, the Company sold a total of 903,387 shares of common stock for $0.5 million to OEM partner, Alamo City Engineering Services, Inc. (“ACES”), which is owned by ~~our~~a former board member Craig Stephens.

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Note 11. Stockholders’ Equity

Common Stock

As of ~~July~~October 31, 2024 and January 31, 2024, the Company had 200 million common shares authorized. As of October ~~July~~ 31, 2024, the Company had 2223,~~193~~679,~~616~~886 shares issued and outstanding. As of January 31, 2024, the Company had 16,902,546 common shares issued and outstanding.

On April 9, 2024, we sold 50,000 shares of common stock to a third party for $28,500.

On May 15, 2024, ACES elected to convert 1,052,632 shares of Series C Preferred Stock into 4,095,948 shares of common stock.

During the ~~six~~nine months ended ~~July~~October 31, 2024, the Company issued 241,735 shares of common stock for services that totaled $0.2 million.

During the ~~six~~nine months ended ~~July~~October 31, 2024, in a series of transactions, the Company sold a total of 903,387 shares of common stock for $0.5 million to ACES.

During the three and ~~six~~nine months ended ~~July~~October 31, 2024, stock-based compensation expense related to stock grants was $0 and $37,000, respectively, from a grant to an employee. During the three and ~~six~~nine months ended ~~July~~October 31, 2023, stock-based compensation expense related to stock grants was $75,000 and $150,000, respectively, from a grant to an employee.

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Preferred Stock

Series A Preferred Stock

As of ~~July~~October 31, 2024 and January 31, 2024, the Company had one million Series A Preferred shares, par value $0.0001, authorized, with 150,000 Series A Preferred shares issued and outstanding. The Series A Preferred stock converts into common stock at the option of the holder of the Series A Preferred. The conversion rate for every one share of Series A Preferred stock is 50 shares of common stock. Each share of Series A Preferred stock entitles the holder to 1,000 votes. Holders of Series A Preferred are entitled to share ratably in dividends, if any are declared. There are no redemption rights. In the event of dissolution, the holders of Series A Preferred are entitled to share pro rata all assets remaining after payment in full of all liabilities.

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Series C Preferred Stock

As of ~~July~~October 31, 2024 and January 31, 2024, the Company had 10 million Series C Preferred shares, par value $0.0001, authorized. As of ~~July~~October 31, 2024, the Company had 300,000 shares issued and outstanding. As of January 31, 2024, the Company had 1,352,632 shares issued and outstanding. The Series C Preferred Stock shall rank senior to the Company’s common stock and Series A Preferred Stock. Each holder of Series C Preferred Stock is entitled to one (1) vote for each share of Series C Preferred Stock held on all matters submitted to a vote of stockholders. Each share of Series C Preferred Stock shall be convertible, at the discretion of the holders, into shares of common stock. The number of common shares issued shall be at the rate of 30% less than the volume-weighted average price or $5.00 per share whichever is less.

On May 15, 2024, ACES elected to convert 1,052,632 shares of Series C Preferred Stock into 4,095,948 shares of common stock.

Note 12. Warrants

A summary of warrant activity for ~~six~~nine months ended ~~July~~October 31, 2024 is as follows:

				Weighted
				Average
				Conversion
	Shares			Price

Warrants outstanding at January 31, 2024		2,611,000		$	1.09
Cancelled/Expired		(100,000	)		1.00
Warrants outstanding at July 31, 2024		2,511,000		$	1.10

During the ~~three~~nine months ended ~~July~~October 31, ~~2024~~2023, stock-based compensation expense related to warrant grants was $~~373~~575,000, which consisted of grants to employees of $~~250~~338,000, ~~directors of $104,000,~~ and ~~consultants~~directors of $19237,000. During the ~~six~~nine months ended ~~July~~October 31, ~~2024~~2023, stock-based compensation expense related to warrant grants was $~~766~~1,215,000, which consisted of grants to employees of $~~499~~675,000, directors of $~~229~~474,000, and consultants of $3866,000.

