UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
10-Q
(Mark
One)
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For
the quarterly period ended September 30, 2023
OR
☐TRANSITION
REPORT UNDER SECTION 13 OF 15(d) OF THE EXCHANGE ACT OF 1934
For
the transition period from ______to ______
Commission
File Number 001-38288
GEX
MANAGEMENT, INC.
(Exact
name of registrant as specified in its charter)
| Texas |
|
56-2428818 |
(State
or other jurisdiction
of
incorporation) |
|
(IRS
Employer
Identification
No.) |
3662
W Camp Wisdom Road
Dallas,
Texas 75237
(Address
of principal executive offices)
(877)210-4396
(Issuer’s
telephone number)
N/A
(Former
name, former address and former fiscal year, if changed since last report)
Securities
registered pursuant to Section 12(b) of the Act:
| Title
of each class |
|
Trading
Symbol(s) |
|
Name
of each exchange on which registered |
| Common
Stock |
|
GXXM |
|
OTC
Pink |
Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate
by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule
405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes ☒ No ☐
Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,”
“non-accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2
of the Exchange Act:
| Large
Accelerated Filer ☐ |
|
Accelerated
Filer ☐ |
|
|
| Non-Accelerated
Filer ☐ |
|
Smaller
Reporting Company ☒ |
|
Emerging
Growth Company ☒ |
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to section 13(a) of the Exchange Act. ☐
Indicate
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As
of October 31, 2023 there were 1,987,090,856 shares of the registrant’s common stock, par value $0.0001 per share, outstanding.
GEX
MANAGEMENT, INC.
FORM
10-Q
FOR
THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2023
TABLE
OF CONTENTS
PART
I – FINANCIAL INFORMATION
ITEM
1. FINANCIAL STATEMENTS
The
accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United
States and the rules of the Securities and Exchange Commission (“SEC”). In the opinion of management, all adjustments, consisting of normal
recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the periods presented
have been reflected herein. The results of operations for the periods presented are not necessarily indicative of the results to be expected
for the full year.
GEX
MANAGEMENT, INC.
CONDENSED
CONSOLIDATED FINANCIAL
STATEMENTS
TABLE OF CONTENTS
GEX
Management, Inc.
Condensed
Consolidated Balance Sheets
| | |
September 30, 2023 | | |
December
31, 2022 | |
| | |
| | |
| |
| ASSETS | |
| | | |
| | |
| Current Assets: | |
| | | |
| | |
| Cash and Cash Equivalents | |
$ | 107,336 | | |
$ | 125,383 | |
| Accounts Receivable, net | |
| 479,533 | | |
| 345,639 | |
| Other Current Assets | |
| 45,831 | | |
| 42,336 | |
| Total Current Assets | |
| 632,699 | | |
| 513,357 | |
| | |
| | | |
| | |
| | |
| | | |
| | |
| Other assets | |
| | | |
| (1,796 | ) |
| TOTAL ASSETS | |
$ | 632,699 | | |
$ | 511,561 | |
| | |
| | | |
| | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) | |
| | | |
| | |
| | |
| | | |
| | |
| Current Liabilities: | |
| | | |
| | |
| Accounts Payable | |
$ | 175,552 | | |
$ | 243,286 | |
| Related Party Payables | |
| - | | |
| 660,919 | |
| Accrued Expenses | |
$ | 116,392 | | |
| 228,981 | |
| Accrued Interest Payable | |
| - | | |
| 99,445 | |
| Line of credit – related party | |
| | | |
| 483,677 | |
| Notes Payable | |
| 203,750 | | |
| 146,037 | |
| Total Current Liabilities | |
| 495,694 | | |
| 1,862,344 | |
| TOTAL LIABILITIES | |
| 495,694 | | |
| 1,862,344 | |
| | |
| | | |
| | |
| SHAREHOLDERS’ EQUITY (DEFICIT) | |
| | | |
| | |
| | |
| | | |
| | |
| Common Stock | |
| 592,916 | | |
| 592,916 | |
| Additional Paid In Capital | |
| 13,645,932 | | |
| 12,025,735 | |
| Retained Deficit | |
| (14,101,843 | ) | |
| (13,969,433 | ) |
| TOTAL SHAREHOLDERS’ EQUITY (DEFICIT) | |
| 137,005 | | |
| (1,350,783 | ) |
| | |
| | | |
| | |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) | |
| 632,699 | | |
| 511,561 | |
GEX
Management, Inc.
Condensed
Consolidated Statements of Operations (Unaudited)
| | |
Three Months Ended | | |
Three Months Ended | | |
Nine Months Ended | | |
Nine Months Ended | |
| | |
September 30, 2023 | | |
September 30, 2022 | | |
September 30, 2023 | | |
September
30, 2022 | |
| | |
| | |
| | |
| | |
| |
| Revenues | |
$ | 600,643 | | |
$ | 641,923 | | |
$ | 1,728,358 | | |
$ | 1,657,604 | |
| | |
| | | |
| | | |
| | | |
| | |
| Cost of Revenues | |
| 279,391 | | |
| 356,351 | | |
| 969,959 | | |
| 729,578 | |
| Gross Profit (Loss) | |
| 321,253 | | |
| 285,572 | | |
| 758,399 | | |
| 928,026 | |
| | |
| | | |
| | | |
| | | |
| | |
Operating Expenses
Depreciation and Amortization | |
| - | | |
| - | | |
| - | | |
| - | |
| General and Administrative | |
| 120,620 | | |
| 308,515 | | |
| 522,351 | | |
| 1,386,936 | |
| Total Operating Expenses | |
| 120,620 | | |
| 308,515 | | |
| 522,351 | | |
| 1,386,936 | |
| | |
| | | |
| | | |
| | | |
| | |
| Total Operating Income (Loss) | |
| 200,633 | | |
| (22,943 | ) | |
| 236,048 | | |
| (458,910 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| Other Income (Loss) | |
| (49,198 | ) | |
| 1,478 | | |
| (243,512 | ) | |
| (125,511 | ) |
| Interest Income (Expenses) | |
| - | | |
| - | | |
| - | | |
| 11,888 | |
| Net Other Income (Expense) | |
| (49,198 | ) | |
| 1,478 | | |
| (243,512 | ) | |
| (113,623 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| Net income (loss) before income taxes | |
| 151,434 | | |
| (21,465 | ) | |
| (7,463 | ) | |
| (572,532 | ) |
| Provision for income taxes | |
| - | | |
| - | | |
| - | | |
| - | |
| NET INCOME (LOSS) | |
| 151,434 | | |
| (21,465 | ) | |
| (7,463 | ) | |
| (572,532 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| BASIC and DILUTED | |
| | | |
| | | |
| | | |
| | |
| Weighted Average Shares Outstanding | |
| 1,896,062,192 | | |
| 489,848,876 | | |
| 1,896,062,192 | | |
| 489,848,876 | |
| Earnings (loss) per Share | |
| (0.00008 | ) | |
| (0.00004 | ) | |
$ | (0.000004 | ) | |
$ | (0.001 | ) |
GEX
Management, Inc.
