IZEA Worldwide Inc
For the period ended Sep 30, 2024. Filed Nov 14, 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.
Sep 30, 2024 · Filed Nov 14, 2024
IZEA$2.22+1.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-14.
0001495231-24-000157
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-14.
0001495231-24-000230
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 131 previous paragraphs and 139 current paragraphs.
99 unchanged; 24 reworded; 16 added; 8 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 8 previous and 8 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 (16)
Current report
On July 1, 2024, Hoozu acquired 26 Talent, a notable Australian talent management agency. 26 Talent is well-known for its exceptional representation of leading influencers and creators, providing comprehensive talent management and innovative marketing solutions. Post-acquisition, the agency will be integrated into Huume, Hoozu’s talent representation division.This acquisition strategically enhances Hoozu’s capabilities and extends its presence in the Asia-Pacific (APAC) region, consistent with IZEA’s global mergers and acquisitions strategy.
Current report
On September 6, 2024, the Company entered into separation agreements with Edward H. (Ted) Murphy, Chief Executive Officer and Chairman of the Board of Directors, and Ryan S. Schram, President, Chief Operating Officer, and Director. Under the terms of their respective Separation Agreements, both Mr. Murphy and Mr. Schram resigned their Director positions as of September 6, 2024, and their executive positions effective September 15, 2024, with neither resignation stemming from any disagreement with the Company's management or Board. Concurrently, the Board appointed Patrick J. Venetucci, a Director on the Board, as the new Chief Executive Officer. Mr. Venetucci will continue to serve in his Director capacity.
Current report
On September 6, 2024, the Company entered into a Cooperation Agreement with GP Cash Management, Ltd., GP Investments, Ltd., Rodrigo Boscolo, and Antonio Bonchristiano (collectively, the “GP Parties”). As part of the Cooperation Agreement, the Company’s Board of Directors has appointed Mr. Bonchristiano and Mr. Boscolo as directors, filling the vacancies created by the departures of Ted Murphy and Ryan Schram. One of the new directors will serve on the Compensation Committee and the other on the Nominations and Corporate Governance Committee.
Current report
The cost of revenue for the three months ended September 30, 2024 increased by $0.5 million, or approximately 11%, compared to the same period in 2023. The increase is primarily driven by higher costs associated with increased revenues from our recurring customer base this quarter.
Current report
General and administrative expense for the three months ended September 30, 2024 increased by $2.8 million, or approximately 93%, compared to the same period in 2023. General and administrative expense for the three months ended September 30, 2024. The increase in expenses during the quarter was primarily driven by higher human capital costs associated with accrued severance costs related to the departure of two company executives. These costs included accruals for severance payments, accelerated vesting of equity awards, and other severance-related benefits. Additionally, the company incurred increased professional fees related to the Cooperation Agreement and transition, as well as contractor expenses.
Current report
Impairment of Goodwill
Current report
In September 2024, we identified a triggering event related to the changes in executive management and Board level changes, including the Cooperation Agreement. We performed an interim assessment of goodwill using the income approach of the discounted cash flow method and the market approach of the guideline transaction method and determined that the carrying value of the Company’s IZEA reporting segment as of September 30, 2024, exceeded the fair value. As a result of the valuation, the Company recorded a $4.0 million impairment of goodwill related to our prior IZEA acquisitions in the three months ended September 30, 2024. The Company also performed a qualitative assessment of the carrying value of its Hoozu reporting unit, which did not indicate impairment as of September 30, 2024.
Current report
Results of Operations for the Nine Months Ended September 30, 2024 and 2023
Current report
Sales and marketing expense for the nine months ended September 30, 2024, increased by $1.2 million, or approximately 15%, compared to the same period in 2023. Advertising expenses increased compared to the previous year, driven by ongoing efforts to enhance customer acquisition, satisfaction, retention, and brand awareness.
Current report
General and administrative expense for the nine months ended September 30, 2024, increased by $3.4 million, or approximately 35%, compared to the same period in 2023. The rise in general and administrative expenses was largely attributed to accrued severance costs related to the departure of two company executives. These costs included accruals for severance payments, accelerated vesting of equity awards, and other severance-related benefits. Additionally, the company experienced increased spending on professional services related to advisory support for both the executive transition and acquisition initiatives.