~~During~~15 ~~the~~Table ~~three months ended July 31, 2023, stock-based compensation expense related to warrant grants was $575,000, which consisted~~ of grants to employees of $338,000 and directors of $237,000. During the six months ended July 31, 2023, stock-based compensation expense related to warrant grants was $1,215,000, which consisted of grants to employees of $675,000, directors of $474,000, and consultants of $66,000.Contents

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Note 13. Income Taxes

Our consolidated effective income tax rate for the three and ~~six~~nine months ended ~~July~~October 31, 2024, and 2023 was 0%.

Note 14. Net Loss Per Common Share

	For the Three Months Ended						For the ~~Six~~Nine Months Ended
	July 31,						July 31,
	October 31,						October 31,
	2024			2023			2024			2023
	(in thousands, except per share data)
Numerator:
Loss from continuing operations	$	~~(1,065~~-	)	$	~~(2,704~~-	)	$	~~(2,449~~-	)	$	~~(4,240~~-	)
Numerator:
Loss from discontinued operations		-(17,416)			(~~388~~1,708	)		-(19,865	)		(~~670~~6,618	)
Numerator:
Net loss	$	(117,~~065~~416	)	$	(31,~~092~~708	)	$	(219,~~449~~865	)	$	(46,~~910~~618	)
Denominator:
Weighted average common shares outstanding		2122,~~174~~851			914,~~924~~558			1920,~~106~~363			911,~~923~~485
Effect of dilutive securities:
Warrants		-			-			-			-
Preferred stock		-			-			-			-
Diluted shares outstanding		2122,~~174~~851			914,~~924~~558			1920,~~106~~363			911,~~923~~485
Basic and diluted:				$	-
Continuing operations	$	~~(0.05~~-	)	$	~~(0.27~~-	)	$	~~(0.13~~-	)	$	~~(0.43~~-	)
Discontinued operations	$	-(0.76	)	$	(0.0412	)	$	-(0.98	)	$	(0.0758	)
Basic and diluted loss per share	$	(0.0576	)	$	(0.3112	)	$	(0.1398	)	$	(0.4958	)

Note 15. Subsequent Events

InOn ~~August~~November 22, 2024, the Company ~~was~~entered ~~unable~~into toan ~~make~~Asset aPurchase ~~debt~~Agreement ~~payment~~(“APA”) with DataRock Technologies, Inc., (“DataRock”), a Texas company. The ~~lender~~Company ~~chose~~owed toDataRock ~~take~~$1,302,956 ~~payment~~against a senior secured note that the Company was in Default. The Company entered into the ~~form~~APA in reaching a settlement with DataRock. Under terms of the agreement the Company ~~common~~sold ~~stock.~~its ~~Therefore~~assets of BuildDB and EBControl, along with all intellectual property associated with these products, in exchange for $3,300,000. As payment for the ~~Company~~$3,300,000, ~~issued~~DataRock tocanceled the ~~lender~~note ~~249~~payable ($898,~~031~~802), ~~shares~~assumption of ~~common~~our ~~stock~~prepaid inincome ~~lieu~~liability ($250,000), assumption of payroll liabilities ($654,935), assumption of vendor debt ($1,148,802), and the future payment of royalties of 2.5% (capped at $37193,~~500~~307). Management believed this was in the best interest of the Company and its shareholders.

17On ~~Table~~January of3, ~~Contents~~2025, the Company entered into an agreement with Epic Industry Corp, who acquired the note the Company entered into with 1800 Diagonal on July 25, 2024, that was in default, removing the default and extending any payment requirements to April 1, 2025, reducing the amount owed from $204,119.01 to $132,000. ($120,000 principal and $12,000 prepaid interest).

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

You should read the following discussion and analysis of our financial condition, results of operations and cash flows in conjunction with our consolidated financial statements and the related notes presented in this report and in our Annual Report.