Condensed
Consolidated Statements of Cash Flows (Unaudited)
| | |
Nine Months
Ended | | |
Nine Months
Ended | |
| | |
September 30, 2023 | | |
September 30, 2022 | |
| Cash Flows (used by) Operating Activities: | |
| | | |
| | |
| Net Loss | |
$ | (7,463 | ) | |
| (572,532 | ) |
| Adjustments to reconcile net loss to net cash (used in) operating activities: | |
| | | |
| | |
| Depreciation and Amortization | |
| - | | |
| - | |
| Changes in assets and liabilities: | |
| | | |
| | |
| Accounts receivable | |
| (133,894 | ) | |
| (114,979 | ) |
| Other current assets/liabilities | |
| (3,495 | ) | |
| 111,613 | |
| Other Assets/Liabilities | |
| (857,901 | ) | |
| 174,118 | |
| Accounts Payable | |
| (67,734 | ) | |
| 337,093 | |
| Other Current Liabilities | |
| - | | |
| - | |
| Accrued interest payable | |
| (99,445 | ) | |
| - | |
| Net cash (used in) operating activities | |
| (1,169,932 | ) | |
| (64,687 | ) |
| | |
| | | |
| | |
| Cash Flows from (used in) Investing Activities: | |
| | | |
| | |
| Net cash (used in) Investing Activities: | |
| - | | |
| - | |
| | |
| | | |
| | |
| Cash Flows from (used in) Financing Activities: | |
| | | |
| | |
| Proceeds from common stock/ APIC | |
| 1,620,197 | | |
| 1,101,363 | |
| Proceeds/Payments from notes payable | |
| (425,964 | ) | |
| (977,537 | ) |
| Payments/Proceeds from short term notes payable (net) | |
| - | | |
| - | |
| Net cash provided by financing activities | |
| 1,194,233 | | |
| 123,826 | |
| NET INCREASE (DECREASE) IN CASH | |
| 24,301 | | |
| 59,139 | |
| CASH AT BEGINNING OF PERIOD | |
| 83,034 | | |
| 23,895 | |
| CASH AT END OF PERIOD | |
| 107,336 | | |
| 83,034 | |
GEX
Management, Inc.
Notes
to Condensed Consolidated Financial Statements
For
the Nine Months Ended September 30, 2023 and 2022
(Unaudited)
NOTE
1. DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES
Organization
and Description of Business
GEX
Management, Inc. was originally formed in 2004 as Group Excellence Management, LLC. d/b/a MyEasyHQ. In March of 2016, it was converted
from a limited liability company into a C corporation and changed its name to GEX Management, Inc.
GEX
Management initially began operations as a Professional Services Company providing back office support to third-party clients. In 2016
GEX Management revised its business model to provide staffing and back-office services to a wide variety of industries in order to expand
the Company’s footprint, thereby building on the previous 12-year history of exceptional client service. Over the next few years,
GEX Management experienced tremendous growth in sales and customer pipeline - staffing business grew by over 1600%+ from 2016 to 2017
with the firm being named among the “fastest growing public companies in the North Texas region” by the Dallas Morning News,
while also significantly expanding its client footprints across multiple staffing, business consulting and PEO opportunities.
In
2019, the management of GEX under the leadership of Sri Vanamali set strategic goals to revise the business model to expand into areas
of higher margin and growth particularly in the area of Technology and Strategy Consulting Services. In Q4 2019, GEX signed a contract
with one of the fastest growing, VC backed social video platform to provide key corporate and strategy consulting services – an
initiative that the CEO was personally involved with in developing and growing the strategic business relationship over two years. This
contract resulted in enormous growth opportunities for GEX and significantly expanded growth in future periods as well. GEX signed additional
contracts to provide interim “CFO” and “CEO” consulting services to various high growth public and private companies,
resulting in doubling of sales within a year and achieving an astounding double digit expansion in gross margins despite the pandemic
related recessionary business environment. Furthermore, GEX has been in talks with multiple companies to identify synergistic acquisition
opportunities to fuel organic and inorganic growth and fulfil the corporate objective of becoming a top tier business and technology
focused firm while also developing a long term and sustainable technology centric business model. Management expects these growth initiatives
to help the firm eventually achieve strong and stable revenue growth while also achieving sustainable long-term profitability by targeting
a higher margin, lower cost model and relying on less expensive debt instruments to help reduce the burden across the firm’s capital
structure.
Beginning
2020. under Sri Vanamali’s executive leadership, GEX Management has built its core competency to provide value creation services
as a key operating partner to private equity firms and strategic operators by focusing on several key areas:
| |
● |
Industry
Expertise: GEX Management has developed deep expertise in several industries, including technology, healthcare, niche manufacturing,
industrials energy, and more. This expertise enables the company to understand the unique challenges and opportunities facing businesses
in these industries, and to provide tailored solutions that drive value creation. |
| |
● |
Data-Driven
Approach: GEX Management uses AI based data-driven analysis to identify opportunities for value creation in its clients’ businesses.
