Global AI, Inc. reported significant financial challenges in its latest 10-Q filing for the period ending September 30, 2024. The company experienced a complete cessation of revenue, reporting total revenues of $0 for both the three and nine months ended September 30, 2024, compared to $2,500 and $34,000 for the same periods in 2023, respectively. This decline is attributed to a reduction in consulting services provided.

Operating expenses surged dramatically, with total operating expenses for the three months reaching $117,932, up from $110,660 in the prior year, and for the nine months, expenses escalated to $737,991, a 408% increase from $145,405 in 2023. The primary driver of this increase was a rise in professional fees. Consequently, the net loss for the three months ended September 30, 2024, was $(117,932), compared to $(105,336) in 2023, while the nine-month net loss ballooned to $(737,991) from $(113,298) in the previous year.

As of September 30, 2024, Global AI's total current assets plummeted to $14,764 from $185,059 at the end of 2023. Current liabilities also decreased significantly from $237,189 to $91,550, resulting in a working capital deficit of $(76,786). The accumulated deficit grew from $(2,051,393) to $(2,789,384) during the same period, and total stockholders’ deficit increased from $(52,130) to $(76,786).

The company’s cash position improved slightly, with cash at the end of the period reported at $13,669, up from just $2 a year earlier. However, net cash used in operating activities rose sharply to $(883,630) from $(89,237) in the prior year, indicating a significant increase in cash burn.

Strategically, Global AI is focusing on acquisitions to enhance its product offerings and customer base. The company executed a 4-for-1 forward stock split on January 29, 2024, and received $500,000 from subscription agreements in November 2023, followed by an additional $713,336 during the nine months ended September 30, 2024. Notably, on September 12, 2023, Ingenious Investment AG acquired 24,944,466 shares, representing 92.7% of the outstanding shares.

The company is currently seeking to merge with another operating entity to improve its financial situation, as indicated by the "Going Concern Qualification" issued by its auditors for the year ended December 31, 2023. Additionally, recent management changes included the resignation of President and CEO Abhinav Somani on May 7, 2024, with Nevenka Cresnar Pergar serving as interim CEO.