AVAI 10-Q

Avai Bio, Inc. (AVAI)

10-Q 2024-02-14 For: 2023-12-31

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AVANT TECHNOLOGIES, INC. (f/k/a TREND INNOVATIONS HOLDING INC.)
(Exact name of small business issuer as specified in its charter)

	Nevada	7370	38-4053064
	(State or other jurisdiction of incorporation or organization)	(Primary Standard Industrial Classification Number)	(IRS Employer Identification Number)

Securities registered under Section 12(b) of the Exchange Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, $0.001 par value	AVAI	OTC Markets


Large accelerated filer	( )	Accelerated filer	( )
Non-accelerated Filer	(X)	Smaller reporting company	(X)
(Do not check if a smaller reporting company)		Emerging growth company	( )

		Page
PART I	FINANCIAL INFORMATION:

Item 1.	Consolidated Financial Statements (Unaudited)	3

	Consolidated Balance Sheets as of December 31, 2023 (Unaudited) and March 31, 2023	4

	Consolidated Statements of Operations for the three and nine months ended December 31, 2023 (Unaudited) and December 31, 2022	5

	Consolidated Statement of Stockholders’ Equity for the three and nine months ended December 31, 2023 (Unaudited) and December 31, 2022	6

	Consolidated Statement of Cash Flows for the nine months ended December 31, 2023 (Unaudited) and December 31, 2022	7

	Notes to the Interim Consolidated Financial Statements (Unaudited)	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30

Item 4.	Controls and Procedures	30

PART II	OTHER INFORMATION:

Item 1.	Legal Proceedings	30

Item 1A	Risk Factors	30

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	36

Item 3.	Defaults Upon Senior Securities	36

Item 4.	Mine Safety Disclosures	36

Item 5.	Other Information	36

Item 6.	Exhibits	36

	Signatures	36

		December 31, 2023		March 31, 2023
ASSETS
Current Assets
Cash and Cash Equivalents	$	896	$	107,472
Prepaid Expenses		37,034		-
Prepaid Rent		117		103
Total Current Assets		38,047		107,575
Fixed Assets
Accumulated Depreciation		(1,500)		(1,375)
Furniture and Equipment		1,500		1,500
Total Fixed Assets		-		125
Intangible Assets
Accumulated depreciation		(184,072)		(154,511)
Avant AI		124,000		-
App Development Cost		126,850		126,850
Chatbot Development		4,060		4,060
instantFAME™ Platform		25,000		-
RSS Database		149,000		149,000
Website Development		8,361		8,361
Total Intangible Assets		253,199		133,760
TOTAL ASSETS	$	291,246	$	241,460
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Liabilities
Current Liabilities
Accrued Payroll	$	850,000	$	192,600
Accounts Payable		33,510		44,301
Loan from Related Parties (note 6)		414,120		244,218
Convertible Notes Payable (note 7)		295,500		294,600
Notes Payable - Related Party		99,000		99,000
Total Current Liabilities		1,692,130		874,719
Total Liabilities		1,692,130		874,719
Stockholders’ Equity (Deficit)
Preferred stock, $0.001 par value, 20,000,000 shares authorized; 10,000,000 and 5,000,000 common shares issued and outstanding respectively		10,000		3,950
Preferred stock Series A, $0.001 par value, 5,000 shares authorized; 5,000 and 0 shares issued and outstanding		25,000		-
Common stock, $0.001 par value, 500,000,000 shares authorized; 84,794,378 and 38,503,811 common shares issued and outstanding respectively		84,795		38,504
Additional Paid in Capital		1,152,284		172,207
Accumulated Deficit		(2,672,963)		(847,920)
Total Stockholders’ Equity (Deficit)		(1,400,884)		(633,259)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)	$	291,246	$	241,460

	Three months ended December 31, 2023		Three months ended December 31, 2022		Nine months ended December 31, 2023		Nine months ended December 31, 2022
ORDINARY INCOME/EXPENSE
Income
Sales	$	-	$	142,375	$	-	$	276,324
TOTAL INCOME		-		142,375		-		276,324
COGS		-		213,912		-		316,778
GROSS PROFIT		-		(71,537)		-		(40,454)

