10-Q - I-ON Digital Corp. (0001580490) (Filer)

Tue, Nov 12, 3:34 PM (61 days ago)

I-ON Digital Corp. (Ticker: ION) reported significant financial challenges for the quarter ending September 30, 2024. The company incurred a net loss of $475,435, a substantial increase from a loss of $114,110 in the same period in 2023. Revenues from related party sales dropped to $0 for Q3 2024 from $32,625 in Q3 2023, reflecting a decline in business activity. Operating expenses surged to $344,289, driven by higher professional fees and administrative costs. Cash flow from operations was negative at $745,920, contrasting with a positive cash flow of $12,107 in the prior year. However, the company generated $94,743 from investing activities, primarily from sales of intangible assets, and secured $815,061 through financing, indicating reliance on external funding. The balance sheet shows total assets of $18,597,774, with significant intangible assets valued at $18,288,979. Current liabilities increased significantly, raising concerns about liquidity. The company is exploring new revenue streams through digital asset platforms, but uncertainties remain regarding its ability to sustain operations without continued funding from related parties. Future performance hinges on successful capital raising and operational improvements.