2023 Q3 Form 10-Q Financial Statement

#000121390023086112 Filed on November 13, 2023

View on sec.gov

Income Statement

Concept 2023 Q3 2022 Q3
Revenue $17.98M $10.98M
YoY Change 63.72%
Cost Of Revenue $39.75M $7.490M
YoY Change 430.72% 313.89%
Gross Profit -$21.77M $3.493M
YoY Change -723.19% 1244.29%
Gross Profit Margin -121.06% 31.81%
Selling, General & Admin $12.87M $9.092M
YoY Change 41.56% 1249.01%
% of Gross Profit 260.28%
Research & Development $5.112M $1.718M
YoY Change 197.56% 446.99%
% of Gross Profit 49.18%
Depreciation & Amortization $1.360M $790.0K
YoY Change 72.15%
% of Gross Profit 22.61%
Operating Expenses $58.20M $11.28M
YoY Change 415.88% 1573.77%
Operating Profit -$40.22M -$7.788M
YoY Change 416.38% 395.26%
Interest Expense $3.620M $9.538K
YoY Change 37853.45% -99.38%
% of Operating Profit
Other Income/Expense, Net $7.590M $91.51K
YoY Change 8194.27% 2441.21%
Pretax Income -$29.00M -$1.862M
YoY Change 1457.43% -315.79%
Income Tax $16.13K -$3.588K
% Of Pretax Income
Net Earnings -$29.02M -$1.858M
YoY Change 1461.57% -315.37%
Net Earnings / Revenue -161.39% -16.92%
Basic Earnings Per Share -$0.14 -$0.01
Diluted Earnings Per Share -$0.14 -$0.01
COMMON SHARES
Basic Shares Outstanding 201.8M shares 177.7M shares
Diluted Shares Outstanding 201.8M shares 178.0M shares

Balance Sheet

Concept 2023 Q3 2022 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $267.0M $356.7M
YoY Change -25.15% 1426700.0%
Cash & Equivalents $265.9M $356.7M
Short-Term Investments $1.100M
Other Short-Term Assets $13.20M $3.400M
YoY Change 288.24% 582.31%
Inventory
Prepaid Expenses $13.19M $3.438M
Receivables $6.200M $7.860M
Other Receivables $0.00 $0.00
Total Short-Term Assets $286.4M $368.0M
YoY Change -22.18% 70217.47%
LONG-TERM ASSETS
Property, Plant & Equipment $17.88M $6.535M
YoY Change 173.57%
Goodwill $12.65M $662.9K
YoY Change 1807.99%
Intangibles $10.81M $2.943M
YoY Change 267.46%
Long-Term Investments
YoY Change
Other Assets $1.900M
YoY Change
Total Long-Term Assets $45.04M $11.64M
YoY Change 286.91% -96.12%
TOTAL ASSETS
Total Short-Term Assets $286.4M $368.0M
Total Long-Term Assets $45.04M $11.64M
Total Assets $331.4M $379.6M
YoY Change -12.7% 26.24%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $33.50M $12.50M
YoY Change 168.0%
Accrued Expenses $700.0K $600.0K
YoY Change 16.67% -3.98%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change -100.0%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $44.28M $13.68M
YoY Change 223.61% 790.98%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00
YoY Change
Other Long-Term Liabilities $12.00M $500.0K
YoY Change 2300.0% -94.31%
Total Long-Term Liabilities $12.00M $500.0K
YoY Change 2300.0% -94.31%
TOTAL LIABILITIES
Total Short-Term Liabilities $44.28M $13.68M
Total Long-Term Liabilities $12.00M $500.0K
Total Liabilities $56.25M $40.53M
YoY Change 38.81% 292.64%
SHAREHOLDERS EQUITY
Retained Earnings -$115.9M -$27.84M
YoY Change 316.43%
Common Stock $768.5K $768.4K
YoY Change 0.02%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $275.1M $339.1M
YoY Change
Total Liabilities & Shareholders Equity $331.4M $379.6M
YoY Change -12.7% 26.24%

Cashflow Statement

Concept 2023 Q3 2022 Q3
OPERATING ACTIVITIES
Net Income -$29.02M -$1.858M
YoY Change 1461.57% -315.37%
Depreciation, Depletion And Amortization $1.360M $790.0K
YoY Change 72.15%
Cash From Operating Activities -$25.31M -$7.710M
YoY Change 228.27%
INVESTING ACTIVITIES
Capital Expenditures $3.880M $1.810M
YoY Change 114.36%
Acquisitions
YoY Change
Other Investing Activities -$30.00K $0.00
YoY Change
Cash From Investing Activities -$3.910M -$1.810M
YoY Change 116.02%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -460.0K 332.7M
YoY Change -100.14% -955224.89%
NET CHANGE
Cash From Operating Activities -25.31M -7.710M
Cash From Investing Activities -3.910M -1.810M
Cash From Financing Activities -460.0K 332.7M
Net Change In Cash -29.68M 323.2M
YoY Change -109.18% -927892.13%
FREE CASH FLOW
Cash From Operating Activities -$25.31M -$7.710M
Capital Expenditures $3.880M $1.810M
Free Cash Flow -$29.19M -$9.520M
YoY Change 206.62%

