PALTALK INC
For the period ended Jun 30, 2024. Filed Aug 13, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 13, 2024
IPM$1.62-3.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-09.
0001213900-24-041028
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-13.
0001213900-24-068283
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 83 previous paragraphs and 111 current paragraphs.
56 unchanged; 25 reworded; 25 added; 2 removed; 0 previous and 5 current paragraphs rearranged.
Tables are not compared: 17 previous and 19 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (25)
Current report
NTS Acquisition Agreement
Current report
On August 11, 2024, we entered into an Agreement and Plan of Merger (the “Merger Agreement”), by and among us, PALT Merger Sub 1, Inc., our direct and wholly owned subsidiary (“First Merger Sub”), PALT Merger Sub 2, LLC, our direct and wholly owned (“Second Merger Sub”), Newtek Technology Solutions, Inc. (“NTS”), and NewtekOne, Inc., the sole stockholder of NTS (“Newtek”), to acquire NTS through a two-step merger process. Pursuant to the Merger Agreement, following the receipt of approval by our stockholders: (i) NTS will merge with and into First Merger Sub, with NTS continuing as the surviving entity (the “Interim Surviving Entity” and such merger, the “First Step Merger”), and (ii) immediately following the consummation of the First Step Merger, the Interim Surviving Entity will merge with and into Second Merger Sub, with Second Merger Sub continuing as the surviving entity (the “Second Step Merger” and, together with the First Step Merger, the “Mergers”).
Current report
Pursuant to the Merger Agreement, as consideration for the Mergers, we agreed to (i) pay Newtek an amount in cash equal to $4,000,000, which is subject to customary purchase price adjustments as set forth in the Merger Agreement, including a working capital adjustment (the “Closing Cash Consideration”) and (ii) issue Newtek 4,000,000 shares (the “Closing Stock Consideration” and together with the Closing Cash Consideration, the “Closing Consideration”) of a newly created series of preferred stock, the Series A Non-Voting Common Equivalent Stock of the Company, par value $0.001 per share (the “Preferred Stock”). In addition to the Closing Consideration, the Merger Agreement provides that Newtek is entitled to receive an amount up to $5,000,000 (the “Earn-Out Amount”) based on our achievement certain cumulative average Adjusted EBITDA thresholds for the 2025 and 2026 fiscal years. The Earn-Out Amount may be paid, in our sole discretion, in cash (the “Earn-Out Cash Consideration”), in shares of Preferred Stock (the “Earn-Out Stock Consideration”) or in a combination thereof. The issuance of the Closing Stock Consideration, the Earn-Out Stock Consideration (if any) and the shares of common stock issuable upon conversion of the Preferred Stock is referred to herein as the “Parent Stock Issuance”.
Current report
Pursuant to the Merger Agreement, if the issuance of the Closing Stock Consideration or the Earn-Out Stock Consideration would cause Newtek’s “total equity” (as calculated under the Bank Holding Company Act of 1956, as amended, and as implemented and interpreted by the Board of Governors of the Federal Reserve System (the “Federal Reserve”)) in the Company to exceed 33.33% (the “Total Equity Cap”), then the number of shares of Preferred Stock issuable as Closing Stock Consideration and/or Earn-Out Stock Consideration, as applicable, will be adjusted so that we will issue Newtek the maximum number of shares of Preferred Stock that would not cause Newtek’s total equity to exceed the Total Equity Cap, with a corresponding increase to the Closing Cash Consideration and the Earn-Out Cash Consideration, as applicable. Following the consummation of the Mergers and the issuance of the Closing Stock Consideration, Newtek would beneficially own approximately 30.3% of our issued and outstanding Common Stock on an as-converted and fully-diluted basis, calculated based on our outstanding shares of common stock as of August 9, 2024.
Current report
As a condition to the closing of the Mergers and the transactions contemplated by the Merger Agreement, the Merger Agreement provides that we must effectuate the sale of our Paltalk, Camfrog, and Tinychat applications and all assets and liabilities related to such applications (the “Divestiture Transaction”). Following the Divestiture Transaction, we will retain (i) all patents, patent applications, and any rights or causes of action related to such applications, and (ii) any assets (including intellectual property) that are not exclusively related to such applications.
