Bowmo, Inc. (formerly Cruzani, Inc.) reported significant financial challenges in its Q1 2024 10-Q filing. The company recorded no revenue for the quarter, a stark decline from $4.5 million in Q1 2023. This drop is attributed to a lack of operating capital, which has severely impacted its business operations. Total operating expenses for Q1 2024 were $195.7 million, down from $387.9 million in the same period last year, reflecting cost-cutting measures.

The net loss for Q1 2024 was $551.9 million, compared to a net income of $617.6 million in Q1 2023. The loss from operations was $195.7 million, a significant improvement from the previous year's loss of $383.5 million. The company’s accumulated deficit increased to $13.5 million as of March 31, 2024, from $13.0 million at the end of 2023.

Bowmo's total current assets rose to $65.6 million as of March 31, 2024, up from $26.3 million at the end of 2023, primarily due to proceeds from equity issuances and loans. However, total liabilities also increased to $5.0 million from $4.7 million, with current liabilities rising to $4.8 million. The company reported a working capital deficit of $4.7 million.

In terms of strategic developments, Bowmo is pursuing a merger with OWNverse, LLC, which would make OWNverse a wholly-owned subsidiary. The merger is contingent on securing adequate capital, which remains uncertain. Additionally, Bowmo completed an acquisition of Interview Mastery in December 2022, which involved issuing shares as compensation, although these shares have not yet been issued and are recorded as a liability.

The company has also faced challenges with its convertible notes, with total convertible notes payable amounting to $189.6 million as of March 31, 2024, down from $440.1 million at the end of 2023. The company is in default on several loans, including a $309.5 million EIDL loan.

Bowmo's management is actively seeking funding through debt and equity investments to support its operations and development efforts. However, the company has identified material weaknesses in its internal controls, which have been deemed ineffective, highlighting the need for improved financial reporting and compliance measures.