Multiple Tech Companies Report Q3 2024 Financial Results

LifeWallet Announces Third Quarter 2024 Financial Results - MSP Recovery (NASDAQ:LIFWW), MSP Recovery (NASDAQ:LIFW)

MIAMI, Nov. 14, 2024 (GLOBE NEWSWIRE) -- MSP Recovery, Inc. d/b/a LifeWallet LIFW ("LifeWallet," or the "Company"), a Medicare, Medicaid, commercial, and secondary payer reimbursement recovery and technology leader, today announced financial results for the quarter ended September 30, 2024. LifeWallet Chief Executive Officer, John H. Ruiz, said, "From additional settlements to the processing of additional claims data, we continue to see progress across all lines of business. We're also reaping the rewards of reduced operating expenses, which have had a positive impact on our financials. In addition to providing invaluable technological resources to patients, providers, payers, and attorneys, our cost-cutting solutions can discover wasted federal funds and recover Medicare reimbursements to preserve tax dollars, benefiting all Americans." Third Quarter Highlights On July 22, 2024, the Company announced a new comprehensive settlement with another group of affiliated property and casualty insurance carriers ("P&C Insurers") doing business in multiple states, which includes the P&C Insurers' agreement to provide ten years of historical data and data sharing of future claims, implementation of LifeWallet's clearinghouse solution to settle future claims, and assignment of additional rights to collect against additional third parties related to the settled claims.The Company entered into a confidential pharmaceutical antitrust settlement totaling $3.1 million. As part of LifeWallet's owned claims portfolio, the Company has claims against multiple pharmaceutical and medical device manufacturers based on allegations of defective products or anti-competitive pricing.The Company launched an initiative to secure new agreements with health plans, providers, insurers and attorneys, while continuing to reduce operating costs.Creditors Virage Capital Management LP; Virage Recovery Master, LP; Hazel Holdings I, LLC; and Hazel Partners Holdings, LLC agreed to waive certain provisions in their agreements with the Company that would accelerate the payment of amounts due in the event that the Company receives a negative going concern opinion from its auditors for the year ending December 31, 2024. Subsequent Events On November 11, 2024, the Company announced new comprehensive settlements with P&C Insurers, totaling $5.2 million, continued progress in recoveries on owned claims and acquiring rights to additional claims, as well as initiatives to eliminate wasteful Medicare spending by launching beta testing of its clearinghouse solution, built in partnership with Palantir Technologies, Inc. PLTR.LifeWallet is also currently in negotiations with other property and casualty insurers to resolve claims on a similar basis, including one of the country's largest P&C Insurers. Some of these negotiations have resulted in collaborative statistical sampling and extensive data-matching to determine the size and scope of claims that are owned by the Company that LifeWallet has asserted repayment is due pursuant to Medicare Secondary Payer and other related laws.The Company entered into a confidential settlement with a medical device manufacturer totaling $760,000. As part of LifeWallet's owned claims portfolio, the Company has ongoing litigation against other pharmaceutical and medical device manufacturers based on claims of defective products or anti-competitive pricing.The Company acquired the recovery rights to additional Medicare Secondary Payer claims consisting of more than 450,000 Medicare members, as documented by health insurance plans, with an estimated total claims Paid Amount exceeding $10.6 billion.1LifeWallet strategically reduced its operating costs in 2023 and continues to do so in 2024. These cost reductions do not impact the systems that the Company has already created to support recovery efforts of the claims owned by the Company or other resources available to third parties. The Company anticipates these reductions could continue to contribute savings to operating expenses for the year ending December 31, 2024.The Company is advancing initiatives to eliminate wasteful spending of federal dollars and unnecessary Medicare secondary payments, utilizing its clearinghouse system, created through its exclusive healthcare partnership with Palantir Technologies. The clearinghouse solution utilizes the Palantir Foundry platform, AI tools, natural language processing, and machine learning, resulting in the development of a sophisticated data analytics system that captures and manages healthcare data, enhancing LifeWallet's Chase to Pay model. Third Quarter Financial Highlights Revenue: Total revenue for the three months ended September 30, 2024 was $3.7 million compared to $0.4 million for three months ended September 30, 2023.Operating loss: Operating loss for the three months ended September 30, 2024 was $129.9 million, compared to $136.7 million during three months ended September 30, 2023. Adjusted operating loss for the three months ended September 30, 2024 was $8.4 million, excluding non-cash claims amortization expense of $121.0 million and professional fees paid in stock of $0.4 million.Net loss: Net loss for the three months ended September 30, 2024 was $190.4 million and $160.5 million to controlling members, or net loss per share of $1.26 per share, Class A Common Stock, based on 23,764,079 million weighted average shares of Class A Common Stock outstanding. Adjusted net loss for the three months ended September 30, 2024 was $11.0 million, excluding the non-cash item noted above, change in fair value of warrant and derivative liabilities of $45.3 million, and $103.3 million related to interest expense.Liquidity: As of September 30, 2024, cash totaled $4.7 million, and as of October 31, 2024, cash totaled $5.6 million. The Company continually monitors its liquidity and may in the future access debt and equity markets as necessary in order to meet its ongoing liquidity needs, including by drawing upon its working capital facility. For the three months ended September 30, 2024, the Company received $5.25 million of funding for working capital. Subsequently, the Company has received additional working capital funding of $3.5 million, and it has $5.25 million of remaining capacity to draw from its working capital facility as of the date of filing of the Quarterly Report on Form 10-Q for the period ending September 30, 2024. Assigned Recovery Rights, Claims Paid and Billed Value The table below outlines the Company's claims data for the most recent periods. The amounts represent data received from current and new assignors: $ in billionsNine Months Ended September 30, 2024 Year Ended December 31, 2023 Year Ended December 31, 2022 Paid Amount$380.5 $369.8 $374.8 Paid Value of Potentially Recoverable Claims(2) 87.8 88.9 89.6 Billed Value of Potentially Recoverable Claims 375.3 373.5 377.8 Recovery MultipleN/A(1) N/A N/A Penetration Status of Portfolio 86.8% 86.8% 85.8% 1) During the nine months ended September 30, 2024, the Company has received total recoveries of $9.9 million. However, the settlement amounts do not provide a large enough sample to be statistically significant, and are therefore not shown in the table. 2) On August 10, 2022, the United States Court of Appeals, Eleventh Circuit held that a four-year statute of limitations period applies to certain claims brought under the Medicare Secondary Payer Act's private cause of action, and that the limitations period begins to run on the date that the cause of action accrued. This opinion may render certain Claims held by the Company unrecoverable and may substantially reduce PVPRC and BVPRC as calculated. As our cases were filed at different times and in various jurisdictions, and prior to data matching with a defendant we are not able to accurately calculate the entirety of damages specific to a given defendant, we cannot calculate with certainty the impact of this ruling at this time. However, the Company has deployed several legal strategies (including but not limited to seeking to amend existing lawsuits in a manner that could allow claims to relate back to the filing date as well as asserting tolling arguments based on theories of fraudulent concealment) that would apply to tolling the applicable limitations period and minimizing any material effect on the overall collectability of its claim rights. In addition, the Eleventh Circuit decision applies only to district courts in the Eleventh Circuit. Many courts in other jurisdictions have applied other statutes of limitations to the private cause of action, including borrowing the three-year statute of limitations applicable to the government's cause of action; and borrowing from the False Claims Act's six-year period. The most recent decision on the issue from the District Court of Massachusetts, for example, applies the same statute of limitations as Eleventh Circuit, but expressly disagrees with the Eleventh Circuit's application of the "accrual" rule and instead adopted the notice-based trigger that the company has always argued should apply. This would mean that the limitations period for unreported claims has not even begun to accrue. This is a complex legal issue that will continue to evolve in jurisdictions across the country. Nevertheless, if the application of the statute of limitations as determined by the Eleventh Circuit was applied to all Claims assigned to us, we estimate that the effect would be a reduction of PVPRC by approximately $9.9 billion. As set forth in our Risk Factors, PVPRC is based on a variety of factors. As such, this estimate is subject to change based on the variety of legal claims being litigated and statute of limitations tolling theories that apply. Going Concern As disclosed in the Company's Quarterly Report on Form 10-Q, the Company has concluded that, despite the financing arrangements entered into by the Company, there is substantial doubt about its ability to continue as a going concern. Unless the Company is successful in raising additional funds through the offering of debt or equity securities, the Company has concluded it is probable the Company will be unable to continue to operate as a going concern beyond the next 12 months. Non-GAAP Financial Measures Additional information regarding the non-GAAP financial measures discussed in this release, including an explanation of these measures and how each is calculated, is included below under the heading "Non-GAAP Financial Measures." A reconciliation of GAAP to non-GAAP financial measures has also been provided in the financial tables. About LifeWallet Founded in 2014 as MSP Recovery, LifeWallet has become a Medicare, Medicaid, commercial, and secondary payer reimbursement recovery leader, disrupting the antiquated healthcare reimbursement system with data-driven solutions to secure recoveries from responsible parties. LifeWallet innovates technologies and provides comprehensive solutions for multiple industries including healthcare, legal, and sports NIL. For more information, visit: LIFEWALLET.COM This release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements may generally be identified by the use of words such as "anticipate," "believe," "expect," "intend," "plan" and "will" or, in each case, their negative, or other variations or comparable terminology. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. As a result, these statements are not guarantees of future performance or results and actual events may differ materially from those expressed in or suggested by the forward-looking statements. Any forward-looking statement made by MSP Recovery herein speaks only as of the date made. New risks and uncertainties come up from time to time, and it is impossible for LIFW to predict or identify all such events or how they may affect it. LIFW has no obligation, and does not intend, to update any forward-looking statements after the date hereof, except as required by federal securities laws. Factors that could cause these differences include, but are not limited to, LIFW's ability to capitalize on its assignment agreements and recover monies that were paid by the assignors; the inherent uncertainty surrounding settlement negotiations and/or litigation, including with respect to both the amount and timing of any such results; the validity of the assignments of claims to LIFW; the ability to successfully expand the scope of LIFW's claims or obtain new data and claims from LIFW's existing assignor base or otherwise; LIFW's ability to innovate and develop new solutions, and whether those solutions will be adopted by LIFW's existing and potential assignors; negative publicity concerning healthcare data analytics and payment accuracy; and those additional factors included in LIFW's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed by it with the Securities and Exchange Commission. These statements constitute the Company's cautionary statements under the Private Securities Litigation Reform Act of 1995. Contact Media: [email protected] Investors: [email protected] MSP RECOVERY, INC. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) September 30, December 31, (In thousands, except share and per share data) 2024 2023 ASSETS Current assets: Cash $4,746 $11,633 Accounts receivable 3,100 217 Affiliate receivable (1) 1,222 1,188 Prepaid expenses and other current assets (1) 1,692 8,908 Total current assets 10,760 21,946 Property and equipment, net 4,866 4,911 Intangible assets, net (2) 2,771,969 3,132,796 Right-of-use assets 257 342 Total assets $2,787,852 $3,159,995 LIABILITIES AND EQUITY Current liabilities: Accounts payable $10,767 $6,244 Affiliate payable (1) 20,637 19,822 Commission payable 1,222 821 Derivative liability 110 37 Warrant liability (1) 27,012 268 Guaranty obligation (1) 1,077,070 -- Claims financing obligation and notes payable (1) 43,267 -- Interest payable (1) 11,096 -- Other current liabilities (1) 14,813 19,314 Total current liabilities 1,205,994 46,506 Guaranty obligation (1) -- 941,301 Claims financing obligation and notes payable (1) 588,513 548,276 Lease liabilities 138 235 Loan from related parties (1) 130,328 130,709 Interest payable (1) 12,655 73,839 Other long-term liabilities 3,236 -- Total liabilities $1,940,864 $1,740,866 Commitments and contingencies (Note 13) Stockholders' Equity: Class A common stock, $0.0001 par value; 5,500,000,000 shares authorized; 30,975,324 and 14,659,794 issued and outstanding as of September 30, 2024 and December 31, 2023, respectively $3 $1 Class V common stock, $0.0001 par value; 3,250,000,000 shares authorized; 124,067,498 and 124,132,398 issued and outstanding as of September 30, 2024 and December 31, 2023, respectively 12 12 Additional paid-in capital 459,748 357,928 Accumulated deficit (159,416) (85,551)Total stockholders' equity $300,347 $272,390 Non-controlling interest 546,641 1,146,739 Total equity $846,988 $1,419,129 Total liabilities and equity $2,787,852 $3,159,995 1) As of September 30, 2024 and December 31, 2023, the total affiliate receivable, affiliate payable, warrant liability, guaranty obligation and loan from related parties balances are with related parties. In addition, the prepaid expenses and other current assets, claims financing obligation and notes payable, other current liabilities, and interest payable include balances with related parties. See Note 15, Related Party Transactions, for further details. 2) As of September 30, 2024 and December 31, 2023, intangible assets, net included $2.0 billion and $2.2 billion, respectively, related to a consolidated VIE. See Note 9, Variable Interest Entities, for further details. The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. MSP RECOVERY, INC. and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, (In thousands, except share and per share data) 2024 2023 2024 2023 Claims recovery income $3,577 $440 $9,879 $6,479 Claims recovery service income -- -- -- 498 Other 91 -- 127 -- Total Revenues $3,668 $440 $10,006 $6,977 Operating expenses Cost of revenues (1) 1,671 574 3,453 1,972 Claims amortization expense 121,007 121,008 363,027 355,481 General and administrative (2) 5,329 6,130 17,145 20,691 Professional fees 3,248 2,466 12,030 15,611 Professional fees - legal (3) 2,213 6,871 9,146 25,889 Allowance for credit losses -- -- -- 5,000 Depreciation and amortization 71 85 206 182 Total operating expenses 133,539 137,134 405,007 424,826 Operating Loss $(129,871) $(136,694) $(395,001) $(417,849) Interest expense (4) (106,653) (88,279) (306,596) (204,287)Other income (expense), net 799 408 1,140 8,697 Change in fair value of warrant and derivative liabilities 45,341 348 121,625 4,247 Net loss before provision for income taxes $(190,384) $(224,217) $(578,832) $(609,192) Provision for income tax expense -- -- -- -- Net loss $(190,384) $(224,217) $(578,832) $(609,192) Less: Net loss attributable to non-controlling interests 160,537 204,462 504,967 576,301 Net loss attributable to MSP Recovery, Inc. $(29,847) $(19,755) $(73,865) $(32,891) Basic and diluted weighted average shares outstanding, Class A Common Stock 23,764,079 12,703,472 18,586,357 7,097,032 Basic and diluted net loss per share, Class A Common Stock $(1.26) $(1.56) $(3.97) $(4.63) 1) For both the three and nine months ended September 30, 2024, cost of revenue included $1.3 million of related party expenses. For both the three and nine months ended September 30, 2023, cost of revenue included $0.3 million of related party expenses. See Note 15, Related Party Transactions, for further details. 2) For the three and nine months ended September 30, 2024, general and administrative expenses included $89.1 thousand and $180.8 thousand of related party expenses, respectively. See Note 15, Related Party Transactions, for further details. No such related party expenses were present for the three and nine months ended September 30, 2023. 3) For the three and nine months ended September 30, 2024 and 2023, Professional Fees -- legal included $1.7 million and $7.7 million, and $4.6 million and $13.5 million, respectively, of related party expenses related to the Law Firm. See Note 15, Related Party Transactions, for further details. 4) For the three and nine months ended September 30, 2024 and 2023, interest expense included $80.8 million and $233.3 million, and $69.1 million and $163.1 million, respectively, related to interest expense due to related parties. See Note 15, Related Party Transactions, for further details. The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. Non-GAAP Financial Measures MSP RECOVERY, INC. and Subsidiaries Non-GAAP Reconciliation Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2024 2023 2024 2023 GAAP Operating Loss $(129,871) $(136,694) $(395,001) $(417,849)Professional fees paid in stock 416 1,875 1,484 1,875 Claims amortization expense 121,007 121,008 363,027 355,481 Allowance for credit losses -- -- -- 5,000 Adjusted Operating Loss $(8,448) $(13,811) $(30,490) $(55,493) GAAP Net Loss $(190,384) $(224,217) $(578,832) $(609,192)Professional fees paid in stock 416 1,875 1,484 1,875 Claims amortization expense 121,007 121,008 363,027 355,481 Allowance for credit losses -- -- -- 5,000 Interest expense (1) 103,336 88,279 302,101 204,287 Change in fair value of warrant and derivative liabilities (45,341) (348) (121,625) (4,247)Adjusted Net Loss $(10,966) $(13,403) $(33,845) $(46,796) In addition to the financial measures prepared in accordance with GAAP, this Quarterly Report also contains non-GAAP financial measures. We consider "adjusted net loss" and "adjusted operating loss" as non-GAAP financial measures and important indicators of performance and useful metrics for management and investors to evaluate the Company's ongoing operating performance on a consistent basis across reporting periods. We believe these measures provide useful information to investors. Adjusted net loss represents net loss adjusted for certain non-cash and non-recurring expenses, and adjusted operating loss items represents operating loss adjusted for certain non-cash and non-recurring expenses. A reconciliation of these non-GAAP measures to their most relevant GAAP measure is included above. (1) Interest expense included above excludes any interest expense payments made in cash during the three and nine months ended September 30, 2024. _______________________________ 1 "Paid Amount" (a/k/a Medicare Paid Rate or wholesale price) means the amount paid to the provider from the health plan or insurer. This amount varies based on the party making payment. For example, Medicare typically pays a lower fee for service rate than commercial insurers. The Paid Amount is derived from the Claims data we receive from our Assignors. In the limited instances where the data received lacks a paid value, our team calculates the Paid Amount with a formula. The formula used provides rates for outpatient services and is derived from the customary rate at the 95th percentile as it appears from standard industry commercial rates or, where that data is unavailable, the Billed Amount if present in the data. These amounts are then adjusted to account for the customary Medicare adjustment to arrive at the calculated Paid Amount. Management believes that this formula provides a conservative estimate for the Medicare paid amount rate, based on industry studies which show the range of differences between private insurers and Medicare rates for outpatient services. We periodically update this formula to enhance the calculated paid amount where that information is not provided in the data received from our Assignors. Management believes this measure provides a useful baseline for potential recoveries, but it is not a measure of the total amount that may be recovered in respect of potentially recoverable Claims, which in turn may be influenced by any applicable potential statutory recoveries such as double damages or fines. Where we have to extrapolate a Paid Amount to establish damages, the calculated amount may be contested by opposing parties. The figures pertaining to Medicare Member Lives as well as the paid amount were tabulated based on the data provided by health care plans; these figures may be subject to adjustment upon further investigation of the paid amounts reflected by the health plans. Market News and Data brought to you by Benzinga APIs

BEN Reports Third Quarter 2024 Financial Results - Brand Engagement Network (NASDAQ:BNAI)