Current report
In addition, the closing of the Mergers is subject to the satisfaction of various customary closing conditions, including, among others, approval of the Parent Stock Issuance and the Divestiture Transaction by our stockholders. The Merger Agreement contains certain termination rights for both us and Newtek, on behalf of itself and NTS, including, among other things, if the closing has not occurred prior to February 9, 2025. In the event the Merger Agreement is terminated, neither party thereto will owe a termination fee or otherwise incur a liability to any other party under or relating to the Merger Agreement.
Current report
Pursuant to the Merger Agreement, promptly following closing, the Company will cause one representative nominated by Newtek to be appointed to the Board.
Current report
Total revenue decreased by 24.7% to $2,224,625 for the three months ended June 30, 2024 from $2,956,002 for the three months ended June 30, 2023. This decrease was primarily driven by a decrease in virtual gift revenue.
Current report
Our subscription revenue for the three months ended June 30, 2024 decreased by $752,089, or 26.1%, as compared to the three months ended June 30, 2023. The decrease in subscription revenue was primarily driven by a decrease in virtual gift revenue. We expect that virtual gift revenue may continue to decline as customers limit their discretionary spending in light of the current economic environment.
Current report
As of June 30, 2024, our conclusion regarding the realizability of our US deferred tax assets did not change and we have recorded a full valuation allowance against them.
Current report
Six Months Ended June 30, 2024 Compared to Six Months Ended June, 2023
Current report
Revenue
Current report
Total revenue decreased by 12.6% to $4,822,355 for the six months ended June 30, 2024 from $5,520,019 for the six months ended June 30, 2023. This decrease was primarily driven by a decrease in virtual gift revenue in the three months ended June 30, 2024.
Current report
Costs and Expenses
Current report
Cost of revenue
Current report
Sales and marketing expense
Current report
Our sales and marketing expense for the six months ended June 30, 2024 decreased by $92,269, or 19.4%, as compared to the six months ended June 30, 2023. The decrease in sales and marketing expense for the six months ended June 30, 2024 was primarily due to a decrease in salary-related expenses ($114,375) and partially offset by an increase of marketing user acquisition expenses, including agent fees and marketing and branding expense ($20,869).
Current report
Product development expense
Current report
Our product development expense for the six months ended June 30, 2024 increased by $11,699, or 0.5%, as compared to the six months ended June 30, 2023. The increase was primarily due to an increase in dues and subscriptions of $39,010 and salary-related expenses of $29,093, slightly offset by decreased software expense cost of $60,723.
Current report
General and administrative expense
Current report
Our general and administrative expense for the six months ended June 30, 2024 increased by $79,375, or 3.5%, as compared to the six months ended June 30, 2023. The increase in general and administrative expense for the six months ended June 30, 2024 was due to an increase of approximately $278,078 in professional and tax fees in connection with the Mergers and the transactions related thereto, which are expected to close in fourth quarter of 2024 or the first quarter of 2025. We expect that our general and administrative expense will continue to increase in future periods in connection with the Mergers. These expenses were offset by decreases in public company expenses of $94,928 and franchise taxes of $117,000.
Current report
Non-Operating Income
Current report
Non-operating income for the six months ended June 30, 2024 was $442,484, a decrease of $193,069, or 30.4%, as compared to non-operating income of $635,553 for the six months ended June 30, 2023. The decrease in non-operating income was primarily the result of recording the ERTC in June 2023.
Current report
Income Taxes
Current report
As of June 30, 2024, our conclusion regarding the realizability of our US deferred tax assets did not change and we have recorded a full valuation allowance against them.
Removed paragraphs (2)
Previous report
Subscription Revenue
Previous report
Advertising Revenue
Reworded paragraphs (25)
Previous wording
This Management’s Discussion and Analysis of Financial Condition and Results of Operations is intended to provide a reader of our financial statements with a narrative from the perspective of our management on our financial condition, results of operations, liquidity and certain other factors that may affect our future results. The following discussion and analysis should be read in conjunction with: (i) the accompanying unaudited condensed consolidated financial statements and notes thereto for the three months ended March 31, 2024 and 2023, (ii) the consolidated financial statements and notes thereto for the year ended December 31, 2023 included in our Annual Report on Form 10-K (the “Form 10-K”) filed with the Securities and Exchange Commission (the “SEC”) on March 15, 2024 and (iii) the discussion under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Form 10-K. Aside from certain information as of December 31, 2023, all amounts herein are unaudited.
Current wording
This Management’s Discussion and Analysis of Financial Condition and Results of Operations is intended to provide a reader of our financial statements with a narrative from the perspective of our management on our financial condition, results of operations, liquidity and certain other factors that may affect our future results. The following discussion and analysis should be read in conjunction with: (i) the accompanying unaudited condensed consolidated financial statements and notes thereto for the three and six months ended June 30, 2024 and 2023, (ii) the consolidated financial statements and notes thereto for the year ended December 31, 2023 included in our Annual Report on Form 10-K (the “Form 10-K”) filed with the Securities and Exchange Commission (the “SEC”) on March 15, 2024 and (iii) the discussion under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Form 10-K. Aside from certain information as of December 31, 2023, all amounts herein are unaudited.
Previous wording
Under the provisions of the extension of the Coronavirus Aid, Relief, and Economic Security Act, we were eligible for a refundable employee retention tax credit (the “ERTC”) subject to certain criteria. During the year ended December 31, 2023, we applied for the ERTC and recorded a receivable in the amount of $343,045, net of related costs, which was recognized in our condensed consolidated statement of operations as other income. As of March 31, 2024, we received an aggregate of $294,833, which was recorded as a reduction of the receivable on our condensed consolidated balance sheet.
Current wording
Under the provisions of the extension of the Coronavirus Aid, Relief, and Economic Security Act, we were eligible for a refundable employee retention tax credit (the “ERTC”) subject to certain criteria. During the year ended December 31, 2023, we applied for the ERTC and recorded a receivable in the amount of $343,045, net of related costs, which was recognized in our condensed consolidated statement of operations as other income. As of June 30, 2024, we received an aggregate of $294,833 or $228,833 net of related costs which was recorded as a reduction of the receivable on our condensed consolidated balance sheet.
Previous wording
During the three months ended March 31, 2024, we executed key components of our objectives:
Current wording
During the three and six months ended June 30, 2024, we executed key components of our objectives:
Previous wording
Our main sources of revenue are subscription revenue, which includes virtual gift revenue, and advertising revenue generated from users of our core video chat products, Paltalk and Camfrog. We also generate revenue from subscriptions for our ManyCam software product. We expect that the majority of our revenue in future periods will continue to be generated from our core video chat products.
Current wording
Our main sources of revenue are subscription revenue, which includes virtual gift revenue, and advertising revenue generated from users of our core video chat products, Paltalk and Camfrog. We also generate revenue from subscriptions for our ManyCam software product.
Previous wording
Adjusted EBITDA is a non-GAAP financial measure. Adjusted EBITDA is defined as net loss adjusted to exclude interest (income) expense, net, other (income) expense, net, income tax (benefit) expense, depreciation and amortization expense, and stock-based compensation expense.
Current wording
Adjusted EBITDA is a non-GAAP financial measure. Adjusted EBITDA is defined as net income (loss) adjusted to exclude interest (income) expense, net, other (income) expense, net, income tax (benefit) expense, depreciation and amortization expense, and stock-based compensation expense.
Previous wording
Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider this performance measure in isolation from or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are that Adjusted EBITDA does not reflect, among other things: cash capital expenditures for assets underlying depreciation and amortization expense that may need to be replaced or for new capital expenditures; net loss from discontinued operations; interest income, net; other expense, net; income tax expense (benefit) from continuing operations; our working capital requirements; the potentially dilutive impact of stock-based compensation; and the provision for income taxes. Other companies, including companies in our industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure.
Current wording
Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider this performance measure in isolation from or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are that Adjusted EBITDA does not reflect, among other things: cash capital expenditures for assets underlying depreciation and amortization expense that may need to be replaced or for new capital expenditures; interest income, net; other expense, net; income tax expense (benefit) from continuing operations; our working capital requirements; the potentially dilutive impact of stock-based compensation; and the provision for income taxes. Other companies, including companies in our industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure.