FORWARD-LOOKING STATEMENTS

Certain statements in this section contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this report and not clearly historical in nature are forward-looking, and the words “may,” “will,” “should,” “could,” “would,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “projects,” “predicts,” “intends,” “potential,” and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances) generally are intended to identify forward-looking statements. Any statements in this report that are not historical facts are forward-looking statements. Actual results may differ materially from those discussed from time to time in the Company’s SEC filings. The Company undertakes no obligation to update or revise any forward-looking statement for events or circumstances after the date on which such statement is made except as required by law.

OVERVIEW

The overview of the MD&A highlights selected information and does not contain all of the information that is important to readers of this Quarterly Report on Form 10-Q.

~~The~~Everything ~~Company~~Blockchain ~~is primarily engaged in~~ (the ~~business~~"Company") ofhas ~~consulting~~undergone ~~and~~a ~~developing~~significant ~~data~~strategic ~~management~~transformation. Historically, ~~blockchain~~the ~~and~~Company ~~cybersecurity~~operated ~~related~~as ~~solutions. We are~~ a ~~technology~~provider ~~company~~of ~~that is blending blockchain, zero-trust, and~~ database management ~~technology~~and tocybersecurity ~~create a platform to solve real world, practical business problems~~solutions. ~~Our~~Its ~~business~~flagship ~~model~~products isincluded ~~based~~EB onBuild ~~building~~and ~~recurring~~EB ~~revenue through software subscriptions~~Control, ~~licensing~~which ~~agreements,~~facilitated ~~and~~the ~~transaction~~management ~~fees.~~of ~~Our~~complex ~~patent-pending~~database ~~advances~~systems ~~in blockchain engineering deliver the essential elements needed~~ for ~~real-world business use: speed~~businesses, ~~security,~~ and ~~energy~~EB ~~efficiency. Currently~~Control, ~~our~~a ~~lines~~cybersecurity ofplatform ~~business~~focused ~~are~~on EBdata ~~Advise,~~security ~~BuildDB~~ and EBaccess ~~Control~~management.

Everything Blockchain will operate as an actively managed investment vehicle and technology innovator, focusing on two primary operational segments:

Our website can be found at www.everythingblockchain.io, which is not incorporated as part of this Form 10-Q.

EMPLOYEES

As of ~~July~~October 31, 2024, the Company has 5 employees.

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Available Information

All reports of the Company filed with the SEC are available free of charge through the SEC’s website at www.sec.gov. In addition, the public may read and copy materials filed by the Company at the SEC’s Public Reference Room located at 100 F Street, N.E., Washington, D.C. 20549. The public may also obtain additional information on the operation of the Public Reference Room by calling the Commission at 1-800-SEC-0330.

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Critical Accounting Policies and Estimates

Our discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, and expenses. On an ongoing basis, we evaluate our estimates, including those related to uncollectible receivables, inventory valuation, deferred compensation, and contingencies.

We base our estimates on historical performance and on various other assumptions that we believe to be reasonable under the circumstances. These estimates allow us to make judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. If actual results or events differ materially from those contemplated by us in making these estimates, our reported financial condition, and results of operations for future periods could be materially affected.

Results of Operations

Our operating results for the three and ~~six~~nine months ended ~~July~~October 31, 2024 and 2023 are summarized as follows (in thousands):

	For the Three Months EndedJuly 31,						For the Six Months EndedJuly 31,
	For the Three Months Ended						For the Nine Months Ended
	October 31,						October 31,
	2024			2023			2024			2023
	(in thousands)
	(unaudited)
Revenue	$	63-		$	66-		$	~~126~~-		$	~~127~~-
Cost of sales		-			-			-			-
Gross profit		63-			66-			~~126~~-			~~127~~-
Selling, general, administrative		512			776			1,294			1,618
Selling, general, and administrative		-			-			-			-
Stock based compensation		~~373~~-			~~650~~-			~~803~~-			~~1,366~~-
Depreciation and amortization		~~203~~-			30-			~~406~~-			61-
Total operating expenses		~~1,088~~-			~~1,456~~-			~~2,503~~-			~~3,045~~-
Loss from operations		~~(1,025~~-	)		~~(1,390~~-	)		~~(2,377~~-	)		~~(2,918~~-	)
Other expense, net		(40	)		(1,314	)		(72	)		(1,315	)
Loss from continuing operations before income taxes		(1,065	)		(2,704	)		(2,449	)		(4,233	)
Income tax expense		-			-			-			7
Loss from continuing operations		(1,065	)		(2,704	)		(2,449	)		(4,240	)
Loss from discontinued operations, net of tax		-			(388	)		-			(670	)
Net loss	$	(1,065	)	$	(3,092	)	$	(2,449	)	$	(4,910	)