JACKSON, Wyo., Nov. 14, 2024 (GLOBE NEWSWIRE) -- Brand Engagement Network Inc. ("BEN") BNAI, a global leader in secure and reliable conversational AI solutions, today announced its financial results and key business highlights for the third quarter ended September 30, 2024. "In the third quarter, we made significant progress in delivering secure, scalable AI solutions and advancing our mission to transform industries with intelligent technology," said Paul Chang, CEO of BEN. "As we look ahead, BEN is poised to accelerate growth and deliver value to our customers, reinforcing our leadership in closed-loop Gen AI." Q3 2024 Key Business Highlights: KangarooHealth Partnership: BEN partnered with KangarooHealth to enhance remote patient monitoring and chronic care management through AI, aiming to scale their platform for patients with chronic conditions.IntelliTek Collaboration: BEN's agreement with IntelliTek broadens global access to AI solutions for healthcare, supporting patient engagement and optimizing healthcare operations across multiple regions.INTERVENT & Members Only Health Contracts: BEN signed with INTERVENT and Members Only Health to deploy AI assistants for health coaching and in-home healthcare, enhancing patient engagement and access.Vybroo & Farmacia Roma Partnership: BEN collaborated with Vybroo and Farmacia Roma to offer AI-driven audio engagement, enhancing brand-consumer relationships through accessible, everyday channels.New SEPA Agreement: BEN entered into a $50 million Standby Equity Purchase Agreement (SEPA) with Yorkville Advisors, providing financial flexibility.Leadership Promotion: Paul Chang was promoted to CEO, reinforcing BEN's commitment to strategic growth and customer-focused initiatives.New Board Member: Dr. Richard S. Isaacs, former CEO of Kaiser Permanente, was appointed to BEN's board of directors, bringing healthcare technology innovation and leadership expertise. Q3 2024 Financial Overview: Revenue Growth: Achieved increase in revenue compared to the same period last year, driven by new partnerships and market expansion.Operational Efficiency: Improved operational metrics through continued cost discipline, resulting in a sequential reduction in operating costs and quarter-over-quarter operating loss improvement, coupled with strategic collaborations and technology advancements.Cash Position: Quarter over-quarter sequential improvement in Cash Flow from Operations driven by disciplined cost management. Implementing the Standby Equity Purchase Agreement (SEPA) provided cost-effective and efficient access to capital and liquidity.Significant subsequent event: In October, the Company announced its agreement to acquire 100% of Cantaneo Gmbh, a leading media technology company based in Germany, for $19.5 million in cash and stock. BEN expects to close this transaction by the end of the year. Conference Call and Webcast Information The Company will host a conference call and webcast today, Thursday, November 14, 2024, at 5:00 p.m. ET. CEO Paul Chang and CFO Bill Williams will lead the call, introducing Tina, one of BEN's AI Assistants. Participants can register here to access the live webcast of the conference call. Those who prefer to join the call via phone can register using this link to receive a dial-in number and unique PIN. The webcast will be archived for one year following the conference call and can be accessed on BEN's investor relations website at https://investors.beninc.ai/. For more information about BEN's safe, intelligent, scalable AI, please visit www.beninc.ai. About BEN Brand Engagement Network Inc. is a global leader in providing secure and reliable conversational AI solutions for businesses and consumers. With offices in Jackson, Wyoming, and Seoul, South Korea, BEN offers a powerful and flexible platform that enhances customer experiences, boosts productivity, and delivers business value. At the heart of BEN's offerings are AI-powered digital assistants and lifelike avatars, providing more personal and engaging experiences through browsers, mobile applications, and even life-size kiosks. These safe, intelligent, and inherently scalable AI solutions empower businesses to efficiently serve customers using validated data delivered through SaaS, Private Cloud, and On-Premises technology. BEN's commitment to data sovereignty ensures that consumer and business data remain private, protected, and wholly owned by the respective parties. BEN's mission is to make AI friendly and helpful for all, ensuring more people benefit from the AI-enhanced world. For more information about BEN's safe, intelligent, scalable AI, please visit www.beninc.ai. Forward-Looking Statements This communication contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are not historical facts, and involve risks and uncertainties that could cause actual results of BEN to differ materially from those expected and projected. These forward-looking statements can be identified by the use of forward-looking terminology, including the words "anticipates," "believes," "continue," "estimates," "expects," "intends," "may," "plans," "potential," "predicts," "projects," "should," "will," or "would," or, in each case, their negative or other variations or comparable terminology. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside BEN's control and are difficult to predict. Factors that may cause such differences include, but are not limited to: uncertainties as to the timing of the acquisition with Cataneo Gmbh (the "Acquisition"); the risk that the Acquisition may not be completed on the anticipated terms in a timely manner or at all; (the failure to satisfy any of the conditions to the consummation of the Acquisition, including the ability to obtain financing to fund the Acquisition on terms that are agreeable to the parties or at all; the possibility that any or all of the various conditions to the consummation of the Acquisition may not be satisfied or waived; the occurrence of any event, change or other circumstance that could give rise to the termination of the purchase agreement; the effect of the announcement or pendency of the transactions contemplated by the purchase agreement on the Company's ability to retain and hire key personnel, its ability to maintain relationships with its customers, suppliers and others with whom it does business, or its operating results and business generally; risks related to diverting management's attention from the Company's ongoing business operations; uncertainty as to the timing of completion of the Acquisition; risks that the benefits of the Acquisition are not realized when and as expected; risks relating to the uncertainty of the projected financial information with respect to BEN; uncertainty regarding and the failure to realize the anticipated benefits from future production-ready deployments; the attraction and retention of qualified directors, officers, employees and key personnel; our ability to grow our customer base; BEN's history of operating losses; BEN's need for additional capital to support its present business plan and anticipated growth; technological changes in BEN's market; the value and enforceability of BEN's intellectual property protections; BEN's ability to protect its intellectual property; BEN's material weaknesses in financial reporting; BEN's ability to navigate complex regulatory requirements; the ability to maintain the listing of BEN's securities on a national securities exchange; the ability to implement business plans, forecasts, and other expectations; the effects of competition on BEN's business; and the risks of operating and effectively managing growth in evolving and uncertain macroeconomic conditions, such as high inflation and recessionary environments. The foregoing list of factors is not exhaustive. BEN cautions that the foregoing list of factors is not exclusive. BEN cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. BEN does not undertake nor does it accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based, and it does not intend to do so unless required by applicable law. Further information about factors that could materially affect BEN, including its results of operations and financial condition, is set forth under "Risk Factors" in BEN's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q subsequently filed with the Securities and Exchange Commission. BEN Contacts: Investor Relations Susan Xu E: [email protected] P: 778-323-0959 Media Contact Amy Rouyer E: [email protected] P: 503-367-7596 Source: Brand Engagement Network, Inc. (BEN) BRAND ENGAGEMENT NETWORK INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS September 30, 2024 December 31, 2023*ASSETS Current assets: Cash and cash equivalents$72,878 $1,685,013 Accounts receivable, net of allowance 30,888 10,000 Due from Sponsor 3,000 -- Prepaid expenses and other current assets 1,075,103 201,293 Total current assets 1,181,869 1,896,306 Property and equipment, net 285,305 802,557 Intangible assets, net 17,006,906 17,882,147 Other assets 13,475,000 1,427,729 TOTAL ASSETS$31,949,080 $22,008,739 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable$5,376,310 $1,282,974 Accrued expenses 4,185,315 1,637,048 Due to related parties 693,036 -- Deferred revenue -- 2,290 Convertible note 1,900,000 -- Short-term debt 891,974 223,300 Total current liabilities 13,046,635 3,145,612 Warrant liabilities 1,150,868 -- Note payable - related party -- 500,000 Long-term debt -- 668,674 Total liabilities 14,197,503 4,314,286 Commitments and contingencies (Note M) Stockholders' equity: Preferred stock par value $0.0001 per share, 10,000,000 shares authorized, none designated. There are no shares issued or outstanding as of September 30, 2024 or December 31, 2023 -- -- Common stock par value of $0.0001 per share, 750,000,000 shares authorized. As of September 30, 2024 and December 31, 2023, respectively, 37,931,764 and 23,270,404 shares issued and outstanding 3,794 2,327 Additional paid-in capital 46,806,699 30,993,846 Accumulated deficit (29,058,916) (13,301,720)Total stockholders' equity 17,751,577 17,694,453 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$31,949,080 $22,008,739 * Derived from audited information The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. BRAND ENGAGEMENT NETWORK INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Revenues$50,000 $ -- $99,790 $ -- Cost of revenues -- -- -- -- Gross profit 50,000 -- 99,790 -- Operating expenses: General and administrative 4,203,946 2,282,434 15,969,617 7,678,880 Depreciation and amortization 972,375 209,729 1,771,966 449,663 Research and development 153,191 75,450 759,427 153,828 Total operating expenses 5,329,512 2,567,613 18,501,010 8,282,371 Loss from operations (5,279,512) (2,567,613) (18,401,220) (8,282,371)Other income (expenses): Interest expense (18,055) (34,507) (62,508) (34,507)Interest income 92 -- 3,324 -- Gain on debt extinguishment 98,318 -- 1,946,310 -- Change in fair value of warrant liabilities (632,969) -- 762,869 -- Other 9,043 19,789 (5,971) (11,961)Other income (expenses), net (543,571) (14,718) 2,644,024 (46,468)Loss before income taxes (5,823,083) (2,582,331) (15,757,196) (8,328,839)Income taxes -- -- -- -- Net loss$(5,823,083) $(2,582,331) $(15,757,196) $(8,328,839)Net loss per common share- basic and diluted$(0.16) $(0.12) $(0.50) $(0.42)Weighted-average common shares - basic and diluted 35,539,043 22,409,790 31,623,082 19,928,947 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. BRAND ENGAGEMENT NETWORK INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) Preferred Stock Common Stock Additional Paid-in Capital Accumulated Deficit Total Stockholders' Equity Shares Par Value Shares Par Value Balance at December 31, 2023 -- $ -- 23,270,404 $2,327 $30,993,846 $(13,301,720) $17,694,453 Stock issued to DHC shareholders in reverse recapitalization -- -- 7,885,220 789 (10,722,277) -- (10,721,488)Issuance of common stock pursuant to Reseller Agreement -- -- 1,750,000 175 13,474,825 -- 13,475,000 Sale of common stock -- -- 645,917 65 6,324,935 -- 6,325,000 Warrant exercises -- -- 40,514 4 15,260 -- 15,264 Stock-based compensation -- -- -- -- 698,705 -- 698,705 Net loss -- -- -- -- -- (6,884,409) (6,884,409)Balance at March 31, 2024 -- -- 33,592,055 3,360 40,785,294 (20,186,129) 20,602,525 Stock issued in settlement of accounts payable and loans payable -- -- 93,333 9 321,999 -- 322,008 Sale of common stock -- -- 877,500 198 1,993,552 -- 1,993,750 Warrant exercises -- -- 13,505 1 4,999 -- 5,000 Stock-based compensation, including vested restricted shares -- -- 381,915 42 768,497 -- 768,539 Net loss -- -- -- -- -- (3,049,704) (3,049,704)Balance at June 30, 2024 -- -- 34,958,308 3,610 43,874,341 (23,235,833) 20,642,118 Issuance of common stock for Standby Equity Purchase Agreement commitment fee -- -- 280,899 28 499,972 -- 500,000 Stock issued in settlement of accrued expenses -- -- 151,261 15 261,667 -- 261,682 Sale of common stock -- -- 602,500 131 1,756,056 -- 1,756,187 Option and warrant exercises -- -- 98,335 10 79,750 -- 79,760 Stock-based compensation, including vested restricted shares -- -- 35,461 -- 334,913 -- 334,913 Net loss -- -- -- -- -- (5,823,083) (5,823,083)Balance at September 30, 2024 -- $ -- 36,126,764 $3,794 $46,806,699 $(29,058,916) $17,751,577 BRAND ENGAGEMENT NETWORK INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) Preferred Stock Common Stock Additional Paid-in Capital Accumulated Deficit Total Stockholders' Deficit Shares Par Value Shares Par Value Balance at December 31, 2022 -- $ -- 17,057,085 $1,705 $1,528,642 $(1,570,454) $(40,107)Warrant exercises -- -- 81,030 8 29,992 -- 30,000 Stock issued in conversion of accounts payable and loans payable -- -- 135,050 14 49,986 -- 50,000 Stock-based compensation -- -- -- -- 2,442,701 -- 2,442,701 Net loss -- -- -- -- -- (2,637,956) (2,637,956)Balance at March 31, 2023 -- -- 17,273,165 1,727 4,051,321 (4,208,410) (155,362)Stock issued for DM Lab APA -- -- 4,325,043 433 16,012,317 -- 16,012,750 Options and warrant exercises -- -- 56,552 10 20,928 -- 20,938 Stock issued in conversion of convertible notes -- -- 378,140 38 1,399,962 -- 1,400,000 Stock issued in settlement of accounts payable and loans payable -- -- 103,439 10 382,953 -- 382,963 Stock-based compensation -- -- -- -- 1,841,767 -- 1,841,767 Net loss -- -- -- -- -- (3,108,552) (3,108,552)Balance at June 30, 2023 -- -- 22,136,339 2,218 23,709,248 (7,316,962) 16,394,504 Options and warrant exercises -- -- 64,993 3 9,997 -- 10,000 Vesting of early exercised options -- -- -- -- 1,563 -- 1,563 Stock issued in conversion of convertible notes -- -- 432,160 43 1,599,957 -- 1,600,000 Sale of common stock, net of issuance costs -- -- 123,333 12 949,988 -- 950,000 Stock-based compensation -- -- -- -- 464,075 -- 464,075 Net loss -- -- -- -- -- (2,582,331) (2,582,331)Balance at September 30, 2023 -- $ -- 22,756,825 $2,276 $26,734,828 $(9,899,293) $16,837,811 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. BRAND ENGAGEMENT NETWORK INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS Nine Months Ended September 30, 2024 2023 Cash flows from operating activities: Net loss$(15,757,196) $(8,328,839)Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization expense 1,771,966 449,663 Allowance for uncollected receivables 30,000 -- Write off of deferred financing fees 1,427,729 -- Change in fair value of warrant liabilities (762,869) -- Gain on debt extinguishment (1,946,310) -- SEPA financing costs 525,000 -- Stock based compensation, including the issuance of restricted shares 1,581,744 4,727,799 Changes in operating assets and liabilities: Prepaid expense and other current assets (856,986) (103,917)Accounts receivable (50,888) 500 Accounts payable 5,393,334 62,373 Accrued expenses (3,019,367) 431,194 Other assets -- 8,850 Deferred revenue (2,290) -- Net cash used in operating activities (11,666,133) (2,752,377)Cash flows from investing activities: Purchase of property and equipment (53,023) (28,465)Purchase of patents -- (379,864)Capitalized internal-use software costs (162,940) (310,944)Asset acquisition (Note D) -- (257,113)Net cash used in investing activities (215,963) (976,386)Cash flows from financing activities: Cash and cash equivalents acquired in connection with the reverse recapitalization 858,292 -- Proceeds from the sale of common stock 10,274,937 1,000,000 Proceeds from convertible notes -- 3,075,000 Proceeds from related party note -- 620,000 Proceeds received from option and warrant exercises 100,024 22,500 Payment of financing costs (883,292) (107,310)Payment of related party note (80,000) -- Advances to related parties -- (39,065)Proceeds received from related party advance repayments -- 138,110 Net cash provided by financing activities 10,269,961 4,709,235 Net (decrease) increase in cash and cash equivalents (1,612,135) 980,472 Cash and cash equivalents at the beginning of the period 1,685,013 2,010 Cash and cash equivalents at the end of the period$72,878 $982,482 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. BRAND ENGAGEMENT NETWORK INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS Nine Months Ended September 30, 2024 2023Supplemental Cash Flow Information Cash paid for interest$ -- $ -- Cash paid for income taxes$ -- $ -- Supplemental Non-Cash Information Capitalized internal-use software costs in accrued expenses$ -- $46,963Issuance of common stock pursuant to Reseller Agreement$13,475,000 $ -- Issuance of common stock for Standby Equity Purchase Agreement commitment fee$500,000 $ -- Stock-based compensation capitalized as part of capitalized software costs$220,413 $20,745Settlement of liabilities into common shares$583,690 $432,963Settlement of accounts payable into convertible note$1,900,000 $ -- Conversion of convertible notes into common shares$ -- $3,000,000Warrants exercise through settlement of accounts payable$ -- $40,000Financing costs in accounts payable and accrued expenses$200,000 $687,609Issuance of common stock in connection with asset acquisition$ -- $16,012,750 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 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Banzai Reports Third Quarter 2024 Financial Results; Annualized Adjusted Net Loss Improvement of $12.2 Million - Banzai International (NASDAQ:BNZI)

Q3 2024 Annual Recurring Revenue Increased by 31% Annualized to $4.4 Million, a 7% Sequential Increase from Q2 2024 Q3 2024 Annualized Adjusted Net Loss Improved by $12.2 Million, a $3.0 Million Sequential Increase to ($1.45) Million, Bringing the Company Closer to Profitability Management to Host Third Quarter 2024 Results Conference Call Today, November 14, 2024 at 5:30 p.m. Eastern Time SEATTLE, Nov. 14, 2024 (GLOBE NEWSWIRE) -- Banzai International, Inc. BNZI ("Banzai" or the "Company"), a leading marketing technology company that provides essential marketing and sales solutions, today reported financial results for the third quarter ended September 30, 2024. Third Quarter 2024 Key Financial & Operational Highlights Q3 2024 Annual Recurring Revenue (ARR) of $4.4 million, a 7% sequential increase from Q2 2024. This represents a 31% annualized ARR growth rate.Q3 2024 Adjusted Net Loss was ($1.45) million, a $3.0 million sequential improvement from Q2 2024 Adjusted Net Loss of ($4.5) million. This represents an annualized improvement of $12.2 million.Net Revenue Retention (NRR) reached a historic high in Q3 2024.Q3 2024 Adjusted EBITDA was ($1.5) million, a $0.5 million sequential improvement from Q2 2024 EBITDA of ($2.0) million. This represents an annualized improvement of $2.0 million.As of September 30, 2024, cash of approximately $4.3 million was at an all-time high.Added 172 customers in September 2024 and 179 customers in October 2024, for a total of 1,785 customers YTD through October 2024.Added 26 Reach customers through October 2024, demonstrating the growth and revenue potential of the Reach product.Launched Curate, an AI-powered newsletter platform designed to streamline content creation and audience engagement for organizations of all sizes. Sold 10 workspace licenses in the initial weeks since launch, demonstrating the tremendous market potential of the Curate product.Expanded partnership with Salesforce, today's industry leading AI CRM company, for smarter webinar campaigns with significant enhancements to its Demio platform through deeper integration with Salesforce.Released enhanced Demio HubSpot integration, delivering a seamless experience, with new updates focused on transforming webinar data management with advanced synchronization and tracking.Launched a comprehensive initiative designed to significantly improve net income by up to $13.5 million annually while maintaining its growth outlook.Entered into agreements with lenders and service providers to restructure and write off up to $28.8 million of outstanding liabilities including write-off of up to $5.6 million of outstanding liabilities and restructuring of a further $19.2 million of its existing debt obligations, substantially improving the Company's overall financial position.Closed a $5 million private placement priced at-the-market under Nasdaq rules.Company's securities were transferred from the Nasdaq Global Market to the Nasdaq Capital Market at the opening of business on October 31, 2024. Outlook The Company anticipates Net Income will be approximately ($0.7) million in Q4 2024 and approximately ($0.7) million in Q1 2025, representing substantial increases driven by a reduction in operating and interest expenses due to the recently announced $28.8 million debt restructuring and $13.5 million Net Income Improvement initiative.The Company anticipates Adjusted EBITDA to be approximately ($1.4) million in Q4 2024, and approximately ($1.1) million in Q1 2025, representing substantially improved runway and progress towards profitability and positive cash-flow. "It is hard to overstate how important the third quarter of 2024 was for Banzai," said Joe Davy, Founder and CEO of Banzai. "We believe this marks a turning point for the Company in many ways. Banzai achieved a 31% annualized Annual Recurring Revenue growth rate and a historic record for Net Revenue Retention. We also made game-changing improvements to our balance sheet and cost structure to set us up for sustainable profitability in the future. Growth was driven by our focus on the Reach product through re-engineering and expanded sales efforts, leading to the addition of 1,785 customers through October 2024. In total, we now serve nearly 3,000 customers that have contributed to top and bottom-line sequential improvements from the second quarter. "To better serve our customers, we have continued to invest in our software platforms and growth. We've launched a new product, Curate, to bring AI-powered newsletters that leverage OpenAI's GPT-4o to automate the newsletter creation process by writing relevant, branded articles that resonate with target audiences. We added significant enhancements to our Demio platform through deeper integration with Salesforce, the industry leading AI CRM company, with key enhancements designed to maximize efficiency and insight, offering marketers a more scalable, data-rich experience. We also released a major improvement to the Demio HubSpot integration. This upgrade offers unparalleled flexibility and efficiency in managing webinar data, empowering marketers to streamline their webinar management and marketing efforts, leading to better decision-making and higher ROI. "Alongside a $5.0 million private placement transaction and debt restructuring transactions we executed, we implemented a strategic initiative that we expect will enable us to significantly improve net income, substantially extend our cash runway and invest in growth. We are making significant progress on these goals and overall improvement in net income is expected to be approximately $12.2 million annually when fully implemented, while maintaining our growth outlook. "Looking ahead, our ability to leverage deep analytics and insights to drive marketing decisions combined with leveraging AI to launch exciting new products and capabilities, will continue to drive growth. We will continue to manage costs efficiently while investing in our software platform, sales and marketing and product development. We look forward to additional updates on our anticipated milestones in the weeks and months to come," concluded Davy. Third Quarter 2024 Financial Results Banzai believes its non-GAAP financial measure ARR is more meaningful in evaluating its performance. The Company's management team evaluates its financial and operating results utilizing this non-GAAP measure. For the three months ended September 30, 2024, ARR increased 7% sequentially, representing a 31% annualized ARR growth rate. Total revenue for the three months ended September 30, 2024, was $1.1 million, a sequential increase of 0.5% from the three months ended June 30, 2024, and a decrease of 2.5% compared to the prior year quarter. Total cost of revenue for the three months ended September 30, 2024 was $0.3 million, compared to $0.3 million in the prior year quarter, a decrease of 1%. The decrease was proportional to the revenue for the corresponding period. Gross profit for the three months ended September 30, 2024, was $0.7 million, compared to $0.8 million in the prior year quarter. Gross margin was 68.7% in the third quarter of 2024, compared to 69.2% in the third quarter of 2023. Total operating expenses for the three months ended September 30, 2024, were $3.5 million, compared to $2.8 million in the prior year quarter. Net loss for the three months ended September 30, 2024, was $8.5 million, compared to $0.8 million in the prior year quarter. The greater net loss is primarily due to the change in fair valuation of various financial instruments related to the debt restructuring in the third quarter of 2024, which increased by approximately $14.5 million over the three months ended September 30, 2024 when compared to the three months ended September 30, 2023. These non-cash valuation charges do not represent present or future cash obligations of the Company, and as a result, the Company believes Adjusted Net Loss is a better representation of the financial performance of the company for the third quarter 2024. Adjusted Net Loss for the three months ended September 30, 2024, was ($1.45) million, compared to ($3.6) million in the prior year quarter. This improvement was driven by improvements to the Company's efficiency and by write-off agreements entered into for certain liabilities, substantially reducing the Company's current and future cash liabilities. Adjusted EBITDA Loss for the three months ended September 30, 2024, was ($1.5) million, compared to Adjusted EBITDA Loss of ($2.0) million for the prior year quarter, representing an improvement of $0.5 million. Nine Month 2024 Financial Results Total revenue for the nine months ended September 30, 2024 and 2023, was $3.2 million and $3.5 million, respectively, a decrease of 7.2%. This decrease is primarily attributable to lower Reach revenue which declined by approximately $44 thousand due to the discontinuation of the legacy Reach 1.0 product, which was discontinued on December 31, 2023. In 2024, Banzai has revitalized its focus on the Reach product through re-engineering and expanded sales efforts. Demio revenue was lower by approximately $0.2 million for the nine months ended September 30, 2024, as compared to the nine months ended September 30, 2023, due to lower new unit sales period-over-period, due to the company's strategic shift to focus on mid-market customers, which the Company hopes will ultimately result in higher Average Customer Value and Net Retention Rate for the Demio product. Demio Net Revenue Retention reached an all-time historic high in the three months ended September 30, 2024. Cost of revenue for the nine months ended September 30, 2024 and 2023 was $1.0 million and $1.1 million, respectively. This represents a decrease of approximately $84 thousand, or approximately 7.4%, for the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023. This decrease is due primarily to the company's focus on Mid-Market customers that led to an approximately 12% higher average cost per customer, driven by the increase in the streaming services costs of approximately $150 thousand that were offset by lower infrastructure costs / data licenses of approximately $117 thousand, payroll and contracted services of approximately $98 thousand, and merchant fee costs of approximately $12 thousand. Gross profit for the nine months ended September 30, 2024 and 2023 was $2.2 million and $2.3 million, respectively. This represents a decrease of approximately $167 thousand, or approximately 7.1%, which was due to the decreases in revenue of approximately $251 thousand and decreases in cost of revenue of approximately $84 thousand described above. Gross margin for the nine months ended September 30, 2024 and 2023 was 67.5% and 67.4%, respectively. Total operating expenses for the nine months ended September 30, 2024 and 2023, were $11.7 million and $8.9 million, respectively, an increase of 31.1%. This increase was due primarily to an overall increase in salaries and related expenses by approximately $0.3 million, marketing expenses by approximately $0.6 million, costs associated with audit, technical accounting, and legal and other professional services of approximately $1.6 million. The company has implemented a plan to reduce annualized operating expenses by up to $13.5 million by the end of the first quarter 2025. Net loss for the nine months ended September 30, 2024 and 2023, was $23.7 million and $8.0 million, respectively. The greater net loss is primarily due to an increase in total other expenses of approximately $12.6 million, an increase in operating expenses of approximately $2.8 million, and a decrease in gross profit of approximately $0.2 million during the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023. Adjusted Net Loss for the nine months ended September 30, 2024 and 2023, was ($10.0) million and ($10.0) million, respectively. Net cash used in operating activities for the nine months ended September 30, 2024, was $11.9 million, compared to $5.8 million for the nine months ended September 30, 2023. Cash totaled $4.3 million as of September 30, 2024, compared to $2.1 million as of December 31, 2023, representing a historic high. End-of-Year 2024 Target Banzai targets December 2024 ARR to be $8.1 - $10 million, based on the Company's March 2024 ARR, organic growth during the year as demonstrated by year-to-date 2024 customer wins and reactivations, and currently signed non-binding LOIs to acquire other marketing technology businesses. The midpoint target, or $9.1 million, foresees a 97% increase in ARR, which would be attributable to both organic growth and the acquisitions currently under LOI. Banzai's management anticipates tracking the Company's progress to its targeted December 2024 ARR as part of the Company's 2024 quarterly earnings reports. Annual recurring revenue refers to revenue, normalized on an annual basis, that Banzai expects to receive from its customers for providing them with products or services. The December 2024 ARR information provided above is based on Banzai's current estimates of internal growth, the completion of acquisitions, and those companies contributing ARR based on current levels, and is not a guarantee of future performance. These statements are forward-looking and actual ARR may differ materially. Refer to the "Forward-Looking Statements" section below for information on the factors that could cause Banzai's actual ARR to differ materially from these forward-looking statements. Third Quarter 2024 Results Conference Call Banzai Founder & CEO Joe Davy and Interim CFO Alvin Yip will host the conference call, followed by a question-and-answer session. The conference call will be accompanied by a presentation, which can be viewed during the webcast or accessed via the investor relations section of the Company's website here. To access the call, please use the following information: Date:Thursday, November 14, 2024Time:5:30 p.m. Eastern Time, 2:30 p.m. Pacific TimeToll-free dial-in number:1-877-425-9470International dial-in number:1-201-389-0878Conference ID:13749747 Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact MZ Group at 1-949-491-8235. The conference call will be broadcast live and available for replay at https://viavid.webcasts.com/starthere.jsp?ei=1694251&tp_key=65eec38e9b and via the investor relations section of the Company's website here. A replay of the webcast will be available after 9:30 p.m. Eastern Time through February 14, 2025. Toll-free replay number:1-844-512-2921International replay number:1-412-317-6671Replay ID:13749747 About Banzai Banzai is a marketing technology company that provides essential marketing and sales solutions for businesses of all sizes. On a mission to help their customers achieve their mission, Banzai enables companies of all sizes to target, engage, and measure both new and existing customers more effectively. Banzai customers include Square, Hewlett Packard Enterprise, Thermo Fisher Scientific, Thinkific, Doodle and ActiveCampaign, among thousands of others. Learn more at www.banzai.io. For investors, please visit https://ir.banzai.io. This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often use words such as "believe," "may," "will," "estimate," "target," "continue," "anticipate," "intend," "expect," "should," "would," "propose," "plan," "project," "forecast," "predict," "potential," "seek," "future," "outlook," and similar variations and expressions. Forward-looking statements are those that do not relate strictly to historical or current facts. Examples of forward-looking statements may include, among others, statements regarding Banzai International, Inc.'s (the "Company's"): future financial, business and operating performance and goals; annualized recurring revenue and customer retention; ongoing, future or ability to maintain or improve its financial position, cash flows, and liquidity and its expected financial needs; potential financing and ability to obtain financing; acquisition strategy and proposed acquisitions and, if completed, their potential success and financial contributions; strategy and strategic goals, including being able to capitalize on opportunities; expectations relating to the Company's industry, outlook and market trends; total addressable market and serviceable addressable market and related projections; plans, strategies and expectations for retaining existing or acquiring new customers, increasing revenue and executing growth initiatives; and product areas of focus and additional products that may be sold in the future. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Forward-looking statements are not guarantees of future performance, and our actual results of operations, financial condition and liquidity and development of the industry in which the Company operates may differ materially from those made in or suggested by the forward-looking statements. Therefore, investors should not rely on any of these forward-looking statements. Factors that may cause actual results to differ materially include changes in the markets in which the Company operates, customer demand, the financial markets, economic, business and regulatory and other factors, such as the Company's ability to execute on its strategy. More detailed information about risk factors can be found in the Company's Annual Report on Form 10-K and the Company's Quarterly Reports on Form 10-Q under the heading "Risk Factors," and in other reports filed by the Company, including reports on Form 8-K. The Company does not undertake any duty to update forward-looking statements after the date of this press release. Investor Relations Chris Tyson Executive Vice President MZ Group - MZ North America 949-491-8235 [email protected] www.mzgroup.us Media Rachel Meyrowitz Director, Demand Generation, Banzai [email protected] BANZAI INTERNATIONAL, INC. Condensed Consolidated Balance Sheets September 30, 2024 December 31, 2023 (Unaudited) ASSETS Current assets: Cash $4,263,567 $2,093,718 Accounts receivable, net of allowance for credit losses of $5,694 and $5,748, respectively 37,386 105,049 Prepaid expenses and other current assets 753,746 741,155 Total current assets 5,054,699 2,939,922 Property and equipment, net 918 4,644 Goodwill 2,171,526 2,171,526 Operating lease right-of-use assets 2,386 134,013 Other assets 38,381 38,381 Total assets 7,267,910 5,288,486 LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities: Accounts payable 9,997,052 6,439,863 Accrued expenses and other current liabilities 3,633,072 5,194,240 Convertible notes (Yorkville) -- 1,766,000 Convertible notes - related party -- 2,540,091 Convertible notes 3,517,742 2,693,841 Notes payable 7,083,905 6,659,787 Notes payable - related party -- 2,505,137 Notes payable, carried at fair value 1,393,592 -- Deferred underwriting fees 4,000,000 4,000,000 Deferred fee -- 500,000 Warrant liability 79,000 641,000 Warrant liability - related party 230,000 575,000 Earnout liability 37,125 59,399 Due to related party 167,118 67,118 GEM commitment fee liability -- 2,000,000 Deferred revenue 1,220,572 1,214,096 Operating lease liabilities, current 2,352 234,043 Total current liabilities 31,361,530 37,089,615 Other long-term liabilities 75,000 75,000 Total liabilities 31,436,530 37,164,615 Commitments and contingencies (Note 14) Stockholders' deficit: Common stock, $0.0001 par value, 275,000,000 shares authorized and 3,760,174 and 2,585,297 issued and outstanding at September 30, 2024 and December 31, 2023, respectively 410 259 Preferred stock, $0.0001 par value, 75,000,000 shares authorized, 0 shares issued and outstanding at September 30, 2024 and December 31, 2023 -- -- Additional paid-in capital 39,297,867 14,889,936 Accumulated deficit (63,466,897) (46,766,324)Total stockholders' deficit (24,168,620) (31,876,129)Total liabilities and stockholders' deficit $7,267,910 $5,288,486 BANZAI INTERNATIONAL, INC. Unaudited Condensed Consolidated Statements of Operations For the Three Months Ended September 30, For the Nine Months Ended September 30, 2024 2023 2024 2023 Operating income: Revenue $1,080,607 $1,108,412 $3,228,276 $3,478,794 Cost of revenue 338,023 341,151 1,049,411 1,132,671 Gross profit 742,584 767,261 2,178,865 2,346,123 Operating expenses: General and administrative expenses 2,942,008 2,838,052 11,569,951 8,937,265 Depreciation expense 900 1,571 3,725 5,596 Total operating expenses 2,942,908 2,839,623 11,573,676 8,942,861 Operating loss (2,200,324) (2,072,362) (9,394,811) (6,596,738) Other expenses (income): GEM settlement fee expense 60,000 -- 260,000 -- Other expense (income), net (62,927) 14,114 (2,900) (70,569)Interest income -- -- (10) (111)Interest expense 495,679 820,096 1,343,097 1,879,394 Interest expense - related party 589,614 678,398 1,552,601 1,614,085 Gain on extinguishment of liability (22,282) -- (550,262) -- Loss on debt issuance -- -- 171,000 -- Loss on debt issuance of term notes 381,000 -- 381,000 -- Loss on debt issuance of convertible notes -- -- -- -- Loss on conversion and settlement of Alco promissory notes 4,808,882 -- 4,808,882 -- Loss on conversion and settlement of CP BF notes -- -- -- -- Change in fair value of warrant liability -- -- (562,000) -- Change in fair value of warrant liability - related party -- -- (345,000) -- Change in fair value of simple agreement for future equity -- (276,436) -- (184,993)Change in fair value of simple agreement for future equity - related party -- (3,139,564) -- (1,927,007)Change in fair value of bifurcated embedded derivative liabilities -- 198,728 -- 36,500 Change in fair value of bifurcated embedded derivative liabilities - related party -- 413,272 -- 72,359 Change in fair value of convertible notes (77,000) -- 501,000 -- Change in fair value of term notes 66,813 -- 66,813 -- Change in fair value of convertible bridge notes -- -- -- -- Yorkville prepayment premium expense 14,000 -- 94,760 -- Total other expenses (income), net 6,253,779 (1,291,392) 7,718,981 1,419,658 Loss before income taxes (8,454,103) (780,970) (17,113,792) (8,016,396)Income tax expense 1,010 1,332 6,701 17,081 Net loss $(8,455,113) $(782,302) $(17,120,493) $(8,033,477) Net loss per share Basic and diluted $(2.68) $(0.33) $(5.99) $(3.36) Weighted average common shares outstanding Basic and diluted 3,150,057 2,394,122 2,857,350 2,394,067 BANZAI INTERNATIONAL, INC. Unaudited Condensed Consolidated Statements of Cash Flow For the Nine Months Ended September 30, 2024 2023 Cash flows from operating activities: Net loss $(17,120,493) $(8,033,477)Adjustments to reconcile net loss to net cash used in operating activities: Depreciation expense 3,726 5,596 Provision for credit losses on accounts receivable 54 3,879 Non-cash share issuance for marketing expenses -- -- Non-cash settlement of GEM commitment fee 200,000 -- Non-cash share issuance for Yorkville redemption premium -- -- Non-cash interest expense 379,354 914,944 Non-cash interest expense - related party 261,775 345,382 Amortization of debt discount and issuance costs 68,459 646,684 Amortization of debt discount and issuance costs - related party 873,728 1,268,703 Amortization of operating lease right-of-use assets 131,627 129,705 Stock based compensation expense 665,409 830,791 Gain on extinguishment of liability (550,262) -- Loss on debt issuance 171,000 -- Loss on debt issuance of term notes 381,000 -- Loss on debt issuance of convertible notes -- -- Change in fair value of warrant liability (562,000) -- Change in fair value of warrant liability - related party (345,000) -- Change in fair value of simple agreement for future equity -- (184,993)Change in fair value of simple agreement for future equity - related party -- (1,927,007)Change in fair value of bifurcated embedded derivative liabilities -- 36,500 Change in fair value of bifurcated embedded derivative liabilities - related party -- 72,359 Change in fair value of convertible promissory notes 501,000 -- Change in fair value of term notes 66,813 -- Change in fair value of convertible bridge notes -- -- Changes in operating assets and liabilities: Accounts receivable 67,609 (29,861)Deferred contract acquisition costs, current -- 48,191 Prepaid expenses and other current assets (12,591) 120,459 Deferred offering costs -- (766,409)Accounts payable 3,557,189 1,296,098 Deferred revenue 6,476 (39,428)Accrued expenses (432,073) (128,027)Operating lease liabilities (231,691) (211,204)Earnout liability (22,274) (206,985)Net cash used in operating activities (11,941,165) (5,808,100)Cash flows from financing activities: Payment of GEM commitment fee (1,200,000) -- Repayment of convertible notes (Yorkville) (750,000) -- Proceeds from related party advance 100,000 -- Proceeds from term notes, net of issuance costs 1,000,000 -- Repayment of notes payable, carried at fair value (412,421) -- Proceeds from Yorkville redemption premium 35,040 -- Proceeds from issuance of promissory notes - related party -- 1,150,000 Proceeds from issuance of convertible notes, net of issuance costs 2,502,000 1,485,000 Proceeds from issuance of convertible notes, net of issuance costs - related party -- 2,533,000 Proceeds received for exercise of Pre-Funded warrants 17 -- Proceeds from issuance of common stock and warrants 6,257,370 13,362 Net cash provided by financing activities 7,532,006 5,181,362 Net decrease in cash (4,409,159) (626,738)Cash at beginning of period 2,093,718 1,023,499 Cash at end of period $(2,315,441) $396,761 Supplemental disclosure of cash flow information: Cash paid for interest 306,109 313,813 Cash paid for taxes 5,075 8,825 Non-cash investing and financing activities Shares issued to Roth for advisory fee 578,833 -- Shares issued to GEM 529,943 -- Shares issued for marketing expenses 334,772 -- Shares issued to MZHCI for investor relations services 94,800 -- Shares issued to J.V.B for payment of outstanding debt 115,000 -- Settlement of GEM commitment fee 200,000 -- Shares issued to Yorkville for commitment fee 500,000 -- Shares issued to Yorkville for redemption premium 115,800 Shares issued for exercise of Pre-Funded warrants 866 Issuance of convertible promissory note - GEM 1,000,000 -- Conversion of convertible notes - Yorkville 2,002,000 -- Conversion of convertible notes - related party 2,540,091 -- Bifurcated embedded derivative liabilities at issuance -- 623,065 Bifurcated embedded derivative liabilities at issuance -- related party -- 1,062,776 Market News and Data brought to you by Benzinga APIs

Airship AI Reports Third Quarter 2024 Financial Results - Airship AI Holdings (NASDAQ:AISP)

Third Quarter 2024 Net Revenues of $2.9 Million, Gross Profit of $2.2 Million and Gross Margin of 75% 2024 Net Revenue of $19.9 Million Through the 9 Months ended September 30, 2024 Represents a 61% Increase over FY 2023 Net Revenue of $12.3 Million New Pro-U.S. Border Security Administration Provides Additional Macro Tailwinds for 2025 & Beyond REDMOND, Wash., Nov. 14, 2024 (GLOBE NEWSWIRE) -- Airship AI Holdings, Inc. AISP ("Airship AI" or the "Company"), a leader in AI-driven video, sensor, and data management surveillance solutions, today reported its financial and operational results for the third quarter ended September 30, 2024. Q3 2024 Financial Highlights Net revenues for the quarter ended September 30, 2024, were $2.9 million. Gross profits for the quarter ended September 30, 2024, were $2.2 million. Gross margin percentage was 75% for the quarter ended September 30, 2024. Higher margins were in part due to product mix, with reduced equipment purchases and increased Outpost AI sales. Operating loss was $1.6 million for the quarter ended September 30, 2024, which reflected increased stock based compensation and overall sales levels. Other income for the quarter ended September 30, 2024, was $7.8 million, primarily due to a gain from a change in the fair value of earnout liability of $5.5 million, change in fair value of warrant liability of $1.5 million and change in fair value of convertible debt of $0.4 million. Net income for the quarter ended September 30, 2024, was $6.2 million, or $0.25 per basic share, primarily related to noncash income of $7.8 million. Net cash used in operating activities was $0.4 million in the quarter ended September 30, 2024. Cash and cash equivalents was $6.5 million as of September 30, 2024. Closed an $8 million public offering with net proceeds of approximately $7.3 million, after deducting the estimated offering expenses, in the quarter ended September 30, 2024. Q3 2024 & Subsequent Operational Highlights Backlog as of September 30, 2024, was $6.6 million, representing firm fixed price contracts awarded in the second and third quarter that will be shipped and invoiced in the fourth quarter of 2024 or first quarter of 2025. Backlog is not indicative of future quarterly revenue as approximately 75% of quarterly revenue is transactional and recognized in the same quarter.Our total validated pipeline at the end of the quarter was approximately $130 million, consisting of single and multi-year opportunities for AI-driven edge, video, and sensor and data management platform across all our customer verticals. Our pipeline includes opportunities at varying stages of progression with expected award timeframes throughout the next 18-24 months.Due to the sensitive nature of many of our customers and deployment use cases, we are often restricted from publicly disclosing awards and or limited as to the specifics of the customer and use case. Consequently, the vast majority of our awards are executed on closed or restricted contract vehicles which further limits the sharing of information that might be otherwise available.Multiple large contracts awarded throughout the quarter including but not limited to: $4.0 million firm-fixed price contract for an agency within the U.S. Department of Homeland Security ("DHS"), for advanced integrated solutions supporting real-time intelligence collection operations along the United States' borders, leveraging the Company's edge IoT appliance, Outpost AI.$1.2 million firm-fixed price support and maintenance contract for our existing deployment of Acropolis Enterprise Video and Data Management Platform supporting a Fortune 100 Transportation and E-Commerce company' global operations. We successfully completed a pilot opportunity to replace failing capabilities within critical infrastructure on the U.S. southern border, leading to an Airship AI brand-name only award that will be shipped and installed in the fourth quarter of 2024. This initial award is in support of our single-largest opportunity, valued at more than $50 million over the next four (4) years. Estimated total contract value is conservatively based on data points from published market research, including size and scope, and pricing approved via awarded procurement efforts.We participated in JIFX, or Joint Interagency Field Exercise, an invite only event led by the Naval Post-Graduate School. The JIFX team leads experimentation in alternative methods to enable rapid technological development by cultivating a community of interest and hosting broadly scoped quarterly collaborative field events which enable DoD, US government, and allied stakeholders to identify, influence, and accelerate early-stage technology development that address national and collective security challenges.We participated in TIDE, or Technology Innovation Discovery Event, an invite only Department of Defense (DoD) sponsored event that aims to help innovative small businesses and non-traditional DoD performers showcase new hardware and software technologies that can significantly improve existing software or meet new challenges in support of the National Defense Strategy.We were a primary sponsor of and participant in UTAC, the premier unmanned aerial and robotic systems tactical event for Police, Public Safety, Government, and Defense agencies. UTAC is a fully immersive training event where public safety, government, enterprise, and defense operators gather to learn best practices, establish procedures, and gain experience with the latest innovations in unmanned aerial, ground, and maritime systems along augmenting technical solutions.Completed $8.0 million at-market public offering with net proceeds to the company of $7.0 million after deducting placement agent fees and offering expenses. Capital Markets Update: Airship AI to commence regular quarterly conference calls in conjunction with financial results reporting in Fiscal 2025.Airship AI to participate at the 13th Annual ROTH Technology Conference in New York City on November 19-20, 2024.Benchmark Company initiated coverage of Airship AI on November 13, 2024, with a Buy rating and price target of $6.Airship AI to participate at the 13th Annual Discovery One-on-One Conference in New York City on December 11, 2024. 2024 Outlook Triple-digit revenue growth and positive cash flow for calendar year 2024 supported by a strong and validated pipeline of ~$130 million, improving gross profit margins, and a strong recurring revenue model. Make tactical and strategic investments across our sales and business development organizations through organic cash flow from business operations and the cash exercise of public warrants. Release new Outpost AI product offerings as well as expand custom trained AI models supporting emerging edge analytic workflows. Continued innovation across our core Acropolis software platform supporting new workflows for cloud-based deployments in highly secure operational environments. Develop and execute expansionary opportunities in the commercial and retail markets, particularly around those companies involved in combating organized retail crime ("ORC"). Improve sourcing, supply chain management and production-based process efficiencies to help drive continued margin expansion. Targeted focus on brand awareness and engagement in new verticals through targeted marketing outreach opportunities, social media platforms, Airship AI hosted technology events, and industry tradeshow events. Management Commentary "The third quarter of 2024 saw continued momentum in support of our trajectory for triple-digit revenue growth for the full year," said Paul Allen, President of Airship AI. "Our team was able to generate solid revenues for the quarter of $2.9 million at a gross margin percentage of 75%, our second consecutive quarter of gross margin percentages above 70%. We ended the quarter with $6.5 million in cash and cash equivalents and $1.1 million in accounts receivables. "Historically, our third quarter tends to be slower due to the focus on the U.S. Government's fiscal year-end, during which many of our larger opportunities go out for bid in the September timeframe. We also saw several large opportunities pushed out to FY 2025 or drastically cut due to budget challenges across several federal agencies. Additionally, the completion of the capital raise late in the quarter caused delays in bringing in several opportunities as the funds were needed to cover the cost of goods sold for those opportunities. Despite these headwinds, we achieved 18% year-over-year growth in net revenue for the quarter and 61% net revenue growth as compared to full year 2023 revenue of $12.3 million. "While our recently completed capital raise did not close in time to be reflected in the Q3 results, it has significantly enhanced our ability to execute large transactions, particularly those involving substantial up-front costs of goods sold. The capital raise has also enabled us to expand our sales, business development, and partner marketing capabilities by bringing in specialized industry expertise and experience in managing large-scale defense programs. We have already made progress toward this objective with the addition of several high-caliber team members, and we are in the process of bringing on even more talent to further strengthen our capabilities. "With former President Trump's election as president-elect and his stated commitment to rapidly increase investments in securing the border, we are already seeing a positive shift in the market dynamics surrounding our pipeline. Currently our pipeline is heavily weighted to initiatives directly supporting the Department of Homeland Security (DHS) and specifically Customs and Border Protection (CBP). This positions us exceptionally well to capitalize on increased investments in technology supporting securing the border as it leverages our strong relationship as an established, trusted partner of CBP, with a proven track record of successful software and hardware deployments across the agency. "Building on our established presence in the federal law enforcement investigative environment, our rapidly expanding footprint in the broader federal market, including the Department of Defense (DoD), positions us to capitalize on the growing demand for AI-driven capabilities at the edge, an area where we have made significant investments. By transforming existing "dumb" sensors that require constant monitoring into autonomous systems that proactively alert users when specific conditions are met, we are not only revolutionizing homeland security, but also enhancing digital operations on battlefields worldwide," concluded Mr. Allen. About Airship AI Holdings, Inc. Founded in 2006, Airship AI AISP is a U.S. owned and operated technology company headquartered in Redmond, Washington. Airship AI is an AI-driven video, sensor and data management surveillance platform that improves public safety and operational efficiency for public sector and commercial customers by providing predictive analysis of events before they occur and meaningful intelligence to decision makers. Airship AI's product suite includes Outpost AI edge hardware and software offerings, Acropolis enterprise management software stack, and Command family of visualization tools. For more information, visit https://airship.ai. The disclosure herein includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "would," "plan," "project," "forecast," "predict," "potential," "seem," "seek," "future," "outlook," and similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward looking. These forward-looking statements include, but are not limited to, (1) statements regarding estimates and forecasts of financial, performance and operational metrics and projections of market opportunity; (2) changes in the market for Airship AI's services and technology, expansion plans and opportunities; (3) the projected technological developments of Airship AI; and (4) current and future potential commercial and customer relationships. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of Airship AI's management and are not predictions of actual performance. These forward-looking statements are also subject to a number of risks and uncertainties, as set forth in the section entitled "Risk Factors" in its Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on April 1, 2024, and the other documents that the Company has filed, or will file, with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. In addition, forward looking statements reflect the Company's expectations, plans or forecasts of future events and views as of the date of this press release. The Company anticipates that subsequent events and developments will cause its assessments to change. However, while it may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company's assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements. Investor Contact: Chris Tyson/Larry Holub MZ North America 949-491-8235 [email protected] AIRSHIP AI HOLDINGS, INC.CONSOLIDATED BALANCE SHEETSAs of September 30, 2024 and December 31, 2023 September 30, 2024 December 31, 2023 ASSETS(Unaudited) CURRENT ASSETS: Cash and cash equivalents$6,515,688 $3,124,413 Accounts receivable, net of allowance for credit losses of $0 1,121,862 1,648,904 Prepaid expenses and other 373,498 18,368 Income tax receivable - 7,230 Total current assets 8,011,048 4,798,915 PROPERTY AND EQUIPMENT, NET - 1,861 OTHER ASSETS Other assets 155,432 182,333 Operating lease right of use asset 929,890 1,104,804 TOTAL ASSETS$9,096,370 $6,087,913 LIABILITIES AND STOCKHOLDERS' DEFICIT CURRENT LIABILITIES: Accounts payable - trade$722,742 $2,908,472 Advances from founders 1,750,000 1,750,000 Accrued expenses 121,978 200,531 Senior Secured Convertible Promissory Notes 1,793,360 2,825,366 Current portion of operating lease liability 267,660 174,876 Deferred revenue- current portion 3,326,543 4,008,654 Total current liabilities 7,982,283 11,867,899 NON-CURRENT LIABILITIES: Operating lease liability, net of current portion 718,393 943,702 Warrant liability 3,501,543 667,985 Earnout liability 6,229,390 5,133,428 Deferred revenue- non-current 3,585,344 4,962,126 Total liabilities 22,016,953 23,575,140 COMMITMENTS AND CONTINGENCIES (Note 9) STOCKHOLDERS' DEFICIT: Preferred stock - no par value, 5,000,000 shares authorized, 0 shares issued and outstanding as of September 30, 2024 and December 31, 2023 - - Common stock - $0.0001 par value, 200,000,000 shares authorized, 26,954,871 and 22,812,048 shares issued and outstanding as of September 30, 2024 and December 31, 2023 2,692 2,281 Additional paid in capital 11,845,413 - Accumulated deficit (24,765,218) (17,476,700)Accumulated other comprehensive loss (3,470) (12,808)Total stockholders' deficit (12,920,583) (17,487,227) TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT$9,096,370 $6,087,913 AIRSHIP AI HOLDINGS, INC.CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS)For the three and nine months ended September 30, 2024 and 2023 (Unaudited) Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 NET REVENUES: Product$1,730,521 $910,441 $16,525,515 $4,415,386 Post contract support 1,137,128 1,473,915 3,318,180 3,677,585 2,867,649 2,384,356 19,843,695 8,092,971 COST OF NET REVENUES: Cost of Sales 285,448 439,565 9,381,244 2,575,523 Post contract support 428,820 342,869 1,174,737 1,437,910 714,268 782,434 10,555,981 4,013,433 GROSS PROFIT 2,153,381 1,601,922 9,287,714 4,079,538 RESEARCH AND DEVELOPMENT EXPENSES 1,073,735 688,798 2,471,872 2,028,081 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 2,667,130 2,142,327 8,829,544 8,067,343 TOTAL OPERATING EXPENSES 3,740,865 2,831,125 11,301,416 10,095,424 OPERATING LOSS (1,587,484) (1,229,203) (2,013,702) (6,015,886)OTHER INCOME (EXPENSE): Gain (loss) from change in fair value of earnout liability 5,511,961 - (1,095,962) - Gain (loss) from change in fair value of warrant liability 2,471,186 - (2,833,558) - Gain (loss) from change in fair value of convertible debt 370,548 (400,921) (141,636) (400,921)Loss on note conversion (434,797) - (593,591) - Interest expense, net (133,824) (33,761) (587,149) (57,830)Other income (expense) 16,366 (2,722) (22,922) (7,425)Total other income (expense), net 7,801,440 (437,404) (5,274,818) (466,176) INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES 6,213,956 (1,666,607) (7,288,520) (6,482,062) Provision for income taxes - - - - NET INCOME (LOSS) 6,213,956 (1,666,607) (7,288,520) (6,482,062) OTHER COMPREHENSIVE INCOME (LOSS) Foreign currency translation income (loss), net 354 (2,410) 9,338 40,141 TOTAL COMPREHENSIVE INCOME (LOSS)$6,214,310 $(1,669,017) $(7,279,182) $(6,441,921) NET INCOME (LOSS) PER SHARE: Basic$0.25 $(0.07) $(0.31) $(0.28)Diluted$0.17 $(0.07) $(0.31) $(0.28) Weighted average shares of common stock outstanding Basic 24,696,425 22,812,048 23,609,189 22,812,048 Diluted 35,445,694 22,812,048 23,609,189 22,812,048 AIRSHIP AI HOLDINGS, INC.CONSOLIDATED STATEMENTS OF CASH FLOWSFor the nine months ended September 30, 2024 and 2023(Unaudited) Nine Months Ended Nine Months Ended September 30, 2024 September 30, 2023 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss$(7,288,520) $(6,482,062)Adjustments to reconcile net loss to net cash used in operating activities Depreciation and amortization 1,861 11,160 Stock-based compensation 803,797 479,913 Stock-based compensation- warrants 284,478 2,136,115 Amortization of operating lease right of use asset 174,914 513,234 Accelerated amortization of ROU asset - lease termination - 265,130 Gain from lease termination - (344,093)Issuance of common stock for services 198,500 - Noncash interest expense 520,758 - Loss from change in fair value of warrant liability 2,833,558 - Loss from change in fair value of earnout liability 1,095,962 - Loss from change in fair value of convertible note 141,636 400,921 Loss on note conversions 593,591 - Changes in operating assets and liabilities: Accounts receivable 527,042 104,814 Prepaid expenses and other 132,512 (295)Other assets 26,901 (255,431)Operating lease liability (132,525) (461,203)Payroll and income tax receivable 7,230 960,383 Accounts payable - trade and accrued expenses (2,261,087) 377,519 Accrued income tax expense - (10,000)Deferred revenue (2,058,893) (220,144)NET CASH USED IN OPERATING ACTIVITIES (4,398,285) (2,524,039) CASH FLOWS FROM FINANCING ACTIVITIES: Issuance of common stock and warrants for offering, net 7,290,000 - Proceeds from convertible promissory note - 1,984,582 Proceeds from warrant exercise 294,049 - Advances from founders, net - 1,150,000 Proceeds from stock option exercises 196,173 - Repayment of small business loan and line of credit - (424,540) NET CASH PROVIDED BY FINANCING ACTIVITIES 7,780,222 2,710,042 NET INCREASE IN CASH AND CASH EQUIVALENTS 3,381,937 186,003 Effect from exchange rate on cash 9,338 (2,244) CASH AND CASH EQUIVALENTS, beginning of period 3,124,413 298,614 CASH AND CASH EQUIVALENTS, end of period$6,515,688 $482,373 Supplemental disclosures of cash flow information: Interest paid$- $21,438 Taxes paid$2,410 $17,247 Noncash investing and financing Elimination of advances to founders in connection with contribution of Zeppelin by shareholders$- $1,100,000 Elimination of payables to founders in connection with contribution of Zeppelin by shareholders$- $1,100,000 Issuance of common stock for debt interest payment$487,642 $- Issuance of common stock for debt conversion$1,770,340 $- Recognition of warrant liability$- $15,418 Market News and Data brought to you by Benzinga APIs

Matterport Announces Record Third Quarter 2024 Financial Results - Matterport (NASDAQ:MTTR)

Record total revenue of $43.8 million, up 8% year-over-year Q3 annualized recurring revenue crosses $100 million milestone, up 11% year-over-year Net loss improved 14% year-over-year; Non-GAAP net loss improved 80% year-over-year Total subscribers grew to 1.1 million, up 25% year-over-year Square feet under management reached 47.3 billion, up 34% from prior year SUNNYVALE, Calif., Nov. 12, 2024 (GLOBE NEWSWIRE) -- Matterport, Inc. MTTR ("Matterport" or the "Company"), the leading spatial data company driving the digital transformation of the built world, today announced financial results for the quarter ended September 30, 2024. "I'm pleased to share our third-quarter 2024 results, highlighting our continued success driving efficient growth," said RJ Pittman, Chairman and CEO of Matterport. "Total square feet managed reached 47.3 billion, up 34% year-over-year, with annual recurring revenue hitting a record $101.5 million, an 11% increase year-over-year," Pittman added. "Our Fall 2024 Release introduced groundbreaking AI-powered tools designed to elevate digital twin applications and real estate listings. With one-click defurnishing and automated property descriptions from a Matterport digital twin, customers save time, streamline workflows, and enhance their listings. Features like 3D model merge, field tags, and bill-back processing bring unmatched speed, efficiency, and precision to managing spaces at scale for agents, contractors, and enterprise teams alike." "We believe our innovation pipeline is the strongest it's ever been, and with customers raving about our Fall 2024 Release, we're setting the stage for more bold, product-led growth in 2025," Pittman concluded. "Our strong third quarter performance propelled the company to a new record for total revenue, $43.8 million, up 8% year-over-year," said JD Fay, Chief Financial Officer of Matterport. "Further, our continued focus on operating expense discipline helped deliver near break-even results, yielding a non-GAAP loss per share of just $0.01. These results demonstrate that customers continue to adopt Matterport while underscoring our commitment to growth and profitability." Third Quarter 2024 Financial Highlights Square feet under management reached 47.3 billion, up 34% year-over-year Spaces under management reached 13.6 million, up 22% year-over-year Total subscribers reached 1.1 million, up 25% year-over-year Subscription revenue of $25.4 million, up 11% year-over-year Annualized Recurring Revenue (ARR) was $101.5 million Total revenue was $43.8 million Net loss of $0.12 per share; Non-GAAP net loss of $0.01 per share, which is a 75% improvement year-over-year Cash used in operating activities was $18.6 million for the first nine months of 2024, a 61% improvement year-over-year Recent Business Highlights Announced the Fall 2024 Release, a groundbreaking suite of new tools designed to reshape the way professionals design, build, and market properties. Through the power of generative AI, Matterport users can now easily reimagine the potential of any space, transforming digital twins from static replicas into dynamic canvases for creativity. Announced that Matterport is contributing to the promotion of digital twin use by Tokyu Construction Co., Ltd., an advanced digital utilization company in civil engineering and infrastructure construction. Matterport's digital twin solutions are used in a wide range of phases of construction projects, including current status surveys, completed form management, streamlining and enhancing the scanning of point cloud data, and facilitating consensus building and communication among construction-related parties. In August, Matterport released its third Environmental, Social, and Governance Report which sets ambitious targets for the Company's top ESG priorities, including reducing emissions and fostering gender equality in the workplace. The new Report also showcases the Company's success helping its more than one million subscribers reduce their own carbon emissions by using Matterport's digital twins to reduce travel to the more than 13 million spaces that are on the Matterport digital twin platform. Transaction with CoStar Group, Inc. Given the pending acquisition of Matterport by CoStar Group, Inc. that was announced on April 22, 2024, Matterport will not be holding a conference call or live webcast to discuss quarterly financial results. Also, in light of the pending transaction, the Company had previously suspended its financial guidance for the full fiscal year 2024 and will not be providing financial guidance for the upcoming fiscal quarter. At a special meeting of stockholders held on July 26, 2024, Matterport stockholders approved the transaction with CoStar Group, Inc. The completion of the transaction remains subject to the expiration or termination of the waiting period imposed by the Hart-Scott Rodino Antitrust Improvements Act of 1976, as amended, and the satisfaction or waiver of the other closing conditions specified in Matterport's agreement with CoStar Group, Inc. The transaction is expected to close in the fourth quarter of 2024 or the first quarter of 2025. Non-GAAP Financial Information Matterport has provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (GAAP). We believe that the presentation of non-GAAP financial information provides important supplemental information to management and investors regarding financial and business trends relating to Matterport's financial condition and results of operations. The presentation of these non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP. For further information regarding these non-GAAP measures, including the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, please refer to the financial tables below. Non-GAAP Net Loss and Non-GAAP Net Loss Per Share, Basic and Diluted. Matterport defines non-GAAP net loss as net loss, adjusted to exclude stock-based compensation-related charges (including share-based payroll tax expense), fair value change of warrants liability, amortization of acquired intangible assets, litigation expense, and acquisition-related transaction costs, in order to provide investors and management with greater visibility to the underlying performance of Matterport's recurring core business operations. We define non-GAAP net loss per share, as non-GAAP net loss divided by the weighted-average shares outstanding, which includes the dilutive effect of potentially diluted common stock equivalents outstanding during the period if any. About Matterport Matterport, Inc. MTTR is leading the digital transformation of the built world. Our groundbreaking spatial data platform turns buildings into data to make nearly every space more valuable and accessible. Millions of buildings in more than 177 countries have been transformed into immersive Matterport digital twins to improve every part of the building lifecycle from planning, construction, and operations to documentation, appraisal and marketing. Learn more at matterport.com and browse a gallery of digital twins. ©2024 Matterport, Inc. All rights reserved. Matterport is a registered trademark and the Matterport logo is a trademark of Matterport, Inc. All other marks are the property of their respective owners. Investor Contact: [email protected] [email protected] This communication contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding the proposed transaction, the products and services offered by Matterport and the markets in which Matterport operates, business strategies, debt levels, industry environment including the global supply chain, potential growth opportunities, and the effects of regulations and Matterport's projected future results. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "forecast," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions (including the negative versions of such words or expressions). Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this communication, including the inability to consummate the proposed transaction with CoStar Group, Inc. (the "proposed transaction") within the anticipated time period, or at all, due to any reason, including the failure to obtain required regulatory approvals, or to satisfy the other conditions to the consummation of the proposed transaction; the risk that the proposed transaction disrupts Matterport's current plans and operations or diverts management's attention from its ongoing business; the effects of the proposed transaction on Matterport's business, operating results, and ability to retain and hire key personnel and maintain relationships with customers, suppliers and others with whom Matterport does business; the risk that Matterport's stock price may decline significantly if the proposed transaction is not consummated; the nature, cost and outcome of any legal proceedings related to the proposed transaction; Matterport's ability to grow market share in existing markets or any new markets Matterport may enter; Matterport's ability to respond to general economic conditions; supply chain disruptions; Matterport's ability to manage growth effectively; Matterport's success in retaining or recruiting officers, key employees or directors, or changes required in the retention or recruitment of officers, key employees or directors; the impact of restructuring plans; the impact of the regulatory environment and complexities with compliance related to such environment; factors relating to Matterport's business, operations and financial performance, including the impact of infectious diseases, health epidemics and pandemics; Matterport's ability to maintain an effective system of internal controls over financial reporting; Matterport's ability to achieve and maintain profitability in the future; Matterport's ability to access sources of capital; Matterport's ability to maintain and enhance Matterport's products and brand, and to attract customers; Matterport's ability to manage, develop and refine Matterport's technology platform; the success of Matterport's strategic relationships with third parties; Matterport's history of losses and whether Matterport will continue to incur continuing losses for the foreseeable future; Matterport's ability to protect and enforce Matterport's intellectual property rights; Matterport's success in defending or appealing any pending or future litigation, claims or demands; Matterport's ability to implement business plans, forecasts, and other expectations and identify and realize additional opportunities; Matterport's ability to attract and retain new subscribers; the size of the total addressable market for Matterport's products and services; the continued adoption of spatial data; any inability to complete acquisitions and integrate acquired businesses; general economic uncertainty and the effect of general economic conditions in Matterport's industry; environmental uncertainties and risks related to adverse weather conditions and natural disasters; the volatility of the market price and liquidity of Matterport's Class A common stock and other securities; the increasingly competitive environment in which Matterport operates; and other factors detailed under the section entitled "Risk Factors" in Matterport's Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in documents filed by Matterport from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Matterport assumes no obligation and, except as required by law, does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Matterport does not give any assurance that it will achieve its expectations. MATTERPORT, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Revenue: Subscription$25,365 $22,878 $73,535 $63,647 Services 11,085 9,936 31,069 29,324 Product 7,343 7,828 21,277 25,232 Total revenue 43,793 40,642 125,881 118,203 Costs of revenue: Subscription 8,236 7,379 24,124 21,576 Services 7,445 6,725 21,748 20,978 Product 6,412 6,641 19,337 23,377 Total costs of revenue 22,093 20,745 65,209 65,931 Gross profit 21,700 19,897 60,672 52,272 Operating expenses: Research and development 15,261 15,577 45,521 52,711 Selling, general, and administrative 50,464 53,719 150,069 164,660 Litigation expense -- -- 95,000 -- Total operating expenses 65,725 69,296 290,590 217,371 Loss from operations (44,025) (49,399) (229,918) (165,099) Other income (expense): Interest income 3,211 1,573 8,098 4,525 Change in fair value of warrants liability 169 513 (895) 564 Other income 2,311 2,669 6,762 5,075 Total other income 5,691 4,755 13,965 10,164 Loss before provision for income taxes (38,334) (44,644) (215,953) (154,935) Provision for income taxes 67 110 162 197 Net loss$(38,401) $(44,754) $(216,115) $(155,132) Net loss per share, basic and diluted$(0.12) $(0.15) $(0.68) $(0.52) Weighted-average shares used in per share calculation, basic and diluted 321,151 303,432 317,002 298,226 MATTERPORT INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) September 30, December 31, 2024 2023 ASSETS Current assets: Cash and cash equivalents$63,358 $82,902 Restricted cash 95,182 -- Short-term investments 206,818 305,264 Accounts receivable, net 14,918 16,925 Inventories 7,582 9,115 Prepaid expenses and other current assets 9,145 8,635 Total current assets 397,003 422,841 Property and equipment, net 30,356 32,471 Operating lease right-of-use assets 226 625 Long-term investments 39,824 34,834 Goodwill 69,593 69,593 Intangible assets, net 7,792 9,120 Other assets 8,129 7,671 Total assets$552,923 $577,155 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable$7,812 $7,586 Deferred revenue 26,885 23,294 Accrued expenses and other current liabilities 108,308 13,354 Total current liabilities 143,005 44,234 Warrants liability 1,185 290 Deferred revenue, non-current 1,969 3,141 Other long-term liabilities -- 206 Total liabilities 146,159 47,871 Commitments and contingencies Stockholders' equity: Common stock 32 31 Additional paid-in capital 1,400,614 1,307,324 Accumulated other comprehensive income 707 403 Accumulated deficit (994,589) (778,474) Total stockholders' equity 406,764 529,284 Total liabilities and stockholders' equity$552,923 $577,155 MATTERPORT, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands, unaudited) Nine Months Ended September 30, 20242023 CASH FLOWS FROM OPERATING ACTIVITIES Net loss$(216,115) $(155,132) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 17,284 14,130 Accretion of discounts, net of amortization of investment premiums (7,049) (5,511) Stock-based compensation, net of amounts capitalized 84,821 90,674 Cease use of certain leased facilities -- 123 Change in fair value of warrants liability 895 (564) Deferred income taxes -- (185) Allowance for doubtful accounts 525 150 Loss from excess inventory and purchase obligation -- 1,592 Other (61) (60) Changes in operating assets and liabilities, net of effects of businesses acquired: Accounts receivable 1,482 3,489 Inventories 1,532 (6,833) Prepaid expenses and other assets 656 2,491 Accounts payable 226 263 Deferred revenue 2,419 6,527 Accrued expenses and other liabilities 94,750 529 Net cash used in operating activities (18,635) (48,317) CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (170) (112) Capitalized software and development costs (6,846) (7,528) Purchase of investments (157,522) (368,119) Maturities of investments 257,106 388,201 Business acquisitions, net of cash acquired -- (4,116) Net cash provided by investing activities 92,568 8,326 CASH FLOW FROM FINANCING ACTIVITIES: Proceeds from the sales of shares through employee equity incentive plans 1,644 3,309 Payments for taxes related to net settlement of equity awards -- (329) Net cash provided by financing activities 1,644 2,980 Net change in cash, cash equivalents, and restricted cash 75,577 (37,011) Effect of exchange rate changes on cash 61 25 Cash, cash equivalents, and restricted cash at beginning of year 82,902 117,128 Cash, cash equivalents, and restricted cash at end of period$158,540 $80,142 MATTERPORT, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In thousands, except per share amounts) (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 GAAP net loss$(38,401) $(44,754) $(216,115) $(155,132) Stock-based compensation related charges (1) 31,445 29,721 93,793 97,281 Restructuring charges (2) -- 3,147 -- 3,147 Acquisition-related costs (3) 4,271 -- 12,194 -- Amortization expense of acquired intangible assets 443 443 1,329 1,329 Change in fair value of warrants liability (4) (169) (513) 895 (564) Litigation expense (5) -- -- 95,000 -- Non-GAAP net loss$(2,411) $(11,956) $(12,904) $(53,939) GAAP net loss per share attributable to common stockholders, basic and diluted$(0.12) $(0.15) $(0.68) $(0.52) Non-GAAP net loss per share attributable to common stockholders, basic and diluted$(0.01) $(0.04) $(0.04) $(0.18) Weighted-average shares used to compute net loss per share, basic and diluted 321,151 303,432 317,002 298,226 (1) Consists primarily of non-cash share-based compensation expense related to our stock incentive plans, and the employer payroll taxes related to our stock options and restricted stock units. (2) Consists of severance and other employee separation costs, and cease use charges for operating lease right-of-use assets due to reduction of leased office spaces. (3) Consists of acquisition transaction costs incurred for the proposed transaction with CoStar Group, Inc. (4) Consists of the non-cash fair value measurement change for private warrants. (5) Represents charges associated with our litigation for the nine months ended September 30, 2024. This press release was published by a CLEAR® Verified individual. Market News and Data brought to you by Benzinga APIs

Roadzen Reports Fiscal Second Quarter and First Half FY2025 Financial Results - Roadzen (NASDAQ:RDZN)

Revenue Growth: Achieved second-quarter FY25 revenue of $11.9 million, a 33% increase from the first quarter's revenue of $8.9 million.Improved Path to Profitability: Reported a net loss of $21.8 million, primarily impacted by non-cash, non-recurring, and extraordinary items, resulting in an Adjusted EBITDA¹ loss of $2.1 million, an improvement from the previous quarter's Adjusted EBITDA loss of $2.8 million, reflecting a 25% sequential reduction powered by adoption of AI in reducing operating costs internally.Client Expansion: Added 5 new enterprise clients and over 150 agents and fleets, expanding our services to 108 enterprise clients across insurance and automotive sectors, and 3,550 agents and fleet customers globally.Balance Sheet Restructuring: Continued balance sheet reduction, negotiating a $3.6 million decrease in accounts payable related to the public listing.Shareholder Support: Shareholders holding approximately 56 million out of a total of approximately 68.4 million outstanding shares agreed to extend their lockup period until September 2025 underscoring strong support for the Company's long-term strategy.MixtapeAI Launch: Next-generation platform that empowers AI agents using foundational models to transform customer support and operations in Insurance, Mobility, and Financial Services. NEW YORK, Nov. 13, 2024 (GLOBE NEWSWIRE) -- Roadzen Inc. RDZN ("Roadzen" or the "Company"), a global leader in AI at the convergence of insurance and mobility, today announced its second quarter and six-month financial results for the period ended September 30, 2024. Rohan Malhotra, Founder and CEO of Roadzen, stated, "This quarter marked substantial progress in revenue acceleration, product development, and cost reduction. With 33% sequential revenue growth and a 25% improvement in Adjusted EBITDA loss from the prior quarter, we are advancing our long-term strategy. We expect revenue momentum to continue in the second half of FY25 as we aim to resume U.K. sales and pursue growth in the U.S. and India." Malhotra continued, "The verticalization of AI for legacy industries like insurance presents a generational opportunity, and our pioneering work at the convergence of AI, insurance and mobility delivers a better auto insurance experience to clients across the world. Our technology enables precise risk assessments, personalized pricing, real-time claims management, and accident prevention. The launch of MixtapeAI is one of our most significant product unveilings in recent years, and we are leveraging it to drive internal improvements, reduce operating costs, and transform customer interactions. Our shareholders have shown immense confidence in our vision to build one of the leading AI companies in the public markets, and we are committed to repaying that confidence through our execution." Roadzen's Chief Financial Officer, Jean-Noël Gallardo, added, "Our efforts on improving the Company's balance sheet yielded significant progress during the second quarter. Total accounts payable and accrued expenses were reduced by $4.0 million, an 11% decrease over the first quarter. We also continued to increase global operational efficiencies powered by our own AI models, enabling us to reduce headcount, consuming fewer resources while achieving results. Going forward, we expect to reap additional benefits from the continued optimization of our operations, which will be reflected in the second half of the year." Second Quarter and First Half Financial Highlights: Revenue and Key Performance Indicators Revenue for the second quarter totaled $11.9 million, an increase of 33% over the first quarter as the Company achieved organic growth across U.S. and India. Year-over-year, revenue for the quarter decreased by $3.6 million, or 23%, over the prior year quarter. Revenue for the six months ended September 30, 2024, was $20.8 million, a decrease of $0.3 million, or 1.3%, when compared to the same period last year. The revenue decrease for both periods was primarily due to the temporary countrywide suspension of GAP insurance sales by the U.K. Financial Conduct Authority for all insurance carriers. The Company is currently making plans to resume GAP product sales by the fourth quarter of this fiscal year.As of September 30, 2024, Roadzen had 34 insurance customer agreements (including carriers, self-insureds and other entities processing insurance claims), 74 automotive customer agreements, and approximately 3,550 agents and fleet customer agreements.Roadzen sold 70,618 policies during the second quarter generating $10.1 million of Gross Written Premium ("GWP"), compared to 78,009 policies in the prior fiscal year second quarter, producing $20.6 million of GWP, with the difference entirely coming from the U.K. market. In addition, 607,577 claims, roadside assistance and vehicle inspections were conducted during the three months ending September 30, 2024, compared to 406,897 for the same period in the prior year. Expenses and Net Results Operating expenses for the second quarter, excluding Cost of Services and Depreciation and Amortization, totaled approximately $30.0 million, an increase of $13.8 million compared to the prior year quarter due primarily to $20.7 million of non-cash equity compensation expense related to RSUs granted to employees a year ago, partially offset by a decrease in Sales & Marketing expenses in the U.K. while GAP product sales were temporarily halted.Operating expenses for the six-month period, excluding Cost of services and Depreciation and Amortization increased $40.5 million over the prior year six-month period to $63.4 million, reflecting $42.1 million in non-cash RSU employee compensation expense. The 9.9 million RSUs granted in September 2023 have been fully accounted for and will have no further impact on the Company's quarterly results; we will continue to incur expenses for newly issued RSUs.The Company reported Other Income of $1.5 million for the quarter, compared to Other Expense of $23.6 million the same quarter last year. The Company reported Other Expenses of $16.4 million and $23.7 million for the six-month periods ending September 30, 2024 and 2023, respectively. The $7.3 million decrease reflects lower non-cash fair market valuation adjustment in the current year period of $5.3 million partially offset by an increase of $613,000 in interest expense, primarily due to an increase in borrowings from banks.In total, the net loss for the second quarter of $21.8 million or $(0.32) per share includes $19.7 million of non-cash, non-recurring and other extraordinary items that, when excluded, result in an Adjusted EBITDA loss of $2.1 million, or $(0.03) per share. This compares to an Adjusted EBITDA loss of $3.6 million or $(0.16) per share in the second quarter of the prior year and $2.9 million or $(0.04) per share in the first quarter.The Company's average monthly cash used in operating activities during the second quarter totaled approximately $1.9 million, an $82,000 decrease from the first quarter and a $3.2 million decrease over the same quarter last year, during which Roadzen had only just established operations in the U.S. and U.K. Balance Sheet Cash and equivalents at September 30, 2024 totaled $6.0 million, a decrease of $1.8 million as compared to the June 30, 2024 balance of $7.8 million.Assets totaled $29.1 million at September 30, 2024, compared to $34.1 million as of June 30, 2024, a decrease of approximately 14.7% predominately due to a reduction in cash and a $2.5 million reduction in the prepayment balance resulting from a fair value adjustment of a forward purchase agreement.Total liabilities were $63.4 million at September 30, 2024, a decrease of $3.7 million from June 30, 2024 and $5.2 million less than March 31, 2024, predominately reflecting a $4.3 million reduction in payables and accrued expenses during the quarter. The Company's current liabilities totaled $61.0 million at September 30, 2024, which includes approximately $15.7 million in Accrued Expenses assumed by Roadzen in connection with the September 2023 Business Combination, and $13.2 million in liabilities to Mizuho Securities USA LLC ("Mizuho") that includes short-term borrowings of $11.5 million and a $1.7 million fair valuation of warrants granted as part of the Mizuho debt agreement.Long-Term debt totaled approximately $1.3 million at September 30, 2024, roughly in line with both year end and first quarter figures. Second Quarter Financial Developments The Company announced in a press release that it is focused on strengthening and right sizing the balance sheet while addressing the accrued expenses and stock considerations it inherited through its September 2023 business combination with Vahanna Tech Edge Acquisition I Corp. As previously announced, during the second quarter, Roadzen entered into definitive agreements with certain related parties including Avacara Pte Ltd, and Pi Capital International Inc. and its affiliate Marco Polo Securities, Inc., entities controlled by the CEO and the Chairman of Roadzen, respectively, to swap $3.5 million in debt for equity at $2.80 per share; Mizuho agreed to extend its $7.5 million senior secured 15% note and provided an additional $4.0 million in cash under the same terms, bringing the total principal to $11.5 million; and at the end of the second quarter, shareholders holding approximately 56 million shares of the Company agreed - with no additional considerations - to extend their lock-up agreements for another twelve months to September 20, 2025. Second Quarter FY2025 Operational Highlights New Product Launch - Subsequent Development October 30, 2024, Roadzen's AI Lab unveiled MixtapeAI, a platform designed to power AI agents and transform customer interactions in the insurance and mobility sectors. With MixtapeAI, insurers, brokers, agents, carmakers, and fleets can deliver natural, intelligent, personalized, quick, and secure customer responses, while automating complex workflows across multiple touchpoints. Roadzen intends to initially deploy MixtapeAI internally by levering the technology to make internal administration functions more efficient and cost-effective. Roadzen has received strong, positive feedback on early demonstrations with select longstanding Roadzen customers. For more information about Roadzen Inc., please visit https://roadzen.ai. About Roadzen Inc. Roadzen Inc. RDZN is a global technology company transforming auto insurance using advanced artificial intelligence (AI). Thousands of clients, from the world's leading insurers, carmakers, and fleets to dealerships and auto insurance agents, use Roadzen's technology to build new products, sell insurance, process claims, and improve road safety. Roadzen's pioneering work in telematics, generative AI, and computer vision has earned recognition as a top AI innovator by publications such as Forbes, Fortune, and Financial Express. Roadzen's mission is to continue advancing AI research at the intersection of mobility and insurance, ushering in a world where accidents are prevented, premiums are fair, and claims are processed within minutes, not weeks. Headquartered in Burlingame, California, the Company has 360 employees across its global offices in the U.S., India, U.K. and France. To learn more, please visit www.roadzen.ai. Cautionary Statement Regarding Forward Looking Statements This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "should," "could," "would," "expect," "plan," "anticipate," "believe," "estimate," and "continue," or the negative of such terms or other similar expressions. Such statements include, but are not limited to, statements regarding our expected revenue growth, strategy, demand for our products, expansion plans, future operations, future operating results, estimated revenues, losses, projected costs, prospects, plans and objectives of management, as well as all other statements other than statements of historical fact included in this press release. Factors that might cause or contribute to such a discrepancy include, but are not limited to, those described in "Risk Factors" in our Securities and Exchange Commission ("SEC") filings, including the annual report on Form 10-K we filed with the SEC on July 1, 2024. We urge you to consider these factors, risks and uncertainties carefully in evaluating the forward-looking statements contained in this press release. All subsequent written or oral forward-looking statements attributable to our company or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. The forward-looking statements included in this press release are made only as of the date of this release. Except as expressly required by applicable securities law, we disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. For more information, please contact: Investor Contacts: [email protected] Media Contacts: Roadzen: Sanya Soni [email protected] or [email protected] Gutenberg: [email protected] Financial Statements Follow Roadzen Inc.Unaudited Condensed Consolidated Balance Sheets(in US $, except per share data and share count) Particulars As of September 30, As of March 31, 2024 2024 Assets Current assets: Cash and cash equivalents 5,992,238 11,186,095 Accounts receivable, net 3,224,037 3,652,380 Inventories 91,503 70,667 Prepayments and other current assets 13,434,854 34,426,335 Investments 270,743 507,094 Total current assets 23,013,375 49,842,571 Non current assets Restricted cash 17,429 378,993 Non marketable securities 1,514,796 1,514,796 Property and equipment, net 348,746 454,589 Goodwill 2,095,697 2,061,553 Operating lease right-of-use assets 946,798 822,327 Intangible assets, net 1,102,846 2,989,604 Other long-term assets 97,880 71,913 Total assets 29,137,567 58,136,346 Liabilities and stockholders' deficit Current liabilities Current portion of long-term borrowings 2,221,055 2,228,471 Short-term borrowings 20,183,417 15,754,829 Accounts payable and accrued expenses 34,134,516 38,492,487 Derivative warrant liabilities 1,704,695 5,585,955 Short-term operating lease liabilities 397,957 358,802 Other current liabilities 2,368,722 3,231,962 Total current liabilities 61,010,362 65,652,506 Long-term borrowings 1,331,088 1,472,933 Long-term operating lease liabilities 379,697 268,856 Other long-term liabilities 699,949 1,241,917 Total liabilities 63,421,096 68,636,212 Commitments and contingencies (refer note 23) Shareholders' deficit Ordinary Shares and additional paid in capital, $0.0001 par value per share, 220,000,000 shares authorized as of September 30 2024 and March 31, 2024; 68,440,829 shares outstanding as of September 30, 2024 and March 31, 2024 84,974,378 84,974,378 Accumulated deficit (221,225,483) (151,008,419)Accumulated other comprehensive income/(loss) (1,075,917) (600,501)Other components of equity 103,537,962 56,560,706 Total shareholders' deficit (33,789,060) (10,073,836)Non-controlling interest (494,468) (426,030)Total deficit (34,283,528) (10,499,866)Total liabilities and Shareholders' deficit, Non-controlling interest 29,137,567 58,136,346 Roadzen Inc.Unaudited Condensed Consolidated Statements of Operations(in US $, except per share data and share count) For the three months ended September 30, For the six months ended September 30,Particulars 2024 2023 2024 2023Revenue 11,874,098 15,470,581 20,805,615 21,081,491 Costs and expenses: Cost of services 5,217,621 6,358,677 10,645,061 8,848,771 Research and development 1,496,600 602,105 3,286,142 1,175,405 Sales and marketing 8,076,959 10,059,347 13,879,257 13,526,403 General and administrative 20,430,960 5,577,477 46,257,148 8,179,460 Depreciation and amortization 193,372 413,315 673,721 780,853 Total costs and expenses 35,415,512 23,010,921 74,741,329 32,510,892 Loss from operations (23,541,414) (7,540,340) (53,935,714) (11,429,401)Interest income/(expense) (626,834) (617,470) (1,448,520) (835,424)Fair value gains/(losses) in financial instruments carried at fair value (1,096,949) (23,590,000) (18,249,009) (23,590,000)Other income/(expense) net 3,252,528 637,492 3,274,880 699,922 Total other income/(expense) 1,528,745 (23,569,978) (16,422,649) (23,725,502)(Loss)/Income before income tax expense (22,012,669) (31,110,318) (70,358,363) (35,154,903)Less: income tax (benefit)/expense (181,264) 10,939 (74,614) 33,350 Net (loss)/income before non-controlling interest (21,831,405) (31,121,257) (70,283,749) (35,188,253)Net loss attributable to non-controlling interest, net of tax (21,366) (39,457) (66,685) (67,209)Net (loss)/income attributable to Roadzen Inc. (21,810,039) (31,081,800) (70,217,064) (35,121,044)Net (loss)/income attributable to Roadzen Inc. ordinary shareholders (21,810,039) (31,081,800) (70,217,064) (35,121,044)Basic and diluted (0.32) (1.40) (1.03) (1.81)Weighted-average number of shares outstanding used to compute net loss per share attributable to Roadzen Inc. ordinary shareholders 68,440,829 22,272,967 68,440,829 19,387,476 Roadzen Inc.Unaudited Condensed Consolidated Statements of Cash Flow(in US $) For the period endedParticulars September 30, 2024 September 30, 2023 Cash flows from operating activities Net loss including non controlling interest (70,283,749) (35,188,253)Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 673,721 780,853 Stock based compensation 46,977,256 3,526,209 Deferred income taxes (223,516) 79,094 Unrealised foreign exchange loss/(profit) 101,374 (28,884)Fair value losses in financial instruments carried at fair value 18,249,009 23,590,000 Expected credit loss (net of reversal) (112,451) 171,946 Balances written off/(back) (3,200,441) (1,609)Changes in assets and liabilities, net of assets acquired and liabilities assumed from acquisitions: Inventories (20,836) (73,732)Income taxes, net - 19,297 Accounts receivables, net 380,405 4,352,472 Prepayments and other assets 2,018,036 (30,343,651)Accounts payable and accrued expenses and other current liabilities (1,554,615) 19,106,908 Other liabilities (4,255,358) (1,118,459)Net cash used in operating activities (11,251,165) (15,127,809) Cash flows from investing activities Purchase of property and equipment, intangible assets and goodwill 39,443 (136,220)Acquisition of businesses - (5,748,000)Proceeds from sale of mutual fund 193,606 - Proceeds from forward purchase agreement 1,000,000 - Net cash used in investing activities 1,233,049 (5,884,220) Cash flows from financing activities Proceeds from business combination - 32,770 Proceeds from issue of preferred stock - 6,079,409 Proceeds from long-term borrowings - 2,805,418 Repayments of long-term borrowings - (569,207)Net proceeds/(payments) from short-term borrowings 4,460,327 9,218,689 Repayments from short-term borrowings - - Net cash generated from financing activities 4,460,327 17,567,079 Effect of exchange rate changes on cash and cash equivalents 2,368 56,372 Net (decrease)/increase in cash and cash equivalents (including restricted cash) (5,555,421) (3,388,578)Cash acquired in business combination - 11,252,547 Cash and cash equivalents at the beginning of the period (including restricted cash) 11,565,088 1,131,830 Cash and cash equivalents at the end of the period (including restricted cash) 6,009,667 8,995,799 Reconciliation of cash and cash equivalents Cash and cash equivalents 5,992,238 8,109,694 Restricted cash 17,429 886,105 Total cash and cash equivalents 6,009,667 8,995,799 Supplemental disclosure of cash flow information Cash paid for interest, net of amounts capitalized 885,011 378,064 Cash paid for income taxes, net of refunds - 83,680 Non-cash investing and financing activities Consideration payable in connection with acquisitions 488,000 1,854,732 Interest accrued on borrowings 317,597 157,649 Non-GAAP Financial Measures This press release includes Adjusted Earnings Before Interest, Tax, Depreciation and Amortization (Adjusted EBITDA), is a non-GAAP financial measure which excludes the impact of finance costs, taxes, depreciation and amortization and certain other items from reported net profit or loss. We believe that Adjusted EBITDA aids investors by providing an operating profit/loss without the impact of non- cash depreciation and amortization and certain other items to help clarify sustainability and trends affecting the business. For comparability of reporting, management considers non-GAAP measures in conjunction with U.S. GAAP financial results in evaluating business performance. Adjusted EBITDA should not be considered a substitute for, or superior to, the measures of financial performance prepared in accordance with U.S. GAAP. In addition, Adjusted EBITDA does not purport to represent cash flow provided by, or used for, operating activities in accordance with GAAP and should not be used as a measure of liquidity. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as substitutes for financial information presented under GAAP. There are a number of limitations related to the use of non-GAAP financial measures versus comparable financial measures determined under GAAP. For example, other companies in our industry may calculate these non-GAAP financial measures differently or may use other measures to evaluate their performance. These limitations could reduce the usefulness of these non- GAAP financial measures as analytical tools. Investors are encouraged to review the related GAAP financial measures and the reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures and to not rely on any single financial measure to evaluate our business. The following table reconciles our net loss reported in accordance with U.S. GAAP to Adjusted EBITDA: For the three months ended September 30,Particulars 2024 2023Net loss (21,831,405) (31,121,257)Adjusted for: Other (income)/expense net (3,252,528) (637,492)Interest (income)/expense 626,834 617,470 Fair value changes in financial instruments carried at fair value(1) 1,096,949 23,590,000 Tax (benefit)/expense (181,264) 10,939 Depreciation and amortization 193,372 413,315 Stock based compensation expense 20,746,267 3,526,209 Non-cash expenses 351,130 - Non-recurring expenses 105,725 - Adjusted EBITDA (2,144,920) (3,600,816) For the six months ended September 30,Particulars 2024 2023Net loss (70,283,749) (35,188,253)Adjusted for: Other (income)/expense net (3,274,880) (699,922)Interest (income)/expense 1,448,520 835,424 Fair value changes in financial instruments carried at fair value(1) 18,249,009 23,590,000 Tax (benefit)/expense (74,614) 33,350 Depreciation and amortization 673,721 780,853 Stock based compensation expense 46,977,256 3,526,209 Non-cash expenses 636,190 - Non-recurring expenses 630,483 1,819,746 Adjusted EBITDA (5,018,064) (5,302,593) (1) Fair value changes in financial instruments are considered to be financing costs as they relate to convertible notes and the Forward Purchase Agreement. These changes are non-cash as these changes in fair value are affected by the volatility of the Company's share price. __________________________________ ¹ Adjusted EBITDA is a non-GAAP financial metric. See "Non-GAAP Financial Measures" at the end of this press release for more information, including a reconciliation to the nearest GAAP financial measure. Market News and Data brought to you by Benzinga APIs

OMNIQ Reports $18.5 Million Revenue in the Third Quarter 2024 - OMNIQ (OTC:OMQS)

SALT LAKE CITY, Nov. 14, 2024 (GLOBE NEWSWIRE) -- omniQ Corporation OMQS ("omniQ" or "the Company"), reports third quarter 2024 revenue of $18.5 million, signifying 7.57% YoY growth, as well as significant decreases in operational expenses and net loss. FINANCIAL HIGHLIGHTS: Revenue: OMNIQ reported revenue of $18,549,000 for Q3 2024, a modest increase from $17,244,000 in Q3 2023, marking a 7.57% year-over-year growth.Operating Expenses: Decreased significantly to $4,934,000 in Q3 2024 from $6,631,000 in Q3 2023, showing effective cost management resulting in a 25.58% reduction.Net Loss: The Company reported a net loss of $1,599,000 in Q3 2024, significantly reduced from a net loss of $4,305,000 in Q3 2023, resulting in a reduction in losses by 62.86%. THIRD QUARTER 2024 FINANCIAL RESULTS For the three months ended September 30, 2024 and 2023, the Company generated net revenues in the amount of $18.5 million and $17 million, respectively. The increase between the three-month periods was attributable to the increase in demand. Total operating expenses for the three months ended September 30, 2024 and 2023 recognized was $5 million and $6.6 million, respectively, representing a 25% decrease. The decreases are related to the cost reduction plan put in place by management. Selling, general and administrative expenses for the three months ended September 30, 2024 and 2023 totaled $4.4 million and $5.6 million, respectively, representing a 21% decrease. The decreases are related to the cost reduction plan put in place by management. Operating Activities: Generated a modest net cash of $230,000 in the nine months ending September 2024, showing an improvement from a net use of $2,651,000 in the same period of 2023. Gross Profit: Slightly decreased to $3,950,000 in Q3 2024 from $4,009,000 in Q3 2023, reflecting a slight reduction of 1.45%. Earnings per Share (EPS): Basic loss per share improved to -$0.15 in Q3 2024 from -$0.55 in Q3 2023. ADDITIONAL Q3 AND RECENT EVENTS Uplisting to the OTCQB Market: enhancing visibility and trading conditions for investors.Two major medical center deployments with increased technology capabilities.Strategic alliances with Ingenico and SHVA: enhancing fintech capabilities and increasing market reach.New purchase orders received: $2.5, $1, $1.4, and $3.4 million.Cooperation Agreement with NEC: broadens technology integration capabilities and brings new projects. ADVANCES IN FINTECH: OMNIQ continues to make significant strides in the fintech sector through strategic partnerships and product innovations, working alongside SHVA and Ingenico to enhance secure transaction solutions. These collaborations are focused on bringing robust, AI-driven financial technologies to market, further positioning OMNIQ as a key player in the fintech landscape. STRATEGIC EXPANSION IN PUBLIC SAFETY OMNIQ was selected to collaborate with NEC, leveraging OMNIQ's advanced in-vehicle face capture technology with NEC's cutting-edge facial recognition capabilities. This partnership has progressed to an active pilot phase and is set to scale into larger projects planned for 2025, underlining OMNIQ's growing impact in high-security solutions. Additionally, OMNIQ has introduced new functionalities to its access control SaaS, now implemented in two prominent medical centers in Ohio and Texas, enhancing secure access protocols in critical healthcare environments. STRONG IOT BUSINESS PERFORMANCE OMNIQ realized several significant purchase orders during the third quarter, particularly notable for including recurring revenue components such as software subscriptions and service contracts, contributing to more consistent revenue streams. This momentum is extending into early Q4, underscoring sustained demand for OMNIQ's IoT solutions across sectors including retail, supply chain, and public safety, where these capabilities are meeting critical customer needs. SHAREHOLDER UPDATE As OMNIQ continues to advance its strategic priorities, the Company has placed particular emphasis on expanding recurring revenue streams by refining our business model to focus on high-margin SaaS and service offerings. Supported by enhanced marketing and sales efforts, this strategic shift has driven increased adoption of these solutions across our customer base. By strengthening predictable revenue streams, OMNIQ is well-positioned to make ongoing investments in innovative product development, aligning with current market demand. OMNIQ has prioritized the expansion of its recurring revenue base by optimizing our business model to emphasize high-margin SaaS and service offerings. Supported by enhanced marketing and sales efforts, this strategic shift has driven increased adoption of these solutions across our customer base. By strengthening predictable revenue streams, OMNIQ is well-positioned to make ongoing investments in innovative product development, aligning with current market demand. In addition, OMNIQ is focused on expanding its presence within high-growth sectors including fintech, manufacturing and logistics, smart city solutions, public safety, retail, healthcare, and education. Our targeted partnerships in each of these areas enhance brand recognition, secure new contracts, and expand the value-added offerings available to existing clients. By leveraging these partnerships, OMNIQ believes that it can effectively reduce upfront investment and lower the costs associated with launching new solutions, establishing an efficient pathway for scalable and sustainable growth within these competitive markets. Finally, OMNIQ is addressing the complexities of its expansion through a balanced approach, combining internal investments with strategic acquisitions aligned with the Company's core objectives. This dual strategy strengthens OMNIQ's operational capacity and market reach while ensuring that each acquisition complements our commitment to sustainable, scalable growth. Together, these efforts position OMNIQ to drive long-term value for our shareholders. ABOUT OMNIQ: OMNIQ Corp. OMQS provides computerized and machine vision image processing solutions that use patented and proprietary AI technology to deliver real time object identification, tracking, surveillance, and monitoring for the Supply Chain Management, Public Safety, and Traffic Management applications. The technology and services provided by the Company help clients move people, and objects and manage big data safely and securely through airports, warehouses, schools, and national borders and in many other applications and environments. OMNIQ's customers include government agencies and leading Fortune 500 companies from several sectors, including manufacturing, retail, distribution, food and beverage, transportation and logistics, healthcare, and oil, gas, and chemicals. Since 2014, annual revenues have more than doubled, reaching $81 million in 2023, from clients in more than 40 countries. The Company currently addresses several billion-dollar markets with double-digit growth, including the Global Smart City & Public Safety markets. INFORMATION ABOUT FORWARD-LOOKING STATEMENTS "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995. Statements in this press release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments, and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. This release contains "forward-looking statements" that include information relating to future events and future financial and operating performance. The words "anticipate," "may," "would," "will," "expect," "estimate," "can," "believe," "potential" and similar expressions and variations thereof are intended to identify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which that performance or those results will be achieved. Forward-looking statements are based on information available at the time they are made and/or management's good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Examples of forward-looking statements include, among others, statements made in this press release regarding the closing of the private placement and the use of proceeds received in the private placement. Important factors that could cause these differences include, but are not limited to: fluctuations in demand for the Company's products particularly during the current health crisis, the introduction of new products, the Company's ability to maintain customer and strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of the Company's liquidity and financial strength to support its growth, the Company's ability to manage credit and debt structures from vendors, debt holders and secured lenders, the Company's ability to successfully integrate its acquisitions, and other information that may be detailed from time-to-time in OMNIQ Corp.'s filings with the United States Securities and Exchange Commission. Examples of such forward-looking statements in this release include, among others, statements regarding revenue growth, driving sales, operational and financial initiatives, cost reduction and profitability, and simplification of operations. For a more detailed description of the risk factors and uncertainties affecting OMNIQ Corp., please refer to the Company's recent Securities and Exchange Commission filings, which are available at SEC.gov. OMNIQ Corp. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, unless otherwise required by law. Contact [email protected] OMNIQ CORP. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data) As of September 30, 2024 December 31, 2023 (UNAUDITED) ASSETS Current assets Cash and cash equivalents $1,234 $1,678 Accounts receivable, net 17,512 18,654 Inventory 5,651 6,028 Prepaid expenses 1,054 969 Other current assets 40 25 Total current assets 25,491 27,354 Property and equipment, net of accumulated depreciation of $1,851 and $1,166 respectively 843 1,066 Goodwill, net of accumulated impairment of $0 and $14,868, respectively 2,869 1,788 Trade name, net of accumulated amortization of $4,974 and $4,850, respectively 1,212 1,377 Customer relationships, net of accumulated amortization of $12,256 and $11,814, respectively 3,234 3,777 Other intangibles, net of accumulated amortization of $1,711 and $1,669, respectively 430 504 Right of use lease asset 1,293 1,862 Other assets 1,821 1,758 Total Assets $37,193 $39,486 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable and accrued liabilities $61,020 $56,741 Line of credit 562 240 Accrued payroll and sales tax 2,392 1,537 Notes payable - current portion 8,651 10,196 Lease liability - current portion 745 885 Other current liabilities 2,420 3,106 Total current liabilities 75,790 72,705 Long-term liabilities Accrued interest and accrued liabilities, related party 73 73 Notes payable, less current portion 538 265 Lease liability 518 1,011 Other long-term liabilities 501 452 Total liabilities 77,420 74,506 Stockholders' deficit Series A Preferred stock; $0.001 par value; 2,000,000 shares designated, 0 shares issued and outstanding - - Series B Preferred stock; $0.001 par value; 1 share designated, 0 shares issued and outstanding - - Series C Preferred stock; $0.001 par value; 3,000,000 shares designated, 502,000 shares issued and outstanding, respectively 1 1 Common stock; $0.001 par value; 35,000,000 shares authorized; 10,692,891 and 10,675,802 shares issued and outstanding, respectively. 11 11 Additional paid-in capital 78,708 78,340 Accumulated (deficit) (120,631) (113,923)Accumulated other comprehensive income 1,684 551 Total OmniQ stockholders' deficit (40,227) (35,020)Total liabilities and deficit $37,193 $39,486 OMNIQ CORP. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) For the three months For the nine months ended ending September 30, September 30, (In thousands, except share and per share data) 2024 2023 2024 2023 Revenues $18,549 $17,244 $55,923 $65,111 Cost of goods sold 14,599 13,235 42,031 51,494 Gross profit 3,950 4,009 13,892 13,617 Operating expenses Research & Development 261 482 1,128 1,464 Selling, general and administrative 4,355 5,585 14,944 17,667 Depreciation 90 146 298 349 Amortization 228 418 686 1,276 Total operating expenses 4,934 6,631 17,056 20,756 Loss from operations (984) (2,622) (3,164) (7,139) Other income (expenses): Interest expense (929) (898) (2,640) (2,575)Other (expenses) income 268 (1,000) (1,032) (2,473)Total other expenses (661) (1,898) (3,672) (5,048)Net Loss Before Income Taxes (1,645) (4,520) (6,836) (12,187)Provision for Income Taxes Current 46 215 94 509 Total Provision for Income Taxes 46 215 94 509 Net Loss $(1,599) $(4,305) $(6,742) $(11,678) Net Loss $(1,599) $(4,305) $(6,742) $(11,678)Foreign currency translation adjustment (277) 510 1,133 1,227 Comprehensive loss (1,876) (3,795) $(5,609) $(10,451)Reconciliation of net loss to net loss attributable to common shareholders Net loss (1,599) (4,305) $(6,742) $(11,678)Less: Dividends attributable to non-common stockholders' of OmniQ Corp (7) (8) (22) (24)Net loss attributable to common stockholders' of OmniQ Corp (1,606) (4,313) $(6,764) $(11,702)Net (loss) per share - basic attributable to common stockholders' of OmniQ Corp $(0.15) $(0.55) $(0.63) $(1.50)Weighted average number of common shares outstanding - basic 10,697,247 7,891,444 10,696,435 7,788,262 OMNIQ Corp.RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES The nine months ended(In thousands) September 30,Adjusted EBITDA Calculation 2024 2023 Net loss (6,742) (11,678)Depreciation & amortization 984 1,625 Interest expense 2,640 2,575 Income taxes (94) (509)Stock compensation 356 1,548 Nonrecurring loss events 1,237 2,596 Adjusted EBITDA (1,619) (3,843) Total revenues, net 55,923 65,111 Adjusted EBITDA as a % of total revenues, net (2.90%) (5.90%) Photos accompanying this announcement are available at: https://www.globenewswire.com/NewsRoom/AttachmentNg/66652c7c-6e5d-434f-82e7-63005581ca5a https://www.globenewswire.com/NewsRoom/AttachmentNg/c8fdc59b-73f0-4e46-a49b-804c39435a68 Market News and Data brought to you by Benzinga APIs