Facts In Submission

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dei Entity Registrant Name
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RelatedPartiesAmountInCostOfSales
390000 usd
CY2023Q4 us-gaap Investment Interest Rate
InvestmentInterestRate
0.0019 pure
us-gaap Number Of Operating Segments
NumberOfOperatingSegments
1 pure
CY2023Q3 us-gaap Revenues
Revenues
17982150 usd
CY2022Q3 us-gaap Revenues
Revenues
10983182 usd
us-gaap Revenues
Revenues
60571579 usd
us-gaap Revenues
Revenues
19427259 usd
CY2023Q3 us-gaap Noncurrent Assets
NoncurrentAssets
17878498 usd
CY2022Q4 us-gaap Noncurrent Assets
NoncurrentAssets
8844232 usd
us-gaap Reclassifications
Reclassifications
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 0in"></td><td style="width: 0.25in; text-align: left"><b>19.</b></td><td style="text-align: justify"><b>Reclassifications of Previously Issued Financial Statements</b></td> </tr></table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 28.55pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Certain amounts for prior periods have been reclassified in the condensed consolidated interim financial statements to conform to the current year presentation. There has been no impact on previously reported net loss or shareholders’ equity from such reclassifications.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 28.55pt 0pt 0in; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The following table summarizes the impact of the reclassification adjustments on the Company’s condensed consolidated interim statement of operations for the three and nine months ended September 30, 2022 as included in the Form 10-Q filed with the SEC on November 14, 2022.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.3in; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-indent: -0.125in; padding-left: 0.125in; white-space: nowrap; text-align: center"><b> </b></td><td style="white-space: nowrap; text-align: center; padding-bottom: 1.5pt"><b> </b></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; text-align: center"><b>As previously<br/> reported</b></td><td style="white-space: nowrap; text-align: center; padding-bottom: 1.5pt"><b> </b></td><td style="white-space: nowrap; text-align: center; padding-bottom: 1.5pt"><b> </b></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; text-align: center"><b>Adjustments</b></td><td style="white-space: nowrap; text-align: center; padding-bottom: 1.5pt"><b> </b></td><td style="white-space: nowrap; text-align: center; padding-bottom: 1.5pt"><b> </b></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; text-align: center"><b>As reclassified</b></td><td style="white-space: nowrap; text-align: center; padding-bottom: 1.5pt"><b> </b></td></tr> <tr style="vertical-align: bottom"> <td style="text-indent: -0.125in; padding-left: 0.125in"> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td colspan="13">Condensed consolidated statements of operations for the three months ended:</td></tr> <tr style="vertical-align: bottom"> <td style="text-indent: -0.125in; padding-left: 0.125in">September 30, 2022</td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.25in; width: 64%">Cost of revenues</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">7,489,884</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(7,489,884</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-244">-</div></td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Cost of services (content, hosting, and other)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-245">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">12,287,183</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">12,287,183</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">General and administrative</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,545,408</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">316,379</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,861,787</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Research and development</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,717,892</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,455</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,724,347</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Sales and marketing</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,547,045</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(5,086,868</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,460,177</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Share-based compensation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">188,667</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(188,667</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-246">-</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Foreign exchange loss (gain)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">24,980</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(24,980</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-247">-</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Amortization and depreciation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">257,394</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">152,994</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">410,388</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Interest income (expense), net</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">210,548</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,180</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">211,728</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Other income (expense)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-248">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(24,980</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(24,980</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Income tax (expense) recovery</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,588</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(3,588</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-249">-</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-indent: -0.125in; padding-left: 0.25in"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Condensed consolidated statements of operations for the nine months ended:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-indent: -0.25in; padding-left: 0.25in">September 30, 2022</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.25in">Cost of revenues</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">14,671,468</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(14,671,468</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-250">-</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Cost of services (content, hosting, and other)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-251">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">20,213,175</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">20,213,175</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">General and administrative</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,577,028</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">587,378</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,164,406</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Research and development</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,701,790</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">19,366</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,721,156</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Sales and marketing</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,626,375</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(6,204,071</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,422,304</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Share-based compensation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">222,639</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(222,639</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-252">-</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Foreign exchange loss (gain)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">49,548</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(49,548</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-253">-</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Amortization and depreciation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">625,369</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">299,605</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">924,974</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Interest income (expense), net</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">231,999</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,535</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">234,534</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Other income (expense)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-254">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(49,548</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(49,548</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Income tax (expense) recovery</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(18,811</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">18,811</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-255">-</div></td><td style="text-align: left"> </td></tr> </table>
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rum-20230930_cal.xml Edgar Link unprocessable
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