Current report
Impairment of Goodwill
Current report
In September 2024, we identified a triggering event related to the changes in executive management and Board level changes, including the Cooperation Agreement. We performed an interim assessment of goodwill using the income approach of the discounted cash flow method and the market approach of the guideline transaction method and determined that the carrying value of the Company’s IZEA reporting segment as of September 30, 2024, exceeded the fair value. As a result of the valuation, the Company recorded a $4 million impairment of goodwill related to prior IZEA acquisitions in the nine months ended September 30, 2024. The Company also performed a qualitative assessment of the carrying value of its Hoozu reporting unit, which did not indicate impairment as of September 30, 2024.
Current report
Depreciation and amortization expense for the nine months ended September 30, 2024, increased by $95,545, or approximately 17%, compared to the same period in 2023.
Current report
The Company has a strong Balance Sheet, including $54.4 million in cash, short-term investments, and no debt. Our capital expenditures represent the cost of developing new features for our internal-use technology and licensed products. Operating cash flows reflect our continued investment in the growth of our product licensing and managed services businesses.
Current report
Our managed services revenue is down year-to-date, impacted by the loss of a significant customer in 2023 and slower overall growth. While bookings were strong in the first half of 2024, growing 46% compared to the same period in 2023, growth slowed to 11% in the third quarter, including contributions from Hoozu. Managed services revenue in the current quarter increased by 10%, through growth was flat when excluding Hoozu. Our net loss for the third quarter rose by $2.6 million compared to the third quarter of 2023, mainly due to accrued severance costs associated with the departure of our CEO and President in September 2024.
Current report
The Company has recorded operational losses to date. Alongside recent management and Board changes, we are conducting a comprehensive analysis of our business and exploring strategic alternatives. The Board of Directors established a Strategic and Capital Allocation Committee to, among other assignments, collaborate with management to review business strategies and formulate a plan to achieve sustainable and consistent profitability. This review is in process, with no final decisions reached as of November 14, 2024. While our core business remains solid, recent declines in managed service bookings have presented challenges. Collectively, these factors may adversely impact our future business performance, operational results, and financial position.
Removed paragraphs (8)
Previous report
In December 2023, IZEA acquired Zuberance, Inc. (“Zuberance”) and Hoozu Holdings Pty Ltd (“Hoozu), further enhancing its suite of software offerings. Zuberance offers specialized advocate marketing tools, enabling brands to cultivate communities of loyal customers and influencers. The addition of Zuberance’s advocacy marketing solutions enriches IZEA's suite of services, providing clients with tools to amplify brand affinity, generate influential reviews, and gather valuable customer feedback. Hoozu is a leading influencer marketing company in Australia, service a roster of the region’s most innovative brands. With a strategic focus on offering cost-effective, scalable solutions, IZEA continues to set industry standards, ensuring that it remains at the cutting edge of technology and marketing practices while fostering growth in the creator economy.
Previous report
The cost of revenue for the three months ended June 30, 2024 decreased by $1.1 million, or approximately 17%, compared to the same period in 2023. The decrease is primarily due to the elimination of costs relating to our non-recurring customer, which totaled $3.6 million in the quarter ended June 30, 2023. This was partially offset by increased costs associated with higher revenues from our recurring customer base in the current quarter.
Previous report
General and administrative expense for the three months ended June 30, 2024 increased by $204,856, or approximately 6%, compared to the same period in 2023. General and administrative expense for the three months ended June 30, 2024 increased primarily due to overall increases in human capital costs, professional fees, and contractor fees.
Previous report
Results of Operations for the Six Months Ended June 30, 2024 and 2023
Previous report
Sales and marketing expense for the six months ended June 30, 2024, increased by $1.0 million, or approximately 20%, compared to the same period in 2023. Advertising expense increased over the prior year, with continued efforts to improve customer acquisition, satisfaction, and retention along with brand awareness.
Previous report
General and administrative expense for the six months ended June 30, 2024, increased by $0.6 million, or approximately 9%, compared to the same period in 2023. The increase in general and administrative expense was primarily due to increased costs of human capital and higher spend on professional services related to acquisition activities.
Previous report
Depreciation and amortization expense for the six months ended June 30, 2024, decreased by $26.8 thousand, or approximately 6%, compared to the same period in 2023.