Syntec Optics Holdings, Inc. (Nasdaq: OPTX) Reports Third Quarter 2024 Financial Results - Syntec Optics Holdings (NASDAQ:OPTX)

ROCHESTER, NEW YORK, Nov. 14, 2024 (GLOBE NEWSWIRE) -- Syntec Optics OPTX, a leading provider of mission-critical products to advanced technology defense, biomedical, and communications equipment manufacturers, today reported financial results for the first quarter of 2024. Third Quarter 2024 Financial Highlights Net Sales of $7.86 million increased by 12.3% from $7.01 million in Q2 2024, and sales from products of $7.33 million increased by 17.2% from $6.26 million in Q3 2023.Adjusted EBITDA decreased to $1.10 million from $1.32 million in Q2 2024.Earnings per Share decreased to $0.00 from $0.01 in Q2 2024. Dean Rudy, CFO, said, "At the previous earnings call, we provided guidance for the third quarter 2024 revenue to be between $9.5 and $11.0 million. Our revenues came in below this projection at $7.86 million but 12.3% higher than the prior quarter, showing sequential growth. The company ramped up data center connectivity products for increased Artificial Intelligence deployment and continued its production of currently deployed night vision optics and opto-mechanicals, mission-critical biomedical products, space optics, and other diverse products." Strong End-Market Expansion: Continued production of space optics for Low Earth Orbit (LEO) satellites. Satellite broadband could represent a significant portion of the $1 trillion global space economy by 2040.Ramped up production to nearly triple the quantity per week for the high-growth data center market driven by the deployment of Artificial Intelligence. The data center market is expected to reach $622.4 billion by 2030. Technological Leadership and Innovation: Delivered proof of concept for phase 1 advanced optical solutions, including high-performance, disposable optics for biomedical imaging with a multi-angled, wider field of view and increased imaging detail. SPIE assessed the 2021 photonics-enabled biomedical marketplace as $201 billion in total revenues.Delivered designs for complex optical systems, such as high numerical aperture lens systems for digital night vision. Third Quarter 2024 Financial and Operating Results The $7.86 million in net sales for the three months ending 2024 increased 12.3% compared to $7.01 million in Q2 2024. The overall sales increased by 19.2% compared to $6.60 million in Q3 2023, and sales from products increased by 19.9% as the company shifts from development to production ramp-up. The increase in net sales compared to the prior year is due to increases in our product revenue stream. Product revenue increased by $1.1 million for the three months ended 2024 compared to 2023, a 17.2% increase. The third quarter of 2024 adjusted EBITDA was $1.10 million for the three months ending 2024, compared to $1.32 million adjusted EBITDA in the second quarter of 2024 and $1.30 million in 2023. Contributing factors to the decrease over the previous quarter were a reduction in gross profit of $0.3 million, a reduction in other income of $0.3 million, and offset by a decrease in general and administrative expenses of $0.3 million. Contributing factors to the year-over-year decrease include a $0.4 million increase in general and administrative expenses to enable future product launches. The Company ended the third quarter of 2024 with an unused $3.9 million line of credit, an unused $4.8 million equipment line of credit, and a paydown of 3.3% principal on other commercial bank lines. Our net income for the three months ended in the third quarter of 2024 was a negative $0.01 million, or $0.00 per share, down from $0.3 million or negative $0.01 per share for Q2 2024, and compared to $0.4 million, or $0.01 per share, for Q3 2023. Guidance Our recent increases in ongoing sales into the communications, medical, and defense industries are expected to accelerate in the third quarter, particularly within our space communications optics and datacom microlens arrays. As such, the fourth quarter 2024 revenue is expected to be in the range of $7.4 - $9.0 million. We expect our gross margin to hold level or slightly improve based on the profitability of ramping up products. General and administrative costs are expected to increase modestly to enable ramped-up engineering, quality, and pilot production to support continued growth in the fourth quarter. Looking to the first quarter of 2025, we anticipate continued strength from the communications and biomedical end-markets, with additional growth coming from defense-based product launches. Our products are propelled by tailwinds as we move towards laser-based satellite communications versus radar-based for low latency, biomedical automation, defense equipment modernization, and on-shoring. Mission-critical products use proprietary techniques that provide an economic moat. Lastly, we expect positive net income in the fourth quarter, enabling further investments to energize our continued growth. About Syntec Optics Syntec Optics Holdings, Inc. OPTX, headquartered in Rochester, NY, is one of the largest custom and diverse end-market optics and photonics manufacturers in the United States. Operating for over two decades, Syntec Optics runs a state-of-the-art facility with extensive core capabilities of various optics manufacturing processes, both horizontally and vertically integrated, to provide a competitive advantage for mission-critical OEMs. Syntec Optics recently launched new products, including Low Earth Orbit (LEO) satellite optics, lightweight night vision goggle optics, biomedical equipment optics, and precision microlens arrays. To learn more, visit www.syntecoptics.com. This press release contains certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended, including certain financial forecasts and projections. All statements other than statements of historical fact contained in this press release, including statements as to the transactions contemplated by the business combination and related agreements, future results of operations and financial position, revenue and other metrics, planned products and services, business strategy and plans, objectives of management for future operations of Syntec Optics, market size, and growth opportunities, competitive position and technological and market trends, are forward-looking statements. Some of these forward-looking statements can be identified by the use of forward-looking words, including "may," "should," "expect," "intend," "will," "estimate," "anticipate," "believe," "predict," "plan," "targets," "projects," "could," "would," "continue," "forecast" or the negatives of these terms or variations of them or similar expressions. All forward-looking statements are subject to risks, uncertainties, and other factors (some of which are beyond the control of Syntec Optics), which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. All forward-looking statements are based upon estimates, forecasts and assumptions that, while considered reasonable by Syntec Optics and its management, as the case may be, are inherently uncertain and many factors may cause the actual results to differ materially from current expectations which include, but are not limited to: 1) risk outlined in any prior SEC filings; 2) ability of Syntec Optics to successfully increase market penetration into its target markets; 3) the addressable markets that Syntec Optics intends to target do not grow as expected; 4) the loss of any key executives; 5) the loss of any relationships with key suppliers including suppliers abroad; 6) the loss of any relationships with key customers; 7) the inability to protect Syntec Optics' patents and other intellectual property; 8) the failure to successfully execute manufacturing of announced products in a timely manner or at all, or to scale to mass production; 9) costs related to any further business combination; 10) changes in applicable laws or regulations; 11) the possibility that Syntec Optics may be adversely affected by other economic, business and/or competitive factors; 12) Syntec Optics' estimates of its growth and projected financial results for the future and meeting or satisfying the underlying assumptions with respect thereto; 13) the impact of any pandemic, including any mutations or variants thereof and the Russian/Ukrainian or Israeli conflict, and any resulting effect on business and financial conditions; 14) inability to complete any investments or borrowings in connection with any organic or inorganic growth; 15) the potential for events or circumstances that result in Syntec Optics' failure to timely achieve the anticipated benefits of Syntec Optics' customer arrangements; and 16) other risks and uncertainties set forth in the sections entitled "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in prior SEC filings including registration statement on Form S-4 filed with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Syntec Optics does not give any assurance that Syntec Optics will achieve its expected results. Syntec Optics does not undertake any duty to update these forward-looking statements except as otherwise required by law. For further information, please contact: Sara Hart Investor Relations [email protected] SOURCE: Syntec Optics Holdings, Inc. OPTX SYNTEC OPTICS HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2024 AND DECEMBER 31, 2023 2024 (unaudited) 2023 ASSETS Current Assets Cash $476,784 $2,158,245 Accounts Receivable, Net 5,821,986 6,800,064 Inventory 7,560,983 5,834,109 Prepaid Expenses and Other Assets 344,442 359,443 Total Current Assets 14,204,195 15,151,861 Property and Equipment, Net 12,437,352 11,101,052 Deferred Income Taxes 420,261 - Intangible Assets, Net 250,000 295,000 Total Assets $27,311,808 $26,547,913 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts Payable $2,492,383 $3,042,315 Accrued Expenses 1,224,587 1,071,257 Federal Income Tax Payable 92,127 370,206 Deferred Revenue 82,813 - Line of Credit 6,063,863 6,537,592 Current Maturities of Debt Obligations 461,510 362,972 Current Maturities of Finance Lease Obligations 181,327 - Total Current Liabilities 10,598,610 11,384,342 Long-Term Liabilities Long-Term Debt Obligations 2,698,386 2,024,939 Long-Term Finance Lease Obligations 1,891,659 - Deferred Income Taxes - 74,890 Total Long-Term Liabilities 4,590,045 2,099,829 Total Liabilities 15,188,655 13,484,171 Commitments and Contingencies (Note 16) - Stockholder's Equity CL A Common Stock, Par value $.0001 per share; 121,000,000 authorized; 36,688,266 issued and outstanding as of September 30, 2024; 36,688,266 issued and outstanding as of December 31, 2023 3,669 3,669 Additional Paid-In Capital 1,927,204 1,927,204 Retained Earnings 10,192,280 11,132,869 Total Stockholder's Equity 12,123,153 13,063,742 Total Liabilities and Stockholder's Equity $27,311,808 $26,547,913 SYNTEC OPTICS HOLDINGS, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023 Three Months Ended Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Net Sales $7,866,355 $6,600,525 $21,128,263 $21,177,257 Cost of Goods Sold 6,032,635 4,756,467 16,412,773 15,244,863 Gross Profit 1,833,720 1,844,058 4,715,490 5,932,394 General and Administrative Expenses 1,727,480 1,314,885 5,857,806 4,442,117 Income (Loss) from Operations 106,240 529,173 (1,142,316) 1,490,277 Other Income (Expense) Interest Expense, Including Amortization of Debt Issuance Costs (206,069) (185,292) (533,178) (446,875)Other Income 8,575 21,107 347,547 70,914 Total Other Income (Expense), Net (197,494) (164,185) (185,631) (375,961) Income (Loss) Before Provision for (Benefit) Income Taxes (91,254) 364,988 (1,327,947) 1,114,316 Provision (Benefit) for Income Taxes (77,965) 11,008 (387,358) 139,549 Net Income (Loss) $(13,289) $353,980 $(940,589) $974,767 Net Income (Loss) per Common Share Basic and diluted $(0.00) $0.01 $(0.03) $0.03 Weighted Average Number of Common Shares Outstanding Basic and diluted 36,688,266 31,600,000 36,688,266 31,600,000 SYNTEC OPTICS HOLDINGS, INC. UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023 2024 2023 Cash Flows From Operating Activities Net (Loss) Income $(940,589) $974,767 Adjustments to Reconcile (Loss) Income to Net Cash (Used In) Provided By Operating Activities: Depreciation and Amortization 2,122,999 2,096,335 Amortization of Debt Issuance Costs 6,806 5,758 Gain on Disposal of Property and Equipment (309,000) - Change in Allowance for Expected Credit Losses 132,764 (51,706)Change in Reserve for Obsolescence 283,196 16,299 Deferred Income Taxes (495,151) (536,090)(Increase) Decrease in: Accounts Receivable 845,314 (504,372)Inventory (2,010,070) (1,831,660)Prepaid Expenses and Other Assets 15,001 193,379 Increase (Decrease) in: Accounts Payables and Accrued Expenses (1,022,602) 523,455 Federal Income Tax Payable (278,079) 528,411 Deferred Revenue 82,813 (309,735) Net Cash (Used In) Provided By Operating Activities (1,566,598) 1,104,841 Cash Flows From Investing Activities Purchases of Property and Equipment (628,229) (979,630)Proceeds from Disposal of Property and Equipment 309,000 - Net Cash Used in Investing Activities (319,229) (979,630) Cash Flows From Financing Activities (Repayments) Borrowing on Line of Credit, Net (473,729) 147,076 Borrowing on Debt Obligations 1,100,388 - Repayments on Debt Obligations (335,209) (633,081)Repayments on Finance Lease Obligations (87,084) - Distributions - (62,065) Net Cash Provided By (Used in) Financing Activities 204,366 (548,070) Net Decrease in Cash (1,681,461) (422,859) Cash - Beginning 2,158,245 526,182 Cash - Ending $476,784 $103,323 Supplemental Cash Flow Disclosures: Cash Paid for Interest $459,994 $451,580 Cash Paid for Taxes $568,143 $118,616 Supplemental Disclosures of Non-Cash Investing Activities: Assets Acquired and Included in Accounts Payable and Accrued Expenses $626,000 $680,337 Finance Lease Liability Incurred $2,160,070 $- NON-GAAP RECONCILIATION OF EBITDA FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023 Three Months Ended Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Net (Loss) Income $(13,289) $353,980 $(940,589) $974,767 Depreciation & Amortization 739,812 692,716 2,129,805 2,102,093 Interest Expenses 203,650 184,358 526,372 441,115 Taxes (77,965) 11,008 (387,358) 139,549 Non-Recurring Items Other Income - Sale of Equipment & Accessories - - - (10,068)Discount Income - - - 192 Non-Recurring Contributions, Management Fees & Expenses - (2,404) - 210,112 Non-Recurring Professional & Transaction Fees - 55,444 174,500 213,500 Technology Start-up Costs 22,275 - 272,067 - Non-Recurring Optical Molding Evaluation Expenses 77,386 - 187,734 - Non-Recurring Glass Molding Evaluation Expenses 28,240 - 130,196 - Non-Recurring Executive Transition Expense 122,374 - 122,374 - Adjusted EBITDA $1,102,483 $1,295,104 $2,215,101 $4,071,261 Use of Non-GAAP Financial Measures The Company provides non-GAAP financial measures, including EBITDA and Adjusted EBITDA, as a supplement to GAAP financial information to enhance the overall understanding of the Company's financial performance and to assist investors in evaluating the Company's results of operations, period over period. Adjusted non-GAAP measures exclude significant unusual items. Investors should consider these non-GAAP measures as a supplement to, and not a substitute for financial information prepared on a GAAP basis. Non-GAAP Financial Measures This Annual Report includes a non-GAAP measure that the Company uses to supplement our results presented in accordance with U.S. GAAP. EBITDA is defined as earnings before interest and other income, tax and depreciation and amortization. Adjusted EBITDA is calculated as EBITDA adjusted for non-recurring items, and business combination expenses. Adjusted EBITDA is a performance measure that we believe is useful to investors and analysts because it illustrates the underlying financial and business trends relating to our core, recurring results of operations and enhances comparability between periods. Adjusted EBITDA is not a recognized measure under U.S. GAAP and is not intended to be a substitute for any U.S. GAAP financial measure and, as calculated, may not be comparable to other similarly titled measures of performance of other companies in other industries or within the same industry. Investors should exercise caution in comparing our non-GAAP measure to any similarly titled measure used by other companies. This non-GAAP measure excludes certain items required by U.S. GAAP and should not be considered as an alternative to information reported in accordance with U.S. GAAP. Adjusted EBITDA The Company defines adjusted EBITDA, a non-GAAP financial measure, as net earnings (loss) before interest and other expenses, net, income tax expense, depreciation and amortization, as adjusted to exclude non-recurring items as outlined in our 10-Q. The Company utilizes adjusted EBITDA as an internal performance measure in the management of our operations because we believe the exclusion of these non-cash and non-recurring charges allows for a more relevant comparison of our results of operations to other companies in our industry and is in accordance with the Non-GAAP Financial Measures Compliance & Disclosure Interpretations (Reference Question 102.03). Market News and Data brought to you by Benzinga APIs

Acrivon Therapeutics Reports Third Quarter 2024 Financial Results and Business Highlights - Acrivon Therapeutics (NASDAQ:ACRV)

