Gex Management, Inc 10-Q, filed May 23, 2023

Gex Management, Inc. (GXXM)

10-Q 2023-05-23 For: 2023-03-31

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Added on April 06, 2026

About this 10-Q

Gex Management, Inc filed this 10-Q on May 23, 2023, covering the quarter ended March 31, 2023.

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Texas		56-2428818
(State or other jurisdiction of incorporation)		(IRS Employer Identification No.)

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock		GXXM		OTC Pink

Large Accelerated Filer ☐	Accelerated Filer ☐
Non-Accelerated Filer ☐	Smaller Reporting Company ☒	Emerging Growth Company ☒

	PAGE
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)	3
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3. Quantitative and Qualitative Disclosures About Market Risk	17
Item 4. Controls and Procedures	17

PART II - OTHER INFORMATION
Item 1. Legal Proceedings	18
Item 1A. Risk Factors	18
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	18
Item 3. Defaults Upon Senior Securities	18
Item 4. Mine Safety Disclosures	18
Item 5. Other Information	18
Item 6. Exhibits	19

SIGNATURES	20

	Page
Consolidated Financial Statements (Unaudited)	4
Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022 (Unaudited)	5
Consolidated Statements of Operations for the three months ended March 31, 2023 and 2022 (Unaudited)	6
Consolidated Statements of Cash Flows for the three months ended March 31, 2023 and 2022 (Unaudited)	7
Notes to Unaudited Consolidated Financial Statements	8

	March 31, 2023			December 31, 2022

ASSETS
Current Assets:
Cash and Cash Equivalents	$	82,899		$	80,383
Accounts Receivable, net		360,959			345,639
Other Current Assets		39,293			36,793
Total Current Assets		483,151			462,814

TOTAL ASSETS	$	483,151		$	462,814

LIABILITIES AND SHAREHOLDERS’ DEFICIT

Current Liabilities:
Accounts payable	$	944,826		$	253,286
Related party payables		-			660,919
Accrued expenses		233,688			233,688
Debt/Debt like Instruments- Short term		692,607			692,607
Total Current Liabilities		1,871,120			1,840,499

TOTAL LIABILITIES		1,871,120			1,840,499

SHAREHOLDERS’ DEFICIT
Common Stock issued and Outstanding as March 31, 2023 and December 31, 2022, respectively		592,916			592,916
Additional Paid In Capital		12,169,839			12,169,839
Retained Deficit		(14,150,724	)		(14,140,439	)
TOTAL SHAREHOLDERS’ EQUITY (DEFICIT)		(1,387,969	)		(1,377,685	)

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)		483,151			462,814

	Three Months Ended			Three Months Ended
	March 31, 2023			March 31, 2022

Revenues	$	527,615		$	518,861

Cost of Revenues		368,080			188,295
Gross Profit (Loss)		159,535			330,566

Depreciation and Amortization		-			-
General and Administrative		153,854			471,375
Total Operating Expenses		153,854			471,375

Total Operating Income (Loss)		5,681			(140,809	)

Other Income (Expense)		(15,966	)		(103,212	)
Interest Income( Expenses)		-			(11,888	)
Net Other Income (Expense)		(15,966	)		(115,101	)

NET INCOME (LOSS)		(10,285	)		(255,910	)

BASIC and DILUTED
Weighted Average Shares Outstanding		27,479,758			49,161,717
Earnings (loss) per Share	$	(0.00	)	$	(0.00	)

	●	Industry Expertise: GEX Management has developed deep expertise in several industries, including technology, healthcare, niche manufacturing, industrials energy, and more. This expertise enables the company to understand the unique challenges and opportunities facing businesses in these industries, and to provide tailored solutions that drive value creation.
	●	Data-Driven Approach: GEX Management uses AI based data-driven analysis to identify opportunities for value creation in its clients’ businesses. This includes analyzing financial and operational data to identify areas for improvement, and developing strategies to drive growth and profitability.
	●	Operational Expertise: GEX Management has a team of experienced consultants with a strong background in operational management. This expertise enables the company to provide practical solutions that address operational inefficiencies and improve overall performance.
	●	Network of Strategic Partners: GEX Management has developed a network of strategic partners, including technology vendors, service providers, and other consulting firms. This network enables the company to provide comprehensive solutions to its clients, leveraging the expertise of its partners as needed.
	●	Culture of Innovation: GEX Management fosters a culture of innovation, encouraging its consultants to think creatively and develop new solutions to meet its clients’ needs. This approach enables the company to stay ahead of industry trends and provide cutting-edge solutions to its clients.