This includes analyzing financial and operational data to identify areas for improvement, and developing strategies to drive growth
and profitability. |
| |
● |
Operational
Expertise: GEX Management has a team of experienced consultants with a strong background in operational management. This expertise
enables the company to provide practical solutions that address operational inefficiencies and improve overall performance. |
| |
● |
Network
of Strategic Partners: GEX Management has developed a network of strategic partners, including technology vendors, service providers,
and other consulting firms. This network enables the company to provide comprehensive solutions to its clients, leveraging the expertise
of its partners as needed. |
| |
● |
Culture
of Innovation: GEX Management fosters a culture of innovation, encouraging its consultants to think creatively and develop new solutions
to meet its clients’ needs. This approach enables the company to stay ahead of industry trends and provide cutting-edge solutions
to its clients. |
The
strategic roadmap for GEX Management in providing value creation services as a key operating partner to PE firms in 2023 involves expanding
its industry expertise and developing new partnerships to support its growth. The company plans to deepen its expertise in key sectors
such as healthcare and technology, while also expanding into new sectors such as retail, industrials and consumer goods. Additionally,
GEX Management plans to develop new partnerships with technology vendors and other service providers to offer its clients a broader range
of solutions. Through these initiatives, GEX Management aims to continue providing exceptional value creation services to its clients
and maintaining its position as a leading management consulting firm.
Under
Mr. Vanamali’s stewardship, Phase 1 of the GEX strategic roadmap implemented in Q1 2019 involved building out the Management Consulting
business model, while Phase II beginning in Q2 2020 involved accelerating the GEX MSP partnership model to expand our enterprise corporate
client base. In Q1 2023, Mr. Vanamali announced Phase III of GEX Management’s strategic roadmap, which involved building out a
proprietary AI-powered technology platform and product base to complement its full spectrum of strategy consulting and enterprise consulting
business suite offerings. This initiative represents a significant investment for the company and is designed to enhance its ability
to provide value creation services to strategics and private equity clients in several key ways:
Improved
Data Analytics: The AI-powered platform will enable GEX Management to leverage advanced data analytics to identify opportunities for
value creation in its clients’ businesses. The platform will use machine learning algorithms to analyze large data sets and identify
patterns and trends that are not easily detectable through traditional data analysis methods.
Enhanced
Operational Efficiency: The platform will also enable GEX Management to automate many of its operational processes, allowing the company
to provide faster and more efficient service to its clients. This will include automating data collection and analysis, as well as streamlining
project management and communication with clients.
Customized
Solutions: The platform will allow GEX Management to provide customized solutions to its clients based on their specific needs and challenges.
The platform will be designed to adapt to each client’s unique business environment, providing tailored recommendations that are
specifically designed to drive value creation.
Competitive
Advantage: The AI-powered platform will provide GEX Management with a significant competitive advantage over other consulting firms.
By leveraging advanced data analytics and automation, the company will be able to provide faster and more accurate solutions to its clients,
enabling it to differentiate itself in the highly competitive consulting market.
GEX
Management’s Phase 3 initiative is considered a hypergrowth strategy because it is designed to leverage technology and innovation
to drive rapid expansion and growth for the company. By building a proprietary AI-powered platform, the company is positioning itself
to capture a larger share of the consulting market and establish itself as a leader in the industry.
There
are several key factors that are expected to contribute to the hypergrowth potential of this initiative:
| |
● |
Scalability:
The AI-powered platform will enable GEX Management to scale its operations more efficiently and effectively. By automating many of
its operational processes and leveraging advanced data analytics, the company will be able to handle a larger volume of clients and
projects without significantly increasing its staffing levels. |
| |
● |
Competitive
Advantage: The AI-powered platform will provide GEX Management with a significant competitive advantage over other consulting firms.
This will enable the company to attract new clients and expand its business more quickly than its competitors. |
| |
● |
Market
Demand: There is a strong market demand for AI-powered solutions in the consulting industry. By developing a proprietary platform
that leverages advanced AI and data analytics, GEX Management is positioning itself to capitalize on this demand and capture a larger
share of the market. |
| |
● |
Value
Proposition: The AI-powered platform will enable GEX Management to provide more efficient, customized, and accurate solutions to
its clients. This will enhance the company’s value proposition and position it as a leader in the industry, driving further
growth and expansion. |
The
development of an AI-powered technology platform is a key component of GEX Management’s value proposition to strategic and private
equity clients. The platform will enable the company to provide more efficient, customized, and accurate solutions to its clients, helping
them to achieve their strategic goals and drive value creation. Additionally, the platform will help GEX Management to differentiate
itself in the highly competitive consulting market, positioning the company as a leader in the industry and a valuable partner to private
equity firms seeking to maximize their returns on investment.
Under
Sri Vanamali’s executive leadership, GEX Management was invited in February 2019 to be a Preferred Supplier to Insight Global,
one of the world’s largest Managed Service Providers (MSPs) to Fortune 100 Companies in the Enterprise Technology Consulting space.
The first consultant that GEX hired through this Preferred Supplier initiative was successfully placed at a large PA based financial
services firm to provide Business and Quality Analysis professional services to the client. Subsequently, GEX placed its second enterprise
consultant at the world’s leading Fortune 100 CRM Company at its headquarters in San Francisco and subsequently several more highly
skilled Enterprise Technology Consultants at leading Fortune 500 retail, healthcare, manufacturing and technology clients across the
country.
Subsequently,
GEX Management has achieved significant growth by expanding its client base through partnerships with top-tier technology MSPs such as
Robert Half, Insight Global, TekFortune, and Aegean. These partnerships have allowed GEX to offer its consulting services to a wide range
of clients, including some of the biggest names in various industries.
The
end clients for whom GEX consultants provide services include leading companies such as Salesforce, Anthem, Walmart, United Airlines,
Disney, Marriott, Paramount, Morgan Stanley, and Carlyle Group, among others. This diverse client base has provided GEX with the opportunity
to work with clients across a wide range of industries, allowing the company to gain valuable experience and knowledge that it can leverage
to provide high-quality services to its clients. Through its strong relationships with its MSP partners and its focus on providing exceptional
service to its clients, GEX has been able to expand its client base and increase its revenue significantly. The company has also been
able to leverage its expertise and experience to develop new service offerings and expand into new markets, further driving its growth
and success. Moving forward, GEX plans to continue building on its success by expanding its partnerships with leading MSPs and identifying
new opportunities to serve its clients’ needs. The company will also continue to invest in its technology platform and product
base to ensure it can provide the most innovative and effective solutions to its clients.
As
a direct result of the high market demand for experienced technology consultants via its multiple supplier programs, the GEX team has
interviewed and has acquired over 30 highly experienced enterprise technology consultants with expertise across a wide array of functions
(Enterprise Architects, Project Managers, Systems Integration Developers, Quality Assurance Specialists and Business Systems Analysts)
who have been identified for various short to long term projects. Additionally, GEX plans to hire and place a large pool of enterprise
consultants over the next 18 - 24 month period to satisfy its growing pipeline of future contracts.
In
addition to these planned strategic growth initiatives across both strategy and technology consulting, , management has been focusing
on materially improving its balance sheet by significantly reducing or eliminating the debt or debt like instruments related to convertible
notes and asset related liens introduced in 2018 while simultaneously exploring opportunities to reduce or eliminate the high interest
MCA related toxic debt instruments that resulted in significant interest expenses to the company and a burden to operating capital. Under
the balance sheet clean up initiative, GEX Management has focused on reducing its liabilities and improving its financial health. The
company has taken several actions to achieve this, including:
| |
● |
Debt
restructuring: GEX Management has restructured its debt to reduce the amount of outstanding debt and lower the interest rate, resulting
in lower interest expense and improved cash flow. |
| |
● |
Expense
reduction: The company has implemented cost-cutting measures to reduce expenses and improve profitability, such as renegotiating
contracts and reducing non-essential expenses. |
| |
● |
Asset
divestiture: GEX Management has sold non-core assets to generate cash and reduce debt. |
| |
● |
Improved
collections: The company has improved its collections process to ensure timely payment of receivables and reduce outstanding balances. |
As
a result of these actions, GEX Management has been able to significantly reduce its liabilities from $7,116,854 in fiscal year 2021 to
$1,840,499 in 2022. This has a positive impact on the company’s financial health and reduces the risk of insolvency. It also improves
the company’s ability to secure financing at lower interest rates, which can result in lower borrowing costs and improved profitability.
This
focus on balance sheet cleanup and to stay significantly “asset-lite” is expected to achieve material results by Q2 2023,
at which point GEX would be primed for its next phase of strategic growth initiatives by deploying equity and non-toxic debt instruments
towards organic and inorganic opportunities. Finally, management believes that the material elimination of MCA and related debt like
instruments will be a critical first step prior to rebuilding a robust revenue pipeline as this will require strong working capital and
favorable leverage covenants to sustain operations in the long term as well as reduce liabilities related to attachment to future receivables.
While management efforts to settle these instruments are aggressively underway, the inability or failure by the firm to completely address
any toxic debt instruments could result in management pursuing a restructuring program or similar initiatives to bring the balance sheet
within reasonable covenant parameters to allow the firm to continue operating efficiently in the coming years without exposing future
customers to significant business risks associated with these toxic instruments. As part of this long term strategy, management has already
begin putting processes in place to protect the company via a robust internal restructuring program and will be announcing the outcome
of these intra-company restructuring efforts that will protect the interests of investors and shareholders alike over the long term and
also streamline the corporate structure to be synergistic with the management’s long term vision for the company.
Material
Definitive Agreements
No
Material Agreements have been executed by the Company during this reporting period.
Basis
of Presentation
Our
financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”),
as well as the applicable regulations and rules of the Securities and Exchange Commission (“SEC”). This requires management
to make estimates and assumptions that affect the amounts reported in the financial statements and their accompanying notes. The actual
results could differ from those estimates.
Principles
of Consolidation
The
consolidated financial statements include the accounts of GEX Management, Inc. and its wholly owned subsidiaries. Intercompany accounts
and transactions have been eliminated in consolidation.
There
have been no significant changes to our accounting policies that have a material impact on our financial statements and accompanying
notes.
Use
of Estimates
The
preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain
reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
Cash
and Cash Equivalents
Cash
and cash equivalents include cash in banks and short-term investments with original maturities of three months or less.
Accounts
Receivable
Accounts
receivable consists of accrued services and consulting receivables due from customers and are unsecured. The receivables are generally
due within 30 to 45 days after the date of the invoice. Accounts receivable is carried at their face amount, less an allowance for doubtful
accounts. GEX’s policy is not to charge interest on receivables after the invoice becomes past due. Write-offs are recorded at
the time when a customer receivable is deemed uncollectible.
Related
Parties
Parties
are considered to be related to the Company if the parties, directly or indirectly, through one or more intermediaries, control, are
controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management,
members of the immediate families of principal owners of the Company and its management and other parties with which the Company may
deal with if one party controls or can significantly influence the management or operating policies of the other to an extent that one
of the transacting parties might be prevented from fully pursuing its own separate interests.
Long-Lived
Assets
The
Company records an impairment of long-lived assets used in operations, other than goodwill, and its equity method investments when events
or circumstances indicate that the asset might be impaired and the estimated undiscounted cash flows to be generated by those assets
over their remaining lives are less than the carrying amount of those items. The net carrying value of assets not recoverable is reduced
to fair value, which is typically calculated using the discounted cash flow method.
Revenue
Recognition
Management
Consulting Services
GEX
Management recognizes revenue for its management consulting services in accordance with ASC 606 - Revenue from Contracts with Customers.
Revenue
is recognized when control of the services is transferred to the client and the consideration for the services is expected to be collected.
Control is transferred when the client is able to direct the use of and obtain substantially all of the benefits from the services provided.
The
revenue recognized is based on the transaction price, which is the amount of consideration that GEX expects to be entitled to in exchange
for providing the services. The transaction price is determined based on the estimated costs to complete the project, as well as the
estimated profit margin on the project.
GEX
Management typically enters into contracts with clients that specify the scope of services to be provided, the time period for which
the services will be provided, and the fees for the services. Revenue is recognized over the period during which the services are provided,
generally on a straight-line basis over the term of the contract.
If
there are any changes to the scope of the services or the fees for the services, GEX Management will assess whether these changes constitute
a modification of the original contract. If a modification is deemed to exist, GEX will reassess the transaction price and adjust the
revenue recognized accordingly.
GEX
Management also considers any variable consideration, such as performance bonuses or penalties, when recognizing revenue. If the amount
of variable consideration cannot be estimated reliably, it will be excluded from the transaction price until it can be reliably estimated.
In
summary, GEX Management recognizes revenue for its management consulting services in accordance with ASC 606, based on the transfer of
control of services to the client and the expected consideration to be collected. Revenue is recognized over the period during which
the services are provided and is adjusted for any changes in scope or fees.
All
employees are completely vetted by the company to ensure their employment terms are in adherence to all applicable state. federal and
immigration laws. Additionally, GEX Management carries professional liability and fidelity/crime insurance to protect against risks involving
working at third party client locations that require the workers to handle sensitive client data and equipment.
Income
Taxes
The
Company uses the liability method in the computation of income tax expense and the current and deferred income taxes payable. A valuation
allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.
Fair
Value Measurements
ASC
Topic 820 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and requires
certain disclosures about fair value measurements. In general, fair value of financial instruments is based upon quoted market prices,
where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily
use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded
at fair value. These adjustments may include amounts to reflect counterparty credit quality and the Company’s credit worthiness,
among other things, as well as unobservable parameters.
Earnings
Per Share
Earnings
per share are calculated in accordance with ASC 260 “Earnings per Share”. Basic income (loss) per share is computed by dividing
the period income (loss) available to common shareholders by the weighted average number of common shares outstanding. Diluted earnings
(loss) per share is computed by dividing the income (loss) available to common share-holders by the weighted average number of common
shares outstanding plus additional common shares that would have been outstanding if dilutive potential common shares had been issued.
For purposes of this calculation, common stock dividends, warrants and options to acquire common stock, would be considered common stock
equivalents in periods in which they have a dilutive effect and are excluded from this calculation in periods in which these are anti-dilutive
to the net loss per share.
Reclassifications
Certain
prior year amounts have been reclassified to conform to the current year presentation. Such reclassifications have had no effect on the
financial position of the Company.
Going
Concern
To
date, the Company has funded its operations primarily through public and private offerings of common stock, our line of credit, short-
term discounted and convertible notes payable. The Company has identified several potential financing sources in order to raise the capital
necessary to fund operations through June 2023.
In
addition to the aforementioned current sources of capital that will provide additional short-term liquidity, the Company is currently
exploring various other alternatives including debt and equity financing vehicles, strategic partnerships, government programs that may
be available to the Company, as well as trying to generate additional sales and increase margins. However, at this time the Company has
no commitments to obtain any additional funds, and there can be no assurance such funds will be available on acceptable terms or at all.
If the Company is unable to obtain additional funding and improve its operations, the Company’s financial condition and results
of operations may be materially adversely affected and the Company may not be able to continue operations, which raises substantial doubt
about its ability to continue as a going concern. Additionally, even if the Company raises sufficient capital through additional equity
or debt financing, strategic alternatives or otherwise, there can be no assurances that the revenue or capital infusion will be sufficient
to enable it to develop its business to a level where it will be profitable or generate positive cash flow. If the Company raises additional
funds through the issuance of equity or convertible debt securities, the percentage ownership of our stockholders could be significantly
diluted, and these newly issued securities may have rights, preferences or privileges senior to those of existing stockholders. If the
Company incurs additional debt, a substantial portion of its operating cash flow may be dedicated to the payment of principal and interest
on such indebtedness, thus limiting funds available for business activities. The terms of any debt securities issued could also impose
significant restrictions on the Company’s operations. Broad market and industry factors may seriously harm the market price of
our common stock, regardless of our operating performance, and may adversely impact our ability to raise additional funds. Similarly,
if the Company’s common stock is delisted from the public exchange markets, it may limit its ability to raise additional funds.
The
consolidated financial statements for the nine months ended September 30, 2023 and were prepared on the basis of a going concern which
contemplates that the Company will be able to realize assets and discharge liabilities in the normal course of business. Accordingly,
they do not give effect to adjustments that would be necessary should the Company be required to liquidate its assets. The ability of
the Company to meet its total liabilities and to continue as a going concern is dependent upon the availability of future funding, continued
growth in billings and sales contracts, and the Company’s ability to profitably meet its after-sale service commitments with its
existing customers. The financial statements do not include any adjustments that might result from the outcome of these uncertainties.
In
addition, at this time we cannot predict the impact of COVID-19 on our ability to obtain financing necessary for the Company to fund
its working capital requirements. Also, it may hamper our efforts to comply with our filing obligations with the Securities and Exchange
Commission.
NOTE
2. OTHER CURRENT ASSETS
At
September 30, 2023 and December 31, 2022, Other Current Assets were $45,831 and $42,336 respectively. Current Assets primarily comprised
of Debt Fees and Debt Discounts related to Debt and Debt like instruments.
