SMC Entertainment 10-Q: Acquisition, Debt, and Preferred Stock Details

TL;DR

SMC Ent. 10-Q shows debt, preferred stock, and acquisition talks with ChainTrade. Big moves ahead?

AI Summary

SMC Entertainment, Inc. filed its 10-Q for the period ending June 30, 2024. The company reported significant changes in its financial structure, including convertible notes payable and preferred stock. Notably, the filing references an acquisition agreement with ChainTrade and an employment agreement with Mr. Couture.

Why It Matters

This filing provides insight into SMC Entertainment's financial health and strategic moves, including potential acquisitions and debt obligations, which could impact its future performance and stock value.

Risk Assessment

Risk Level: medium — The filing details convertible notes and preferred stock, indicating potential financial leverage and dilution risks.

Key Numbers

• N/A — Total Assets (Specific dollar amounts for key financial metrics are not clearly delineated in the provided text snippet.)
• N/A — Total Liabilities (Specific dollar amounts for key financial metrics are not clearly delineated in the provided text snippet.)
• N/A — Revenue (Specific dollar amounts for key financial metrics are not clearly delineated in the provided text snippet.)
• N/A — Net Income (Specific dollar amounts for key financial metrics are not clearly delineated in the provided text snippet.)

Key Players & Entities

• SMC Entertainment, Inc. (company) — Filer
• ChainTrade (company) — Acquisition Agreement
• Mr. Couture (person) — Employment Agreement
• 20240630 (date) — Reporting Period End Date
• 20240822 (date) — Filing Date

FAQ

Key Financial Figures

• $0.001 — The number of shares of Common Stock, $0.001 par value of the registrant outstanding
• $0 — of $ 14,000 . The shares were value at $0.002, the closing stock price on the dat

Filing Documents

• smc_10q.htm (10-Q) — 753KB
• smc_ex311.htm (EX-31.1) — 12KB
• smc_ex312.htm (EX-31.2) — 9KB
• smc_ex321.htm (EX-32.1) — 7KB
• 0001654954-24-011021.txt ( ) — 3776KB
• smc-20240630.xsd (EX-101.SCH) — 36KB
• smc-20240630_lab.xml (EX-101.LAB) — 201KB
• smc-20240630_cal.xml (EX-101.CAL) — 32KB
• smc-20240630_pre.xml (EX-101.PRE) — 175KB
• smc-20240630_def.xml (EX-101.DEF) — 121KB
• smc_10q_htm.xml (XML) — 650KB

Financial Statements (unaudited)

Financial Statements (unaudited) 3 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 15 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 18 Item 4.

Controls and Procedures

Controls and Procedures 18 PART II Other Information Item 1.

Legal Proceedings

Legal Proceedings 19 Item 1A.

Risk Factors

Risk Factors 19 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 19 Item 3. Defaults Upon Senior Securities 19 Item 4. Mine Safety Disclosures 19 Item 5. Other Information 19 Item 6. Exhibits 20

Signatures

Signatures 21 2 Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements INDEX TO FINANCIAL STATEMENTS Consolidated Balance Sheets as of June 30, 2024 (unaudited) and December 31, 2023 4 Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2024 and 2023 (unaudited) 5 Consolidated Statements of Changes in Stockholders' Deficit for the Three and Six Months Ended June 30, 2024 and 2023 (unaudited) 6 Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2024 and 2023 (unaudited) 8 Notes to the Consolidated Financial Statements (unaudited) 9 3 Table of Contents SMC ENTERTAINMENT, INC. CONSOLIDATED BALANCE SHEETS June 30, December 31, 2024 2023 ASSETS (Unaudited) (Audited) Current Assets: Cash $ 1,418 $ 7,269 Receivable - 300,000 Total Current Assets 1,418 307,269 Goodwill 64,194 64,194 Intangible assets 29,600 - Total Assets $ 95,212 $ 371,463 LIABILITIES & STOCKHOLDERS' DEFICIT Current Liabilities: Accounts payable and accrued liabilities $ 78,219 $ 87,887 Accrued compensation 39,750 1,486,335 Due to related parties 16,810 22,394 Notes payable – related party 1,111,460 — Convertible notes 8,923,771 846,269 Accrued interest 533,127 465,064 Derivative liability 6,524,745 792,575 Total Current Liabilities 17,227,882 3,700,524 Total Liabilities 17,227,882 3,700,524 Stockholders' Deficit: Series A Preferred stock, $ 0.001 par value, 1,000,000 shares authorized; 990,346 shares issued and outstanding 990 990 Series B Preferred stock, $ 10.00 par value, 4,500,000 shares authorized; 2,500,000 and 2,500,000 shares issued and outstanding, respectively 32,500 32,500 Common stock $ 0.001 par value, 3,000,000,000 shares authorized; 1,352,951,483 and 1,379,960,743 shares issued and outstanding, respectively 1,352,952 1,379,961 Common stock to be issued — 22,000 Additional paid-in capital 13,505,174 12,796,175 Accumulated deficit ( 32,024,286 )

View Full Filing

View this 10-Q filing on SEC EDGAR