Previous report
Since 2020, supply-chain issues, labor disruption, business closures, and, recently, inflationary pressures have impacted our business operations and results. Additionally, the cautious economic outlook of many customers may be affecting marketing budgets as evidenced by the softness in bookings the Company experienced during 2023. We announced in January 2023 that we had begun the process of parting ways with a single large customer that, while having a significant impact on Managed Services revenue growth, carried significantly lower gross margins than our core business. Our business with this customer was completed during the fourth quarter of 2023, including contract liabilities and payment of accounts receivable. While our 2023 quarterly bookings did not reflected the opportunity pipeline growth we’ve experienced, we saw our 2024 first quarter bookings for Managed Services reach a seven-quarter high and our second quarter bookings reach an eight-quarter high, bearing fruit of the evidence of continued demand for influencer marketing services in our pipeline. Despite these bookings taking seven and a half months on average to be fully recognized as revenue, we believe that our core business remains strong. However, these matters, taken together, could have a material adverse impact on our business, results of operations, and financial position in future periods.
Reworded paragraphs (24)
Previous wording
IZEA Flex is the Company’s flagship enterprise solution for influencer marketing, designed to meet the industry's evolving demands and users’ feedback for more flexibility and customization. IZEA Flex, which has succeeded IZEAx, empowers marketers to conduct influencer collaborations across any platform with enhanced operational organization and data tracking capabilities. The platform boasts a suite of core modules, including Discover, ContentMine, and ShareMonitor, which together provide a comprehensive toolkit for optimizing influencer marketing campaigns. Flex is distinguished by its ability to quantify the ROI of marketing efforts at scale, complemented by the introduction of AI-powered tools that streamline content customization and creative campaign ideation.
Current wording
IZEA Flex is the Company’s flagship enterprise solution for influencer marketing, designed to meet the industry's evolving demands and users’ feedback for more flexibility and customization. IZEA Flex, which has succeeded IZEAx, empowers marketers to conduct influencer collaborations across any platform with enhanced operational organization and data tracking capabilities. The platform boasts a suite of core modules, including Discover, ContentMine, and ShareMonitor, which together provide a comprehensive toolkit for optimizing influencer marketing campaigns. IZEA Flex is distinguished by its ability to quantify the ROI of marketing efforts at scale, complemented by the introduction of AI-powered tools that streamline content customization and creative campaign ideation.
Previous wording
Other Income. Other income consists primarily of interest income for interest earned on investments, or changes in the value of our foreign assets and liabilities and foreign currency exchange gains and losses on foreign currency transactions, primarily related to the Canadian and Australian Dollar.
Current wording
Other Income. Other income consists primarily of interest income for interest earned on investments.
Previous wording
Managed Services revenue during the three months ended June 30, 2024 decreased by $1.8 million, or 17% from the same period in 2023. Approximately $3.3 million of the Managed Services revenue during the three months ended June 30, 2023 came from one large customer (the ‘non-recurring customer’) that we parted ways with in 2023. For the quarter ending June 30, 2024, Managed Services revenue from our recurring customer base was $8.9 million. This amount reflects a $1.6 million, or 22%, increase compared to the same period in 2023, when excluding revenues from our non-recurring customer.
Current wording
Managed Services revenue during the three months ended September 30, 2024 increased by $0.8 million, or 10% from the same period in 2023. During the three months ended September 30, 2023, approximately $0.9 million of Managed Services revenue was generated from one large customer (the “non-recurring customer”) with whom we ended our relationship with in 2023. For the quarter ending September 30, 2024, Managed Services revenue from our recurring customer base was $8.6 million, reflecting a $1.7 million, or 25%, increase compared to the same period in 2023, excluding revenues from the non-recurring customer.
Previous wording
SaaS Services revenue is generated by the self-service use of our technology platforms by marketers to manager their own content workflow and influencer marketing campaigns. SaaS Service revenue increased to $499,694 during the six months ended June 30, 2024, compared to $305,646 in the same period of 2023. The increase is primarily due to a growing number of licensees but at a lower cost per license.
Current wording
SaaS Services revenue is generated by the self-service use of our technology platforms by marketers to manage their own content workflow and influencer marketing campaigns. SaaS Service revenue increased to $205,870 during the three months ended September 30, 2024, compared to $57,176 in the same period of 2023. The increase is mainly attributable to a higher number of licensees, partly offset by a lower price per license in the current period.
Previous wording
Sales and marketing expense for the three months ended June 30, 2024 increased by $375,030, or approximately 13%, compared to the same period in 2023. This increase is related to increased spend on brand awareness and advertising to drive revenue growth.
Current wording
Sales and marketing expense for the three months ended September 30, 2024 increased by $179,019, or approximately 7%, compared to the same period in 2023. This increase is related to overall compensation costs, partially offset by lower spend on marketing programs.