- Positive clinical data with confirmed overall response rate (ORR) = 62.5% (95% CI, 30.4-86.5) and prospective ACR-368 OncoSignature patient selection (p = 0.009) from ongoing ACR-368 registrational-intent Phase 2b endometrial cancer study presented at ESMO - Endometrial cancer, a tumor type identified by AP3 as particularly sensitive to ACR-368 treatment, represents the first potential approval opportunity for ACR-368, in second line, with options to move into the front-line setting being evaluated - Completed planned enrollment of first dose-escalation cohort in ongoing Phase 1 study of ACR-2316, company's second clinical stage asset, internally discovered using AP3 - Cash, cash equivalents and marketable securities of $202.8 million as of September 30, 2024, expected to fund operations into the second half of 2026 WATERTOWN, Mass, Nov. 13, 2024 (GLOBE NEWSWIRE) -- Acrivon Therapeutics, Inc. ("Acrivon" or "Acrivon Therapeutics") ACRV, a clinical stage precision medicine company utilizing its Acrivon Predictive Precision Proteomics (AP3) platform for the discovery, design, and development of drug candidates through a mechanistic match to patients whose disease is predicted sensitive to the specific treatment, today reported financial results for the third quarter ended September 30, 2024 and reviewed recent business highlights. "Our team continues to deliver impressive progress advancing a pipeline of differentiated clinical stage therapies," said Peter Blume-Jensen, M.D., Ph.D., chief executive officer, president, and founder of Acrivon. "During the third quarter, we shared promising data from our Phase 2b study of ACR-368, demonstrating a confirmed 62.5% ORR in patients with high-grade endometrial cancer - a tumor type identified by AP3 as sensitive to ACR-368. Equally important, we further validated our ACR-368 OncoSignature prospective patient selection with a p-value = 0.009. We continue to believe endometrial cancer provides the first potential approval opportunity for ACR-368. Our recently conducted, blinded KOL market research confirmed the significant unmet need for the approximately 30,000 annual new cases of high-grade endometrial cancer in the U.S., and we believe that ACR-368 could offer an important treatment option for this devastating disease. In addition, we advanced ACR-2316 into the clinic ahead of schedule in just 15 months from initial lead to Phase 1 trial initiation, uniquely enabled by AP3, with the planned first dose-escalation cohort now fully enrolled. These significant milestones underscore the power of our proprietary generative AI and machine learning-driven AP3 Interactome applied to our growing in-house data sets for streamlined drug discovery and clinical development." Recent Highlights Presented positive interim endometrial cancer data at the European Society for Medical Oncology congress (ESMO) and at a subsequent corporate event, from the ongoing, registrational-intent, multicenter Phase 2b trial of ACR-368 in patients with endometrial adenocarcinoma who had progressed on prior anti-PD-1 therapy, unless ineligible. Endometrial cancer had not been previously studied in prior ACR-368 trials sponsored by Eli Lilly and Company. Using AP3 for indication screening, this tumor type was predicted to be particularly sensitive to ACR-368 prior to the current ongoing Phase 2b study. The data were based on 35 safety-evaluable patients, of which 23 (8 OncoSignature-positive (BM+) and 15 OncoSignature-negative (BM-) patients) were efficacy-evaluable with at least one on-treatment scan (data cut-off July 25, 2024). Confirmed ORR, per RECIST 1.1, of 62.5% (95% CI, 30.4-86.5) was observed in the cohort of prospectively-selected BM+ patients who were efficacy-evaluable Median duration of response (mDOR) was not yet reached at the time of data cut-off (~6 months)All confirmed responders had progressed on prior chemo and anti-PD-1 therapy and best overall response (BOR) in last prior line was predominantly progressive disease (PD) in the confirmed ACR-368 respondersConsistent with the ACR-368 OncoSignature prediction being independent of genetic alterations and tissue type, confirmed responses were observed across molecular and histological subtypes Achieved statistically significant segregation of responders in BM+ versus BM- subgroups based on prospective OncoSignature patient selection (p-value = 0.009)Consistent with past trials and earlier reported data from this trial, the ACR-368 treatment-related adverse events (AEs) observed were limited, predominantly transient, reversible, mechanism-based hematological AEs, which typically occurred during the first 1-2 cycles of therapy. There was a notable absence of long-lasting myelosuppression, or the typical more severe non-hematological AEs commonly seen with antibody drug conjugates and chemotherapy. Provided a summary of company-conducted, blinded third-party KOL market research which showed strong interest in the emerging clinical profile of ACR-368 (product name blinded) as an important potential therapy in the rapidly evolving treatment landscape of high-grade, recurrent endometrial cancer where second-line options are now limited due to the recent approval of anti-PD-1 and chemotherapy as front-line therapy An estimated ~30K new cases of high-grade, locally advanced or metastatic, recurrent (progressed on anti-PD-1 and chemotherapy) endometrial cancer per year in the U.S. ~90% of these patients will progress to second lineThe recent approval of pembrolizumab plus chemotherapy as a front-line treatment leaves a significant unmet need in the second line, where the bar based on reported chemotherapy efficacy in the second line is an ORR of 14.7% and median progress-free survival of 3.8 months (Makker et al; N Engl J Medicine, 2022), which potentially overestimates the current ORR for chemotherapy in the second line, given this was based on patients that had only received prior chemotherapy, but not prior anti-PD-1The company's ongoing single-arm, registrational-intent Phase 2b monotherapy trial in endometrial cancer represents the first potential accelerated approval opportunity for ACR-368The company is evaluating options to potentially move into the front-line setting as part of its confirmatory trial strategy Began dosing patients, two quarters ahead of original timelines, in the Phase 1 monotherapy clinical trial of ACR-2316, a potent, selective WEE1/PKMYT1 inhibitor designed by AP3 to overcome the limitations of single-target WEE1 and PKMYT1 inhibitors ACR-2316 was internally discovered and advanced in 15 months from initial lead to Phase 1 trial initiation, which was uniquely enabled by AP3The Phase 1 study will assess the safety and tolerability of ACR-2316. Additionally, the study will seek to establish the pharmacokinetic profile, evaluate preliminary anti-tumor activity and determine the recommended Phase 2 monotherapy dose. Dose optimization will be guided by drug target engagement in alignment with the Food and Drug Administration's Project Optimus. AP3-based indication finding and OncoSignature development is ongoing.Completed planned enrollment of the first patient cohort of the dose-escalation portion of the Phase 1 trial Presented multiple datasets demonstrating the deployment of the company's AP3 platform for streamlined, machine learning-driven drug discovery and clinical development at two scientific conferences - Human Proteome Organization World Congress and EORTC-NCI-AACR Symposium AP3-identified clinical biomarkers for ACR-368 led to the development of the response-predictive ACR-368 OncoSignature assay which has shown statistically significant prospective validation and responder enrichment in the ongoing registrational-intent Phase 2b studyACR-2316 was uniquely enabled and optimized by AP3 to deliver superior single-agent activity, complete tumor regression and pro-apoptotic tumor cell death through potent activation of CDK1, CDK2, and PLK1 Anticipated Upcoming Milestones Provide program updates from our ongoing registrational-intent Phase 2b trial of ACR-368 in patients with gynecological cancers prospectively predicted sensitive to ACR-368 in the first half of 2025Report initial data from the Phase 1 clinical study of ACR-2316, which is enriched for tumor types predicted to be sensitive to monotherapy through AP3-based indication finding, in the second half of 2025Advance a new potential first-in-class cell cycle drug discovery program for an undisclosed target towards development candidate nomination in 2025 Third Quarter 2024 Financial Results Net loss for the quarter ended September 30, 2024 was $22.4 million compared to a net loss of $14.5 million for the same period in 2023. Research and development expenses were $18.9 million for the quarter ended September 30, 2024 compared to $10.3 million for the same period in 2023. The difference was primarily due to the continued development of ACR-368 -- which included the progression of the ongoing clinical trial and the achievement of milestones for the companion diagnostic, the initiation of the ACR-2316 clinical trial in the third quarter of 2024, and increased personnel costs to support these development activities. General and administrative expenses were $6.3 million for the quarter ended September 30, 2024 compared to $5.9 million for the same period in 2023. The difference was primarily due to increased personnel costs, inclusive of non-cash stock compensation expense. As of September 30, 2024, the company had cash, cash equivalents and marketable securities of $202.8 million, which is expected to fund our operating expenses and capital expenditure requirements into the second half of 2026. About Acrivon Therapeutics Acrivon is a clinical stage biopharmaceutical company developing precision oncology medicines that it matches to patients whose tumors are predicted to be sensitive to each specific medicine by utilizing Acrivon's proprietary proteomics-based patient responder identification platform, Acrivon Predictive Precision Proteomics, or AP3. The AP3 platform is engineered to measure compound-specific effects on the entire tumor cell protein signaling network and drug-induced resistance mechanisms in an unbiased manner. These distinctive capabilities enable AP3's direct application for drug design optimization for monotherapy activity, the identification of rational drug combinations, and the creation of drug-specific proprietary OncoSignature companion diagnostics that are used to identify the patients most likely to benefit from Acrivon's drug candidates. Acrivon is currently advancing its lead candidate, ACR-368 (also known as prexasertib), a selective small molecule inhibitor targeting CHK1 and CHK2 in a registrational-intent Phase 2b trial across multiple tumor types. The company has received Fast Track designation from the Food and Drug Administration, or FDA, for the investigation of ACR-368 as monotherapy based on OncoSignature-predicted sensitivity in patients with platinum-resistant ovarian or endometrial cancer. Acrivon's ACR-368 OncoSignature test, which has not yet obtained regulatory approval, has been extensively evaluated in preclinical studies, including in two separate, blinded, prospectively-designed studies on pretreatment tumor biopsies collected from past third-party Phase 2 trials in patients with ovarian cancer treated with ACR-368. The FDA has granted Breakthrough Device designation for the ACR-368 OncoSignature assay for the identification of ovarian cancer patients who may benefit from ACR-368 treatment. The company reported positive clinical data for ovarian and endometrial cancers in April 2024, and in September 2024 it reported additional positive clinical data for endometrial cancer, including a confirmed overall response rate of 62.5% (95% CI, 30.4 - 86.5) and further validation of its prospective OncoSignature selection of patients predicted sensitive to ACR-368 by showing segregation of responders in OncoSignature-positive versus OncoSignature-negative patients (p = 0.009). The median duration of treatment was not yet reached, but the duration on study was 6 months at the time of the data cut. In addition to ACR-368, Acrivon is also leveraging its proprietary AP3 precision medicine platform for developing its co-crystallography-driven, internally-discovered pipeline programs. These include ACR-2316, the company's second clinical stage asset, a novel, potent, selective WEE1/PKMYT1 inhibitor designed for superior single-agent activity through strong activation of not only CDK1 and CDK2, but also of PLK1 to drive pro-apoptotic cell death, as demonstrated in preclinical studies against benchmark inhibitors. In addition, the company has a preclinical cell cycle program with an undisclosed target. Acrivon has developed AP3 Interactome, a proprietary, computational analytics platform driven by machine learning for integrated comprehensive analyses across all large, in-house AP3 phosphoproteomic drug profiling data sets to advance its in-house research programs. This press release includes certain disclosures that contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release, including statements regarding our future results of operations or financial condition, preclinical and clinical results, business strategy and plans and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," or "would" or the negative of these words or other similar terms or expressions. Forward-looking statements are based on Acrivon's current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Factors that could cause actual results to differ include, but are not limited to, risks and uncertainties that are described more fully in the section titled "Risk Factors" in our reports filed with the Securities and Exchange Commission. Forward-looking statements contained in this press release are made as of this date, and Acrivon undertakes no duty to update such information except as required under applicable law. Investor and Media Contacts: Adam D. Levy, Ph.D., M.B.A. [email protected] Alexandra Santos [email protected] Acrivon Therapeutics, Inc. Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited, in thousands, except share and per share data) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Operating expenses: Research and development $18,864 $10,267 $45,362 $30,546 General and administrative 6,276 5,870 18,883 15,504 Total operating expenses 25,140 16,137 64,245 46,050 Loss from operations (25,140) (16,137) (64,245) (46,050)Other income (expense), net: Interest income 2,698 1,768 6,838 5,345 Other income (expense), net 1 (97) (318) (431)Total other income, net 2,699 1,671 6,520 4,914 Net loss $(22,441) $(14,466) $(57,725) $(41,136)Net loss per share - basic and diluted $(0.59) $(0.66) $(1.79) $(1.87)Weighted-average common stock outstanding - basic and diluted 38,105,131 22,081,162 32,297,457 21,991,509 Comprehensive loss: Net loss $(22,441) $(14,466) $(57,725) $(41,136)Other comprehensive income (loss): Unrealized gain (loss) on available-for-sale investments, net of tax 801 125 865 (207)Comprehensive loss $(21,640) $(14,341) $(56,860) $(41,343) Acrivon Therapeutics, Inc. Condensed Consolidated Balance Sheets (unaudited, in thousands) September 30, December 31, 2024 2023Assets Cash and cash equivalents $43,415 $36,015 Investments 159,428 91,443 Other assets 11,841 10,807 Total assets $214,684 $138,265 Liabilities and Stockholders' Equity Liabilities 17,792 17,070 Stockholders' Equity 196,892 121,195 Total Liabilities and Stockholders' Equity $214,684 $138,265 Market News and Data brought to you by Benzinga APIs

Datasea Reports First Quarter 2025 Revenue of $21 Million, Up 206% Year-over-Year - Datasea (NASDAQ:DTSS)

Datasea's Top-Line Performance Driven by its Further Penetration of China's 5G AI Applications Segment BEIJING, Nov. 13, 2024 /PRNewswire/ -- Datasea Inc. DTSS ("Datasea" or the "Company"), a Nevada-based technology firm, today released its financial results for its first fiscal quarter ended September 30, 2024, reporting robust revenue of $21.1 million, representing 206% growth year-over-year. The increase in revenue was primarily due to the continued success of the Company's leading edge 5G AI multimodal digital business segment sector in China. Ms. Zhixin Liu, CEO of Datasea, commented, "Our first quarter revenue came in at 3.1x that of the year-ago quarter, continuing the growth momentum we have seen since 2024. This affirms the success of our 5G AI business strategy and highly effective marketing, which has expanded our customer base and accelerated the growth of our 5G AI business segment. Our commitment to technological innovation in both our 5G AI and acoustics business segments continue to fuel the visibility of our products and services while ensuring our corporate growth." Financial Highlights Revenue: Datasea reported first quarter revenue of $21.1 million, a 206% increase from revenue of $6.9 million for this same year-ago period. This surge in revenue was driven primarily by the rapid growth of our 5G AI multimodal business.Current Assets: As of September 30, 2024 and June 30, 2024, the Company's current assets were $7.2 million and $2.6 million, respectively. The period-over-period increase in current assets denotes added liquidity to support the smooth running of our day-to-day operations.Cash Balance: As of September 30, 2024 and June 30, 2024, the Company's cash balance was $0.9 million and $0.2 million, respectively. This was the result of a successful registered direct offering raising approximately $2.25 million in the first quarter. Subsequently, on October 15, 2024, the Company received approximately $4.0 million in gross proceeds from a private placement offering to support its future business operations, which was partially funded by insiders including the Company's Chief Executive Officer. Business Highlights 5G AI Multimodal Digital Business 1. 5G AI Multimodal Digital Business The Company has completed an upgrade of its core 5G AI multimodal communication business with AI processing technology. Currently, it can achieve AI creation and generation of various information forms including sound, text, images, and videos, as well as efficient transmission and AI digital human marketing functions. This capability can empower numerous industries and clients with highly effective marketing and video matrix capabilities by our 5G Multimodal Communication products. 2. Prospective Partner with China Mobile Internet During the first fiscal quarter, the Company's wholly-owned subsidiary, Heilongjiang Xunrui Technology Co., Ltd., was selected by China Mobile Internet as a prospective partner in its database of companies for specific project cooperation contracts. China Mobile Internet is a subsidiary of China Mobile, one of the world's largest mobile operators and the largest wireless carrier in China. Ms. Liu Zhixin, CEO of Datasea, commented, "We believe that the opportunity to collaborate with China Mobile Internet will provide new possibilities for growth of our existing businesses, which may enable our 5G AI subsidiary to further broaden its market channels, enhance brand influence, and offer higher quality products and services to a wider range of customers." 3. New 5G AI Agreements During the first fiscal quarter, two of the Company's 5G-AI subsidiaries entered into new agreements to provide 5G-AI multimodal digital services, including specialized marketing tools, that have an estimated potential total value of approximately $30 million over 12 months based on customer needs. The Company expects the new agreements will have a substantially positive impact on its financial performance in fiscal 2025 and will further enhance its positioning in China's 5G application landscape. Datasea plans to continue aggressively marketing these products and services, potentially leading to additional contracts in the near future. Datasea's Acoustics Business 1. Technological Innovation and Applications The Company is continuously advancing in technological innovation and maintaining a competitive edge in the field of acoustic technology, particularly in ultrasonic technology and Schumann resonance. This enables broader and more efficient applications in disinfection and sterilization, crop drying, security monitoring, sleep aid, beauty and skincare, as well as medical and wellness support. 2. New Product Development The Company continues to enhance and upgrade its range of acoustic products, including a series of ultrasonic air disinfection machines, with a particular focus on the Sleep Assurance Device (a non-contact sleep assistance device) for health improvement. This device combines cutting-edge "Acoustics + AI" precision manufacturing technology, featuring functions such as Schumann vibration for sleep aid, fatigue relief, AI voice commands, and intelligent light sensing. 3. Outlook for the Acoustics Business: To drive domestic growth in China, Datasea has implemented a robust new marketing strategy that integrates brand building, multi-channel marketing, and a refined pricing approach. This strategy encompasses multiple e-commerce platforms such as Tmall, JD.com, Douyin, Xiaohongshu, Dewu, Weibo, and various video channels. Through these platforms, Datasea is enhancing its brand exposure, utilizing live-streaming and influencer partnerships on Douyin, and engaging users with community-driven marketing on Xiaohongshu and Dewu. With its targeted mid-to-high-end pricing strategy and platform-specific promotions, Datasea is poised to expand its market reach and boost consumer engagement.In terms of international expansion, Datasea has established a U.S. subsidiary, Datasea Acoustics LLC, to lay the groundwork for a larger distribution network in North America. Datasea Acoustics LLC is focused on forming partnerships with leading U.S. retailers and distributors, and is actively pursuing collaborations in Europe and Asia. These initiatives will position Datasea to capture new market share and drive global growth. About Datasea Inc. Datasea Inc. ("Datasea") is a leading provider of products, services, and solutions for enterprise and retail customers in two innovative industries, acoustic high tech and 5G-AI multimodal digitalization. The Company's advanced R&D technology serves as the core infrastructure and backbone for its products. Its 5G multimodal digital segment operates on a cloud platform based on AI. Datasea leverages cutting-edge technologies, precision manufacturing, and ultrasonic, infrasound and directional sound technology in its acoustics business to combat viruses and prevent human infections, and it is also developing applications in medical ultrasonic cosmetology. In July 2023, Datasea established a wholly-owned subsidiary, Datasea Acoustics LLC, in Delaware, in a strategic move to enter the U.S. markets and to mark its global expansion plan. For additional information, please visit www.dataseainc.com. Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will", "expects", "anticipates", "future", "intends", "plans", "believes", "estimates", "target", "going forward", "outlook," "objective" and similar terms. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and which are beyond Datasea's control, which may cause Datasea's actual results, performance or achievements (including the RMB/USD value of its anticipated benefit to Datasea as described herein) to differ materially and in an adverse manner from anticipated results contained or implied in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in Datasea's filings with the SEC, which are available at www.sec.gov. Datasea does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law. Investor and Media Contact: Datasea Investor Relations Email: [email protected] [email protected] DATASEA INC. CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, JUNE 30, 2024 2024 (UNAUDITED) ASSETS CURRENT ASSETS Cash $ 937,606 $ 181,262 Accounts receivable 18,445 718,546 Inventory, net 208,062 153,583 Value-added tax prepayment 128,430 107,545 Subscription receivables - related parties 3,980,382 - Prepaid expenses and other current assets 1,908,999 1,486,956 Total current assets 7,181,924 2,647,892 NONCURRENT ASSETS Property and equipment, net 43,680 48,466 Intangible assets, net 518,306 546,001 Right-of-use assets, net 212,740 49,345 Total noncurrent assets 774,726 643,812 TOTAL ASSETS $ 7,956,650 $ 3,291,704 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 284,140 $ 1,075,641 Unearned revenue 1,312,317 49,239 Accrued expenses and other payables 691,792 596,714 Due to related parties 231,551 654,560 Operating lease liabilities 90,794 53,530 Bank loan payable 1,148,786 1,170,298 Total current liabilities 3,759,380 3,599,982 NONCURRENT LIABILITIES Operating lease liabilities 132,541 - Total noncurrent liabilities 132,541 - TOTAL LIABILITIES 3,891,921 3,599,982 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY (DEFICIT) Common stock, $0.001 par value, 25,000,000 shares authorized, 7,087,002 and 3,589,620 shares issued and outstanding as of September 30, 2024 and June 30, 2024 , respectively 7,087 3,589 Additional paid-in capital 45,268,415 38,957,780 Accumulated comprehensive income 229,054 242,208 Accumulated deficit (41,402,311) (39,440,322) TOTAL COMPANY STOCKHOLDERS' EQUITY (DEFICIT) 4,102,245 (236,745) Noncontrolling interest (37,516) (71,533) TOTAL STOCKHOLDERS' EQUITY (DEFICIT) (4,064,729) (308,278) TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) $ 7,956,650 $ 3,291,704 DATASEA INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) THREE MONTHS ENDED SEPTEMBER 30, 2024 2023 Revenues $ 21,081,094 $ 6,880,743 Cost of revenues 20,884,113 6,806,008 Gross profit 196,981 74,735 Operating expenses Selling 996,049 84,447 General and administrative 1,128,403 693,060 Research and development 103,079 155,004 Total operating expenses 2,227,531 932,511 Loss from operations (2,030,550) (857,776) Non-operating income (expenses) Other income (expenses), net 55,826 (7,864) Interest income 4,055 106 Total non-operating income (expenses), net 59,881 (7,758) Loss before income tax (1,970,669) (865,534) Income tax - - Loss before noncontrolling interest from continuing operations (1,970,669) (865,534) Income before noncontrolling interest from discontinued operations - 833,546 Less: loss attributable to noncontrolling interest from continuing operations (8,680) (9,932) Less: loss attributable to noncontrolling interest from discontinued operations - - Net loss attribute to noncontrolling interest (8,680) (9,932) Net loss to the Company from continuing operations (1,961,989) (855,602) Net income to the Company from discontinued operations - 833,546 Net loss to the Company (1,961,989) (22,056) Other comprehensive item Foreign currency translation loss attributable to the Company (13,154) (161,216) Foreign currency translation gain (loss) attributable to noncontrolling interest 41,306 (8) Comprehensive loss attributable to the Company $ (1,975,143) $ (183,272) Comprehensive income (loss) attributable to noncontrolling interest $ 32,626 $ (9,940) Basic and diluted net loss per share $ (0.49) $ (0.01) Weighted average shares used for computing basic and diluted loss per share * 4,041,052 1,963,066 * retroactively reflect 1-for-15 reverse stock split effective on January 19, 2024 DATASEA INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) THREE MONTHS ENDED SEPTEMBER 30, 2024 2023 Cash flows from operating activities: Loss including noncontrolling interest $ (1,970,669) $ (31,988) Adjustments to reconcile loss including noncontrolling interest to net cash used in operating activities: Gain on disposal of subsidiary - (833,546) Bad debt reversal (7,026) - Depreciation and amortization 85,635 137,873 Loss on disposal of fixed assets 2,815 - Operating lease expense 38,932 74,181 Stock compensation expense 375,000 20,100 Changes in assets and liabilities: Accounts receivable 701,384 (21,436) Inventory (51,064) 137 Value-added tax prepayment (18,760) (14,121) Prepaid expenses and other current assets (384,177) (5,692,660) Accounts payable (794,504) (179,875) Unearned revenue 1,242,820 (45,332) Accrued expenses and other payables 79,650 (56,515) Payment on operating lease liabilities (32,691) (101,231) Net cash used in operating activities (732,655) (6,744,413) Cash flows from investing activities: Acquisition of property and equipment (2,752) (330) Acquisition of intangible assets (44,768) - Cash disposed due to disposal of subsidiary - (35) Net cash used in investing activities (47,520) (365) Cash flows from financing activities: Repayment to related parties (426,944) (675,828) Proceeds from loan payables - 879,422 Repayment of loan payables (40,815) (184,425) Net proceeds from issuance of common stock 1,958,751 8,061,286 Net cash provided by financing activities 1,490,992 8,080,455 Effect of exchange rate changes on cash 45,527 (136,657) Net increase in cash 756,344 1,199,020 Cash, beginning of period 181,262 19,728 Cash, end of period $ 937,606 $ 1,218,748 Supplemental disclosures of cash flow information: Cash paid for interest $ 9,214 $ 5,551 Cash paid for income tax $ - $ - Supplemental disclosures of non-cash financing activities: Right-of-use assets obtained in exchange for operating lease liabilities $ 197,347 $ - IMPORTANT NOTICE TO USERS The information provided is a summary only, please refer to the Form 10-Q for the full text of this notice. All information is unaudited unless otherwise noted or accompanied by an audit opinion and is subject to the more comprehensive information contained in our SEC reports and filings. We do not endorse third-party information All information speaks as of the last fiscal quarter or year for which we have filed a Form 10-K or 10-Q, or for historical information the date or period expressly indicated in or with such information. We undertake no duty to update the information. Forward-looking statements are subject to risks and uncertainties described in our Forms 10-Q and 10-K. View original content to download multimedia:https://www.prnewswire.com/news-releases/datasea-reports-first-quarter-2025-revenue-of-21-million-up-206-year-over-year-302303776.html SOURCE Datasea Inc. Market News and Data brought to you by Benzinga APIs

Nauticus Robotics Announces Results for the Third Quarter of 2024 - Nauticus Robotics (NASDAQ:KITT)

