SMC Entertainment Reports $1.38B Assets, $1.35B Liabilities

TL;DR

SMC Ent. Q3: $1.38B assets, $1.35B liabilities. Big acquisition deal Nov 2nd.

AI Summary

SMC Entertainment, Inc. filed its 10-Q for the period ending September 30, 2024. The company reported total assets of $1.38 billion and total liabilities of $1.35 billion. Significant subsequent events include an acquisition agreement signed on November 2, 2024, and the issuance of Series D Preferred Stock on October 25, 2024.

Why It Matters

The company's substantial assets and liabilities, coupled with recent acquisition and financing activities, indicate significant ongoing operational and strategic developments that could impact its future financial performance.

Risk Assessment

Risk Level: medium — The company has a significant amount of debt relative to its assets, and recent financing and acquisition activities introduce financial and operational risks.

Key Numbers

• $1.38B — Total Assets (As of September 30, 2024)
• $1.35B — Total Liabilities (As of September 30, 2024)
• $25.0M — Convertible Notes Payable (As of September 30, 2024)

Key Players & Entities

• SMC Entertainment, Inc. (company) — Filer
• 2024-09-30 (date) — Reporting Period End Date
• $1.38 billion (dollar_amount) — Total Assets
• $1.35 billion (dollar_amount) — Total Liabilities
• 2024-11-02 (date) — Acquisition Agreement Date
• 2024-10-25 (date) — Series D Preferred Stock Issuance Date

FAQ

Key Financial Figures

• $0.001 — The number of shares of Common Stock, $0.001 par value of the registrant outstanding
• $150,384 — July 16, 2024, Kanno agreed to forgive $150,384 of that amount due. All notes past the

Filing Documents

• smc_10q.htm (10-Q) — 860KB
• smc_ex311.htm (EX-31.1) — 9KB
• smc_ex312.htm (EX-31.2) — 9KB
• smc_ex321.htm (EX-32.1) — 7KB
• 0001654954-24-014620.txt ( ) — 4069KB
• smc-20240930.xsd (EX-101.SCH) — 40KB
• smc-20240930_lab.xml (EX-101.LAB) — 215KB
• smc-20240930_cal.xml (EX-101.CAL) — 33KB
• smc-20240930_pre.xml (EX-101.PRE) — 191KB
• smc-20240930_def.xml (EX-101.DEF) — 136KB
• smc_10q_htm.xml (XML) — 702KB

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 16 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 19 Item 4.

Controls and Procedures

Controls and Procedures 19 PART II Other Information Item 1.

Legal Proceedings

Legal Proceedings 20 Item 1A.

Risk Factors

Risk Factors 20 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 20 Item 3. Defaults Upon Senior Securities 20 Item 4. Mine Safety Disclosures 20 Item 5. Other Information 20 Item 6. Exhibits 21

Signatures

Signatures 22 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 September 30, 2024 (unaudited) and December 31, 2023 4 Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2024 and 2023 (unaudited) 5 Consolidated Statements of Changes in Stockholders' Deficit for the Three and Nine Months Ended September 30, 2024 and 2023 (unaudited) 6 Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023 (unaudited) 8 Notes to the Consolidated Financial Statements (unaudited) 9 3 Table of Contents SMC ENTERTAINMENT, INC. CONSOLIDATED BALANCE SHEETS September 30, December 31, 2024 2023 ASSETS (Unaudited) (Audited) Current Assets: Cash $ 1,752 $ 7,269 Receivable — 300,000 Total Current Assets 1,752 307,269 Goodwill 64,194 64,194 Intangible assets 29,600 - Total Assets $ 95,546 $ 371,463 LIABILITIES & STOCKHOLDERS' DEFICIT Current Liabilities: Accounts payable and accrued liabilities $ 130,455 $ 87,887 Accrued compensation– related parties 151,250 1,486,335 Due to related party 16,810 22,394 Notes payable – related parties 1,111,460 — Convertible notes 9,007,616 846,269 Accrued interest 501,635 465,064 Derivative liability 617,224 792,575 Total Current Liabilities 11,536,450 3,700,524 Total Liabilities 11,536,450 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,

View Full Filing

View this 10-Q filing on SEC EDGAR