Previous wording
Because of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, including various cash flow metrics, net loss and our other GAAP results. The following table presents a reconciliation of net income, the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted EBITDA for each of the periods indicated:
Current wording
Because of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, including various cash flow metrics, net income (loss) and our other GAAP results. The following table presents a reconciliation of net income, the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted EBITDA for each of the periods indicated:
Previous wording
The following table sets forth our subscription revenue, advertising revenue and total revenue for the three months ended March 31, 2024 and the three months ended March 31, 2023, the increase (decrease) between those periods, the percentage increase (decrease) between those periods, and the percentage of total revenue that each represented for those periods:
Current wording
The following table sets forth our subscription revenue, advertising revenue and total revenue for the three months ended June 30, 2024 and the three months ended June 30, 2023, the increase or decrease between those periods, the percentage increase or decrease between those periods, and the percentage of total revenue that each represented for those periods:
Previous wording
Our advertising revenue for the three months ended March 31, 2024 increased by $56,401, or 96.7%, as compared to the three months ended March 31, 2023. The increase in advertising revenue was primarily due to an increase in the volume of advertising impressions related to changes in the optimization of third-party advertising partners.
Current wording
Our advertising revenue for the three months ended June 30, 2024 increased by $20,712, or 29.2%, as compared to the three months ended June 30, 2023. The increase in advertising revenue was primarily due to an increase in the volume of advertising impressions related to changes in the optimization of third-party advertising partners.
Previous wording
Total costs and expenses for the three months ended March 31, 2024 decreased by $113,115, or 3.3%, as compared to the three months ended March 31, 2023. The following table presents our costs and expenses for the three months ended March 31, 2024 and 2023, the increase or decrease between those periods and the percentage increase or decrease between those periods and the percentage of total revenue that each represented for those periods:
Current wording
Total costs and expenses for the three months ended June 30, 2024 increased by $164,985, or 5.1%, as compared to the three months ended June 30, 2023. The following table presents our costs and expenses for the three months ended June 30, 2024 and 2023, the increase or decrease between those periods, the percentage increase or decrease between those periods and the percentage of total revenue that each represented for those periods:
Previous wording
Our cost of revenue for the three months ended March 31, 2024 increased by $16,600, or 2.1%, as compared to the three months ended March 31, 2023. This increase is primarily due to an increase in hosting expense due to increased usage and per unit cost from web hosting providers and slightly offset by consulting fees.
Current wording
Our cost of revenue for the three months ended June 30, 2024 increased by $36,465, or 4.7%, as compared to the three months ended June 30, 2023. This increase in cost of revenue is primarily due to an increase in hosting expense due to increased usage and per unit cost from web hosting providers of $20,375, an increase in ManyCam consulting fees of $9,852 and increased credit card provider fees of $6,972.
Previous wording
Our sales and marketing expense for the three months ended March 31, 2024 decreased by $64,274, or 25.2%, as compared to the three months ended March 31, 2023. The decrease in sales and marketing expense for the three months ended March 31, 2024 was primarily due to a decrease in salary-related expenses of approximately $59,361.
Current wording
Our sales and marketing expense for the three months ended June 30, 2024 decreased by $27,995, or 12.7%, as compared to the three months ended June 30, 2023. The decrease in sales and marketing expense for the three months ended June 30, 2024 was primarily due to a decrease in salary-related expenses of approximately $55,653, partially offset by increased in marketing-related expenses of $28,670.
Previous wording
Our product development expense for the three months ended March 31, 2024 decreased by $36,881, or 3.0%, as compared to the three months ended March 31, 2023. The decrease was primarily due to a decrease in software expenses of $79,522. We accomplished this reduction by streamlining our offshore development efforts as well as reallocating in-house resources. This decrease was offset slightly by increased dues and subscriptions expenses of $28,602 and salary-related expenses of $11,774.
Current wording
Our product development expense for the three months ended June 30, 2024 increased by $48,580, or 4.2%, as compared to the three months ended June 30, 2023. The increase in product development expense was primarily due to an increase in software expenses of $18,799. There was also an increase in salary-related expenses of $17,401 and dues and subscriptions expenses of $10,408.
Previous wording
Our general and administrative expense for the three months ended March 31, 2024 decreased by $28,560, or 2.4%, as compared to the three months ended March 31, 2023. The decrease in general and administrative expense for the three months ended March 31, 2024 was primarily due to a decrease in professional and tax fees.
Current wording
Our general and administrative expense for the three months ended June 30, 2024 increased by $107,935 or 10.0%, as compared to the three months ended June 30, 2023. The increase in general and administrative expense for the three months ended June 30, 2024 was primarily due to an increase of approximately $249,828 in professional and tax fees. in connection with the Mergers and the transactions related thereto, which are expected to close in fourth quarter of 2024 or the first quarter of 2025. We expect that our general and administrative expense will continue to increase in future periods in connection with the Mergers. These expenses were offset by decreases in the following: public company expenses of $71,923, franchise taxes of $28,358 and stock-based compensation expense of $24,594.
