Global Arena Holding, Inc. (GAHI), a company specializing in election services and proprietary voting technology, has released its Form 10-Q report for the third quarter of 2024. The report highlights significant improvements in financial performance and outlines key operational developments that underscore the company's strategic direction and future outlook.
Financial Highlights
- Revenues: $0.93 million, an increase of $0.32 million compared to the same period in 2023, driven by a higher number of elections held.
- Loss from operations: $(0.05) million, an improvement from a loss of $(0.38) million in the same period in 2023, reflecting effective cost management.
- Net loss: $(0.71) million, an improvement from a net loss of $(0.99) million in the same period in 2023, indicating better overall financial performance.
- Loss per share - basic and diluted: $(0.00), consistent with the same period in 2023, reflecting the impact of increased shares outstanding.
Business Highlights
- Proprietary Software Development: Global Election Services, Inc. (GES) has developed proprietary registration software designed to authenticate and register voters, ensuring secure and efficient election processes. This includes a data storage and retrieval system that cross-references voter eligibility and prevents duplicate voting.
- Advanced Scanning and Tabulation: GES has implemented advanced OMR/OCR/barcode scanning and tabulation software, which includes features like de-skewing, de-speckling, and image correction. This system enhances the speed and efficiency of election tabulations while ensuring security by operating offline.
- Online Voting Platform: In 2020, GES launched a proprietary online election voting solution compliant with Title IV of the U.S. Department of Labor standards. Built on Amazon Web Services (AWS), the platform offers robust security features, including encryption and DDoS protection, to safeguard election data.
- U.S. Certification Process: GES is undertaking a six-step process to qualify for updated U.S. certification and is considering individual state certifications. This process includes testing current systems to federal standards, reviewing technical data, and conducting security testing.
- Operational Challenges and Future Outlook: The company faces challenges due to recurring losses and cash flow deficits, raising concerns about its ability to continue as a going concern. Management is focused on raising additional capital and developing a sustainable business model to address these challenges.
- Revenue Growth: The company experienced an increase in revenues for the three and nine months ended September 30, 2024, compared to the same periods in 2023. This growth is attributed to the cyclical nature of client elections, with more elections occurring in 2024.
- Cost Management: Salaries and benefits expenses decreased significantly due to changes in compensation agreements with directors, while professional fees increased due to higher legal costs. Marketing and advertising expenses rose, reflecting increased promotional activities.
- Printing and Software Development Costs: The company saw an increase in printing costs due to higher election-related activities, while software development expenses decreased, indicating a shift in operational focus.
- Strategic Partnerships and Acquisitions: GES has entered into various agreements and joint ventures, including a significant investment in TrueVote, Inc., to enhance its service offerings and expand its market presence.
- Asset Sale Negotiations: The company is in discussions with Easterly Capital LLC to sell the assets of Global Election Services Inc. for $2,750,000 in cash and 40% of the common stock of a new acquisition corporation, aiming to settle pending litigation and outstanding debt.
SEC Filing: