Datz World Holdings Corp 10-Q for FY2021 Q3

Datz World Holdings Corp. (BOTX)

10-Q 2021-11-12 For: 2021-09-30

Added on April 06, 2026

About this 10-Q

Datz World Holdings Corp filed this 10-Q on November 12, 2021, covering the quarter ended September 30, 2021 (FY2021 Q3).

Headline figures

Quarter ended September 30, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $851.69K; up 30.5% from $652.72K a year earlier
Net income: $2.96M; up 5252.7% from net income of $55.28K a year earlier
Diluted EPS: $0.01; compared with $0.00 a year earlier

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Nevada		38-3944821
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

Title of Each Class	Trading Symbol(s)	Name of each exchange on which registered
None	None	None

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☒

PART I – FINANCIAL INFORMATION

Item 1.	Interim Condensed Consolidated Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	22
Item 4.	Controls and Procedures	22

PART II – OTHER INFORMATION

Item 1.	Legal Proceedings	23
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	23
Item 3.	Defaults Upon Senior Securities	23
Item 4.	Mine Safety Disclosures	23
Item 5.	Other Information	23
Item 6.	Exhibits	24
	SIGNATURES	25

LEAFBUYER TECHNOLOGIES INC.
UNAUDITED CONDENSED CONSOLDIATED BALANCE SHEETS

	September 30, 2021			June 30, 2021

ASSETS
Current assets:
Cash and cash equivalents	$	568,148		$	684,639
Accounts receivable (net of allowance for doubtful accounts of $7,452 and $14,037, respectively,)		55,874			31,474
Prepaid expenses and other current assets		10,184			14,152
Total current assets		634,206			730,265
Noncurrent assets:
Fixed assets and intangible assets, net		2,492,813			2,673,924
Total assets	$	3,127,019		$	3,404,189

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable	$	385,965		$	213,465
Accrued liabilities		934,420			958,451
Deferred revenue		67,276			67,276
Debt, related party (Note 9)		325,000			325,000
Debt		1,404,802			1,404,802
Derivative liability		3,554,567			6,601,339
Total current liabilities		6,672,030			9,570,333
Debt, net of current portion		500,000			1,057,977

Total liabilities		7,172,030			10,628,310

Commitments and contingencies (Note 6)		-			-

Stockholders’ Equity (Deficit):
Convertible Preferred Stock, $0.001 par value; 10,000,000 shares authorized
Convertible Preferred Stock Series A, $0.001 par value; 324,325 designated; 324,325 and 324,325 shares issued and outstanding at September 30, 2021 and June 30, 2021, respectively		324			324
Convertible Preferred Stock, $0.001 par value; 10,000,000 shares authorized Convertible Preferred Stock Series B, $0.001 par value; 27,027 designated; 7,568 and 7,568 shares issued and outstanding at September 30, 2021 and June 30, 2021, respectively		8			8
Common stock, $0.001 par value; 700,000,000 shares authorized; 82,681,244 shares issued and outstanding at September 30, 2021 and 81,772,802 shares issued and outstanding at June 30, 2021		90,341			89,318
Additional paid in capital		17,711,516			17,492,411
Accumulated deficit		(21,847,200	)		(24,806,182	)
Total stockholders’ equity (deficit)		(4,045,011	)		(7,224,121	)
Total liabilities and stockholders’ equity (deficit)	$	3,127,019		$	3,404,189

LEAFBUYER TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

	Three months Ended September 30,
	2021			2020
				(RESTATED)
Revenue	$	851,693		$	652,723
Cost of sales		630,536			455,819
Gross profit		221,157			196,904

Operating expenses:
Selling expenses		231,506			264,844
General and administrative		148,554			230,176
Personnel expenses		231,751			344,016
Stock based compensation expense		197,828			82,931
Total operating expenses		809,639			921,967

Loss from operations		(588,482	)		(725,063	)

Interest expense		(57,285	)		(141,971	)
Unrealized gain (loss) on derivative		3,046,772			922,314
Forgiveness of PPP loan		557,977			-
Net income	$	2,958,982		$	55,280

Earnings per common share:
Basic	$	0.04		$	0.00
Fully diluted		0.01			0.00

Weighted average common shares outstanding:
Basic		89,693,169			82,072,299
Fully diluted		253,523,746			166,894,003

	Preferred Stock A				Preferred Stock B				Common Stock
	# of Shares		Amount		# of Shares		Amount		# of Shares		Amount		APIC		Acc Deficit			Total
Balance, June 30, 2021		324,325	$	324		7,567	$	8		89,318,160	$	89,318	$	17,492,411	$	(24,806,182	)	$	(7,224,121	)

Stock based compensation		-		-		-		-		-		-		132,314		-			132,314

Issuance of common stock for vendor payments		-		-		-		-		290,000		289		22,011		-			22,300

Issuance of common stock as employee compensation		-		-		-		-		733,938		734		64,780		-			65,514

Net gain		-		-		-		-		-		-		-		2,958,982			2,958,982

Balance, September 30, 2021		324,325	$	324		7,567	$	8		90,342,098	$	90,341	$	17,711,516	$	(21,847,200	)	$	(4,045,011	)

LEAFBUYER TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)

