Balance Labs, Inc. Files Q3 2024 10-Q

TL;DR

Balance Labs filed its Q3 10-Q. Check financials for latest performance.

AI Summary

Balance Labs, Inc. filed its 10-Q for the period ending September 30, 2024. The filing details financial information for the third quarter and the first nine months of the year. Key financial data and disclosures relevant to investors are presented.

Why It Matters

This filing provides investors with the latest financial performance and position of Balance Labs, Inc., crucial for making informed investment decisions.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing with no immediate red flags or significant new risks indicated in the provided snippet.

Key Numbers

• Q3 — Quarterly Period (Reporting for the third quarter of the fiscal year.)
• 2024-09-30 — Period End Date (The end date for the financial reporting period.)
• 2024-11-19 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• Balance Labs, Inc. (company) — Filer
• 2024-09-30 (date) — Reporting Period End Date
• 2024-11-19 (date) — Filing Date
• MIAMI (location) — Business Address City
• DE (location) — State of Incorporation

FAQ

Filing Documents

• form10-q.htm (10-Q) — 533KB
• ex31-1.htm (EX-31.1) — 19KB
• ex31-2.htm (EX-31.2) — 19KB
• ex32-1.htm (EX-32.1) — 8KB
• ex32-2.htm (EX-32.2) — 8KB
• 0001493152-24-046598.txt ( ) — 3002KB
• blnc-20240930.xsd (EX-101.SCH) — 19KB
• blnc-20240930_cal.xml (EX-101.CAL) — 28KB
• blnc-20240930_def.xml (EX-101.DEF) — 108KB
• blnc-20240930_lab.xml (EX-101.LAB) — 186KB
• blnc-20240930_pre.xml (EX-101.PRE) — 159KB
• form10-q_htm.xml (XML) — 379KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited) 4 Balance Sheets as of September 30, 2024 (unaudited) and December 31, 2023 4 5 6 7 Condensed Notes to Financial Statements (unaudited) 8

Controls and Procedures

Item 4. Controls and Procedures. 23

- OTHER INFORMATION

PART II - OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings. 24

Risk Factors

Item 1A. Risk Factors. 24

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2 Unregistered Sales of Equity Securities and Use of Proceeds. 24

Defaults Upon Senior Securities

Item 3 Defaults Upon Senior Securities. 24

Mine Safety Disclosures

Item 4. Mine Safety Disclosures. 25

Other Information

Item 5. Other Information. 25

Exhibits

Item 6. Exhibits. 25

Signatures

Signatures 26 2 Explanatory Note: The registrant has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, however, the registrant is not subject to such fling requirements and is making such filings on a voluntary basis. 3 PART I - FINANCIAL INFORMATION Item 1. Financial Statements. Balance Labs, Inc. Consolidated Balance Sheets September 30, 2024 December 31, 2023 (Unaudited) Assets Current Assets Cash and cash equivalents $ 30,407 $ 112,809 Marketable securities 79,936 107,912 Total Current Assets 110,343 220,721 Total Assets $ 110,343 $ 220,721 Liabilities and Stockholders' Deficit Current Liabilities Accounts payable and accrued expenses $ 1,643,447 $ 1,381,849 Accounts payable - related party 911,659 911,659 Short -term advances - related party 1,703,558 1,673,558 Convertible note payable 25,000 25,000 Convertible notes payable - related party, net of debt discount of $ 0 and $ 0 , as of September 30, 2024 and December 31, 2023 173,192 173,192 Convertible note payable, net of debt discount of $ 0 and $ 8,504 , as of September 30, 2024 and December 31, 2023 500,000 491,496 Convertible note payable, net of debt discount 500,000 491,496 Notes payable - related party - net of debt discount of $ 0 and $ 0 as of September 30, 2024 and December 31, 2023 106,850 106,850 Notes payable 106,850 106,850 Total Current Liabilities 5,063,706 4,763,604 Total Liabilities 5,063,706 4,763,604 Commitments and Contingencies (Note 8) - - Stockholders' Deficit Preferred stock, $ 0.0001 par value, 50,000,000 shares authorized, none issued and outstanding as of September 30, 2024 and December 31, 2023 Common stock, $ 0.0001 par value: authorized 500,000,000 , 21,674,000 and 21,674,000 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively 2,167 2,167 Additional paid-in

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements September 30, 2024 (Unaudited) Note 1 – Business Organization and Nature of Operations Balance Labs, Inc. ("Balance Labs" or the "Company") was incorporated on June 5, 2014, under the laws of the State of Delaware. Balance Labs is a consulting firm that provides business development and consulting services to start up and development stage businesses. The Company offers services to help businesses in various industries improve and fine tune their business models, sales and marketing plans and internal operations as well as make introductions to professional services such as business plan writing, accounting firms and legal service providers. The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, such statements include all adjustments (consisting only of normal recurring items) which are considered necessary for a fair presentation of the unaudited condensed consolidated financial position of Balance Labs as of September 30, 2024, and the unaudited consolidated results of its operations and cash flows for the three months ended September 30, 2024. The unaudited consolidated results of operations for the three months ended September 30, 2024, are not necessarily indicative of the operating results for the full year. It is recommended that these unaudited consolidated financial statements be read in conjunction with the audited financial statements and related disclosures of the Company for the year ended December 31, 2023, which was filed with the Securities and Exchange Commission on April 15, 2024. Note 2 – Going Concern The consolidated financial statements have been prepared assuming the Co

