Adamas One Corp.

CIK:0001884072|SEC Filings

CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Net Revenues
Diamond sales	$ 179,774	$ 290,938	$ 411,046	$ 1,130,994
Cost of Revenues	161,273	217,844	461,753	397,842
Gross Profit (Loss)	18,501	73,094	(50,707)	733,152
Operating Expenses
Selling, general and administrative	1,523,258	4,253,748	4,825,565	10,099,194
Employee salaries and related expenses	391,396	196,295	2,544,506	6,465,885
Depreciation and amortization expense	29,771	98,851	89,314	296,555
Total operating expenses	1,944,425	4,548,894	7,459,385	16,861,634
Loss from Operations	(1,925,924)	(4,475,800)	(7,510,092)	(16,128,482)
Other (Income) and Expenses
Gain on lease termination	(54,384)		(54,384)
Interest expense	179,182	62,383	717,758	2,333,561
Warrant expense			851,200
Finance costs	571,680		1,091,535
Change in fair value of derivative liability	(427,626)		9,410
Total Other Expenses	268,852	62,383	2,615,519	2,333,561
Loss before income taxes	(2,194,776)	(4,538,183)	(10,125,611)	(18,462,043)
Provision for income taxes
Net Loss	$ (2,194,776)	$ (4,538,183)	$ (10,125,611)	$ (18,462,043)
Net Loss Per Share
Weighted average number of shares outstanding	30,579,649	23,668,106	29,276,159	20,966,902
Loss per share-basic and diluted	$ (0.07)	$ (0.19)	$ (0.35)	$ (0.88)

CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
OPERATING ACTIVITIES
Net loss	$ (10,125,611)	$ (18,462,043)
Adjustments to reconcile net loss to net cash used in operations:
Stock to employees	1,506,288	9,931,494
Stock issued board member services	63,200
Stock issued to consultants	2,243,646
Stock issued for loan inducement	219,850	240,707
Warrants issued for conversion	851,200	2,038,000
Depreciation and amortization	89,314	296,555
Allowance for doubtful accounts	(15,151)	1,300,000
Derivative liability	1,100,945
Changes in assets and liabilities:
Accounts receivable	80,279	(368,402)
Inventory	221,286	(1,087,225)
Other current assets		(34,546)
Accrued liabilities	1,200,892	2,666,089
Investment		(1,917,673)
Accrued interest	533,084	13,061
Accrued payroll and related liabilities	(64,780)	(705,074)
Right of use assets - operating leases, net	(9,594)	(12,089)
Total adjustments to reconcile net loss to net cash used in operations	8,020,458	12,360,897
Net cash used in operating activities	(2,105,153)	(6,101,146)
INVESTING ACTIVITIES
Purchase of property & equipment		(1,464,600)
Net cash used in investing activities		(1,464,600)
FINANCING ACTIVITIES
Notes payable proceeds	2,099,252	754,200
Payments on note payables	(29,085)
Due to related party		(558,658)
Purchase of treasury stock		(1,200,000)
Cash from stock sale, net of costs	25,000	9,132,750
Net cash provided by financing activities	2,095,167	8,128,292
Net cash increase (decrease) for the period	(9,986)	562,546
Cash, beginning of period	26,088	88,235
Cash, end of the period	16,102	650,781
Non-cash investing and financing activities are as follows:
Stock for interest		169,756
Conversion of debt to equity	100,060	6,554,151
Investment	$ 348,300

CONDENSED BALANCE SHEETS (Unaudited) - USD ($)	Jun. 30, 2024	Sep. 30, 2023
Current Assets:
Cash	$ 16,102	$ 26,088
Accounts receivable, net of allowance	15,218	80,347
Inventory	1,333,936	1,555,222
Total Current Assets	1,365,257	1,661,657
Property and Equipment, net	1,750,440	1,785,753
Non-Current Assets:
Goodwill	5,413,000	5,413,000
Other intangible assets, net	372,000	426,000
Right of use assets - operating leases	531,704	1,677,628
Investment	1,917,673	1,917,673
Other non-current assets	12,800	12,800
Total non-current assets	9,997,617	11,232,854
TOTAL ASSETS	11,362,874	12,894,511
Current Liabilities:
Accrued liabilities	2,178,616	1,015,050
Accrued interest	492,916	95,197
Due to related party- payroll and related	1,102,619	1,130,074
Assumed liability - asset purchase	457,912	457,912
Warrant liability		298,839
Notes payable and convertible term notes, net	4,265,875	2,195,708
Derivative liability	1,100,945
Current portion of operating lease liability	129,936	157,286
Contingent consideration for debt compliance related to notes payable	2,922,280	2,922,280
Total Current Liabilities	12,651,098	8,272,346
Long-Term Liabilities:
Operating lease liability, net of current portion	370,507	1,498,674
TOTAL LIABILITIES	13,021,605	9,771,020
Stockholders’ Equity (Deficit)
Common stock, $0.001 par value, 100,000,000 shares authorized 37,892,478 shares issued and outstanding at June 30, 2024 and 27,215,966 shares issued and outstanding at September 30, 2023	38,241	27,564
Treasury stock 350,000 shares, at cost	(1,200,000)	(1,200,000)
Shares to be issued- strategic entity	1,179,012	1,527,312
Additional paid-in capital	72,053,894	66,372,882
Accumulated deficit	(73,729,877)	(63,604,267)
Total Stockholders’ Equity (deficit)	(1,658,730)	3,123,491
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 11,362,874	$ 12,894,511