Previous wording
The following table presents the components of non-operating income for the three months ended March 31, 2024 and the three months ended March 31, 2023, the increase between those periods and the percentage increase between those periods and the percentage of total revenue that each represented for those periods:
Current wording
The following table presents the components of non-operating income for the three months ended June 30, 2024 and the three months ended June 30 2023, the increase or decrease between those periods, the percentage increase or decrease between those periods and the percentage of total revenue that each represented for those periods:
Previous wording
Non-operating income for the three months ended March 30, 2024 was $151,984, an increase of $30,817, or 25.4%, as compared to non-operating income of $121,167 for the three months ended March 31, 2023. The increase was primarily a result of interest earned in a high yield bank account.
Current wording
Non-operating income for the three months ended June 30, 2024 was $290,500, a decrease of $223,886, or 43.5%, as compared to non-operating income of $514,386 for the three months ended June 30, 2023. The decrease in non-operating income was primarily a result of the ERTC refund recognized in June 2023.
Previous wording
Our provision for income taxes consists of federal, foreign, state and local taxes, as applicable, in amounts necessary to align our year-to-date tax provision with the effective rate that we expect to achieve for the full year. For the three months ended March 31, 2024 and March 31, 2023, we recorded an income tax benefit of $117,900 and income tax benefit of $49,554, respectively, consisting primarily of federal, foreign, state and local taxes.
Current wording
Our provision for income taxes consists of federal, foreign and state taxes, as applicable, in amounts necessary to align our year-to-date tax provision with the effective rate that we expect to achieve for the full year. For the three months ended June 30, 2024 and June 30, 2023, we recorded an income tax provision of $50,591 and $101,058, respectively, consisting primarily of federal, foreign, state and local taxes.
Previous wording
Our subscription revenue for the three months ended March 31, 2024 decreased by $22,688, or 0.9%, as compared to the three months ended March 31, 2023. The decrease in subscription revenue was primarily driven by a decrease in subscription revenue in Camfrog and Tinychat, offset slightly by increases in subscription revenue from ManyCam.
Current wording
Our subscription revenue for the six months ended June 30, 2024 decreased by $774,777 or 14.4%, as compared to the six months ended June 30, 2023. The decrease in subscription revenue was primarily driven by a decrease in virtual gifts across the Paltalk and Camfrog applications during the three months ended June 30, 2024.
Previous wording
Total revenue increased by 1.3% to $2,597,730 for the three months ended March 31, 2024 from $2,564,017 for the three months ended March 31, 2023. This increase was primarily driven by an increase in advertising revenue.
Current wording
Our cost of revenue for the six months ended June 30, 2024 increased by $53,065, or 3.4%, as compared to the six months ended June 30, 2023. This increase was primarily due to an increase in hosting expenses.
Previous wording
Currently, our primary source of liquidity is cash on hand, and we believe that our cash and cash equivalents balance and our expected cash flows from operations will be sufficient to meet all of our financial obligations for one year from the date these financial statements are issued. As of March 31, 2024, we had $13,047,255 of cash and cash equivalents.
Current wording
Currently, our primary source of liquidity is cash on hand, and we believe that our cash and cash equivalents balance and our expected cash flows from operations will be sufficient to meet all of our financial obligations for one year from the date these financial statements are issued. As of June 30, 2024, we had $12,796,004 of cash and cash equivalents.
Previous wording
Our primary use of working capital is related to product development resources in order to maintain and create new services and features in applications for our clients and users. In particular, a significant portion of our working capital has been allocated to the improvement of our products. In the future, we may seek to grow our business by expending our capital resources to fund strategic acquisitions, investments and partnership opportunities.