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements September 30, 2024 (Unaudited) Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Estimates may include those pertaining to stock-based compensation, depreciable lives of fixed assets and deferred tax assets. Actual results could materially differ from those estimates. Accounts Receivable The Company provides an allowance for doubtful accounts equal to the estimated uncollectible amounts pursuant to the guidance of Accounting Standards Update (ASU) 2016-13, Financial Instruments – Credit Losses (Topic 326) as codified in Accounts Standards Codification (ASC) 326, Financial Instruments – Credit Losses. Under ASC 326, the Company utilizes a current and expected credit loss (CECL) impairment model. ASU 2016-13 became effective for us on January 1, 2023. The Company's estimate is based on historical collection experience and a review of the current status of trade accounts receivable. It is reasonably possible that the Company's estimate of the allowance for doubtful accounts will change. Accounts receivables are presented net of an allowance for doubtful accounts of $ 0 and $ 0 at September 30, 2024 and December 31, 2023, respectively. Revenue Recognition The Company accounts for its revenues under FASB ASC 606, which is a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. The Company considers revenu

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements September 30, 2024 (Unaudited) Management has evaluated and concluded that there are no material tax positions requiring recognition in the Company's unaudited condensed consolidated financial statements as of September 30, 2024. The Company does not expect any significant changes in its unrecognized tax benefits within twelve months of the reporting date. The Company's, 2021, 2022, and 2023 tax returns remain open for audit for Federal and State taxing authorities. The Company's policy is to classify assessments, if any, for tax related interest as interest expense and penalties as general and administrative expenses in the statement of operations. Marketable Securities The Company accounts for marketable and available-for-sale securities under ASU 2016-01, "Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities." ASU 2016-01 requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The Company accounts for its investment in EZFill Holdings, Inc. as available-for-sale securities pursuant to the S-1 Registration Statement declared effective on September 14, 2021, therefore, the unrealized gain (loss) on the available-for-sale securities during the nine months ended September 30, 2024, and 2023 has been recorded in Other Income. At September 30, 2024, the Company owned 26,573 shares and the fair value of the investment in EZFill Holdings, Inc. was reported on the balance sheet as Investment at fair value - related party totaling $ 79,936 ($ 3.22 /share). The Company recorded an adjustment of $ 27,976 for the nine months ending September 30, 2024, as unrealized loss on securities. EZFill Holdings Inc. reported a 1 share for 8 share reverse stock split on April 26, 2023, and 1 share for 2.

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements September 30, 2024 (Unaudited) Investments – Related Parties When the fair value of an investment is indeterminable, the Company accounts for its investments that are under 20% of the total equity outstanding using the cost method. For investments in which the Company holds between 20-50% equity and is non-controlling are accounted for using the equity method. For any investments in which the Company holds over 50% of the outstanding stock, the Company consolidates those entities into their consolidated financial statements herein. The Company holds one investment as of September 30, 2024, and one investment as of December 31, 2023. Investments On January 29, 2021, the Company received 20 % ownership of Pharmacy No, 27, Ltd, a company based in Israel, as part of a Note Receivable from a third party. As of September 30, 2024, the investment has a fair value of $ 0 , based upon the quoted closing trading price and it is recorded on our consolidated balance sheet using the equity method. During each three months ended September 30, 2024 and December 31, 2023 the Company recorded $ 0 of unrealized loss from this investment. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk primarily consist of cash, cash equivalents and marketable securities. As of September 30, 2024, and December 31, 2023, the carrying value of marketable securities was $ 79,936 and $ 107,912 , respectively. The securities are included in the Investment at Fair Value – Related Party on the consolidated balance sheets, which consist of common shares held in one (1) investment which currently is trading on the Over-the-Counter Bulletin Board (OTCBB). Principles of Consolidation The consolidated financial statements include the Company and its wholly owned corporate subsidiaries, Balance Labs LLC. 11 BALANCE LABS, INC. Condensed

