• |
Net revenues for the six-month period ended June 30th, 2022 increased 37% compared to the same year ago period.
|
• |
Strengthened and optimized balance sheet in order to secure cash position and extend runway; Company expects to recognize cost savings starting in August 2022.
|
• |
Three new client wins and two client extensions and budget increases
|
For the Three Months Ended
June 30,
|
For the Six Months Ended
June 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Net Revenues
|
$
|
400,351
|
$
|
497,568
|
$
|
1,645,655
|
$
|
1,205,325
|
||||||||
Costs and Expenses:
|
||||||||||||||||
Sales and marketing
|
1,050,423
|
504,380
|
2,383,433
|
1,261,330
|
||||||||||||
Technology
|
959,157
|
619,692
|
2,114,856
|
1,139,447
|
||||||||||||
General and administrative
|
1,509,208
|
1,108,280
|
3,691,757
|
2,363,852
|
||||||||||||
Impairment loss on intangible assets
|
2,626,974
|
-
|
2,626,974
|
-
|
||||||||||||
Impairment loss on property and equipment
|
49,948
|
-
|
49,948
|
-
|
||||||||||||
Impairment loss on goodwill
|
463,000
|
-
|
463,000
|
-
|
||||||||||||
Loss accrual on customer contract
|
(413,918
|
)
|
-
|
375,687
|
-
|
|||||||||||
Total Costs and Expenses
|
6,244,792
|
2,232,352
|
11,705,655
|
4,764,629
|
||||||||||||
|
||||||||||||||||
Loss From Operations
|
(5,844,441
|
)
|
(1,734,784
|
)
|
(10,060,000
|
)
|
(3,559,304
|
)
|
||||||||
Other (Expense) Income:
|
||||||||||||||||
Interest expense
|
(2,536
|
)
|
(1,576
|
)
|
(6,408
|
)
|
(3,210
|
)
|
||||||||
Interest income
|
2,734
|
33,355
|
5,025
|
62,664
|
||||||||||||
Change in fair value of contingent consideration
|
23,378
|
-
|
613,000
|
-
|
||||||||||||
Other income
|
10,974
|
-
|
11,000
|
233
|
||||||||||||
Total Other Income
|
34,550
|
31,779
|
622,617
|
59,687
|
||||||||||||
Net Loss
|
$
|
(5,809,891
|
)
|
$
|
(1,703,005
|
)
|
$
|
(9,437,383
|
)
|
$
|
(3,499,617
|
)
|
||||
Net Loss Per Share - Basic and Diluted
|
$
|
(0.41
|
)
|
$
|
(0.12
|
)
|
$
|
(0.66
|
)
|
$
|
(0.26
|
)
|
||||
Weighted Average Common Shares Outstanding - Basic and Diluted
|
14,316,483
|
13,983,195
|
14,286,655
|
13,307,766
|
June 30,
2022
|
December 31,
2021
|
|||||||
(unaudited)
|
||||||||
Assets
|
||||||||
Current Assets:
|
||||||||
Cash and cash equivalents
|
$
|
17,683,885
|
$
|
24,907,963
|
||||
Accounts receivable, net
|
259,562
|
2,291,533
|
||||||
Other receivables
|
-
|
526,070
|
||||||
Prepaid expenses and other current assets
|
236,160
|
495,178
|
||||||
Total Current Assets
|
18,179,607
|
28,220,744
|
||||||
Intangible assets, net
|
-
|
2,946,610
|
||||||
Goodwill
|
-
|
463,000
|
||||||
Property and equipment, net
|
-
|
44,756
|
||||||
Deferred offering costs
|
10,000
|
10,000
|
||||||
Total Assets
|
$
|
18,189,607
|
$
|
31,685,110
|
||||
Liabilities and Stockholders' Equity
|
||||||||
Current Liabilities:
|
||||||||
Accounts payable - suppliers
|
$
|
562,877
|
$
|
1,844,544
|
||||
Accounts payable - trade
|
323,402
|
659,362
|
||||||
Accrued expenses and other current liabilities
|
376,409
|
2,493,287
|
||||||
Deferred revenue
|
146,339
|
395,914
|
||||||
Notes payable
|
1,509
|
151,336
|
||||||
Total Current Liabilities
|
1,410,536
|
5,544,443
|
||||||
Contingent consideration
|
-
|
613,000
|
||||||
Notes payable, non-current portion
|
77,391
|
77,407
|
||||||
Total Liabilities
|
1,487,927
|
6,234,850
|
||||||
Commitments and contingencies
|
||||||||
Stockholders' Equity:
|
||||||||
Preferred stock, $0.00001 par value; 5,000,000 shares authorized; No shares issued and outstanding as of June 30, 2022 and December 31,
2021
|
-
|
-
|
||||||