HOUSTON, Nov. 12, 2024 /PRNewswire/ -- Nauticus Robotics, Inc. KITT, a leading innovator in subsea robotics and software, today announced its financial results for the quarter ended September 30, 2024. John Gibson, Nauticus CEO, stated, "We committed to producing commercial revenue in the third quarter of 2024 with our Aquanaut Mark 2. We achieved that objective. Our first commercial project not only exceeded customer expectations but also secured additional work for the fourth quarter. With the 2024 work season in the Gulf of Mexico ending, we are now fully focused on building a robust pipeline of commercial opportunities for 2025. Nauticus' untethered, autonomous deepwater solutions have set us apart as the technical leader in this field, earning strong recognition from our customers. On the financial front, we raised over $1 million in cash through a tranche of convertible debentures, with the option to access an additional $20 million. Alongside converting existing debentures into preferred equity, these steps bolster our shareholder equity and position us to regain compliance with NASDAQ listing requirements. This access to additional funds provides a solid financial foundation to cement our position as a leader in the ocean economy." Operational Highlights Vehicle 2 Testing: Nauticus' flagship vehicle, Aquanaut Mark 2 (Vehicle 2), completed deepwater qualification trials and began commercial operations in the Gulf of Mexico (GOM). The vehicle completed offshore operations for 2024 and will now be readied for the upcoming 2025 offshore season. The success of the commercial work performed this year resulted in continued discussions with current as well as new customers for 2025 work. The pipeline for Aquanaut services remains strong and the company expects that customers will continue placing the vehicle into their offshore execution models. Vehicle 1 Assembly and Testing: Aquanaut Vehicle 1 deepwater electronics upgrades are complete and final assembly is expected to complete this month. Once the vehicle is fully assembled it is planned to ship to a testing facility to complete factory acceptance testing. We expect this to occur by the end of the year. Vehicle 3 Assembly: Assembly of Aquanaut Vehicle 3 remains pending. Company focus remained on Vehicles 1 and 2 throughout the quarter. Work on this vehicle is not expected until sometime in 2025. ToolKITT Software: ToolKITT performed reliably during Aquanaut vehicle operations this quarter. The team continues to progress the technology towards higher levels of autonomy and broader commercial functionality. ToolKITT is also expected to provide value added differentiation for third party platform integration. Discussions with third party ROV manufacturers and services providers are ongoing and Nauticus is targeting to sell its first commercial license in 2025. Revenue: Nauticus reported third-quarter revenue of $0.4 million, compared to $1.6 million for the prior-year period and $0.5 million for the prior quarter. Operating Expenses: Total expenses during the third quarter were $5.9 million, a $3.9 million decrease from the prior-year period, and a $0.6 million decrease from Q2 2024. Net Income: For the third quarter, Nauticus recorded a net loss of $11.4 million, or basic loss per share of $4.24. This compares with a net loss of $17.7 million from the same period in 2023, and a net loss of $5.4 million in the prior quarter. Adjusted Net Loss: Nauticus reported adjusted net loss of $11.4 million for the third quarter, compared to $8.1 million for the same period in 2023. Adjusted net loss is a non-GAAP measure which excludes the impact of certain items, as shown in the non-GAAP reconciliation table below. 2024 G&A Cost: Nauticus reported G&A third-quarter costs of $2.8 million, which is a decrease of $3.9 million compared to the same period in 2023 and an additional $0.4 million decrease from the second quarter. Balance Sheet and Liquidity As of September 30, 2024, the Company had cash and cash equivalents of $2.9 million, compared to $0.8 million as of December 31, 2023. Conference Call Details Nauticus will host a conference call on November 13, 2024 at 10:00 a.m. Central Standard Time (11:00 a.m. EST) to discuss its results for the quarter ending September 30, 2024. To participate in the earnings conference call, participants should dial toll free at 800-225-9448, conference ID: KITT, or access the listen-only webcast at the following link: https://events.q4inc.com/attendee/559732352. A link to the webcast will also be available on the Company's website (https://ir.nauticusrobotics.com/). Following the conclusion of the call, a recording will be available on the Company's website. About Nauticus Robotics Nauticus Robotics, Inc. develops autonomous robots for the ocean industries. Autonomy requires the extensive use of sensors, artificial intelligence, and effective algorithms for perception and decision allowing the robot to adapt to changing environments. The company's business model includes using robotic systems for service, selling vehicles and components, and licensing of related software to both the commercial and defense business sectors. Nauticus has designed and is currently testing and certifying a new generation of vehicles to reduce operational cost and gather data to maintain and operate a wide variety of subsea infrastructure. Besides a standalone service offering and forward-facing products, Nauticus' approach to ocean robotics has also resulted in the development of a range of technology products for retrofit/upgrading traditional ROV operations and other third-party vehicle platforms. Nauticus' services provide customers with the necessary data collection, analytics, and subsea manipulation capabilities to support and maintain assets while reducing their operational footprint, operating cost, and greenhouse gas emissions, to improve offshore health, safety, and environmental exposure. Cautionary Language Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Act"), and are intended to enjoy the protection of the safe harbor for forward-looking statements provided by the Act as well as protections afforded by other federal securities laws. Such forward-looking statements include but are not limited to: the expected timing of product commercialization or new product releases; customer interest in Nauticus' products; estimated operating results and use of cash; and Nauticus' use of and needs for capital. Generally, statements that are not historical facts, including statements concerning possible or assumed future actions, business strategies, events, or results of operations, are forward-looking statements. These statements may be preceded by, followed by, or include the words "believes," "estimates," "expects," "projects," "forecasts," "may," "will," "should," "seeks," "plans," "scheduled," "anticipates," "intends," or "continue" or similar expressions. Forward-looking statements inherently involve risks and uncertainties that may cause actual events, results, or performance to differ materially from those indicated by such statements. These forward-looking statements are based on Nauticus' management's current expectations and beliefs, as well as a number of assumptions concerning future events. There can be no assurance that the events, results, or trends identified in these forward-looking statements will occur or be achieved. Forward-looking statements speak only as of the date they are made, and Nauticus is not under any obligation and expressly disclaims any obligation, to update, alter, or otherwise revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law. Readers should carefully review the statements set forth in the reports which Nauticus has filed or will file from time to time with the Securities and Exchange Commission (the "SEC") for a more complete discussion of the risks and uncertainties facing the Company and that could cause actual outcomes to be materially different from those indicated in the forward-looking statements made by the Company, in particular the sections entitled "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in documents filed from time to time with the SEC, including Nauticus' Annual Report on Form 10-K filed with the SEC on April 10, 2024. Should one or more of these risks, uncertainties, or other factors materialize, or should assumptions underlying the forward-looking information or statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated, or expected. The documents filed by Nauticus with the SEC may be obtained free of charge at the SEC's website at www.sec.gov. NAUTICUS ROBOTICS, INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS September 30, 2024 December 31, 2023 (Unaudited) ASSETS Current Assets: Cash and cash equivalents $2,915,757 $753,398 Restricted certificate of deposit 51,763 201,822 Accounts receivable, net 397,726 212,428 Inventories 2,229,509 2,198,797 Prepaid expenses 1,105,645 1,889,218 Other current assets 338,542 1,025,214 Assets held for sale 277,180 2,940,254 Total Current Assets 7,316,122 9,221,131 Property and equipment, net 16,158,525 15,904,845 Operating lease right-of-use assets 1,283,982 834,972 Other assets 229,296 187,527 Total Assets $24,987,925 $26,148,475 LIABILITIES AND STOCKHOLDERS' DEFICIT Current Liabilities: Accounts payable $4,734,093 $7,035,450 Accrued liabilities 7,269,833 7,339,099 Contract liability 697,818 2,767,913 Operating lease liabilities - current 433,820 244,774 Total Current Liabilities 13,135,564 17,387,236 Warrant liabilities 393,094 18,376,180 Operating lease liabilities - long-term 921,698 574,260 Notes payable - long-term, net of discount (related party) 46,148,307 31,597,649 Other liabilities 895,118 - Total Liabilities $61,493,781 $67,935,325 Stockholders' Deficit: Common stock, $0.0001 par value; 625,000,000 shares authorized, 5,634,942 and 1,389,884 shares issued, respectively, and 5,634,942 and 1,389,884 shares outstanding, respectively (As adjusted) $563 $139 Additional paid-in capital (As adjusted) 98,628,931 77,004,714 Accumulated other comprehensive income (26,983) - Accumulated deficit (135,108,367) (118,791,703) Total Stockholders' Deficit (36,505,856) (41,786,850) Total Liabilities and Stockholders' Deficit $24,987,925 $26,148,475 NAUTICUS ROBOTICS, INC. Unaudited Condensed Consolidated Statements of Operations Three Months Ended Nine Months Ended 9/30/2024 6/30/2024 9/30/2023 9/30/2024 9/30/2023 Revenue: Service $370,187 $501,708 $1,593,854 $1,336,249 $5,542,249 Service - related party - - - - 500 Total revenue 370,187 501,708 1,593,854 1,336,249 5,542,749 Costs and expenses: Cost of revenue (exclusive of items shown separately below) 2,648,019 2,875,394 2,651,380 7,617,368 7,484,249 Depreciation 446,087 411,586 160,744 1,283,858 487,052 Research and development - - 275,154 64,103 984,882 General and administrative 2,845,956 3,227,288 6,704,890 9,502,685 17,478,099 Total costs and expenses 5,940,062 6,514,268 9,792,168 18,468,014 26,434,282 Operating loss (5,569,875) (6,012,560) (8,198,314) (17,131,765) (20,891,533) Other (income) expense: Other (income) expense, net 2,278,909 118,274 (133,311) 2,300,710 1,015,908 Gain on lease termination - (8,532) - (23,897) - Foreign currency transaction loss 11,833 4,296 83,654 21,276 56,061 Loss on exchange of warrants - - - - 590,266 Change in fair value of warrant liabilities (615,505) (4,422,701) 8,656,392 (13,347,829) (18,775,158) Interest expense, net 4,111,844 3,669,423 873,738 10,234,639 7,365,402 Total other income, net 5,787,081 (639,240) 9,480,473 (815,101) (9,747,521) Net loss $(11,356,956) $(5,373,320) $(17,678,787) $(16,316,664) $(11,144,012) Basic loss per share (As adjusted) $(4.24) $(2.75) $(15.46) $(8.54) $(9.92) Diluted loss per share (As adjusted) $(4.24) $(2.75) $(15.46) $(8.54) $(9.92) Basic weighted average shares outstanding (As adjusted) 2,676,003 1,950,563 1,143,198 1,910,761 1,123,695 Diluted weighted average shares outstanding (As adjusted) 2,676,003 1,950,563 1,143,198 1,910,761 1,123,695 NAUTICUS ROBOTICS, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Years ended September 30, 2024 2023 Cash flows from operating activities: Net loss $(16,316,664) $(11,144,012) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation 1,283,858 487,052 Amortization of debt discount 5,694,378 2,924,820 Amortization of debt issuance cost 486,758 - Capitalized paid-in-kind (PIK) interest 927,485 - Accretion of RCB Equities #1, LLC exit fee 73,058 3,183 Stock-based compensation 1,872,504 3,995,020 Loss on exchange of warrants - 590,266 Change in fair value of warrant liabilities (13,347,829) (18,775,158) Non-cash impact of lease accounting 314,859 332,787 Gain on disposal of assets (1,695) - Write off of property and equipment 32,636 - Gain on lease termination (23,897) - Gain on short-term investments - (40,737) Interest expense assumed into Convertible Senior Secured Term Loan - 378,116 Changes in current assets and liabilities: Accounts receivable (185,298) 625,034 Inventories (30,714) (7,293,478) Contract assets - 547,183 Other assets 1,542,915 (206,702) Accounts payable and accrued liabilities (1,072,317) 11,155,980 Contract liabilities (2,070,095) 152,000 Operating lease liabilities (203,486) (357,985) Other liabilities 895,117 - Net cash used in operating activities (20,128,427) (16,626,631) Cash flows from investing activities: Capital expenditures (466,712) (10,745,111) Proceeds from sale of assets held for sale 420,220 - Proceeds from sale of property and equipment 18,098 - Proceeds from sale of short-term investments - 5,000,000 Net cash used in investing activities (28,394) (5,745,111) Cash flows from financing activities: Proceeds from notes payable 14,305,000 10,596,884 Payment of debt issuance costs on notes payable (1,316,791) - Proceeds from ATM offering 9,857,857 - Payment of ATM commissions and fees (499,903) - Proceeds from exercise of stock options - 421,175 Proceeds from exercise of warrants - 338,055 Net cash from financing activities 22,346,163 11,356,114 Effects of changes in exchange rates on cash and cash equivalents (26,983) - Net change in cash and cash equivalents 2,162,359 (11,015,628) Cash and cash equivalents, beginning of year 753,398 17,787,159 Cash and cash equivalents, end of year $2,915,757 $6,771,531 NAUTICUS ROBOTICS, INC. Unaudited Reconciliation of Net Income (Loss) Attributable to Common Stockholders (GAAP) to Adjusted Net Loss Attributable to Common Stockholders (NON-GAAP) Adjusted net loss attributable to common stockholders is a non-GAAP financial measure which excludes certain items that are included in net income (loss) attributable to common stockholders, the most directly comparable GAAP financial measure. Items excluded are those which the Company believes affect the comparability of operating results and are typically excluded from published estimates by the investment community, including items whose timing and/or amount cannot be reasonably estimated or are non-recurring. Adjusted net loss attributable to common stockholders is presented because management believes it provides useful additional information to investors for analysis of the Company's fundamental business on a recurring basis. In addition, management believes that adjusted net loss attributable to common stockholders is widely used by professional research analysts and others in the valuation, comparison, and investment recommendations of companies such as Nauticus. Adjusted net loss attributable to common stockholders should not be considered in isolation or as a substitute for net income (loss) attributable to common stockholders or any other measure of a company's financial performance or profitability presented in accordance with GAAP. A reconciliation of the differences between net income (loss) attributable to common stockholders and adjusted net loss attributable to common stockholders is presented below. Because adjusted net loss attributable to common stockholders excludes some, but not all, items that affect net income (loss) attributable to common stockholders and may vary among companies, our calculation of adjusted net loss attributable to common stockholders may not be comparable to similarly titled measures of other companies. Three Months Ended Nine Months Ended 9/30/2024 6/30/2024 9/30/2023 9/30/2024 9/30/2023 Net income (loss) attributable to common stockholders (GAAP) $(11,356,956) $(5,373,320) $(17,678,787) $(16,316,664) $(11,144,012) Change in fair value of warrant liabilities (615,505) (4,422,701) 8,656,392 (13,347,829) (18,775,158) Stock compensation expense 532,539 809,310 917,993 1,872,504 3,995,020 Sales and use tax assessment - - - - 1,189,164 Loss on exchange of warrants - - - - 590,266 Interest and penalties on RRA Amendment - - - - 4,320,690 Adjusted net loss attributable to common stockholders (non-GAAP) $(11,439,922) $(8,986,711) $(8,104,402) $(27,791,989) $(19,824,030) View original content to download multimedia:https://www.prnewswire.com/news-releases/nauticus-robotics-announces-results-for-the-third-quarter-of-2024-302303412.html SOURCE Nauticus Robotics, Inc. Market News and Data brought to you by Benzinga APIs

Predictive Oncology Reports Third Quarter 2024 Financial Results and Provides Strategic Update - Predictive Oncology (NASDAQ:POAI)

PITTSBURGH, Nov. 13, 2024 (GLOBE NEWSWIRE) -- Predictive Oncology POAI, a science driven company leveraging its proprietary artificial intelligence and machine learning capabilities, extensive biorepository of tumor samples, and CLIA laboratory, to accelerate oncologic drug discovery and enable drug development, today reported financial and operating results for the quarter ended September 30, 2024, and provided a corporate update. The Company reported a loss from continuing operations of approximately $2.3 million on total revenue of $345,686 for the quarter. Predictive Oncology also announced today that the company's Board of Directors, working with a strategic advisor, has initiated a process to evaluate a broad range of strategic alternatives intended to maximize shareholder value. Possible alternatives can include, but are not limited to, a sale of the company, a sale of an asset or assets of the company, or a licensing transaction. There can be no assurance that a transaction will occur. Management plans to provide additional updates on this process as developments warrant. Q3 2024 and Recent Highlights: Announced the results of an additional study that successfully demonstrated the long-term stability and viability of the more than 150,000 cryopreserved patient tumor samples stored within the Company's proprietary biobank. The samples stored in the biobank had originally been tested and cryopreserved between 2008 and 2016.The samples continue to produce drug response data that is consistent with their original clinical testing results.Concordance of drug response results between the original fresh patient sample testing and long-term cryogenically stored tumor material from the same patient was 100%.Predictive Oncology released a new white paper that discusses this study, and the importance of tumor sample viability, which can be found here. Entered the $51.5 billion biomarker discovery market following compelling results from retrospective ovarian cancer study with UPMC Magee-Womens Hospital: Predictive Oncology published a white paper on the biomarker discovery opportunity, which can be found here. Implemented a cost savings initiative intended to further streamline Predictive Oncology's operations, extend its cash runway, and support its new focus on novel biomarker discovery. The initiative reduced the Company's run rate for cash used in operating activities by approximately 20% on an annualized basis.Raised additional funding of $1.3 million in July through a warrant inducement transaction. "The strategic repositioning of the company that I initiated upon assuming the role of CEO in October 2022 has led to significant opportunities, both as a partner to leading global drug developers as well as for our own platform," said Raymond F. Vennare, Chief Executive Officer and Chairman of Predictive Oncology. "This is highlighted by our announcement last quarter that, as a result of our successful work with UPMC Magee-Womens Hospital, we expanded our AI/ML offering to pursue the discovery of novel biomarkers capable of predicting patient outcomes and drug responses, beginning with ovarian cancer. The implication here is notable in that, with our unique portfolio of assets that include our proprietary biobank of primary tumor samples and decades of drug response data, we are uniquely positioned to play a meaningful role in the early discovery of new cancer therapeutics as well as their ongoing development." "Notwithstanding our progress, we believe the opportunities in front of us are underappreciated by the capital markets, and in an effort to create sustained shareholder value, we have initiated a process to evaluate a broad range of strategic alternatives. Together with the cost savings initiative that we implemented last quarter that will reduce our cash burn by around 20% annually, we believe these actions have the potential to unlock significant value." "In parallel, we are engaged in ongoing discussions with several prospective partners that have the potential to generate revenue for our company should we be successful in executing one or more collaborations. We are well positioned to be a leader in the rapidly evolving field of AI-driven drug discovery and development," Mr. Vennare concluded. Considering Predictive Oncology's ongoing process to evaluate strategic alternatives, the Company has elected not to host an investor conference call this quarter. Predictive plans to host a corporate update call in the near future as developments warrant. Q3 2024 Financial Summary: Concluded the third quarter of 2024 with $3.1 million of cash and cash equivalents, compared to $8.7 million as of December 31, 2023, and $2.0 million in stockholders' equity as of September 30, 2024, compared to $8.3 million as of December 31, 2023. During the quarter, the Company raised $1.3 million in gross proceeds through the exercise of 958,117 warrants.Basic and diluted loss from continuing operations per common share for the quarter ended September 30, 2024, was $(0.36), compared to $(0.68) for the quarter ended September 30, 2023. Q3 2024 Financial Results: The Company recorded revenue of $345,686 for the third quarter of 2024, compared to $676,626 for the comparable period in 2023. Revenue for the three months ended September 30, 2024, was primarily derived from the Eagan operating segment, while revenue for the three months ended September 30, 2023, was primarily derived from the Pittsburgh operating segment. The decrease in revenue from the comparative period was primarily due to decreased sales of tumor-specific 3D cell culture models from the Pittsburgh operating segment, offset by increased sales of STREAMWAY systems during the third quarter of 2024 from the Eagan operating segment.General and administrative expenses decreased by $761,949 to $1,582,671 for the three months ended September 30, 2024, compared to $2,344,620 for the comparable period in 2023. The decrease was primarily due to decreased employee compensation related to lower headcount related expenses and severance for former employees.Operations expenses decreased by $5,274 to $633,422 for the three months ended September 30, 2024, compared to $638,696 for the comparable period in 2023. The minor decrease was primarily due to decreased cloud computing expenses resulting from cost saving efforts, offset by increased costs associated with our Pittsburgh laboratory including supplies and maintenance.Sales and marketing expenses decreased by $87,789 to $246,650 for the three months ended September 30, 2024, compared to $334,439 for the comparable period in 2023. The decrease was primarily due to lower employee compensation including sales commissions.Net cash used in operating activities of continuing operations was $8,913,589 and $9,060,285 for the nine months ended September 30, 2024, and 2023, respectively. Cash used in operating activities decreased in the 2024 period primarily because of changes in working capital. Forward-Looking Statements: Certain matters discussed in this release contain forward-looking statements. These forward-looking statements reflect our current expectations and projections about future events and are subject to substantial risks, uncertainties and assumptions about our operations and the investments we make. All statements, other than statements of historical facts, included in this press release regarding our strategy, future operations, future financial position, future revenue and financial performance, projected costs, prospects, plans and objectives of management are forward-looking statements. The words "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "would," "target" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Our actual future performance may materially differ from that contemplated by the forward-looking statements as a result of a variety of factors including, among other things, the risks related to the success of our collaboration arrangements, commercialization activities and product sales levels by our collaboration partners, and other factors discussed under the heading "Risk Factors" in our filings with the SEC. Except as expressly required by law, the Company disclaims any intent or obligation to update these forward-looking statements. Investor Relations Contact: Tim McCarthy, CFA LifeSci Advisors, LLC [email protected] PREDICTIVE ONCOLOGY INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) September 30, 2024 December 31, 2023ASSETS Current assets: Cash and cash equivalents$3,078,955 $8,728,660 Accounts receivable 463,834 277,641 Inventories 504,380 480,803 Prepaid expense and other assets 442,513 512,078 Current assets of discontinued operations 77,726 79,249 Total current assets 4,567,408 10,078,431 Property and equipment, net 402,909 491,214 Intangibles, net 221,473 241,339 Lease right-of-use assets 2,203,935 2,598,091 Other long-term assets 102,509 105,509 Non-current assets of discontinued operations - 902,665 Total assets$7,498,234 $14,417,249 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable$1,141,922 $1,334,064 Note payable 195,776 150,408 Accrued expenses and other liabilities 1,517,242 1,542,948 Derivative liability 1 1,376 Contract liabilities 257,393 302,499 Lease liability 496,788 444,897 Current liabilities of discontinued operations 207,644 174,839 Total current liabilities 3,816,766 3,951,031 Other long-term liabilities 10,046 5,459 Lease liability - net of current portion 1,704,453 2,130,977 Non-current liabilities of discontinued operations - 58,002 Total liabilities 5,531,265 6,145,469 Stockholders' equity: Preferred stock, 20,000,000 shares authorized inclusive of designated below Series B Convertible Preferred Stock, $.01 par value, 2,300,000 shares authorized, 79,246 shares outstanding as of September 30, 2024, and December 31, 2023 792 792 Common stock, $.01 par value, 200,000,000 shares authorized, 6,666,993 and 4,062,853 shares outstanding as of September 30, 2024, and December 31, 2023, respectively 66,670 40,629 Additional paid-in capital 180,156,184 175,992,242 Accumulated deficit (178,256,677) (167,761,883)Total stockholders' equity 1,966,969 8,271,780 Total liabilities and stockholders' equity$7,498,234 $14,417,249 PREDICTIVE ONCOLOGY INC. CONDENSED CONSOLIDATED STATEMENTS OF NET LOSS (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Revenue$345,686 $676,626 $1,012,232 $1,308,102 Cost of sales 196,919 97,868 535,511 367,461 Gross profit 148,767 578,758 476,721 940,641 Operating expenses: General and administrative expense 1,582,671 2,344,620 5,834,783 6,823,324 Operations expense 633,422 638,696 2,188,936 2,099,974 Sales and marketing expense 246,650 334,439 1,268,824 1,112,412 Total operating expenses 2,462,743 3,317,755 9,292,543 10,035,710 Total operating (loss) (2,313,976) (2,738,997) (8,815,822) (9,095,069)Other income 36,378 47,838 64,497 118,618 Other expense (5,822) (60,671) (9,393) (60,671)Gain on derivative instruments 7 3,463 1,375 11,724 Loss from continuing operations (2,283,413) (2,748,367) (8,759,343) (9,025,398)Loss from discontinued operations (811,277) (415,083) (1,735,451) (1,483,222)Net (loss)$(3,094,690) $(3,163,450) $(10,494,794) $(10,508,620) Loss per common share, basic and diluted: Loss from continuing operations (0.36) (0.68) (1.74) (2.26)Loss from discontinued operations (0.13) (0.10) (0.34) (0.37)Net (loss) per common share, basic and diluted$(0.48) $(0.78) $(2.08) $(2.63) Weighted average shares used in computation - basic and diluted 6,396,221 4,031,356 5,046,227 3,998,887 Market News and Data brought to you by Benzinga APIs