NOTE
3. STOCKHOLDERS’ EQUITY
In
January 2023, the Company issued a total of 29,280,923 shares of common stock related to a convertible note conversions.
In
February 2023, the Company issued a total of 30,576,923 shares of common stock related to a convertible note conversions.
In
March 2023, the Company issued a total of 31,730,769 shares of common stock related to a convertible note conversions.
In
April 2023, the Company issued a total of 33,473,076 shares of common stock related to convertible notes.
In
May 2023, the Company issued a total of 109,471,307 shares of common stock related to convertible notes.
In
June 2023, the Company issued a total of 411,866,153 shares of common stock related to convertible notes.
In
July 2023, the Company issued a total of 191,823,332 shares of common stock related to convertible notes.
In
August 2023, the Company issued a total of 317,275,794 shares of common stock related to convertible notes.
In
September 2023, the Company issued a total of 89,546,307 shares of common stock related to convertible notes.
NOTE
4. NOTES PAYABLE
On
April 26, 2018, the Company entered into two Securities Purchase Agreements, pursuant to which the Company issued Convertible Promissory
Notes (“the Notes”) with principal amounts totalling up to $1,000,000, bearing interest at 10% per annum. The total amounts
of the Notes that can be funded (consideration that can be loaned to the Company) is up to $887,500, after discounts of $112,500 prorated
over the term of the Notes. Amounts borrowed by the Company mature in twelve months after the date of funding and can be prepaid up to
six months after issuance subject to prepayment penalties and approval by the Note holders. Any amounts outstanding on the Notes can
be converted into Common Stock at a conversion price of $2.50 per share for the first six months and at a discount of up to 50% thereafter
to the then current market value of the Company’s stock commencing six months after issuance. Conversion is at the sole discretion
of the holders of the Notes. In May 2018, the Company borrowed $200,000 under the Notes, and received $175,000 after giving effect to
discounts of 10% for each note and origination fees. The Company incurred a total of $5,000 related to origination fees on the Notes.
Additionally, the Company issued 50,000 warrant shares for debt issuance costs at an exercise price of $4.00 per share. The warrants
are exercisable for five years and had a fair market value of $31,852 on the date of issuance. The Notes bear interest at 10% per annum.
On April 26, 2018, the Company entered into a convertible note payable for $146,681 bearing interest at 10% per annum.
On
April 26, 2018, the Company entered into two Securities Purchase Agreements, pursuant to which the Company issued Convertible Promissory
Notes (“the Notes”) with principal amounts totaling up to $1,000,000, bearing interest at 10% per annum. The total amounts
of the Notes that can be funded (consideration that can be loaned to the Company) is up to $887,500, after discounts of $112,500 prorated
over the term of the Notes. Amounts borrowed by the Company mature in twelve months after the date of funding and can be prepaid up to
six months after issuance subject to prepayment penalties and approval by the Note holders. Any amounts outstanding on the Notes can
be converted into Common Stock at a conversion price of $2.50 per share for the first six months and at a discount of up to 50% thereafter
to the then current market value of the Company’s stock commencing six months after issuance. Conversion is at the sole discretion
of the holders of the Notes. In May 2018, the Company borrowed $200,000 under the Notes, and received $175,000 after giving effect to
discounts of 10% for each note and origination fees. The Company incurred a total of $5,000 related to origination fees on the Notes.
Additionally, the Company issued 50,000 warrant shares for debt issuance costs at an exercise price of $4.00 per share. The warrants
are exercisable for five years and had a fair market value of $31,852 on the date of issuance. The Notes bear interest at 10% per annum.
On April 26, 2018, the Company entered into a convertible note payable for $146,681 bearing interest at 10% per annum. All principal
and interest is due on April 26, 2019.
On
April 26, 2018, the Company entered into a convertible note payable for $146,681 bearing interest at 10% per annum. All principal and
interest is due on April 26, 2019. On August 1, 2018, the Company entered into a convertible note payable for $226,000 bearing interest
at 12% per annum. All principal and interest is due on January 27, 2019.
On
August 8, 2018, the Company entered into a convertible note payable for $85,000 bearing interest at 10% per annum. All principal and
interest is due on August 8, 2019. On August 14, 2018, the Company entered into a convertible note payable for $250,000 bearing interest
at 10% per annum. All principal and interest is due on May 6, 2019. On August 24, 2018, the Company entered into a convertible note payable
for $85,000 bearing interest at 10% per annum. All principal and interest is due on August 24, 2019. On August 29, 2018, the Company
entered into a convertible note payable for $112,750 bearing interest at 10% per annum. All principal and interest is due on August 29,
2019. On January 18 2019, the Company entered into a convertible note payable for $226,000 bearing interest at 12% per annum. All principal
and interest is due on July 18, 2019. On February 15, 2019, the Company entered into a convertible note payable for $43,000 bearing interest
at 10% per annum. All principal and interest is due on February 15, 2020. On April 16, 2019, the Company entered into a convertible note
payable for $38,000 bearing interest at 10% per annum. All principal and interest is due on April 16, 2020. On March 25, 2019, the Company
entered into a convertible note payable for $50,000 bearing interest at 12% per annum. All principal and interest is due on March 25,
2020. On September 27, 2019, the Company entered into a convertible note payable for $45,000 bearing interest at 10% per annum. All principal
and interest is due on March 27, 2020. On October 12, 2019, the Company entered into a convertible note payable for $100,000 bearing
interest at 10% per annum. All principal and interest is due on October 12, 2020. On February 8, 2021, the Company entered into a convertible
note payable for $53,500 bearing interest at 10% per annum. All principal and interest is due on February 8, 2022. On March 19, 2021,
the Company entered into a convertible note payable for $38,500 bearing interest at 10% per annum. All principal and interest is due
on March 19, 2022. On April 20, 2021, the Company entered into a convertible note payable for $43,750 bearing interest at 10% per annum.
