Core Viewpoint - Giftify, Inc. has launched a Buy Now, Pay Later (BNPL) payment option for CardCash.com through a partnership with Zip Co, enhancing customer accessibility and flexibility in gift card purchases [1][2][3] Group 1: Company Overview - Giftify, Inc. operates CardCash.com and Restaurant.com, focusing on the incentives and rewards industry [1][9] - CardCash.com is a leading secondary gift card exchange platform, allowing consumers to buy and sell gift cards [10] Group 2: BNPL Integration - The BNPL option allows customers to split gift card purchases into easy payments at checkout, making it more accessible for shoppers [1][4] - This payment model is particularly appealing to Millennials and Gen Z consumers, who prefer alternatives to traditional credit [2] - The integration aims to help customers manage cash flow while maximizing savings during financial constraints [2][3] Group 3: Strategic Goals - The partnership with Zip aligns with Giftify's strategic vision to expand payment options and enhance customer experience [3] - By offering BNPL, the company aims to strengthen its position in the gift card marketplace and better serve its customers [3][5] Group 4: Customer Benefits - CardCash users can save up to 35% on everyday brands, and the new payment option further enhances the value proposition [5] - The BNPL integration is designed to empower customers to access discounts while enjoying the flexibility to pay over time [4][5]

Financial Performance - For the three months ended March 31, 2025, net sales were $22,277,013, an increase from $21,521,894 in the same period of 2024, representing a growth of 3.5%[145] - CardCash's net sales for the three months ended March 31, 2025, were $21,867,114, compared to $21,160,007 for the same period in 2024, reflecting an increase of 3.3%[146] - Restaurant.com reported net sales of $409,899 for the three months ended March 31, 2025, up from $361,886 in the same period of 2024, marking a growth of 13.2%[147] - Gross profit for the three months ended March 31, 2025, was $3,581,636, compared to $3,257,276 for the same period in 2024, indicating an increase of 9.9%[145] - The gross margin for CardCash improved to 14.7% for the three months ended March 31, 2025, up from 13.8% in the prior year period[146] Operating Expenses and Losses - Total operating expenses increased to $6,749,301 for the three months ended March 31, 2025, from $6,200,695 in the same period of 2024, an increase of 8.8%[151] - The loss from operations for the three months ended March 31, 2025, was $3,167,665, compared to a loss of $2,943,419 for the same period in 2024, reflecting a deterioration of 7.6%[155] - The company reported a net loss of $3,217,332 for the three months ended March 31, 2025, compared to a net loss of $3,190,720 for the same period in 2024, indicating a slight increase in net loss[158] - Modified EBITDA for the three months ended March 31, 2025, was $(626,320), an improvement from $(657,889) in the same period of 2024, reflecting adjustments for various non-cash items[161] Cash Flow and Liquidity - Cash used in operating activities for the three months ended March 31, 2025, was approximately $1,448,924, a significant increase from $6,636 in the same period of 2024[176][178] - The company had cash of $2,121,814 available to fund operations as of March 31, 2025, with a negative working capital of $2,075,999[138] - The company anticipates its cash balance will last until approximately December 2025, indicating potential liquidity challenges ahead[171] - The company has experienced operating losses and negative operating cash flows during 2024 and 2023, raising substantial doubt about its ability to continue as a going concern[140] Debt and Financing - Interest expense decreased to $209,571 for the three months ended March 31, 2025, from $247,301 in the same period of 2024, a reduction of 15.3%[156] - The company has a revolving line of credit with availability of up to $10,000,000, with an average interest rate of 12% as of March 31, 2025[183] - The company issued two-year promissory notes totaling $1,500,000 as partial consideration for the acquisition of CardCash, with an outstanding principal balance of $750,000 as of March 31, 2025[185] - The company entered into a secured promissory note with Real World Digital Assets LLC for $1,000,000, bearing annual interest of 11.5%, with a maturity date of December 31, 2025[186] - The Company received a total of $650,000 in Economic Injury Disaster Loans (EIDL) under the Covid-19 program, with $150,000 received on June 17, 2020, and an additional $350,000 on July 14, 2021[187] - The loans bear an interest rate of 3.75% per annum, with a combined repayment of principal and interest of $3,500 per month starting 12 months from the date of the promissory note over a period of 30 years[188] - As of December 31, 2024, the note payable had a principal balance outstanding of $664,500 and accrued interest payable of $15,558[188] - As of March 31, 2025, the note payable remained at a principal balance of $664,500, with accrued interest payable reduced to $8,638[189] Off-Balance Sheet Arrangements and Reporting - The Company did not have any off-balance sheet arrangements as of March 31, 2025, and December 31, 2024[190] - The Company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[191]

