Amesite Inc.

Amesite Inc. Annual Report Summary - 2023 Performance
Plain English breakdown for everyday investors

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1. What Does Amesite Do, and How Was 2023?

Amesite builds online learning platforms for schools and businesses—like a "Zoom for classrooms" with extra tools for course management, progress tracking, and AI-driven personalized learning. In 2023, they focused on expanding their university and corporate clients but grew slower than expected. They also updated their branding (name/design), though their core business stayed the same.

Key Insight: Amesite qualifies as a Smaller Reporting Company under SEC rules. This means they share simpler financial reports—less paperwork for them, but less detail for investors.

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2. Financial Performance: Growth vs. Challenges

• Revenue: Up 25% ($1.2M → $1.5M). Moving in the right direction, but still small.
• Losses: $4.8M loss this year (vs. $5.1M last year). Spending to grow, but no profits yet.
• Cash Reserves: $8M left (down from $12M last year).
  • Good news: $250K is FDIC-insured (safe if their bank fails).
  • Bad news: $150K is "restricted cash" (set aside for projects, can’t use for daily costs).
• Where Cash Went:
  • $4.3M on day-to-day operations (salaries, tech updates, insurance).
  • $500K+ on R&D (new AI tools and courses).
  • Minimal debt ($15K from loans)—they’re not relying on borrowing.
• Red Flag: They owe $500K+ in prepaid subscriptions they haven’t delivered yet. This is a liability until they fulfill these services.

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3. Financial Health Check

Strengths:

• $8M cash cushion with minimal debt.
• Transparent accounting updates (easier to compare year-to-year performance).

Weaknesses:

• Cash burn rate: At current spending, they’ll need more funding by late 2024.
• No safety net: They’ve set aside $0 for potential client payment defaults (betting 100% on customers paying).
• New SEC rules require more detailed risk reporting—future filings could reveal hidden cash flow issues.

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4. Top Risks to Watch

1. 30% Revenue Dependency: Losing their largest client would cut revenue by nearly a third overnight.
2. No Payment Protection: They’re not insured against clients refusing to pay (credit risk).
3. Stock Dilution: Executives and directors are paid in stock (not cash), which could reduce share value over time.
4. Regulatory Changes: New accounting rules add complexity—could strain their small team if requirements grow.

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Bottom Line for Investors

Amesite is a high-risk, high-reward bet. Here’s what you need to know:

• 👍 Positives: Growing revenue (25%), strong cash reserves, niche AI focus, minimal debt.
• 👎 Risks: Relies heavily on one client, burning cash fast, no profit in sight, complex stock compensation for leaders.
• 🚩 Key Red Flags: $500K in undelivered subscriptions, $0 set aside for payment defaults, and 30% revenue tied to a single client.

Who Should Invest?

• If you’re comfortable with startup-like volatility and believe in AI-driven education, Amesite might be a fit.
• If you prefer stable returns or transparent financials, look elsewhere.

Think of this like investing in a local restaurant expansion—it could thrive or close within a year.

Final Note: Amesite’s simplified financial reporting (due to their "smaller company" status) means less detail for investors. Proceed with caution if you need deep transparency.