	Three months Ended September 30,
	2021			2020
Cash flows from operating activities:				(RESTATED)
Net Income	$	2,958,982		$	55,280
Adjustments to reconcile net income to net cash used in operating activities:
Stock based compensation		220,128			114,201
Amortization of note payable discount		-			56,723
Loss (gain) on derivative liability		(3,046,772	)		(922,314	)
Forgiveness of PPP loan		(557,977	)		-
Depreciation and amortization		181,111			181,112
Changes in assets and liabilities:
Accounts receivable		(24,400	)		(11,161	)
Prepaid expenses and other		3,968			37,851
Accounts payable		172,500			(327,598	)
Accrued liabilities		(24,031	)		389,623
Net cash used in operating activities		(116,491	)		(427,685	)

Cash flows from investing activities:
Net cash used in investing activities		-			-

Cash flows from financing activities:
Net cash provided by financing activities		-			-

Net change in cash and cash equivalents		(116,491	)		(427,685	)
Cash and cash equivalents, beginning of period		684,639			1,309,912
Cash and cash equivalents, end of period	$	568,148		$	882,227

Cash paid for interest	$	-		$	-
Cash paid for taxes	$	-		$	-
Supplemental information for non-cash investing and financing activities:
Issuance of common stock for vendor payments	$	22,300		$	31,270

	As Computed - Restated		As Reported		Effect of Change
Convertible Preferred Stock Series A - Value	$	324	$	3,000	$	(2,676	)
Convertible Preferred Stock Series B - Value	$	8	$	1,120	$	(1,112	)
Additional Paid in Capital	$	16,577,266	$	16,581,054	$	3,788

Convertible Preferred Stock Series A - Shares		324,325		3,000,000		(2,675,675	)
Convertible Preferred Stock Series B - Shares		7,567		1,120,000		(1,112,433	)

	September 30, 2021			June 30, 2021

Software platform	$	4,482,225		$	4,482,225
Furniture and fixtures		1,500			1,500
Less accumulated amortization		(1,990,912	)		(1,809,801	)
Property and equipment, net	$	2,492,813		$	2,673,924

2022	$	724,445
2023		724,445
2024		724,445
2025		319,478
Total Unamortized Expense	$	2,492,813

	Maturity Date	September 30, 2021		June 30, 2021
12% $150,000 Convertible Note Payable, net of unamortized discount of $0 and $0, respectively	Due on Demand	$	150,000	$	150,000
12% $440,000 Convertible Note Payable, net of unamortized discount of $0 and $0, respectively	Due on Demand		440,000		440,000
12% $220,000 Convertible Note Payable, net of unamortized discount of $0 and $0, respectively	Due on Demand		220,000		220,000

7% $213,333 Convertible Note Payable, net of unamortized discount of $0 and $28,492, respectively	Due on Demand		244,802		244,802
8% $600,000 Related Party Note Payable, net of unamortized discount of $0 and $21,911 respectively	Due on Demand		300,000		300,000
8% $50,000 Related Party Note Payable	Due on Demand		25,000		25,000
5% Note Payable	Due on Demand (1)		350,000		350,000
1% PPP #2 Note Payable	May 29 ,2022		-		557,977
3.75% SBA EIDL Note Payable	April 30, 2050		500,000		500,000
Total notes payable			2,229,802		2,787,779
Less current portion of notes payable			1,729,802		1,729,802
Notes payable, net of current portion		$	500,000	$	1,057,977

Expected option life (years)	2-4
Expected stock price volatility	227 to 258%
Expected dividend yield		-
Risk-free interest rate	0.44 to 0.54%

	Shares			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Price		Aggregate Intrinsic Value

Options:
Outstanding at July 1, 2021		13,594,259		$	0.08
Granted		562,500		$	0.13
Exercised, converted		-		$	0.00
Forfeited / exchanged / modification		(542,027	)	$	0.07
Outstanding at September 30, 2021		13,614,732		$	0.11		2.5	$	-
Exercisable at September 30, 2021		7,471,867		$	0.08		3.0

Number of options available for grant at end of period		426,870

Options	Shares			Weighted-Average Grant-Date Fair Value
Nonvested at July 1, 2021		12,130,179		$	0.08
Granted		562,500		$	0.13
Vested		(542,027	)	$	0.07
Forfeited		(955,733	)	$	0.08
Nonvested at September 30, 2021		11,194,920		$	0.08

Warrants	Remaining Number Outstanding		Weighted Average Remaining Life (Years)		Weighted Average Exercise Price
Warrants - SEDA Financing		86,957		1.80	$	1.15
Warrants - Issued with Convertible Notes		600,000		2.23	$	0.75
Warrants - Securities Purchase Agreement		360,577		3.02	$	0.78
Warrants A - Securities Purchase Agreement		28,072,364		3.02	$	0.16
Total		29,119,898
Aggregate intrinsic value at September 30, 2021	$	0

	Three months Ended September,
	2021			2020
Net cash used in operating activities	$	(116,491	)	$	(427,685	)
Net cash used in investing activities	$	-		$	-
Net cash provided by financing activities	$	-		$	-

Exhibit Number		Exhibit Description

31.1		Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*

31.2		Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*

32.1		Certification of Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 **

32.2		Certification of Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 **

101.INS		101.INS Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).

101.SCH		101.SCH Inline XBRL Taxonomy Extension Schema Document.

101.CAL		101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF		101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB		101.LAB Inline XBRL Taxonomy Extension Labels Linkbase Document.

101.PRE		101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document.

104		Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).

	LEAFBUYER TECHNOLOGIES, INC.

Date: November 12, 2021	By:	/s/ Kurt Rossner
		Kurt Rossner
		Chief Executive Officer, Director (principal executive officer)

	By:	/s/ Mark Breen
		Mark Breen
		Chief Financial Officer and Director