Two Hands Corp. Files Q2 2024 10-Q Report

TL;DR

Two Hands Corp. Q2 10-Q filed. Financials updated.

AI Summary

Two Hands Corp. filed its 10-Q for the period ending June 30, 2024. The filing details the company's financial position and operations for the second quarter of 2024. Specific financial figures and operational highlights are presented within the report.

Why It Matters

This filing provides investors and stakeholders with an update on Two Hands Corp.'s financial performance and condition as of June 30, 2024, crucial for evaluating the company's current health and future prospects.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing financial updates, not indicating immediate or significant new risks.

Key Numbers

• Q2 2024 — Reporting Period (The second quarter of 2024, ending June 30, 2024.)
• 20240812 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• Two Hands Corp. (company) — Filer of the 10-Q report
• 20240630 (date) — End of the reporting period
• 20240812 (date) — Filing date

FAQ

Key Financial Figures

• $0.0001 — stock issued and outstanding, par value $0.0001 per share. 2 CAUTIONARY STATEMENT RE

Filing Documents

• twoh06302024q.htm (10-Q) — 866KB
• ex311.htm (EX-31) — 15KB
• ex321.htm (EX-32) — 10KB
• 0001262463-24-000079.txt ( ) — 4248KB
• twoh-20240630.xsd (EX-101.SCH) — 30KB
• twoh-20240630_cal.xml (EX-101.CAL) — 42KB
• twoh-20240630_def.xml (EX-101.DEF) — 146KB
• twoh-20240630_lab.xml (EX-101.LAB) — 289KB
• twoh-20240630_pre.xml (EX-101.PRE) — 241KB
• twoh06302024q_htm.xml (XML) — 500KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 5 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 19 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 29 Item 4.

Controls and Procedures

Controls and Procedures 29 PART II Item 1.

Legal Proceedings

Legal Proceedings 30 Item 1A.

Risk Factors

Risk Factors 30 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 30 Item 3. Defaults Upon Senior Securities 30 Item 4. Mining Safety Disclosures 30 Item 5. Other Information 30 Item 6. Exhibits 31

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. TWO HANDS CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS June 30, 2024 December 31, 2023 ASSETS (Unaudited) Current assets Cash $ 7,269 $ 24,351 Accounts receivable, net 110,733 92,561 VAT taxes receivable 6,869 3,080 Inventory 46,261 39,489 Prepaid expenses — 10,000 Total current assets 171,132 169,481 Property and equipment, net 7,632 9,513 Operating lease right-of-use asset 10,871 15,559 Total assets $ 189,635 $ 194,553 LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities Accounts payable and accrued liabilities $ 466,380 $ 523,486 Due to related party 1,017,499 883,534 Notes payable 109,963 113,333 Line of credit 801,485 629,507 Current portion of operating lease right-of-use liability 8,654 8,759 Total current liabilities 2,403,981 2,158,619 Long-term liabilities Promissory notes 257,195 247,862 Non-redeemable convertible notes, net 440,139 502,500 Operating lease right-of-use liability, net of current portion 2,217 6,800 Total long-term liabilities 699,551 757,162 Total liabilities 3,103,532 2,915,781 Commitments and Contingencies — — Temporary equity Series A convertible preferred stock; $ 0.01 par value; 200,000 shares designated, 0 shares issued and outstanding — — Series B convertible preferred stock; $ 0.01 par value; 100,000 shares designated, 0 shares issued and outstanding — — Series C convertible preferred stock; $ 0.001 par value; 150,000 shares designated, 80,000 shares and 80,000 shares issued and outstanding, respectively 76,116 76,116 Series D convertible preferred stock; $ 0.001 par value; 200,000 shares designated, 0 shares issued and outstanding — — Series E convertible preferred stock; $ 0.0001 par value; 300,000 shares designated, 0 shares issued and outstanding — — Total temporary equity 76,116 76,116 Stockholder's deficit Preferred stock; $ 0.001 par value; 1,000,000 shar

financial statements

financial statements. 5 TWO HANDS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) For the three months ended June 30, For the six months ended June 30, 2024 2023 2024 2023 Sales $ 226,289 $ 197,324 $ 389,766 $ 372,769 Cost of goods sold 181,279 185,108 329,767 345,104 Gross profit 45,010 12,216 59,999 27,665 Operating expenses General and administrative 311,499 277,327 616,689 643,033 Total operating expenses 311,499 277,327 616,689 643,033 Loss from operations ( 266,489 ) ( 265,111 ) ( 556,690 ) ( 615,368 ) Other income (expense) Amortization of debt discount and interest expense ( 43,975 ) ( 38,774 ) ( 85,785 ) ( 76,451 ) Gain on disposition — 50,750 — 50,750 Loss on settlement of non-redeemable convertible notes ( 184,577 ) ( 275,950 ) ( 634,712 ) ( 393,500 ) Total other income (expense) ( 228,552 ) ( 263,974 ) ( 720,497 ) ( 419,201 ) Net loss ( 495,041 ) ( 529,085 ) ( 1,277,187 ) ( 1,034,569 ) Other comprehensive (loss) income Foreign currency translation adjustment 13,446 ( 20,448 ) 41,280 ( 27,536 ) Total other comprehensive (loss) income 13,446 ( 20,448 ) 41,280 ( 27,536 ) Comprehensive loss $ ( 481,595 ) $ ( 549,533 ) $ ( 1,235,907 ) $ ( 1,062,105 ) Net loss per common share - basic and diluted $ ( 0.00 ) $ ( 1.68 ) $ ( 0.00 ) $ ( 4.33 ) Weighted average number of common shares outstanding - basic 489,306,245 315,394 274,782,357 238,788 The accompanying footnotes are an integral part of these unaudited condensed consolidated financial statements. 6 TWO HANDS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT For the three and six months ended June 30, 2024 and 2023 (Unaudited) Common Stock Common Stock to be Additional Paid-in Accumulated Other Comprehensive Accumulated Total Stockholders' Shares Amount Issued Capital Income Deficit Deficit Balanc

financial statements

financial statements. 9 TWO HANDS CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 1 - NATURE OF OPERATIONS AND BASIS OF PRESENTATION Two Hands Corporation (the "Company") was incorporated in the state of Delaware on April 3, 2009 and on July 26, 2016, changed its name from Innovative Product Opportunities Inc. to Two Hands Corporation. The Two Hands co-parenting application launched on July 2018 and the Two Hands Gone application launched In February 2019. The Company ceased work on these applications in 2021. The gocart.city online consumer grocery delivery application was released in early June 2020 and Cuore Food Services commenced sale of dry goods and produce to other businesses in July 2020. In July 2021, the Company made the strategic decision to focus exclusively on the grocery market through three on-demand branches of its grocery businesses: gocart.city, Grocery Originals, and Cuore Food Services. i) gocart.city is the Company's online delivery marketplace, allowing consumers to shop online and have their groceries delivered. ii) Grocery Originals is the Company's brick-and-mortar grocery store located in Mississauga Ontario at the site of the Company's warehouse. iii) Cuore Food Services is the Company's wholesale food distribution branch. On May 1, 2023, the Company entered into an asset sale agreement with a non-related private corporation ("Purchaser") whereby the Company sold the assets of gocart.city. The sale included the e-commerce site, branding, supporting components of the Grocery Originals store and inventory. The ongoing sales and client base gocart.city and Grocery Originals was transferred as part of the asset sale. After May 1, 2023, the Company continued the business of Cuore Food Services. The operations of the business are carried on by Two Hands Canada Corporation, a wholly-owned subsidiary of the Company, incorporated under the laws of Canada on February 7, 2014. The Company

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