OPERATING EXPENSES
Depreciation Expense		10,267		3,825		29,686		19,592
General and Administrative Expenses		985,588		36,634		1,724,336		148,148
Professional Fees		17,700		8,968		58,611		29,554
Rent Expenses		345		290		1,117		898
TOTAL OPERATING EXPENSES		1,013,900		49,717		1,813,750		198,192

OTHER INCOME (EXPENSES)		-		10,783		(11,293)		14,651

NET INCOME (LOSS) FROM OPERATIONS	$	(1,013,900)	$	(110,471)	$	(1,825,043)	$	(223,995)

PROVISION FOR INCOME TAXES		-		-		-		-

NET INCOME (LOSS)	$	(1,013,900)	$	(110,471)	$	(1,825,043)	$	(223,995)

Other comprehensive income (loss):
Foreign Currency Translation Adjustment	$	-	$	(9,417)	$	-	$	(2,965)

COMPREHENSIVE INCOME (LOSS)	$	(1,013,900)	$	(119,888)	$	(1,825,043)	$	(226,960)

NET LOSS PER SHARE: BASIC AND DILUTED	$	(0.01)	$	(0.00)	$	(0.03)	$	(0.01)

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED		74,840,737		32,231,083		67,076,914		32,231,083


	Common Stock		Preferred Stock		Preferred Stock Series A			Additional Paid-in Capital		Accumulated Other Comprehensive Income		Accumulated Deficit		Total Stockholders’ Equity
	Shares	Amount	Shares	Amount	Shares	Amount		Additional Paid-in Capital		Accumulated Other Comprehensive Income		Accumulated Deficit		Total Stockholders’ Equity

Balance, March 31, 2022	26,316,083	$ 26,316	5,000,000	$ 3,950	-	$	-	$	60,193	$	(169)	$	(495,851)	$	(405,561)
Foreign currency translation adjustment	-	-	-	-	-		-		(63)		(4,631)		-		(4,694)
Net income (loss) for the three-months period	-	-	-	-	-		-		-		-		(29,762)		(29,762)
Balance, June 30, 2022	26,316,083	$ 26,316	5,000,000	$ 3,950	-	$	-	$	60,130	$	(4,800)	$	(525,613)	$	(440,017)
Conversion of Notes Payable into Common Shares	5,915,000	5,915	-	-	-		-		85,585		-		-		91,500
Capital contribution	-	-	-	-	-		-		1,499		-		-		1,499
Foreign currency translation adjustment	-	-	-	-	-		-		(128)		11,083		-		10,955
Net income (loss) for the three-months period	-	-	-	-	-		-		-		-		(83,762)		(83,762)
Balance, September 30, 2022	32,231,083	$ 32,231	5,000,000	$ 3,950	-	$	-	$	147,086	$	6,283	$	(609,375)	$	(419,825)
Foreign currency translation adjustment	-	-	-	-	-		-		231		(9,417)		-		(9,186)
Net income (loss) for the three-months period	-	-	-	-	-		-		-		-		(110,471)		(110,471)
Balance, December 31, 2022	32,231,083	$ 32,231	5,000,000	$ 3,950	-	$	-	$	147,317	$	(3,134)	$	(719,846)	$	(539,482)

