Quantum X Labs Inc 10-Q for FY2022 Q1

Quantum X Labs Inc. (QXL)

10-Q 2022-05-16 For: 2022-03-31

Added on April 08, 2026

About this 10-Q

Quantum X Labs Inc filed this 10-Q on May 16, 2022, covering the quarter ended March 31, 2022 (FY2022 Q1).

Headline figures

Quarter ended March 31, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1000; down 87.5% from $8000 a year earlier
Net loss: $169K; compared with a net loss of $80K a year earlier

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Delaware		68-0080601
(State of		(I.R.S. Employer
Incorporation)		Identification No.)

11 Derech Menachem Begin Street, Ramat Gan, Israel		5268104
(Address of Principal Executive Offices)		(ZIP Code)

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, Par Value $0.0001		VBIX		OTCQB

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

Item	Description	Page

	PART I - FINANCIAL INFORMATION

ITEM 1.	FINANCIAL STATEMENTS	3
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS AND RESULTS OF OPERATIONS	19
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 1A.	RISK FACTORS	23
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	23
ITEM 3.	DEFAULT UPON SENIOR SECURITIES	23
ITEM 4.	MINE SAFETY DISCLOSURE	23
ITEM 5.	OTHER INFORMATION	23
ITEM 6.	EXHIBITS	23
	SIGNATURES	24

	Page

Interim Condensed Consolidated Balance Sheets (unaudited)	4 - 5

Interim Condensed Consolidated Statements of Comprehensive Loss (unaudited)	6

Interim Condensed Consolidated Statements of Changes in Shareholders’ Equity (unaudited)	7

Interim Condensed Consolidated Statements of Cash Flows (unaudited)	8

Notes to the Interim Condensed Consolidated Financial Statements	9 - 18

		As of March 31		As of December 31
	Note	2022		2021

ASSETS

CURRENT ASSETS
Cash and cash equivalents			57		74
Trade receivables			9		8
Other accounts receivable			21		30
Prepaid expenses			28		44

Total current assets			115		156

Total assets			115		156

	Number		Amount		capital		deficit			deficit
	Ordinary shares				Additional paid-in		Accumulated			Total stockholders’
	Number		Amount		capital		deficit			deficit

Balance as of January 1, 2022		34,753,669		3		13,257		(15,540	)		(2,280	)

Net loss for the period		-		-		-		(169	)		(169	)
Balance as of March 31, 2022		34,753,669		3		13,257		(15,709	)		(2,449	)

	2022			2021
	For the three months ended March 31
	2022			2021
Cash flows from operating activities

Net loss for the period		(169	)		(80	)
Adjustments to reconcile net loss to net cash (used in) operating activities:
Finance expense		69			4
Changes in current assets and liabilities:
Increase in trade receivables		(1	)		(6	)
Decrease prepaid expenses		16			16
Decrease in other receivables		9			6
Increase (decrease) in trade payables		7			(4	)
Decrease in other accounts payables and accrued liabilities		(3	)		-
Increase in loan from parent company		55			50

Net cash used in operating activities		(17	)		(14	)

Cash flows from investing activities

Net cash provided by Investing activities		-			-

Decrease in cash and cash equivalents		(17	)		(14	)

Cash and cash equivalents at the beginning of the year		74			148

Cash and cash equivalents and restricted cash at the end of the year		57			134

	As of March 31		As of December 31
	2022		2021

Other payables		47		47
Accrued liabilities		192		195
Total other accounts payables		239		242

	(a)	From May 2018 all of the Company’s employees will become employees of Gix.
	(b)	Between the periods of May 2018 to October 2018, Gix will pay the full expenses of the employees as well as other related expenses.
	(c)	From November 2018 until to the Closing Date, the employees transferred from the Company to Gix will dedicate half of their time to the Company’s operations and correspondingly 50% of the costs to be incurred by Gix in respect of these employees are to be charged to the Company.

Instrument	Fair Value		% of total fair		Allocated amount
Loan		55,200		49.45		49,246
Shares		54,000		50.55		50,340
Total		109,200		100		99,586


Principal amount	69
Discount on Short term loan	(19	)
Short term loan, Net	50

	Warrants		Warrant Term	Exercise Price		Exercisable

Class J Warrants		3,649,318	July 2029		0.48		3,649,318
Class K Warrants		3,649,318	July 2029		0.80		3,649,318

	For the three months ended March 31
	2022		2021
	Unaudited
Exchange rate differences		6		(1	)
Interests on loans		69		4
Other		-		4
		75		7

	Note		2022			2021
			For the three months ended March 31
	Note		2022			2021

Revenues				1			8
Cost of revenues				-			-

Gross profit				1			8

Operating expenses:
Research and development				14			16
Selling and marketing				-			2
General and administrative				68			63
Other expenses				13			-

Operating loss				94			73

Financial expenses, net		7		(75	)		(7	)

Loss before tax				169			80

Taxes on income		8		-			-

Net loss				169			80

Loss per share - basic and diluted		9		0.005			0.002

Weighted average number of ordinary shares outstanding used in the computations of loss per share (in thousands)				34,753,669			34,753,669

	As of March 31			As of December 31
	2022			2021

Deferred R&D expenses	$	164		$	167
Operating loss carryforward		32,968			33,055
Differences between tax basis and carrying values of loans (see note 4)	$	(184	)	$	(184	)
Total	$	32,948		$	33,038

Net deferred tax asset before valuation allowance	$	7,208		$	7,230
Valuation allowance		(7,208	)		(7,230	)
Net deferred tax asset	$	-		$	-

	For the three months
	ended March 31
	2021		2022

USA	$	93	$	27
Israel		76		53
	$	169	$	80

●	the short-term and long-term implications caused by our recent cost reduction efforts, including, but not limited to, our growing inability to secure and maintain customers on the basis of insufficient capital resources;

●	sustained turnover of key management;

●	our history of recurring losses and negative cash flows from operating activities, significant future commitments and the uncertainty regarding the adequacy of our liquidity to pursue our complete business objectives, and substantial doubt regarding our ability to continue as a going concern;

●	our need to raise additional capital to meet our business requirements in the future and such capital raising may be costly or difficult to obtain and could dilute out stockholders’ ownership interests;

●	the impact of the COVID-19 pandemic on our business plan and the global economy;

●	our ability to adequately protect our intellectual property; and

●	entry of new competitors and products and potential technological obsolescence of our products.

Exhibit Number		Description

31.1*		Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act

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

101 SCH		Inline XBRL Taxonomy Extension Schema Document

101 CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101 DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document

101 LAB		Inline XBRL Taxonomy Extension Label Linkbase Document

101 PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document

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

*		Filed herewith.

**		Furnished herewith.

	VIEWBIX INC.

	By:	/s/ Amihay Hadad
	Name:	Amihay Hadad
	Title:	Chief Executive Officer and Chief Financial Officer
Date: May 16, 2022		(Principal Executive Officer and Principal Financial Officer)

1.	I have reviewed this Quarterly Report on Form 10-Q for the period ended March 31, 2022 of Viewbix 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 year-end 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 year-end 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 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 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 year-end 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 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 year-end 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 (the registrant’s fourth fiscal quarter in the case of an annual report) 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 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.

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

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