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements September 30, 2024 (Unaudited) Net Loss Per Common Share Basic and diluted income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares and warrants from convertible debentures outstanding during the periods. The potentially dilutive effect from 4,159,361 and 3,698,494 shares from convertible notes payable for the nine months ended September 30, 2024, and 2023, respectively. Stock-Based Compensation The Company measures the cost of services received in exchange for an award of equity instruments based on the fair value of the award. For employees, the fair value of the award is measured on the grant date and for non-employees, the fair value of the award is generally re-measured on vesting dates and financial reporting dates until the service period is complete. The fair value amount is then recognized over the period during which services are required to be provided in exchange for the award, usually the vesting period. Awards granted to directors are treated on the same basis as awards granted to employees. The Company has computed the fair value of warrants granted using the Black-Scholes option pricing model. The expected term used for warrants is the contractual life. Since the Company's stock has not been publicly traded for a sufficiently long period, the Company is utilizing an expected volatility figure based on a review of the historical volatilities, over a period of time, equivalent to the expected life of the instrument being valued, of similarly positioned public companies within its industry. The risk-free interest rate was determined from the implied yields from U.S. Treasury zero-coupon bonds with a remaining term consistent with the expected term of the instrument being valued. Fair Value of Financial Instruments The Company measures its financial assets and liabilities in accordance with GAAP. For certain of our financial inst

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements September 30, 2024 (Unaudited) The following table presents certain assets of the Company's measured and recorded at fair value on the Company's balance sheet on a recurring basis and their level within the fair value hierarchy as of September 30, 2024. Schedule of Fair Value of Assets on Recurring Basis Total (Level 1) (Level 2) (Level 3) Fair-value – equity securities $ 79,936 $ 79,936 $ - $ - Total Assets measured at fair value $ 79,936 $ 79,936 $ - $ - The following table presents certain assets of the Company's measured and recorded at fair value on the Company's balance sheet on a recurring basis and their level within the fair value hierarchy as of December 31, 2023. Total (Level 1) (Level 2) (Level 3) Fair-value – equity securities $ 107,912 $ 107,912 $ - $ - Total Assets measured at fair value $ 107,912 $ 107,912 $ - $ - The Company accounts for its investment in EzFill Holdings, Inc. ("EzFill") as available-for-sale securities, since the investment is valued based on quoted market price using observable inputs.

Business

Business Segments The Company operates in one segment and therefore segment information is not presented. Advertising, Marketing and Promotional Costs Advertising, marketing, and promotional expenses are expensed as incurred and are included in selling, general and administrative expenses on the accompanying unaudited condensed consolidated statement of operations. For the nine months ended September 30, 2024, and September 30, 2023, advertising, marketing, and promotion expense was $ 3,772 and $ 6,786 , respectively. Property and equipment Property and equipment consist of furniture and office equipment and is stated at cost less accumulated depreciation. Depreciation is determined by using the straight-line method for furniture and office equipment, over the estimated useful lives of the related assets, generally three to five years . Expenditures for repairs and maintenance of equipment are charged to expense as incurred. Major replacements and betterments are capitalized and depreciated over the remaining useful lives of the related assets. 13 BALANCE LABS, INC. Condensed

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements September 30, 2024 (Unaudited) Property and equipment as of September 30, 2024, and December 31, 2023 consisted of the following: Schedule of Property and Equipment September 30, 2024 December 31, 2023 (unaudited) Website $ - $ 1,336 Computer equipment & Software 5,358 5,358 Furniture 4,622 4,622 Total 9,980 11,316 Less Accumulated Depreciation ( 9,980 ) ( 11,316 ) Property and Equipment, net $ - $ - Recently Issued Accounting Pronouncements The Company has evaluated all new accounting standards that are in effect and may impact its unaudited condensed consolidated financial statements and does not believe that there are any other new accounting standards that have been issued that might have a material impact on its financial position or results of operations. Note 4 – Stockholders' Deficit Authorized Capital The Company is authorized to issue 500,000,000 shares of common stock, $ 0.0001 par value, and 50,000,000 shares of preferred stock, $ 0.0001 par value. 14 BALANCE LABS, INC. Condensed

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements September 30, 2024 (Unaudited) Note 5 – Note Receivable On September 30, 2021, Balance Labs Inc. made a loan to Four Acquisition, Ltd., an unrelated party in the principal amount of $ 22,000 which loan has an interest rate of 10 % per annum and a maturity date of September 30, 2022 . As of September 30, 2024, this receivable is fully reserved against. For the nine months ended September 30, 2024 and 2023, the Company recorded $ 0 and $ 0 , respectively, of interest income in relation to this note. On January 29, 2021, Balance Labs Inc. made a loan to Four Acquisitions Ltd., an unrelated party in the principal amount of $ 119,000 which has an interest rate of 10 % per annum and a maturity date of January 28, 2022 . Additionally, in connection with the loan, the Company received a 20 % interest in the recently acquired business and related assets of Four Acquisitions Ltd. Initially, this investment had a purchase price of $ 43,000 , which was recorded as a discount from the note which will be amortized over the life of the note. The Company recorded an allowance of 100 % against this receivable of $ 141,000 as of September 30, 2024. Note 6 – Related Party Transactions The Company's CEO earns $ 10,000 per month under a new agreement. This agreement is effective October 31, 2023. The following compensation was recorded within general and administrative expenses – related parties on the statements of operations: $ 99,900 and $ 30,000 for the nine months ended September 30, 2024 and 2023, respectively. As of September 30, 2024 and December 31, 2023, $ 99,900 and $ 30,000 , respectively, of compensation was unpaid and

View Full Filing

View this 10-Q filing on SEC EDGAR