Current wording
Our primary use of working capital is related to product development resources in order to maintain and create new services and features in applications for our clients and users. In particular, a significant portion of our working capital has been allocated to the improvement of our products. We are also expending our capital resources to fund strategic acquisitions, investments and partnership opportunities. For instance, on August 11, 2024, we entered into the Merger Agreement to acquire NTS through a two-step merger process. Pursuant to the Merger Agreement, as consideration for the Mergers, we agreed to (i) pay Newtek an amount in cash equal to $4,000,000, which is subject to customary purchase price adjustments as set forth in the Merger Agreement, including a working capital adjustment and (ii) issue Newtek 4,000,000 shares of Preferred Stock (subject to adjustments related to the Total Equity Cap). In addition to the consideration payable at closing, the Merger Agreement provides that Newtek is entitled to receive an amount up to $5,000,000 based on our achievement certain cumulative average Adjusted EBITDA thresholds for the 2025 and 2026 fiscal years, which may be paid, in our sole discretion, in cash, in shares of Preferred Stock or in a combination thereof (subject to adjustments related to the Total Equity Cap).
Previous wording
Net cash used in operating activities was $520,794 for the three months ended March 31, 2024, as compared to net cash used in operating activities of $802,991 for the three months ended March 31, 2023. The improvement in the amount of cash used in operations for the three months ended March 31, 2024 was primarily attributed to a decrease in total operating expenses compared to the three months ended March 31, 2023.
Current wording
Net cash used in operating activities was $772,045 for the six months ended June 30, 2024, as compared to net cash used in operating activities of $996,778 for the six months ended June 30, 2023. The decrease in the amount of cash used in operations for the six months ended June 30, 2024 was primarily attributed to cash management of payables and prepaid expenses, as compared to the six months ended June 30, 2023.
Previous wording
There was no net cash provided by investing activities for the three months ended March 31, 2024 or the three months ended March 31, 2023.
Current wording
There was no net cash provided by or used in investing activities for the six months ended June 30, 2024. The net cash used in investing activities during the six months ended June 30, 2023 consisted of the earn-out payment made in connection with the ManyCam acquisition.
Previous wording
Net cash used in financing activities was $0 for the three months ended March 31, 2024, as compared to $7,213 of net cash used in financing activities for the three months ended March 31, 2023. This higher use of cash used in financing activities in 2023 is attributed to a stock repurchase plan that was approved by our Board of Directors in March 2022. The stock repurchase plan expired on March 29, 2023 pursuant to its terms and has not been renewed.
Current wording
There was no net cash provided by or used in financing activities for the six months ended June 30, 2024, as compared to $7,213 of net cash used in financing activities for the six months ended June 30, 2023. This higher use of cash used in financing activities during the six months ended June 30, 2023 is attributed to a stock repurchase plan that was approved by our Board of Directors in March 2022. The stock repurchase plan expired on March 29, 2023 pursuant to its terms and has not been renewed.
Previous wording
During the three months ended March 31, 2024, there were no critical accounting estimates made by management that would involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material effect impact on the financial statements condition or results of operations of the Company.
Current wording
During the six months ended June 30, 2024, there were no critical accounting estimates made by management that would involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material effect impact on the financial statements condition or results of operations of the Company.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
The following table sets forth our subscription revenue, advertising revenue and total revenue for the six months ended June 30, 2024 and the six months ended June 30, 2023, the increase or decrease between those periods, the percentage increase or decrease between those periods, and the percentage of total revenue that each represented for those periods:
Current report — wording carried from elsewhere
Our advertising revenue for the six months ended June 30, 2024 increased by $77,113 or 59.6%, as compared to the six months ended June 30, 2023. The increase in advertising revenue was primarily due to an increase in the volume of advertising impressions related to changes in the optimization of third-party advertising partners.
Current report — wording carried from elsewhere
Total costs and expenses for the six months ended June 30, 2024 increased by $51,870, or 0.8%, as compared to the six months ended June 30, 2023. The following table presents our costs and expenses for the six months ended June 30, 2024 and 2023, the increase or decrease between those periods, the percentage increase or decrease between those periods and the percentage of total revenue that each represented for those periods:
Current report — wording carried from elsewhere
The following table presents the components of non-operating income for the six months ended June 30, 2024 and the six months ended June 30, 2023, the increase or decrease between those periods, the percentage increase or decrease between those periods and the percentage of total revenue that each represented for those periods:
Current report — wording carried from elsewhere
Our provision for income taxes consists of federal and state taxes, as applicable, in amounts necessary to align our year-to-date tax provision with the effective rate that we expect to achieve for the full year. For the six months ended June 30, 2024 and 2023, we recorded an income tax benefit of $67,309 and an income tax provision $51,504, respectively, consisting primarily of federal, foreign, state and local taxes.