Bowmo, Inc. (formerly Cruzani, Inc.) reported significant financial challenges in its 10-Q filing for the quarter ending September 30, 2024. The company generated no revenue during the three and nine months ended September 30, 2024, a stark decline from $62,000 and $66,476 in the same periods of 2023. This drop reflects ongoing difficulties in its AI-powered recruiting business model, which includes direct placement and Recruiting as a Service.

Total operating expenses decreased to $206,287 for the three months ended September 30, 2024, down from $309,881 in the prior year. For the nine-month period, operating expenses were $582,893, compared to $862,889 in 2023. The reduction in expenses was primarily due to lower compensation costs, which fell to $375,000 from $431,421 year-over-year. Despite these reductions, the company reported a net loss of $(855,727) for the nine months ended September 30, 2024, an improvement from a net loss of $(1,645,525) in the same period of 2023.

Bowmo's total current assets decreased to $23,517 as of September 30, 2024, from $26,318 at the end of 2023, while total assets remained relatively stable at $26,135. Current liabilities increased to $4,730,452 from $4,471,650, contributing to a total stockholders’ deficit of $(4,897,519), up from $(4,638,534) at the end of 2023.

The company has been actively pursuing funding through debt and equity investments, as well as monetizing its intellectual property assets. Notably, Bowmo reported proceeds from equity issuances of $596,751 for the nine months ended September 30, 2024, compared to no proceeds in the same period of 2023. Additionally, net cash provided by financing activities was $368,155, a significant turnaround from cash used of $(28,278) in the previous year.

Bowmo's management strategy includes addressing its going concern status, which is compounded by recurring losses and reliance on external funding. The company is also facing challenges related to its EIDL loan, which is currently in default and has been referred to the U.S. Treasury Offset Program.

In terms of corporate governance, the company identified material weaknesses in its internal controls over financial reporting, including insufficient documentation and resources in the accounting function. These issues have been flagged as areas requiring immediate attention to ensure compliance with regulatory standards.