• |
Renewed media buying partnership with one of the Company’s largest direct advertising clients, due to the strong results Kubient was able to help provide.
|
• |
Launched the KAI Dashboard, a reporting and optimization platform that helps media publishers and platforms better understand and manage inventory health.
|
• |
Announced that the United States Patent and Trademark Office (USPTO) issued a Notice of Allowance for the Company’s proprietary ad fraud identification and prevention
technology, Kubient Artificial Intelligence (KAI).
|
For the Three Months Ended
|
For the Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Net Revenues
|
$
|
481,812
|
$
|
676,986
|
$
|
2,127,467
|
$
|
1,882,311
|
||||||||
Costs and Expenses:
|
||||||||||||||||
Sales and marketing
|
735,296
|
715,820
|
3,118,729
|
1,977,150
|
||||||||||||
Technology
|
525,383
|
776,573
|
2,640,239
|
1,916,020
|
||||||||||||
General and administrative
|
1,132,649
|
1,514,913
|
4,824,406
|
3,878,765
|
||||||||||||
Impairment loss on intangible assets
|
-
|
-
|
2,626,974
|
-
|
||||||||||||
Impairment loss on property and equipment
|
-
|
-
|
49,948
|
-
|
||||||||||||
Impairment loss on goodwill
|
-
|
-
|
463,000
|
-
|
||||||||||||
Loss accrual on customer contract
|
(232,964
|
)
|
-
|
142,723
|
-
|
|||||||||||
Total Costs and Expenses
|
2,160,364
|
3,007,306
|
13,866,019
|
7,771,935
|
||||||||||||
Loss From Operations
|
(1,678,552
|
)
|
(2,330,320
|
)
|
(11,738,552
|
)
|
(5,889,624
|
)
|
||||||||
Other (Expense) Income:
|
||||||||||||||||
Interest expense
|
(2,508
|
)
|
(2,098
|
)
|
(8,916
|
)
|
(5,308
|
)
|
||||||||
Interest income
|
6,896
|
21,805
|
11,921
|
84,469
|
||||||||||||
Change in fair value of contingent consideration
|
-
|
-
|
613,000
|
-
|
||||||||||||
Other income
|
-
|
-
|
11,000
|
233
|
||||||||||||
Total Other Income
|
4,388
|
19,707
|
627,005
|
79,394
|
||||||||||||
Net Loss
|
$
|
(1,674,164
|
)
|
$
|
(2,310,613
|
)
|
$
|
(11,111,547
|
)
|
$
|
(5,810,230
|
)
|
||||
Net Loss Per Share - Basic and Diluted
|
$
|
(0.12
|
)
|
$
|
(0.16
|
)
|
$
|
(0.78
|
)
|
$
|
(0.43
|
)
|
||||
Weighted Average Common Shares Outstanding - Basic and Diluted
|
14,337,412
|
14,252,886
|
14,300,022
|
13,627,435
|
September 30,
|
December 31,
|
|||||||
2022
|
2021
|
|||||||
(unaudited)
|
||||||||
Assets
|
||||||||
Current Assets:
|
||||||||
Cash and cash equivalents
|
$
|
16,897,563
|
$
|
24,907,963
|
||||
Accounts receivable, net
|
448,815
|
2,291,533
|
||||||
Other receivables
|
-
|
526,070
|
||||||
Prepaid expenses and other current assets
|
502,912
|
495,178
|
||||||
Total Current Assets
|
17,849,290
|
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
|
$
|
17,859,290
|
$
|
31,685,110
|
||||
Liabilities and Stockholders’ Equity
|
||||||||
Current Liabilities:
|
||||||||
Accounts payable - suppliers
|
$
|
727,432
|
$
|
1,844,544
|
||||
Accounts payable - trade
|
369,040
|
659,362
|
||||||
Accrued expenses and other current liabilities
|
716,484
|
2,493,287
|
||||||
Deferred revenue
|
767,833
|
395,914
|
||||||
Notes payable
|
1,539
|
151,336
|
||||||
Total Current Liabilities
|
2,582,328
|
5,544,443
|
||||||
Contingent consideration
|
-
|
613,000
|
||||||
Notes payable, non-current portion
|
77,361
|
77,407
|
||||||
Total Liabilities
|
2,659,689
|
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
September 30, 2022 and December 31, 2021