Previous wording
Depreciation and amortization expense for the three months ended June 30, 2024 increased by $115,316, or approximately 104%, compared to the same period in 2023.
Current wording
Depreciation and amortization expense for the three months ended September 30, 2024 increased by $122,305, or approximately 104%, compared to the same period in 2023.
Previous wording
Depreciation expense on property and equipment was $26,701 and $27,160 for the three months ended June 30, 2024 and 2023, respectively. Depreciation expense decreased slightly due to the disposal of equipment.
Current wording
Depreciation expense on property and equipment was $26,821 and $26,583 for the three months ended September 30, 2024 and 2023, respectively.
Previous wording
Amortization expense was $199,047 and $83,272 for the three months ended June 30, 2024 and 2023, respectively. Amortization expense related to internal use software developments costs was $124,381 and $83,272 for the three months ended June 30, 2024, and 2023, respectively, due to cumulative adjustments made in the quarter for year-to-date activity. Amortization expense related to intangible assets acquired in the Zuberance and Hoozu acquisitions was $75,709 and $0 for the three months ended June 30, 2024 and 2023, respectively.
Current wording
Amortization expense was $213,028 and $90,961 for the three months ended September 30, 2024 and 2023, respectively. Amortization expense related to internal use software developments costs was $133,290 and $90,961 for the three months ended September 30, 2024, and 2023, respectively, due to the launch of additional capitalized software projects with higher associated costs. Amortization expense related to intangible assets acquired in the Zuberance and Hoozu acquisitions was $79,738 and $0 for the three months ended September 30, 2024 and 2023, respectively.
Previous wording
Other income, net, totaled $634,226 during the three months ended June 30, 2024, an decrease of $11,283 compared to the same period in 2023, primarily due to a decrease in the value of digital assets, offset by deferred tax benefit.
Current wording
Other income, net, totaled $605,644 during the three months ended September 30, 2024, a decrease of $54,212 compared to the same period in 2023, primarily from investment portfolio interest income.
Previous wording
Net loss for the three months ended June 30, 2024 was $2.2 million, compared to the net loss of $1.0 million for the same period in 2023. The increase in net loss was a result of the changes discussed above.
Current wording
Net loss for the three months ended September 30, 2024 was $8.8 million, compared to the net loss of $2.0 million for the same period in 2023. The increase in net loss was a result of the changes discussed above.
Previous wording
Managed Services revenue during the six months ended June 30, 2024, decreased by $3.6 million, or 19% from the same period in 2023. Approximately $6.8 million of the Managed Services revenue during the six months ended June 30, 2023 came from the non-recurring customer. Managed Services revenue from our ongoing customer base, which totaled $15.5 million during the six months ended June 30, 2024, increased on the strength of improving demand by $3.3 million, or 26%, from the same period in 2023.
Current wording
Managed Services revenue during the nine months ended September 30, 2024, decreased by $2.8 million, or 10% from the same period in 2023. Approximately $7.7 million of the Managed Services revenue during the nine months ended September 30, 2023 came from the non-recurring customer. Managed Services revenue from our ongoing customer base, which totaled $24.2 million during the nine months ended September 30, 2024, increased on the strength of improving demand by 25.8%, or $5.0 million, from the same period in 2023.
Previous wording
SaaS Services revenue is generated by the self-service use of our technology platforms by marketers to manage their own content workflow and influencer marketing campaigns. SaaS Service revenue increased to $243,353 during the three months ended June 30, 2024, compared to $70,678 in the same period of 2023. The increase is primarily due to a growing number of licensees but at a lower cost per license.
Current wording
SaaS Services revenue is generated by the self-service use of our technology platforms by marketers to manage their own content workflow and influencer marketing campaigns. SaaS Service revenue increased to $705,564 during the nine months ended September 30, 2024, compared to $362,822 in the same period of 2023. The increase is primarily due to a growing number of licensees but at a lower cost per license.
Previous wording
Cost of revenue for the six months ended June 30, 2024 decreased by $3.1 million, or approximately 25%, compared to the same period in 2023. The decrease is primarily due to the elimination of costs relating to our non-recurring customer, which totaled $4.9 million in the six months ended June 30, 2023. This was partially offset by increased costs associated with higher revenues from our recurring customer base in the current period.
Current wording
Cost of revenue for the nine months ended September 30, 2024 decreased by $2.5 million, or approximately 15%, compared to the same period in 2023. The decrease is mainly attributable to the elimination of $6.0 million in costs related to our non-recurring customer for the nine months ended September 30, 2023. This reduction was partially offset by increased costs linked to higher revenues from our recurring customer base.