Core Insights - Giftify, Inc. reported a gross profit increase of 10% to $3.6 million for Q1 2025, driven by strategic initiatives in AI implementation and market expansion [1][5] - The company achieved a revenue increase of 3.5% to $22.3 million and improved its gross margin to 16.1% from 15.1% [5][3] - Management emphasized the positive impact of AI solutions on operational efficiency and the successful expansion into high-margin vertical markets such as pharmacy savings, sports merchandise, and travel [3][5] Financial Performance - Revenue for the three months ended March 31, 2025, was $22.3 million, up from $21.5 million in the prior year [5][14] - Gross profit rose to $3.6 million, compared to $3.3 million in the same period last year [5][14] - The modified EBITDA loss improved to $0.63 million from $0.66 million year-over-year [5] Operational Highlights - The company has a strong balance sheet with total assets of $33.9 million and stockholders' equity of $21.3 million [5] - Giftify's strategic focus on AI is yielding measurable benefits across various departments, enhancing user engagement and operational efficiency [3][5] - The company has successfully expanded its offerings to include innovative savings solutions for consumers facing rising costs [5][3] Subsequent Events - After March 31, 2025, the company fully repaid its GameIQ acquisition note payable and amended its secured line of credit, releasing $0.25 million of restricted cash [5] - The company continues to expand its At-the-Market offering to strengthen its cash position [5]

Core Insights - Giftify, Inc. is experiencing significant growth in transaction volume through its subsidiary CardCash.com during the sports playoff season, with a 21% increase in unique customers and a 13% rise in order volume compared to pre-playoff periods [3][4] - The platform is offering substantial discounts, including up to 37% off NBA Store cards, which is attracting fans looking to purchase team merchandise at reduced prices [2][4] - The increase in user activity is not only driving immediate revenue but also expanding the user base with highly engaged consumers [4][5] Company Performance - CardCash.com has seen notable increases in gift card usage, with Nike gift card usage up 12%, Dick's Sporting Goods up 27%, and REI up 26% compared to the previous 28-day average [3] - The flexibility of CardCash.com to adjust marketplace offerings according to seasonal trends provides a competitive advantage in the gift card marketplace [3][4] - The current transaction volume growth aligns with record-breaking sports viewership and merchandise sales across major leagues, indicating a strong market position [4][7] Industry Trends - The NBA playoffs are averaging 4,448,000 viewers, a 13% increase from last year, contributing to heightened consumer spending on sports merchandise [7] - MLB has recorded its largest attendance in seven years with over 71 million fans in 2024, while its streaming platform set a new high of 14.5 billion minutes watched [7] - NHL merchandise sales are also surging, with a growing preference for online shopping among fans [7]

Core Insights - Giftify, Inc. is strategically expanding its use of Artificial Intelligence (AI) tools to enhance operational efficiency and decision-making processes across its operations [1][5]. Group 1: AI Implementation - The company has been implementing practical AI systems across multiple departments, focusing on operational improvements that enhance productivity and performance [2]. - In the marketing department, CardCash has deployed an AI tool that automates the review of customer communications, improving clarity and tone consistency while reducing the need for multiple team members in the review process [3]. - Advanced AI models are being utilized in customer support to analyze service tickets, allowing for the identification of recurring issues and trends, which helps prioritize impactful improvements [4]. Group 2: Operational Excellence - The AI implementation strategy is aimed at operational excellence, eliminating inefficiencies in background processes and allowing teams to focus on strategic problem-solving [5]. - The systematic expansion of AI capabilities is a core component of the company's operational efficiency initiatives, aimed at reducing costs and enhancing scalability while maintaining service quality [5]. Group 3: Future Plans - CardCash plans to continue developing targeted AI solutions throughout 2025, prioritizing tools that enhance speed, accuracy, and productivity across all operational departments [5].

Core Insights - Giftify, Inc. is leveraging its CardCash.com platform to provide financial solutions for travelers facing rising travel costs due to increased demand and higher prices across various travel segments [1][2][5] Industry Overview - The U.S. Travel Association reports record-breaking travel activity, with projections of 19 million Americans taking cruises in 2025 and airlines expecting to carry over 5 billion passengers globally [2] - Travel prices have significantly increased compared to pre-pandemic levels, prompting consumers to seek cost-efficient travel solutions [2] Company Strategy - CardCash.com offers discounted gift cards for major travel brands, providing savings of approximately 7% on Carnival Cruise, 15% on Hilton Hotels, and up to 4.5% on American Airlines [3] - The use of discounted gift cards is gaining recognition as an effective strategy for reducing travel expenditures at the point of sale [3][4] Expert Validation - Industry expert Eric Rosen from The Points Guy endorses discounted gift cards as a "tremendous deal" for travelers, enhancing the credibility of CardCash.com's business model [4] Consumer Experience - Travelers have reported positive experiences and savings through CardCash.com, highlighting the platform's ease of use and immediate cost reductions on travel expenses [5][9]