All principal and interest is due on April 20, 2022. On June 9, 2021, the Company entered into a convertible note payable for $43,750
bearing interest at 10% per annum. All principal and interest is due on June 9, 2022. On June 9, 2021, the Company entered into a convertible
note payable for $88,000 bearing interest at 12% per annum. All principal and interest is due on June 9, 2022. On June 25, 2021, the
Company entered into a convertible note payable for $110,000 bearing interest at 12% per annum. All principal and interest is due on
June 25, 2022. On August 6, 2021, the Company entered into a convertible note payable for $110,000 bearing interest at 8% per annum.
All principal and interest is due on August 6, 2022. On August 9, 2021, the Company entered into a convertible note payable for $333,333.33
bearing interest at 12% per annum. All principal and interest is due on August 9, 2022. On August 10, 2021, the Company entered into
a convertible note payable for $200,000.00 bearing interest at 12% per annum. All principal and interest is due on August 10, 2022. On
August 20, 2021, the Company entered into a convertible note payable for $100,000.00 bearing interest at 12% per annum. All principal
and interest is due on August 20, 2022. On September 1, 2021, the Company entered into a convertible note payable for $27,500 bearing
interest at 8% per annum. All principal and interest is due on September 1, 2022. On September 1, 2021, the Company entered into a convertible
note payable for $55,000 bearing interest at 8% per annum. All principal and interest is due on September 1, 2022. On September 2, 2021,
the Company entered into a convertible note payable for $155,000 bearing interest at 12% per annum. All principal and interest is due
on September 2, 2022. On September 9, 2021, the Company entered into a convertible note payable for $11,000 bearing interest at 8% per
annum. All principal and interest is due on September 9, 2022.
NOTE
5. ACCOUNTS RECEIVABLE AND CONCENTRATION OF CREDIT RISK
As
of September 30, 2023, the company had $479,533 outstanding accounts receivable balance with its customers. As of December 31, 2022,
the company had $345,639 outstanding accounts receivable balance with its customers.
NOTE
6. PROPERTY AND EQUIPMENT
The
Company did not own significantly material fixed assets as of September 30, 2023
NOTE
7. RELATED PARTY TRANSACTIONS
Policy
on Related Party Transactions
The
Company has a formal, written policy that includes procedures intended to ensure compliance with the related party provisions in common
practice for public companies. For purposes of the policy, a “related party transaction” is a transaction in which the Company
participates and in which a related party (including all of GEX’s directors and executive officers) has a direct or indirect material
interest. Any transaction exceeding the 1% threshold, and any transaction involving consulting, financial advisory, legal or accounting
services that could impair a director’s independence, must be approved by the Board of Directors. Any related party transaction
in which an executive officer or a Director has a personal interest, must be approved by the Board of Directors, following appropriate
disclosure of all material aspects of the transaction.
Related
Party Transactions
The
Company did not have any related party transactions during this reporting period.
Revenues
For
the three months ended September 30, 2023 and 2022, the Company had no revenues from related parties.
NOTE
8: COMMITMENTS AND CONTINGENCIES
The
Company did not have any material contingent obligations during this reporting period.
NOTE
9. ACQUISITIONS AND DIVESTITURES
The
Company has not been involved in any material acquisition or divestiture activity during the reporting period.
ITEM
2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations
You
should read the following discussion of our financial condition and results of operations in conjunction with our financial statements
and the related notes included elsewhere in this report and in our Annual Report on Form 10-K for the year ended December 31, 2022.
Forward-Looking
Statements
This
report contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities
Exchange Act of 1934, as amended, or the Exchange Act. Forward-looking statements are often identified by the use of words such as, but
not limited to, “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,”
“expect,” “intend,” “may,” “plan,” “project,” “seek,” “should,”
“strategy,” “target,” “will,” “would” and similar expressions or variations intended
to identify forward- looking statements. These statements are not guarantees of future performance, but are based on management’s
expectations as of the date of this report and assumptions that are inherently subject to uncertainties, risks and changes in circumstances
that are difficult to predict. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause
actual results, performance or achievements to be materially different from any future results, performance or achievements. All information
provided in this report is as of the date of this report and the Company undertakes no duty to update this information except as required
by law.
General
GEX
Management, Inc., a Texas corporation (the “Company,” “GEX,” “we,” “our,” “us,”
and words of similar import) is a Staffing and Professional Services Company that provides services and general business consulting to
companies for a variety of their staffing needs. We generate substantially all of our revenue from the staffing and other professional
services we offer. These professional services, in addition to staffing, include: Strategy and technology consulting, accounting and
bookkeeping, human resources and business consultation and optimization.
Results
of Operations
The
three months ended September 30, 2023 compared to the three months ended September 30, 2022 Revenue
Our
revenue for the three months ended September 30, 2023 was $600,643 compared to $641,923 for the three months ended September 30, 2022.
Operating
Expense
Total
operating expenses for the three months ended September 30, 2023 was $120,620 compared to the operating cost for the three months ended
September 30, 2022 of $308,515. This decrease in operating expenses was primarily due to operational efficiencies and expense reductions
attributable by management initiatives.
Liquidity
and Capital Resources
The
Company has identified several potential financing sources in order to raise the capital necessary to fund operations through April 30,
2024. Management has made concerted efforts to move away from expensive debt like obligations and rely on other traditional and non-
traditional debt instruments primarily in the form of convertible notes as well as explore various other alternatives including debt
and equity financing vehicles, strategic partnerships, government programs that may be available to the Company, as well as trying to
generate additional sales and increase margins. However, at this time the Company has no commitments to obtain any additional funds,
and there can be no assurance such funds will be available on acceptable terms or at all. If the Company is unable to obtain additional
funding, the Company’s financial condition and results of operations may be materially adversely affected and the Company may not
be able to continue operations.