Previous wording
Depreciation expense on property and equipment was approximately$53.3 thousand and $45.9 thousand for the six months ended June 30, 2024, and 2023. Depreciation expense increased slightly due to the purchase of additional equipment.
Current wording
Depreciation expense on property and equipment was approximately $80,079 and $72,529 for the nine months ended September 30, 2024, and 2023. Depreciation expense increased slightly due to the purchase of additional equipment.
Previous wording
Amortization expense was approximately $0.4 million and $0.4 million for the six months ended June 30, 2024 and 2023, respectively. Amortization expense related to internal-use software development costs was $0.3 million and $0.4 million for the six months ended June 30, 2024 and 2023, respectively. Amortization on our internal software costs will continue due to the development of Flex and Marketplace in 2024.
Current wording
Amortization expense was approximately $589,704 and $501,709 for the nine months ended September 30, 2024 and 2023, respectively. Amortization expense related to internal-use software development costs was $385,976 and $501,709 for the nine months ended September 30, 2024 and 2023, respectively. Amortization expense related to acquired intangible assets was $203,728 and $0 for the nine months ended September 30, 2024 and 2023, respectively.
Previous wording
Interest expense totaled $4.0 thousand during the six months ended June 30, 2024, related to fewer acquisitions of laptop computers in 2024, compared to $4.7 thousand in the prior year period.
Current wording
Interest expense totaled $5,654 during the nine months ended September 30, 2024, related to fewer acquisitions of laptop computers in 2024, compared to $6,373 in the prior year period.
Previous wording
Other income, net totaled $1.3 million in investment portfolio interest income for the six months ended June 30, 2024, compared to $1.2 million in the prior year period, reflecting interest earned on portfolio investments that began in May 2022.
Current wording
Other income, net totaled $1.9 million in investment portfolio interest income for the nine months ended September 30, 2024, compared to $1.9 million in the prior year period, reflecting interest earned on portfolio investments that began in May 2022.
Previous wording
Net loss from operations for the six months ended June 30, 2024 was $5.5 million, a $1.6 million increase from the net loss of 3.8 million for the same period in 2023. The increase in net loss was the result of lower revenues and increased operating costs in the current year period.
Current wording
Net loss from operations for the nine months ended September 30, 2024 was $14.2 million, a $8.4 million increase from the net loss of $5.8 million for the same period in 2023. The increase in net loss was the result of lower revenues and increased operating costs in the current year period.
Previous wording
Managed Services Bookings is a measure of all sales orders received during a time period, less any cancellations received, or refunds given during the same time period. Sales order contracts vary in complexity with each customer and range from custom content delivery to integrated marketing services; our contracts generally run from several months for smaller contracts up to twelve months for larger contracts. We recognize revenue from our Managed Services contracts on a percentage of completion basis as we deliver the content or services over time, which can vary greatly. Historically, bookings have converted to revenues over a 6-month period on average. However, since late 2020, we have received increasingly larger and more complex sales orders, which, in turn, has lengthened the average revenue period to approximately 9-months, with the largest contracts taking longer to complete. During the latter half of 2023, the time between bookings and revenue improved to an average of 7.5 months. For this reason, Managed Services Bookings, while an overall indicator of the health of our business, may not be used to predict quarterly revenues and could be subject to future adjustments. Managed Services Bookings is useful information as it reflects the number of orders received in one period, even though revenue from those orders may be reflected over varying amounts of time. We use the Managed Services Bookings metric to plan operational staffing, to identify key customer group trends to enlighten go-to-market activities, and to inform its product development efforts. Managed Services Bookings for the three months ended June 30, 2024 and 2023 was $10.3 million and $7.3 million, respectively. Managed Services Bookings for the six months ended June 30, 2024 and 2023 was $19.6 million and $13.4 million, respectively.
