Kindcard, Inc 10-Q for FY2024 Q2

Kindcard, Inc. (KCRD)

10-Q 2023-09-19 For: 2023-07-31

Added on April 06, 2026

About this 10-Q

Kindcard, Inc filed this 10-Q on September 19, 2023, covering the quarter ended July 31, 2023 (FY2024 Q2).

Headline figures

Quarter ended July 31, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $126.08K; down 9.4% from $139.2K a year earlier
Net loss: $33.01K; compared with a net loss of $116.49K a year earlier

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Non-accelerated Filer	☐	Smaller reporting company	☒
		Emerging growth company	☐

PART I—FINANCIAL INFORMATION

Item 1.	Consolidated Financial Statements.	F-1

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	3

Item 3.	Quantitative and Qualitative Disclosures about Market Risk.	5

Item 4.	Controls and Procedures.	5

PART II—OTHER INFORMATION

Item 1.	Legal Proceedings.	6

Item 1A.	Risk Factors.	6

Item 2.	Unregistered Sales of Securities and Use of Proceeds.	6

Item 3.	Defaults Upon Senior Securities.	6

Item 4.	Mining Safety Disclosures.	6

Item 5.	Other Information.	6

Item 6.	Exhibits.	7

Consolidated Balance Sheets as of July 31, 2023 (unaudited) and January 31, 2023		F-2
Consolidated Statements of Operations for the three and six months ended July 31, 2023 and 2022 (unaudited)		F-3
Consolidated Statements of Changes in Stockholders’ Deficit for three and six months ended July 31, 2023 and 2022 (unaudited)		F-4
Consolidated Statements of Cash Flows for the six months ended July 31, 2023 and 2022 (unaudited)		F-5
Notes to Condensed Consolidated Financial Statements (unaudited)		F-6 - F-15

Kindcard, Inc. and Subsidiaries Consolidated Balance Sheets
	July 31, 2023			January 31, 2023
Assets	(unaudited)
Current Assets:
Cash	$	15,019		$	12,750
Accounts receivable, net - unbilled		76,087			44,705
Prepaid expenses		23,440			46,949
Total Current Assets		114,546		$	104,404
Property, plant and equipment, net		8,940			11,753
Intellectual property, net		132,744			170,296
Total Other Assets		141,684			182,049
Total Assets	$	256,230		$	286,453
Liabilities and Stockholders’ Deficit
Current Liabilities
Accounts payable	$	231,824		$	251,567
Accrued interest		12,810			11,324
Accrued payroll expenses		25,117			45,525
Accrued tax expense		3,210			3,210
Deferred revenue		12,500			25,000
Due to related party		301,548			296,498
Notes payable		189,210			155,124
Current portion SBA loan		8,772			2,224
Total Current Liabilities		784,991			790,472
Long-term Liabilities
Accrued interest long term portion		3,931			7,750
SBA loan		150,000			147,776
Total Long-term Liabilities		153,931			155,526
Total Liabilities		938,922			945,998
Commitments and Contingencies		-			-
Stockholders’ Deficit
Common Stock		98,120			96,945
Authorized 200,000,000 shares of common stock, $0.001 par value, issued and outstanding 98,120,000 of common stock (January 31, 2023 – 96,945,000)
Additional Paid In Capital		179,859			152,051
Accumulated Deficit		(960,671	)		(908,541	)
Total Stockholders’ Deficit		(682,692	)		(659,545	)
Total Liabilities and Stockholders’ Deficit	$	256,230		$	286,453

	For the three months ended July 31,						For the six months ended July 31,
	2023			2022			2023			2022
Revenue	$	119,826		$	139,204		$	243,463		$	324,154
Other Revenue		6,250						12,500
Total Revenue		126,076			139,204			255,963			324,154
Cost of Sales		17,058			19,532			37,549			36,008
Total Cost of Sales		17,058			19,532			37,549			36,008
Gross Profit		109,018			119,672			218,414			288,146
Operating Expenses
General and Administrative Expenses		122,510			220,751			229,396			415,749
Selling Expenses		-			-			389			-
Depreciation and Amortization		19,516			15,409			37,549			17,599
Total Operating Expenses		142,026			236,160			267,334			433,348
Net Loss from Operations		(33,008	)		(116,488	)		(48,920	)		(145,202	)
Other Income – Wholesale Payments-See Note 11		-			-			-			48,968
Net loss before income taxes		(33,008	)					(48,920	)
Provision for income taxes		-			-			(3,210	)		-
Net Loss	$	(33,008	)		(116,488	)	$	(52,130	)	$	(96,234	)
Net Income Per Common Share – Basic and Diluted	$	-		$	-			-		$	-
Weighted Average Number of Common Shares Outstanding -
Basic and Diluted		97,424,620			86,358,587			97,188,785			85,119,862