Additionally,
even if the Company raises sufficient capital through additional equity or debt financing, strategic alternatives or otherwise, there
can be no assurances that the revenue or capital infusion will be sufficient to enable it to develop its business to a level where it
will be profitable or generate positive cash flow. If the Company incurs additional debt, a substantial portion of its operating cash
flow may be dedicated to the payment of principal and interest on such indebtedness, thus limiting funds available for business activities.
The terms of any debt securities issued could also impose significant restrictions on the Company’s operations. Broad market and
industry factors may seriously harm the market price of our common stock, regardless of our operating performance, and may adversely
impact our ability to raise additional funds. Similarly, if the Company’s common stock is delisted from the public exchange markets,
it may limit its ability to raise additional funds.
In
addition, at this time we cannot predict the impact of COVID-19 on our ability to obtain financing necessary for the Company to fund
its working capital requirements.
Off-Balance
Sheet Arrangements
We
have not entered into any off-balance sheet financing arrangements and have not formed any special purpose entities. We have not guaranteed
any debt or commitments of other entities or entered into any options on non-financial assets.
Contractual
Obligations
We
are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information under this
item.
ITEM
3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We
are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information under this
item.
ITEM
4. CONTROLS AND PROCEDURES
Evaluation
of Disclosure Controls and Procedures
Management
is responsible for establishing and maintaining adequate disclosure controls and procedures as defined in Rules 13a-15 (e) or 15d-15(e)
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Our disclosure controls and procedures are designed
to ensure that information required to be disclosed in reports filed under the Exchange Act, is recorded, processed, summarized and reported
within the time periods specified in the rules and forms of the Securities and Exchange Commission, and that such information is accumulated
and communicated to management, including our Interim Chief Executive Officer / Interim Chief Financial Officer, as appropriate, to allow
timely decisions regarding required disclosure and to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles. Our management,
under the supervision and with the participation of our Chief Executive Officer / Chief Financial Officer, evaluated the effectiveness
of the design and operation of our disclosure controls and procedures as of the end of the period covered by this quarterly report on
Form 10-Q. Based upon this assessment, we determined that as of the end of period covered by this quarterly report on Form 10-Q our disclosure
controls and procedures were effective.
Changes
in Internal Control over Financial Reporting
There
has been no changes in our internal control procedures over financial reporting identified in connection with the evaluation we conducted
of the effectiveness of our internal control over financial reporting as of September 30, 2022, that occurred during our first quarter
that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
PART
II – OTHER INFORMATION
ITEM
1. LEGAL PROCEEDINGS
It
is possible that from time to time in the ordinary course of business we may be or we may have been involved in legal proceedings, lawsuits
or investigations, which could potentially have an adverse impact on our reputation, business and financial condition and divert the
attention of our management from the operation of our business. In the opinion of our Board of Directors, any such legal proceedings
or lawsuits that we have been involved with in the past or may be involved with are not expected to have a material adverse effect on
our financial situation or results of operations.
ITEM
1A. RISK FACTORS
We
are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information under this
item.
ITEM
2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
Not
applicable
ITEM
3. DEFAULTS UPON SENIOR SECURITIES
Not
applicable
ITEM
4. MINE SAFETY DISCLOSURES
Not
applicable.
ITEM
5. OTHER INFORMATION
None
ITEM
6. EXHIBITS
In
reviewing the agreements included as exhibits to this Quarterly Report, please remember that they are included to provide you with information
regarding their terms and are not intended to provide any other factual or disclosure information about the Company or the other parties
to the agreements. The agreements may contain representations and warranties by each of the parties to the applicable agreement. These
representations and warranties have been made solely for the benefit of the parties to the applicable agreement and:
| ● |
should
not in all instances be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties
if those statements prove to be inaccurate; |
| ● |
have
been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement, which
disclosures are not necessarily reflected in the agreement; |
| ● |
may
apply standards of materiality in a way that is different from what may be viewed as material to you or other investors; and |
| ● |
were
made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement and are subject
to more recent developments. |
Accordingly,
these representations and warranties may not describe the actual state of affairs as of the date they were made or at any other time.
Additional information about the Company may be found elsewhere in this Form 10-Q and the Company’s other public filings, which
are available without charge through the SEC’s website at http://www.sec.gov.
The
following exhibits are included as part of this report:
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
| |
GEX
MANAGEMENT, INC. |
| |
|
| Dated:
November 01, 2023 |
By: |
/s/
Sri Vanamali |
| |
Name: |
Sri
Vanamali |
| |
Title: |
Chief
Executive Officer |
EXHIBIT 31.1/31.2
CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF
FINANCIAL OFFICER
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT
AND RULE 13A-14(A)
OR 15D-14(A) UNDER THE SECURITIES EXCHANGE ACT OF
1934
I, Sri Vanamali, certify that:
| 1. |
I have reviewed this quarterly report on Form 10-Q of GEX Management, Inc. |
| |
|
| 2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
| |
|
| 3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
| |
|
| 4. |
I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
| |
|
| |
(a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared; |
| |
|
|
| |
(b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
| |
|
|
| |
(c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
| |
|
|
| |
(d) |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
| |
|
|
| 5. |
I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
| |
|
| |
(a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
| |
|
|
| |
(b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
| Date: November 01, 2023 |
/s/ Sri Vanamali |
| |
Sri Vanamali |
| |
Chief Executive Officer |
EXHIBIT 32.1/32.2
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report on Form 10-Q
of GEX Management, Inc. (the “Company”), for the quarter ended September 30, 2023, as filed with the Securities and Exchange
Commission on the date hereof (the “Report”), I, Sri Vanamali, Chief Executive Officer of the Company, certify, pursuant to
18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
| |
(1) |
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
| |
|
|
| |
(2) |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
A signed original of this written statement required
by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission
or its staff upon request.
| Date: November 01, 2023 |
By: |
/s/ Sri Vanamali |
| |
Name: |
Sri Vanamali |
| |
Title: |
Chief Executive Officer |
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