Common stock, $0.00001 par value; 95,000,000 shares authorized; 14,401,252 and 14,253,948 shares issued and outstanding as of June 30,
2022 and December 31, 2021, respectively
|
144
|
143
|
||||||
Additional paid-in capital
|
52,719,709
|
52,030,907
|
||||||
Accumulated deficit
|
(36,018,173
|
)
|
(26,580,790
|
)
|
||||
Total Stockholders' Equity
|
16,701,680
|
25,450,260
|
||||||
Total Liabilities and Stockholders' Equity
|
$
|
18,189,607
|
$
|
31,685,110
|
For the Six Months Ended
June 30,
|
||||||||
2022
|
2021
|
|||||||
Cash Flows From Operating Activities:
|
||||||||
Net loss
|
$
|
(9,437,383
|
)
|
$
|
(3,499,617
|
)
|
||
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||
Bad debt expense
|
7,000
|
-
|
||||||
Impairment loss on intangible assets
|
2,626,974
|
-
|
||||||
Impairment loss on property and equipment
|
49,948
|
|||||||
Impairment loss on goodwill
|
463,000
|
-
|
||||||
Depreciation and amortization
|
330,993
|
159,293
|
||||||
Change in fair value of contingent consideration
|
(613,000
|
)
|
-
|
|||||
Stock-based compensation:
|
||||||||
Common stock
|
717,265
|
255,667
|
||||||
Options
|
4,362
|
5,085
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
2,024,971
|
878,814
|
||||||
Other receivable
|
507,387
|
-
|
||||||
Prepaid expenses and other current assets
|
259,018
|
(52,766
|
)
|
|||||
Accounts payable - suppliers
|
(1,281,667
|
)
|
16,061
|
|||||
Accounts payable - trade
|
(335,959
|
)
|
(404,930
|
)
|
||||
Accrued expenses and other current liabilities
|
(1,913,445
|
)
|
(334,280
|
)
|
||||
Accrued interest
|
-
|
(3,975
|
)
|
|||||
Deferred revenue
|
(249,575
|
)
|
-
|
|||||
Net Cash Used In Operating Activities
|
(6,840,111
|
)
|
(2,980,648
|
)
|
||||
Cash Flows From Investing Activities:
|
||||||||
Purchase of intangible assets
|
-
|
(1,114,072
|
)
|
|||||
Purchase of property and equipment
|
(16,549
|
)
|
(10,181
|
)
|
||||
Net Cash Used In Investing Activities
|
(16,549
|
)
|
(1,124,253
|
)
|
||||
Cash Flows From Financing Activities:
|
||||||||
Proceeds from exercise of warrants [1]
|
-
|
9,787,149
|
||||||
Proceeds from exercise of options
|
-
|
8,361
|
||||||
Repayment of PPP loan
|
(149,843
|
)
|
-
|
|||||
Repayment of financed director and officer insurance premiums
|
(217,575
|
)
|
-
|
|||||
Payment of deferred offering costs
|
-
|
(10,300
|
)
|
|||||
Net Cash (Used In) Provided By Financing Activities
|
(367,418
|
)
|
9,785,210
|
|||||
Net (Decrease) Increase In Cash and Cash Equivalents
|
(7,224,078
|
)
|
5,680,309
|
|||||
Cash and Cash Equivalents - Beginning of the Period
|
24,907,963
|
24,782,128
|
||||||
Cash and Cash Equivalents - End of the Period
|
$
|
17,683,885
|
$
|
30,462,437
|
[1]
|
Includes gross proceeds of $10,169,027, less issuance costs of $381,878.
|
For the Three Months Ended
June 30,
|
||||||||
2022
|
2021
|
|||||||
Net Loss
|
$
|
(5,809,891
|
)
|
$
|
(1,703,005
|
)
|
||
Interest expense
|
2,536
|
1,576
|
||||||
Interest income
|
(2,734
|
)
|
(33,355
|
)
|
||||
Depreciation and amortization
|
168,772
|
81,914
|
||||||
EBITDA
|
(5,641,317
|
)
|
(1,652,870
|
)
|
||||
Adjustments:
|
||||||||
Stock-based compensation expense
|
288,971
|
19,538
|
||||||
Impairment loss on intangible assets
|
2,626,974
|
-
|
||||||
Impairment loss on property and equipment
|
49,948
|
-
|
||||||
Impairment loss on goodwill
|
463,000
|
-
|
||||||
Change in fair value of contingent consideration
|
(23,378
|
)
|
-
|
|||||
Adjusted EBITDA
|
$
|
(2,235,802
|
)
|
$
|
(1,633,332
|
)
|
||
Adjusted Loss Per Share
|
$
|
(0.16
|
)
|
$
|
(0.12
|
)
|
||
|
||||||||
Weighted Average Common Shares Outstanding -
|
||||||||
Basic and Diluted
|
14,316,483
|
13,983,195
|