Bowmo, Inc. Reports Significant Financial Challenges, Including Net Loss and Working Capital Deficit, in Latest 10-Q Filing

Bowmo, Inc. (formerly Cruzani, Inc.) reported significant financial developments in its 10-Q filing for the period ending June 30, 2024. The company, which operates an AI-powered recruiting platform, experienced no revenue for both the three and six months ended June 30, 2024, a stark decline from $4,476 in revenue for the same period in 2023. This drop is attributed to a lack of operating capital.

Total current assets increased to $30,689,000 as of June 30, 2024, up from $26,318,000 at the end of 2023. Total assets also saw a substantial rise to $57,422,000, compared to $26,318,000 at the end of the previous fiscal year. Cash and cash equivalents improved to $12,517,000 from $6,308,000, reflecting a net change of $6,209,000 for the period, compared to a decrease of $89,358,000 in the same period last year.

Despite these improvements in liquidity, Bowmo reported a net loss of $691,086 for the six months ended June 30, 2024, compared to a net loss of $648,086 for the same period in 2023. The loss from operations was $376,606, a reduction from $548,533 in the prior year. Total operating expenses decreased to $376,606 from $553,009, primarily due to lower general and administrative expenses and professional fees.

The company’s working capital deficit stood at $4,566,409 as of June 30, 2024, and it reported an accumulated deficit of $13,682,963. Bowmo's management is actively pursuing funding through debt and equity investments, as well as monetization of intellectual property assets, to address its ongoing financial challenges.

In terms of strategic developments, Bowmo entered into a merger agreement with OWNverse, LLC, which is pending due to the company's capital constraints. Additionally, the company completed an acquisition of Interview Mastery in December 2022, which involved issuing shares as part of the purchase consideration. However, as of the report date, none of the shares related to this acquisition have been issued and are recorded as a liability.

The company also reported a significant increase in additional paid-in capital, rising to $9,471,985 from $8,876,064, indicating ongoing efforts to bolster its financial position. However, Bowmo continues to face substantial doubt regarding its ability to continue as a going concern due to recurring losses and the need for additional funding.