Revenue

Revenue for the three and ~~six~~nine months ended ~~July~~October 31, 2024 and 2023 was $0.10 ~~million~~and $0.0 ~~from consulting services~~million.

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Operating Expenses

~~Operating~~All ~~expenses~~operating ~~primarily consist of selling, general and administrative~~ expenses, ~~stock-based~~were ~~compensation~~reassigned ~~expense,~~to ~~and~~discontinued ~~amortization and depreciation expense~~operations. Selling, general and administrative expenses primarily consist of personnel costs, consultant fees, professional fees, computer and internet expenses, marketing expenses, utilities expenses, meals and entertainment, office supplies, and reporting fees.

Operating expenses for the three months ended July 31, 2024 were $1.1 million compared to $1.5 million for the three months ended July 31, 2023. The primary reason for the decrease was due to decreases in stock-based compensation of $0.3 million and professional fees of $0.2 million, partially offset by an increase in depreciation and amortization of $0.2 million.

Operating expenses for the six months ended July 31, 2024 were $2.5 million compared to $3.0 million for the six months ended July 31, 2023. The primary reason for the decrease was due to decreases in stock-based compensation of $0.6 million and professional fees of $0.3 million, partially offset by an increase in depreciation and amortization of $0.3 million.

Loss from Operations

Loss from operations for the three months ended ~~July~~October 31, 2024 ~~was $1.0 million compared to $1.4 million for the three months ended July 31~~, ~~2023.~~and ~~Loss from operations for the six months ended July 31~~2023, ~~2024~~were ~~was~~ $20.40 million ~~compared to $2~~.9 ~~million~~All ~~for~~losses ~~the~~are ~~six~~accounted ~~months ended July 31, 2023. The primary reasons~~ for ~~the~~under ~~decrease~~discontinued ~~in loss from~~ operations ~~were due to the decrease in operating expenses as discussed above~~.

Other Expense

Other income (expense) consists primarily of fair market value adjustments to cryptocurrency and interest income and expense.

Other expense, net for the three months ended July 31, 2024 was $0 million compared to $1.3 million for the three months ended July 31, 2023. Other expense, net for the three months ended July 31, 2023 consists primarily of fair market value expense adjustments related to cryptocurrency of $1.3 million.

Other expense, net for the six months ended July 31, 2024 was $0.1 million compared to $1.3 million for the six months ended July 31, 2023. Other expense, net for the six months ended July 31, 2023 consists primarily of fair market value expense adjustments related to cryptocurrency of $1.3 million.

Adjusted EBITDA

The Company reports all financial information required in accordance with GAAP. The Company believes, however, that evaluating its ongoing operating results will be enhanced if it also discloses certain non-GAAP information.

Adjusted EBITDA, which is a non-GAAP financial measure, is defined by the Company as net income (loss) plus net interest income, income tax (benefit) expense, depreciation and amortization, and stock-based compensation.

Adjusted EBITDA should not be considered an alternative to net income, operating income, net cash provided by operating activities, or any other measure of financial performance or liquidity presented in accordance with GAAP. In addition, Adjusted EBITDA presented by other companies may not be comparable to our presentation since each company may define these terms differently.

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The table below reconciles Adjusted EBITDA, which is a non-GAAP financial measure, to net loss.