	●	Scalability: The AI-powered platform will enable GEX Management to scale its operations more efficiently and effectively. By automating many of its operational processes and leveraging advanced data analytics, the company will be able to handle a larger volume of clients and projects without significantly increasing its staffing levels.
	●	Competitive Advantage: The AI-powered platform will provide GEX Management with a significant competitive advantage over other consulting firms. This will enable the company to attract new clients and expand its business more quickly than its competitors.
	●	Market Demand: There is a strong market demand for AI-powered solutions in the consulting industry. By developing a proprietary platform that leverages advanced AI and data analytics, GEX Management is positioning itself to capitalize on this demand and capture a larger share of the market.
	●	Value Proposition: The AI-powered platform will enable GEX Management to provide more efficient, customized, and accurate solutions to its clients. This will enhance the company’s value proposition and position it as a leader in the industry, driving further growth and expansion.

	●	Debt restructuring: GEX Management has restructured its debt to reduce the amount of outstanding debt and lower the interest rate, resulting in lower interest expense and improved cash flow.
	●	Expense reduction: The company has implemented cost-cutting measures to reduce expenses and improve profitability, such as renegotiating contracts and reducing non-essential expenses.
	●	Asset divestiture: GEX Management has sold non-core assets to generate cash and reduce debt.
	●	Improved collections: The company has improved its collections process to ensure timely payment of receivables and reduce outstanding balances.

●	should not in all instances be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements prove to be inaccurate;

●	have been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement;

●	may apply standards of materiality in a way that is different from what may be viewed as material to you or other investors; and

●	were made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement and are subject to more recent developments.

Exhibit No.	SEC Report Reference No.	Description
31.1/31.2	*	Certification of Principal Executive Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1/32.2	*	Certifications of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS 101.SCH 101.CAL 101.DEF 101.LAB 101.PRE	* * * * * *	Inline XBRL Instance Document Inline XBRL Taxonomy Extension Schema Document Inline XBRL Taxonomy Extension Calculation Linkbase Document Inline XBRL Taxonomy Extension Definition Linkbase Document Inline XBRL Taxonomy Extension Label Linkbase Document Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	*	Cover Page Interactive Data File (embedded within the Inline XBRL document)

	GEX MANAGEMENT, INC.

Dated: May 23, 2023	By:	/s/ Sri Vanamali
	Name:	Sri Vanamali
	Title:	Chief Executive Officer

1.	I have reviewed this quarterly report on Form 10-Q of GEX Management, Inc.

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.	I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;

	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.	I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 23, 2023	/s/ Sri Vanamali
	Sri Vanamali
	Chief Executive Officer

	Three Months Ended			Three Months Ended
	March 31, 2023			Mar 31, 2022
Cash Flows (used by) Operating Activities:
Net Loss	$	(10,285	)		(255,910	)
Adjustments to reconcile net loss to net cash (used in) operating activities:
Changes in assets and liabilities:
Accounts receivable		(15,320	)		(64,995	)
Other current assets		(2,500	)		-
Other liabilities		590,132			319,511
Accounts Payable		691,540			(4,166	)
Accrued expenses and other payables		(660,919	)		-

Net cash (used in) operating activities		592,649			(5,561	)

Cash Flows from (used in) Financing Activities:
Proceeds from common stock/APIC					764,218
Proceeds from short term notes payable (net)		(648,367	)		(648,367	)
Net cash provided by financing activities		(648,367	)		115,851
NET INCREASE (DECREASE) IN CASH		(55,718	)		110,290
CASH AT BEGINNING OF PERIOD		138,618			28,327
CASH AT END OF PERIOD		82,899			138,618

	(1)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

	(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.