Balance, March 31, 2023	38,503,811	$ 38,504	5,000,000	$ 3,950	-	-	-	$	172,207	$	-	$	(847,920)	$	(633,259)
Common Shares issued for acquisition	26,000,000	26,000	-	-	-		-		-		-		-		26,000
Preferred Shares Series A issued for acquisition	-	-	-	-	5,000		25,000		-		-		-		25,000
Preferred Shares adjustment	-	-	-	1,050	-		-		(1,050)		-		-		-
Net income (loss) for the three-months period	-	-	-	-	-		-		-		-		(411,522)		(411,522)
Balance, June 30, 2023	64,503,811	$ 64,504	5,000,000	$ 5,000	5,000	$	25,000	$	171,157	$	-	$	(1,259,442)	$	(993,781)
Common Shares issued for acquisition	9,763,243	9,763	-	-	-		-		392,337		-		-		402,100
Net income (loss) for the three-months period	-	-	-	-	-		-		-		-		(399,621)		(399,621)
Balance, September 30, 2023	74,267,054	$ 74,267	5,000,000	$ 5,000	5,000	$	25,000	$	563,494	$	-	$	(1,659,063)	$	(991,302)
Conversion of Notes Payable into Common Shares	10,527,324	10,528	-	-	-		-		593,790		-		-		604,318
Conversion of Notes Payable into Preferred Shares	-	-	5,000,000	5,000	-		-		(5,000)
Net income (loss) for the three-months period	-	-	-	-	-		-		-		-		(1,013,900)		(1,013,900)
Balance, December 31, 2023	84,794,378	$ 84,795	10,000,000	$ 10,000	5,000	$	25,000	$	1,152,284	$	-	$	(2,672,963)	$	(1,400,884)

		Nine months ended December 31, 2023		Nine months ended December 31, 2022
OPERATING ACTIVITIES
Net Income (Loss)	$	(1,825,043)	$	(223,995)
Foreign Currency Translation Adjustment		-		(2,965)
Adjustments to reconcile Net Income
to net cash used in operations:
Accumulated Depreciation		29,686		19,592
Accounts Payable		(10,791)		85,015
Accounts Receivables		-		(60,679)
Accrued Liabilities		-		7,275
Accrued Payroll		657,400		(1,500)
Loan Receivable		-		105,241
Retainers from Customers		-		(33,602)
Prepaid Expenses		(37,034)		124,658
Prepaid Rent		(14)		(4)
Net cash used in Operating Activities		(1,185,796)		19,036
INVESTING ACTIVITIES
Chatbot Development	$	-	$	(4,060)
Mobile App Update		-		(29,450)
Intangible Assets Acquisition		(149,000)		-
Net cash provided by Investing Activities		(149,000)		(33,510)
FINANCING ACTIVITIES
Loan from Related Parties	$	169,902	$	61,730
Loan Payable		-		(154,772)
Capital Stock		46,290		5,915
Convertible Notes Payable		900		-
Preferred Stock		5,000		-
Series A Preferred Stock		25,000		-
Additional Paid in Capital		981,128		87,124
Net cash provided by Financing Activities		1,228,220		(3)
Net cash increase for period	$	(106,576)	$	(14,477)
Cash at beginning of period	$	107,472	$	33,289
Cash at end of period	$	896	$	18,812

	As of December 31, 2023		As of March 31, 2023

Avant! AI™	$	124,000	$	-
Chatbot Developments		4,060		4,060
Instant FAME™		25,000		-
Mobile Application Development Costs		126,850		126,850
RSS Database		149,000		149,000
Website Development		8,361		8,361
Amortization expense		(184,072)		(154,511)

Total Intangible Assets, Net	$	253,199	$	133,760


31.1		Certification of Chief Executive Officer and Chief Financial Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a).

32.1		Certifications pursuant to Securities Exchange Act of 1934 Rule 13a-14(b) or 15d-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002.

Dated: February 14, 2024	AVANT TECHNOLOGIES, INC.

	By:	/s/	Vitalis Racius
		Name:	Vitalis Racius
		Title:	Chief Financial Officer, Director & Treasurer

Signature	Title	Date

/s/ Natalija Tunevic	Secretary	February 14, 2024
Natalija Tunevic

/s/ Ivan Lunegov	President & Director	February 14, 2024
Ivan Lunegov

/s/ Vitalis Racius	Chief Financial Officer, Director & Treasurer	February 14, 2024

Vitalis Racius

/s/ Timothy Lantz	Chief Executive Officer & Director	February 14, 2024
Timothy Lantz