	For the Three Months EndedJuly 31,						For the Six Months EndedJuly 31,
	2024			2023			2024			2023
	(in thousands)
Net loss	$	(1,065	)	$	(3,092	)	$	(2,449	)	$	(4,910	)
Add:
Income tax expense		-			-			-			7
Stock based compensation		373			650			803			1,366
Depreciation and amortization		203			59			406			118
Net interest expense		40			37			72			54
Adjusted EBITDA	$	(449	)	$	(2,346	)	$	(1,168	)	$	(3,365	)

Analysis of Cash Flows

Operating Activities

Net cash used in operating activities – ~~continuing~~discontinuing operations was $0.98 million for the ~~six~~nine months ended ~~July~~October 31, 2024., Weand ~~had net loss of~~ $2.42 million ~~from~~for ~~continuing~~the ~~operations,~~nine ~~which~~months ~~included~~ended ~~stock-based~~October ~~compensation of $0~~31,2023.~~8 million.~~

Net cash used in operating activities – continuing operations was $0.30 million for the ~~six~~nine months ended ~~July~~October 31, ~~2023.~~2024 ~~We had net loss of $4.2 million from continuing operations, which included fair value adjustments to cryptocurrency of $1.3 million~~ and ~~stock-based compensation of $1~~2023.4 ~~million.~~

Net cash used in operating activities – discontinued operations was $0.3 million for the six months ended July 31, 2023. We had net loss of $0.7 million from discontinued operations.

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Investing Activities

Net cash used in investing activities – ~~continuing~~discontinuing operations was $0 for the ~~six~~nine months ended ~~July~~October 31, 2024, ~~compared~~and to $~~0.3~~697 ~~million~~ for the ~~six~~nine months ended ~~July~~October 31, 2023. All ~~During~~cash ~~the~~used ~~six~~in ~~months~~investing ~~ended~~activities ~~July~~was ~~31,~~in ~~2023,~~discontinued ~~we had capital expenditures of $0~~operations.~~5 million, partially offset by proceeds from cryptocurrencies of $0.2 million.~~

Financing Activities

Net cash provided by financing activities was $0.87 million for the ~~six~~nine months ended ~~July~~October 31, 2024, compared to $0.27 million for the ~~six~~nine months ended ~~July~~October 31, 2023. During the ~~six~~nine months ended ~~July~~October 31, 2024, we sold 953,387 shares of common stock for $0.5 million and borrowed an additional $0.43 million, which was partially offset by debt payments of $0.1 million. During the ~~six~~nine months ended ~~July~~October 31, 2023, we received a $0.2 million receivable from a stockholder and borrowed an additional $0.9 million, which was offset by debt payments of $0.5 million. Out of the amount mentioned above proceeds from related party of $0.1 million for the nine month ended October 31, 2023 and $0.9 million for the nine months ended October 31, 2024 used in discontinued operations.

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Liquidity and Capital Resources

We fund operations primarily through cash on hand, cash from sales of Common Stock and Series C Preferred Stock, debt, and exercises of warrants~~, and the support of Michael Hawkins~~.

On April 9, 2024, we sold 50,000 shares of common stock to a third party for $28,500.

On May 15, 2024, ACES elected to convert 1,052,632 shares of Series C Preferred Stock into 4,095,948 shares of common stock.

During the ~~six~~nine months ended ~~July~~October 31, 2024, the Company issued 241,735 shares of common stock for services that totaled $0.2 million.

During the ~~six~~nine months ended ~~July~~October 31, 2024, in a series of transactions, the Company sold a total of 903,387 shares of common stock for $0.5 million to ACES.

In August 2024, the Company was unable to make a debt payment. The lender chose to take payment in the form of Company common stock. Therefore, the Company issued to the lender 249,031 shares of common stock in lieu of payment of $37,500.

In September 2024, the Company was unable to make a debt payment. The lender chose to take payment in the form of Company common stock. Therefore, the Company issued to the lender 751,819 shares of common stock in lieu of payment of $29,815.