Acquisition and Mergers - Giftify, Inc. acquired CardCash Exchange, Inc. for $26,682,000, consisting of 6,108,007 shares of common stock valued at $24,432,000, $750,000 in cash, and $1,500,000 in notes payable[19] - The Company completed the merger with CardCash Exchange Inc on December 29, 2023, enhancing its position in the gift card exchange market[188] - The Company completed the merger with CardCash on December 29, 2023, marking a significant strategic expansion[209] Financial Performance - For the year ended December 31, 2024, the Company reported net sales of $88,934,036, a significant increase from $484,860 in the prior period[211] - The gross profit for the year ended December 31, 2024 was $13,144,781, compared to $66,510 for the Predecessor period, reflecting a gross margin improvement[211] - The Company incurred a net loss of $18,832,080 for the year ended December 31, 2024, compared to a net loss of $5,020,000 in the Predecessor period[211] - CardCash sales for the year ended December 31, 2024 were $86,991,638, slightly down from $87,146,804 in the previous year, indicating a focus on improving gross margin[214] - The gross margin for CardCash improved to 13.0% in the current year from 12.0% in the prior year, contributing to increased gross profit[214] - Total operating expenses for the Successor period were $31,520,507, compared to $5,086,510 for the Predecessor period, highlighting increased operational costs post-acquisition[211] - Interest expense for the year was $1,002,354, a decrease from $2,890,466 in the Predecessor period, indicating improved financing conditions[211] - The Company recognized a gain on forgiveness of debt amounting to $5,876,000 in the Predecessor period, which positively impacted net loss figures[211] Market Opportunities and Growth - The global gift card market is projected to reach $400 billion by 2026, presenting significant growth opportunities for CardCash[27] - CardCash's business channels are projected to grow at a faster rate, with the bulk-to-bulk channel expected to be the largest contributor to sales in the coming years[35] - CardCash plans to increase marketing efforts to retailers and consumers to accelerate gift card sales and enhance brand visibility[35] - The company intends to leverage its customer database for cross-promotional opportunities, which presents significant revenue potential[199] Customer Base and Revenue Generation - The B2C division of Restaurant.com accounted for approximately 50% of gross revenue in the fiscal year ended December 31, 2024, with a customer database of 6.2 million[36] - As of December 31, 2024, the customer base was 5.4 million, featuring deals at over 184,000 restaurants and merchants[59] - CardCash's "Specials by Restaurant.com" generated over 5% of B2C revenue from 60% of B2C orders, with an average order value nearly five times that of standard certificate purchases[37] - CardCash's branded exchange partnerships with major retailers like Amazon and CVS generated revenues of $1,800,000 and $1,900,000 respectively in 2023[32] Operational Challenges and Risks - The independent registered public accounting firm expressed substantial doubt about the company's ability to continue as a going concern due to recurring losses from operations[76] - The company faces competition from larger, established companies with greater financial and technical resources, which may impact its market position[60] - The company is subject to evolving foreign and domestic laws and regulations that could adversely affect its business operations[61] - The company faces significant risks to achieving profitability, including expense management, government regulations, and competition[77] - The implementation of the CARD Act may impose additional liabilities on CardCash, potentially increasing the estimated liability for unredeemed discount certificates and adversely affecting net income[81] - The company may incur significant losses from fraud and counterfeit certificates, which could adversely affect its revenue and business operations[95] - The current economic uncertainty, including the impact of the COVID-19 pandemic, may hinder the ability of restaurants and merchants to forecast business activities, potentially leading to decreased revenue for the company[101] - Global inflation has increased, resulting in higher operating costs, particularly in employee wages, which could adversely affect the company's financial condition and results of operations[103] Employee and Corporate Governance - The company employs 42 full-time employees, with no representation by a labor union, and considers employee relations to be good[74] - The company has a registered trademark for "CardCash," renewed in 2022 for an additional ten-year term[68] - The company relies on a combination of trade secrets, copyrights, trademarks, and patents to protect its intellectual property[69] - The Board of Directors oversees the cybersecurity program, with the Audit Committee managing quarterly assessments of cybersecurity risks[165] Cybersecurity and Data Protection - CardCash's FraudFix technology enhances transaction security, contributing to its competitive advantage in the gift card market[24] - The company has implemented a cybersecurity risk management program to mitigate risks associated with data security threats[161] - The company utilizes third-party consultants to assist in identifying and assessing cybersecurity risks, including security testing and risk assessments[162] - The company has experienced threats to its data and systems but has not been materially affected in terms of business strategy or financial condition[164] Strategic Focus and Future Plans - The company plans to continue focusing on enhancing the quality of purchased gift card brands to further improve sales and gross margins in the future[214] - A key strategy is to attract and retain high-quality merchants, particularly restaurants, to increase profitability and diversify offerings[141] - The company aims to enhance mobile adoption and improve booking capabilities to align with customer preferences for mobile device usage[140] Stock and Capital Structure - The company is subject to "Penny Stock" regulations, with its common stock priced below $5.00 per share, which may limit trading activity and investor access[142] - There is a risk of dilution of ownership interests due to potential future issuance of additional shares or convertible securities[153] - Approximately 20% of the company's outstanding shares are controlled by insiders, which may adversely affect stockholder influence and stock price[154] - The need for additional capital may arise if significant revenues are not generated, which could dilute current stockholders' ownership[131] - The company has financed its working capital through borrowings and equity securities sales, but there is substantial doubt about its ability to secure additional financing[205]

