Everything Blockchain, Inc.

What they do

Historically, the company provided database management and cybersecurity solutions through products like EB Build and EB Control, and offered consulting and development services for blockchain projects. Following a strategic transformation, it now operates as an actively managed investment vehicle and technology innovator, targeting early-stage AI and blockchain enterprises and developing proprietary technologies.

Revenue drivers

• EB Advise — A line of business focused on consulting and advisory services related to blockchain and data management, though its current revenue contribution is not broken out in the excerpts.
• BuildDB — A fifth-generation database management technology designed to disrupt traditional NoSQL databases, intended to generate revenue through software subscriptions and licensing, but specific revenue figures are not provided.
• EB Control — A cybersecurity platform focused on data security and access management, which may generate revenue through subscriptions, licensing, or transaction fees, though no segment-level revenue is disclosed.
• Subscription revenue — Revenue from staking crypto assets, primarily a hybrid Proof of Work and Proof of Stake token, where stakers earn inflation-based rewards; the relative size of this revenue stream is not quantified in the excerpts.

Recent performance

For the three and nine months ended October 31, 2024, the company reported zero revenue, with no cost of sales and no gross profit. This follows a decline in annual revenue from $2.5 million in fiscal 2022 to $301,000 in fiscal 2023 and $267,000 in fiscal 2024. The company has incurred net losses since inception, except for fiscal 2022, with a net loss of $7.9 million in fiscal 2024. Operating cash flow was negative $2.3 million in fiscal 2024. As of October 31, 2024, total assets were $4.5 million, total liabilities $3.9 million, and shareholder equity $680,000, with no cash and equivalents.

Strategy

The company has pivoted to become a specialized investment and technology development firm at the intersection of cryptocurrency and artificial intelligence. It plans to operate in two primary segments: strategic investments in early-stage AI and blockchain enterprises, and proprietary technology development. The goal is to curate a portfolio of businesses and create innovative solutions to diversify revenue streams. Management aims to leverage expertise in blockchain and AI to deliver sustained shareholder value.

Risks

• Going concern — The company has stated substantial doubt about its ability to continue as a going concern, dependent on raising additional funds and generating revenue.
• No revenue — The company reported zero revenue for the three and nine months ended October 31, 2024, and its latest quarterly revenue was $0.00.
• Cash depletion — As of October 31, 2024, the company had no cash and equivalents, which may impair its ability to fund operations.
• Strategic pivot — The recent shift to an investment and technology development firm may involve execution risks and has not yet generated revenue.

Outlook

Management has not provided specific financial guidance in the excerpts. The company intends to pursue its new strategy as an investment and technology development firm, focusing on AI and blockchain. Its ability to continue as a going concern depends on raising additional funds and generating revenue.