In October 2024, the Company was unable to make a debt payment. The lender chose to take payment in the form of Company common stock. Therefore, the Company issued to the lender 459,770 shares of common stock in lieu of payment of $12,000.

Off-Balance Sheet Arrangements

We did not have any material off-balance sheet arrangements as of ~~July~~October 31, 2024.

Going Concern

Our financial statements are prepared in accordance with GAAP, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. Because the business is relatively new and has a short history and relatively few sales, no certainty of continuation can be stated. The accompanying consolidated financial statements for the three and ~~six~~nine months ended ~~July~~October 31, 2024 and 2023 have been prepared assuming that we will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

We are a smaller reporting company and therefore, we are not required to provide the information required by this Item of Form 10-Q.

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Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) are designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms. Disclosure controls and procedures are also designed to ensure that such information is accumulated and communicated to management, including the principal executive officer and principal financial officer, to allow timely decisions regarding required disclosures.

We carried out an evaluation, under the supervision and with the participation of management, including our principal executive officer and principal financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of January 31, 2024. In designing and evaluating the disclosure controls and procedures, management recognizes that there are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures.

Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their desired control objectives. Additionally, in evaluating and implementing possible controls and procedures, management is required to apply its reasonable judgment. Based on the evaluation described above, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were not effective as of the end of the period covered by this report because we did not document our Sarbanes-Oxley Act Section 404 internal controls and procedures.

As funds become available to us, we expect to implement additional measures to improve disclosure controls and procedures such as implementing and documenting our internal controls procedures.

Changes in internal controls over financial reporting

There have been no changes in our internal control over financial reporting during the quarter ended ~~July~~October 31, 2024 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Limitations on the Effectiveness of Controls

A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. The Company’s management, including its principal executive officer and its principal financial officer, do not expect that the Company’s disclosure controls will prevent or detect all errors and all fraud. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with associated policies or procedures. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

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PART II – OTHER INFORMATION

Item 1. Legal Proceedings

The Company is not involved in any legal proceedings which management believes will have a material effect upon the financial condition of the Company, nor are any such material legal proceedings anticipated.

Item 1A. Risk Factors

As a smaller reporting company, we are not required to provide the information required by this Item.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

On April 9, 2024, we sold 50,000 shares of common stock to a third party for $28,500.

During the ~~six~~nine months ended ~~July~~October 31, 2024, the Company issued 241,735 shares of common stock for services that totaled $0.2 million.

During the ~~six~~nine months ended ~~July~~October 31, 2024, in a series of transactions, the Company sold a total of 903,387 shares of common stock for $0.5 million to ACES.

Item 3. Defaults Upon Senior Securities

~~There~~The ~~have~~Company ~~been~~was noin ~~events~~default ~~that~~on ~~are~~its ~~required~~senior-secured note. On November 22, 2024, the Company entered an agreement to besettle ~~reported~~payment ~~under~~of this ~~Item~~note. In addition, the Company had defaulted on its loan with 1800 Diagonal Lending. This note was acquired by Epic Industry Corp and was taken out of default until March 31, 2025.

Item 4. Mine Safety Disclosures

There have been no events that are required to be reported under this Item.

Item 5. Other Information

There have been no events that are required to be reported under this Item.

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Item 6. Exhibits

31.1		Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2		Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1		Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2		Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS		Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).

101.SCH		Inline XBRL Taxonomy Extension Schema Document.

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB		Inline XBRL Taxonomy Extension Labels Linkbase Document.

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document.

104		Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Everything Blockchain, Inc.
Dated: September 16, 2024	By:	/s/ Toney Jennings
Dated: January 27, 2025	By:	/s/ Arthur Rozenberg
		Toney Jennings
		Arthur Rozenberg
	Its:	Chief Executive Officer(Principal Executive Officer)

Dated: September 16, 2024	By:	/s/ William Regan
Dated: January 27, 2025	By:	/s/ Arthur Rozenberg
		William Regan
		Arthur Rozenberg
	Its:	Interim Chief Financial Officer(Principal Financial Officer)

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