	Common Stock				Additional
	Number of Shares		Amount		Paid-in Capital		Accumulated Deficit			Total
Balance, January 31, 2023		96,945,000		96,945		152,051		(908,541	)		(659,545	)
Net loss for period ended April 30, 2023		-		-		-		(19,122	)		(19,122	)
Balance, April 30, 2023		96,945,000		96,945		152,051		(927,663	)		(678,667	)
Shares issued for cash		500,000		500		24,500		-			25,000
Shares issued for services		675,000		675		3,308		-			3,983
Net loss for period ended July 31, 2023		-		-		-		(33,008	)		(33,008	)
Balance, July 31, 2023		98,120,000	$	98,120	$	179,859	$	(960,671	)	$	(682,692	)

	For the six months ended
	July 31,			July 31,
	2023			2022
Cash Flows from Operating Activities:
Net loss	$	(52,130	)	$	(96,234	)
Adjustments to reconcile net loss to net Cash used by operations
Stock issued for services		3,983			140
Depreciation and amortization		40,365			22,599
		44,348			22,739
Decrease (increase) in operating assets/liabilities
Accounts receivable, net - unbilled		(31,382	)		(36,490	)
Prepaid expenses		23,509			-
Accounts payables		(19,743	)		(11,830	)
Accrued expenses		(15,455	)		(24,363	)
Deferred revenue		(12,500	)		-
Total Adjustments		(11,223	)		(49,944	)
Net cash (used in) provided by operating activities	$	(63,353	)	$	(146,178	)
Cash flows from investing activities
Purchase of software and equipment		-			(128,588	)
Net cash used in investing activities		-			(128,588	)
Cash flows from financing activities
Shares issued for cash		25,000			150,000
Proceeds from related party loan		5,050			-
Proceeds from notes payable, net		35,572			119,753
Net cash provided by financing activities	$	65,622		$	269,753
Net cash increase for the period		2,269			(5,013	)
Cash at beginning of period	$	12,750		$	21,131
Cash at end of period	$	15,019		$	16,118
Supplemental disclosures:
Non-cash investing & financing activities:
Common Stock issued in exchange for services	$	3,983		$	140
Software purchases included in accounts payable	$	3,500		$	20,920

	For the six months ended July 31,
	2023		2022

Cash Pickup Commission Revenue	$	52,666	$	70,130

Tendercard Program Revenue	$	190,797	$	204,024

Other Revenue	$	12,500	$	50,000

Total Program Revenue	$	255,963	$	324,154

Purchase Price Considerations	Fair Value
Stock Consideration	$	24,000
SBA Loan		153,160
Total Purchase Consideration & Assumed Liabilities	$	177,160
Tangible Assets
Cash		19,048
Accounts Receivable		26,721
Intangible Assets
Customer Lists		9,900
Website		5,200
Trade Name		2,800
Technology		3,200
Goodwill		110,291
Total Assets	$	177,160

	July 31,			January 31,
	2023			2023
Merchandise and equipment: Vault	$	10,000		$	10,000
Merchandise and equipment: Office Equipment		4,286			4,286
Merchandise and equipment: IT Equipment		4,945			4,945
Total Cost	$	19,231		$	19,231
Less: accumulated depreciation		(10,291	)		(7,478	)
Total	$	8,940		$	11,753

Year ending January 31,
2024 -		42,178
2025 -		72,235
2026 -		17,802
2027 -		529
Total -	$	132,744

2024:	$	0
2025:		1,933
2026:		2,762
2027:		2,867
2028:		2,977
Thereafter		139,461
Total future minimum loan payments	$	150,000
Less: current portion		(0	)
Long-term portion	$	150,000

31.1*		Certification of Chief Executive Officer pursuant to Rule 13(a)-14(a)/15(d)-14(a) of the Securities Act of 1934

31.2+		Certification of Chief Financial Officer pursuant to Rule 13(a)-14(a)/15(d)-14(a) of the Securities Act of 1934

32.1*		Certification of Chief Executive Officer Executive Officer under Section 1350 as Adopted pursuant Section 906 of the Sarbanes-Oxley Act of 2002

32.2++		Certification of Chief Financial Officer under Section 1350 as Adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

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101.SCH		Inline XBRL Taxonomy Extension Schema Document

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document

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

*	Filed herewith

#	Indicates management contract or compensatory plan.

+	Included in Exhibit 31.1

++	Included in Exhibit 32.1

	Kindcard, Inc.
	(Registrant)

Date: September 19, 2023	By:	/s/ Michael Rosen
	Michael Rosen
	CEO, CFO, President, and Director
	(Principal Executive Officer,
	Principal Financial and Accounting Officer)

1.	I have reviewed this quarterly report of Kindcard, 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.	The registrant’s other certifying officer and I are 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 the 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 controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	b)	Designed such internal controls and procedures, or caused such disclosure controls and procedures to be designed under our 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 our 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 registrants most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

	a)	All significant deficiencies and material weaknesses in the design or operation of internal controls 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 material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

1.	The Quarterly Report fully complies with the requirements of Section 13(a) or15(d) of the Securities and Exchange Act of 1934, as amended; and

2.	The information contained in this Quarterly Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

/s/ Michael Rosen
Michael Rosen CEO, CFO, President, and Director (Principal Executive Officer, Principal Financial Officer)

Date: September 19, 2023