Current wording
Managed Services Bookings is a measure of all sales orders received during a time period, less any cancellations received, or refunds given during the same time period. Sales order contracts vary in complexity with each customer and range from custom content delivery to integrated marketing services; our contracts generally run from several months for smaller contracts up to twelve months for larger contracts. We recognize revenue from our Managed Services contracts on a percentage of completion basis as we deliver the content or services over time, which can vary greatly. Historically, bookings have converted to revenues over a 6-month period on average. However, since late 2020, we have received increasingly larger and more complex sales orders, which, in turn, has lengthened the average revenue period to approximately 9-months, with the largest contracts taking longer to complete. During the latter half of 2023, the time between bookings and revenue improved to an average of 7.5 months. For this reason, Managed Services Bookings, while an overall indicator of the health of our business, may not be used to predict quarterly revenues and could be subject to future adjustments. Managed Services Bookings is useful information as it reflects the number of orders received in one period, even though revenue from those orders may be reflected over varying amounts of time. We use the Managed Services Bookings metric to plan operational staffing, to identify key customer group trends to enlighten go-to-market activities, and to inform its product development efforts. Managed Services Bookings for the three months ended September 30, 2024 and 2023 was $7.9 million and $7.1 million, respectively. Managed Services Bookings for the nine months ended September 30, 2024 and 2023 was $19.6 million and $20.5 million, respectively.
Previous wording
Adjusted EBITDA is a “non-GAAP financial measure” under the rules of the Securities and Exchange Commission (the “SEC”). We define Adjusted EBITDA as earnings or loss before interest, taxes, depreciation and amortization, non-cash stock-based compensation, gain or loss on asset disposals or impairment, and certain other unusual or non-cash income and expense items such as gains or losses on settlement of liabilities and exchanges, and changes in the fair value of derivatives, if applicable.
Current wording
Adjusted EBITDA is a “non-GAAP financial measure” under the rules of the SEC. We define Adjusted EBITDA as earnings or loss before interest, taxes, depreciation and amortization, non-cash stock-based compensation, gain or loss on asset disposals or impairment, and certain other unusual or non-cash income and expense items such as gains or losses on settlement of liabilities and exchanges, and changes in the fair value of derivatives, if applicable.
Previous wording
The following table sets forth a reconciliation from the GAAP measurement of net loss to our non-GAAP financial measure of Adjusted EBITDA for the three and six months ended June 30, 2024 and 2023:
Current wording
The following table sets forth a reconciliation from the GAAP measurement of net loss to our non-GAAP financial measure of Adjusted EBITDA for the three and nine months ended September 30, 2024 and 2023:
Previous wording
The Company’s primary cash needs have historically been funding the development and integration of our technology platforms used in its business, marketing expenses, and general and administrative (“G&A”) expenses including salaries, bonuses, and commissions. The Company has incurred losses and negative cash flow from operations for most periods since inception, primarily the result of costs associated with third-party creators, salaries, bonuses and stock-based compensation, and other G&A expenses, including technology and development costs, which has resulted in a total accumulated deficit of $90.9 million as of June 30, 2024. While we have not achieved profitability, we believe we have sufficient resources to fund operations and planned investments for at least the next twelve months.
Current wording
The Company’s primary cash needs have historically been funding the development and integration of our technology platforms used in its business, marketing expenses, and G&A expenses including salaries, bonuses, and commissions. The Company has incurred losses and negative cash flow from operations for most periods since inception, primarily the result of costs associated with third-party creators, salaries, bonuses and stock-based compensation, and other G&A expenses, including technology and development costs, which has resulted in a total accumulated deficit of $99.7 million as of September 30, 2024. While we have not achieved profitability, we believe we have sufficient resources to fund operations and planned investments for at least the next twelve months.
Previous wording
We had cash and cash equivalents of $44.3 million as of June 30, 2024, as compared to $37.4 million as of December 31, 2023. This increase of $6.9 million is the result of the maturing of certain investments, offset by cash used to fund operating activities.
Current wording
We had cash and cash equivalents of $46.0 million as of September 30, 2024, as compared to $37.4 million as of December 31, 2023. This increase of $8.5 million is the result of the maturing of certain investments, offset by cash used to fund operating activities.
Previous wording
Net cash used for operating activities was $7.3 million during the six months ended June 30, 2024, primarily due to the continued use to cover operating losses. Net cash provided by investing activities was $14.2 million during the six months ended June 30, 2024, primarily due to the maturity of marketable securities and acquisitions. Net cash used for financing activities during the six months ended June 30, 2024 was $116,508, which consisted of payments on shares withheld for taxes.
Current wording
Net cash used for operating activities was $8.7 million during the nine months ended September 30, 2024, primarily due to the continued use to cover operating losses. Net cash provided by investing activities was $17.6 million during the nine months ended September 30, 2024, primarily due to the maturity of marketable securities and acquisitions. Net cash used for financing activities during the nine months ended September 30, 2024 was $482,085, which consisted of payments on shares withheld for taxes.