|
-
|
-
|
||||||
Common stock, $0.00001 par value; 95,000,000 shares authorized; 14,402,500 and 14,253,948 shares issued and
outstanding as of September 30, 2022 and December 31, 2021, respectively
|
144
|
143
|
||||||
Additional paid-in capital
|
52,891,794
|
52,030,907
|
||||||
Accumulated deficit
|
(37,692,337
|
)
|
(26,580,790
|
)
|
||||
Total Stockholders’ Equity
|
15,199,601
|
25,450,260
|
||||||
Total Liabilities and Stockholders’ Equity
|
$
|
17,859,290
|
$
|
31,685,110
|
For the Nine Months Ended
|
||||||||
September 30,
|
||||||||
2022
|
2021
|
|||||||
Cash Flows From Operating Activities:
|
||||||||
Net loss
|
$
|
(11,111,547
|
)
|
$
|
(5,810,230
|
)
|
||
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
|
304,068
|
||||||
Change in fair value of contingent consideration
|
(613,000
|
)
|
-
|
|||||
Stock-based compensation:
|
||||||||
Common stock
|
872,123
|
516,381
|
||||||
Options
|
6,598
|
7,618
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
1,835,718
|
1,000,783
|
||||||
Other receivable
|
507,387
|
-
|
||||||
Prepaid expenses and other current assets
|
350,132
|
(155,367
|
)
|
|||||
Accounts payable - suppliers
|
(1,117,112
|
)
|
115,681
|
|||||
Accounts payable - trade
|
(290,321
|
)
|
(289,215
|
)
|
||||
Accrued expenses and other current liabilities
|
(1,817,278
|
)
|
(274,667
|
)
|
||||
Accrued interest
|
-
|
7,025
|
||||||
Deferred revenue
|
371,919
|
-
|
||||||
Net Cash Used In Operating Activities
|
(7,527,466
|
)
|
(4,577,923
|
)
|
||||
Cash Flows From Investing Activities:
|
||||||||
Purchase of intangible assets
|
-
|
(1,133,072
|
)
|
|||||
Purchase of property and equipment
|
(16,549
|
)
|
(24,331
|
)
|
||||
Net Cash Used In Investing Activities
|
(16,549
|
)
|
(1,157,403
|
)
|
||||
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
|
)
|
(68,346
|
)
|
||||
Repayment of financed director and officer insurance premiums
|
(316,542
|
)
|
-
|
|||||
Payment of deferred offering costs
|
-
|
(27,510
|
)
|
|||||
Net Cash (Used In) Provided By Financing Activities
|
(466,385
|
)
|
9,699,654
|
|||||
Net (Decrease) Increase In Cash and Cash Equivalents
|
(8,010,400
|
)
|
3,964,328
|
|||||
Cash and Cash Equivalents - Beginning of the Period
|
24,907,963
|
24,782,128
|
||||||
Cash and Cash Equivalents - End of the Period
|
$
|
16,897,563
|
$
|
28,746,456
|
For the Three Months Ended
|
For the Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Net Loss
|
$
|
(1,674,164
|
)
|
$
|
(2,310,613
|
)
|
$
|
(11,111,547
|
)
|
$
|
(5,810,230
|
)
|
||||
Interest expense
|
2,508
|
2,098
|
8,916
|
5,308
|
||||||||||||
Interest income
|
(6,896
|
)
|
(21,805
|
)
|
(11,921
|
)
|
(84,469
|
)
|
||||||||
Depreciation and amortization
|
-
|
144,775
|
330,993
|
304,068
|
||||||||||||
EBITDA
|
(1,678,552
|
)
|
(2,185,545
|
)
|
(10,783,559
|
)
|
(5,585,323
|
)
|
||||||||
Adjustments:
|
||||||||||||||||
Stock-based compensation expense
|
$
|
157,094
|
$
|
263,247
|
878,721
|
523,999
|
||||||||||
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
|
-
|
-
|
(613,000
|
)
|
-
|
|||||||||||
Adjusted EBITDA
|
$
|
(1,521,458
|
)
|
$
|
(1,922,298
|
)
|
$
|
(7,377,916
|
)
|
$
|
(5,061,324
|
)
|
||||
Adjusted Loss Per Share
|
$
|
(0.11
|
)
|
$
|
(0.13
|
)
|
$
|
(0.52
|
)
|
$
|
(0.37
|
)
|
||||
Weighted Average Common Shares Outstanding - Basic and Diluted
|
14,337,412
|
14,252,886
|
14,300,022
|
13,627,435
|