Financial Highlights - Q4 2024 net sales increased to $24.18 million, a 4.18% increase compared to Q3 2024 net sales of $23.21 million [6] - Q4 2024 gross profit improved by $645,785, or 21.59%, to $3.64 million compared to Q4 2023 gross profit of $2.99 million [6] - Full year 2024 net sales increased to $88.93 million, a 2.05% increase compared to full year 2023 net sales of $87.15 million [6] - Full year 2024 gross profit improved by $2.64 million, or 25.10%, to $13.14 million compared to full year 2023 gross profit of $10.51 million [6] - Full year 2024 gross margin improved to 14.78% compared to full year 2023 gross margin of 12.06% [6] Strategic Developments - Successful acquisition of CardCash.com completed on December 29, 2023, enhancing Giftify's market profile [6] - Company successfully listed on the Nasdaq Capital Market on August 6, 2024 [6] - Corporate rebranding from RDE, Inc. to Giftify, Inc. effective October 28, 2024 [6] - Expanded leadership team with the appointment of Steve Handy as Chief Financial Officer in August 2024 [6] Management Commentary - The company experienced a transformative year in 2024, focusing on operational improvements and profitability [5] - The dual business model positions the company well for growth in the U.S. gift card market, projected to reach $400 billion by 2026 [5] - The strategy includes growing both CardCash.com and Restaurant.com platforms, enhancing brand awareness, and expanding retail partnerships [5]

Core Insights - Giftify, Inc. is leveraging its gift card marketplace to help consumers manage rising food costs, particularly due to record-high egg prices and inflation in the grocery and restaurant sectors [1][2][4] Group 1: Company Overview - Giftify, Inc. operates CardCash.com and Restaurant.com, focusing on the incentives and rewards industry [6] - CardCash.com is a leading secondary gift card exchange platform, allowing consumers to buy and sell gift cards [6] - Restaurant.com is the largest restaurant-focused digital deals brand in the U.S., offering thousands of dining, retail, and entertainment deals [6] Group 2: Market Conditions - The average price for a dozen eggs reached $4.95 in January, with forecasts predicting a 41% increase this year due to supply chain disruptions from a bird flu outbreak [3] - The bird flu led to the culling of 18.8 million hens in January, significantly impacting egg supply and prices [3] - Rising food costs are also attributed to increased tariffs, labor shortages, and transportation costs, creating a challenging environment for consumers [4] Group 3: Consumer Solutions - Discounted gift cards provide immediate savings for consumers on groceries and dining, helping to offset rising prices [2][5] - CardCash.com offers discounts at major grocery retailers like Giant Foods, Kroger, and Trader Joe's, as well as popular restaurants such as IHOP and Olive Garden [4] - The platform aims to alleviate financial strain on households by providing practical tools for cost reduction during periods of food inflation [5]

Core Insights - Giftify, Inc. is leveraging its gift card marketplace to help consumers manage rising food costs, particularly due to record-high egg prices and overall inflation in grocery and restaurant sectors [1][2][4] Industry Overview - The average price for a dozen eggs reached $4.95 in January, with forecasts suggesting a potential increase of over 41% this year due to supply chain disruptions caused by a bird flu outbreak that led to the culling of 18.8 million hens [3] - Restaurants are responding to increased ingredient costs by adjusting their menus, with chains like Waffle House and Denny's implementing surcharges on egg-based dishes [3][4] Company Strategy - Giftify's CardCash.com offers discounted gift cards for major grocery retailers and popular restaurants, providing consumers with immediate savings to offset rising food prices [4][5] - The platform includes discounts for grocery stores such as Giant Foods, Kroger, and Trader Joe's, as well as dining options at restaurants like IHOP, Texas Roadhouse, and Olive Garden [4][5] Consumer Impact - Discounted gift cards are positioned as a practical tool for consumers to reduce food expenses during a period of inflation, allowing them to maintain their shopping and dining habits without significant changes [4][5]