MASTERMIND, INC. Forward-Looking Statements
This quarterly report on Form 10-Q contains certain statements that are "forward-looking" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Litigation Reform Act"). These forward-looking statements and other information are based on our beliefs as well as assumptions made by us using information currently available.
The words "anticipate," "believe," "estimate," "expect," "intend," "will," "should" and similar expressions, as they relate to us, are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected, intended or using other similar expressions.
In accordance with the provisions of the Litigation Reform Act, we are making
investors aware that such forward-looking statements, because they relate to
future events, are by their very nature subject to many important factors that
could cause actual results to differ materially from those contemplated by the
forward-looking statements contained in this quarterly report on Form 10-Q. For
example, we may encounter competitive, technological, financial and business
challenges making it more difficult than expected to continue to develop and
market our products; the market may not accept our existing and future products;
we may not be able to retain our customers; we may be unable to retain existing
key management personnel; and there may be other material adverse changes in our
operations or business. Certain important factors affecting the forward-looking
statements made herein also include, but are not limited to (i) continued
downward pricing pressures in our targeted markets, (ii) the continued
acquisition of our customers by certain of our competitors, and (iii) continued
periods of net losses, which could require us to find additional sources of
financing to fund operations, implement our financial and business strategies,
meet anticipated capital expenditures and fund research and development costs.
In addition, assumptions relating to budgeting, marketing, product development
and other management decisions are subjective in many respects and thus
susceptible to interpretations and periodic revisions based on actual experience
and business developments, the impact of which may cause us to alter our
marketing, capital expenditure or other budgets, which may in turn affect our
financial position and results of operations. For all of these reasons, the
reader is cautioned not to place undue reliance on forward-looking statements
contained herein, which speak only as of the date hereof. We assume no
responsibility to update any forward-looking statements as a result of new
information, future events, or otherwise except as required by law. For further
information, you are encouraged to review our filings with the
Overview
Mastermind has assembled a team of highly experienced, cross-functional
marketing experts to develop and execute Involvement Marketing initiatives (see
key executive bios below). These experts have extensive backgrounds in
digital/social marketing & media, content development, influencer marketing,
promotion, digital contingency communications & PR, research, strategy, creative
message development, and analytics. Mastermind has also developed a disciplined
approach to Involvement Marketing that ensures the right tactic(s) is employed
to best achieve the objective and that it is executed flawlessly. The team is
led by our senior executives described in our 10-K as of and for the fiscal year
ended
Mastermind has worked with some of the most widely recognized brands in in dozens of industries. While the agency does not have a client in every industry currently, its experience provides the confidence of potential major clients to consider hiring Mastermind. Mastermind works with clients on both a project-basis and ongoing services basis. Mastermind is developing innovative marketing technology initiatives with the potential to drive more interest from potential clients in the next few years.
12
Table of Contents
Critical Accounting Policies
Our significant accounting policies are described in Note 2 to the financial
statements which are included in our Annual Report on Form 10-K as of and for
the fiscal years ended
Results of Operations
Three Months Ended
Three Months Ended
December 31,
2022 2021 Change %
Revenues $ 1,041,847 $ 857,114 $ 184,733 21.6 %
Cost of revenues 420,592 323,657 96,935 29.9 %
Gross profit 621,255 533,457 87,798 16.5 %
Operating expenses
Management consulting 210,725 96,225 114,500 119 %
Wages and benefits 189,909 198,957 (9,048 ) (4.5 )%
General and administrative 176,458 176,064 394 0.2 %
Total operating expenses 577,092 471,246 105,846 22.5 %
Income from operations 44,163 62,211 (18,048 ) (29.0 )%
Other income (expense)
Interest income 1,265 607 658 108.4 %
Loss on disposal of leasehold
improvements (8,609 ) - (8,609 ) -
Total other income (expense) (7,344 ) 607 (7,951 ) (1,309.9 )%
Income before provision for income (41.4
taxes $ 36,819 $ 62,818 $ (25,999 ) )%
Revenues
Revenues for the three months ended
Gross Profit
Gross profit for the three months ended
13
Table of Contents
Operating Expenses
Total operating expenses for the three months ended
Income from Operations
Income from Operations for the three months ended
Other Income and Expense
Other income and expense, net for the three months ended
Income Before Provision for Income Taxes
Income before provision for income taxes for the three months ended
Provision for Income Taxes
Provision for income taxes for the three months ended
Liquidity and Capital Resources
December 31, September 30,
2022 2022 Change %
Cash $ 1,712,771 $ 1,735,140 $ (22,369 ) (1.3 )%
Current assets $ 3,391,908 $ 3,326,379 $ 65,529 2.0 %
Current liabilities $ 454,895 $ 551,733 $ (96,838 ) (17.6 )%
Working capital $ 2,937,013 $ 2,774,646 $ 162,367 5.9 %
As of
Three Months Ended
December 31,
2022 2021 Change %
Cash provided by (used in) operating
activities $ (18,949 ) $ 65,882 $ (84,831 ) (129 )%
Cash used in investing activities $ (3,420 ) $ - $ (3,420 ) -
Net Change in Cash During Period
During the three months ended
14
Table of Contents
During the three months ended
During the three months ended
During the three months ended
The ability to attract additional capital investments for more rapid expansion
in the future will depend on many factors, including the availability of credit,
rate of revenue growth, ability to acquire new client opportunities, the timing
of new service product introductions and enhancements to existing
services/products, and the opportunities to acquire complimentary businesses
that may be made available to us from time-to-time. We believe that as of
Any potential future sale of equity or debt securities may result in dilution to our stockholders, and we cannot be certain that additional public or private financing will be available in amounts or on terms acceptable to us, or at all. If we are required to raise additional financing, but are unable to obtain such financing, we may be required to delay, reduce the scope of, or eliminate one or more aspects of our operations or business development activities.
This quarterly report on Form 10-Q contains certain statements that are "forward-looking" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Litigation Reform Act"). These forward-looking statements and other information are based on our beliefs as well as assumptions made by us using information currently available.
Off-Balance Sheet Arrangements
As of
© Edgar Online, source
