[PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=6&type=section&id=ITEM%201.%20Financial%20Statements) Unaudited Q3 and nine-month financial statements for 2022 reveal a net loss, reduced cash, and substantial investing cash outflow [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of September 30, 2022, shows decreased total assets and equity, with increased liabilities, primarily from reduced cash Condensed Consolidated Balance Sheet Highlights (as of Sep 30, 2022 vs. Dec 31, 2021) | Balance Sheet Item | Sep 30, 2022 (Unaudited, USD) | Dec 31, 2021 (USD) | | :--- | :--- | :--- | | Cash and cash equivalents | $15,498,563 | $21,636,860 | | Total current assets | $15,926,931 | $22,029,566 | | Intangible assets, net | $3,800,873 | $196,543 | | Total assets | $26,251,705 | $28,882,648 | | Total current liabilities | $3,471,092 | $3,672,875 | | Total liabilities | $4,420,117 | $3,832,057 | | Total stockholders' equity | $21,831,588 | $25,050,591 | - The significant increase in net intangible assets from **$196,543 to $3,800,873** is primarily due to the acquisition of ManyCam assets in June 2022[15](index=15&type=chunk)[26](index=26&type=chunk) [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q3 2022 net loss was $1.05 million, and the nine-month net loss was $2.92 million, driven by lower revenues and higher operating expenses Statement of Operations Summary (Unaudited) | Metric | Q3 2022 (USD) | Q3 2021 (USD) | Nine Months 2022 (USD) | Nine Months 2021 (USD) | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $2,623,467 | $3,377,647 | $8,194,636 | $10,165,452 | | (Loss) income from operations | ($1,060,403) | ($456,542) | ($2,857,155) | $529,331 | | Net (loss) income | ($1,050,365) | ($409,036) | ($2,918,016) | $1,329,377 | | Diluted EPS | ($0.11) | ($0.05) | ($0.30) | $0.18 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash decreased by $6.14 million for the nine months ended September 30, 2022, due to operating, investing (ManyCam), and financing outflows Cash Flow Summary for the Nine Months Ended September 30 (Unaudited) | Cash Flow Activity | 2022 (USD) | 2021 (USD) | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | ($2,623,682) | $1,090,055 | | Net cash (used in) provided by investing activities | ($2,942,279) | $806,618 | | Net cash (used in) provided by financing activities | ($572,336) | $3,230,739 | | **Net (decrease) increase in cash** | **($6,138,297)** | **$5,127,412** | - The primary use of cash in investing activities was the **$2.7 million** acquisition of ManyCam assets[22](index=22&type=chunk) - Financing activities in 2022 were dominated by the purchase of treasury stock (**$572,336**), contrasting with 2021 which saw **$3.2 million** in proceeds from the issuance of common stock[22](index=22&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the ManyCam acquisition, a stock repurchase plan, and a patent infringement lawsuit against Cisco - On June 9, 2022, the Company acquired the assets of ManyCam for **$2.7 million** in cash, with a potential earn-out payment of up to **$600,000** based on performance thresholds[26](index=26&type=chunk)[27](index=27&type=chunk) - Technology service revenue related to the Props platform with YouNow, which was **$451,755** in the first nine months of 2021, ceased as the agreement was terminated in late 2021[53](index=53&type=chunk)[55](index=55&type=chunk)[57](index=57&type=chunk) - On March 21, 2022, the Board approved a stock repurchase plan for up to **$1,750,000**. As of September 30, 2022, **317,089 shares** had been repurchased under this plan[75](index=75&type=chunk) - The company filed a patent infringement lawsuit against Cisco in July 2021, alleging infringement of U.S. Patent No. 6,683,858. A trial is scheduled for Q1 2023, but Cisco has filed a motion to stay the lawsuit pending a USPTO reexamination of the patent[98](index=98&type=chunk)[99](index=99&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 2022 revenue decline, a shift to operating loss, and a strong cash position despite significant acquisition and repurchase outflows [Overview and Recent Developments](index=24&type=section&id=Overview%20and%20Recent%20Developments) The company acquired ManyCam, repurchased shares, engaged Roth Capital for acquisitions, and noted macro-economic impacts - Acquired the core assets of ManyCam, a live streaming software and virtual camera, on June 9, 2022[111](index=111&type=chunk)[122](index=122&type=chunk) - Repurchased over **317,000 shares** of common stock for an aggregate amount of **$572,000** under a stock repurchase plan[122](index=122&type=chunk) - Engaged Roth Capital Partners as a financial advisor to explore strategic initiatives, particularly buy-side acquisitions[122](index=122&type=chunk) - Management acknowledges that macro-economic factors, including inflation and the strength of the US dollar, may negatively impact users' discretionary spending and the non-US customer base[117](index=117&type=chunk) [Key Metrics](index=29&type=section&id=Key%20Metrics) Key non-GAAP metrics, Subscription Bookings and Adjusted EBITDA, significantly declined in Q3 and nine months 2022, with Adjusted EBITDA turning negative Key Performance Indicators (Unaudited) | Metric | Q3 2022 (USD) | Q3 2021 (USD) | Nine Months 2022 (USD) | Nine Months 2021 (USD) | | :--- | :--- | :--- | :--- | :--- | | Subscription bookings | $2,759,762 | $2,996,414 | $8,091,183 | $9,210,330 | | Net cash (used in) provided by operating activities | ($979,748) | $478,067 | ($2,623,682) | $1,090,055 | | Adjusted EBITDA | ($780,550) | $300,603 | ($2,173,979) | $1,504,429 | - Adjusted EBITDA is a non-GAAP measure defined as net income excluding interest, taxes, depreciation, amortization, stock-based compensation, and certain other non-recurring items[143](index=143&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Total revenue decreased in Q3 2022 and for nine months due to lower subscription and ceased technology service revenue, while expenses increased Revenue Comparison for Q3 2022 vs. Q3 2021 | Revenue Source | Q3 2022 (USD) | Q3 2021 (USD) | $ Change (USD) | % Change | | :--- | :--- | :--- | :--- | :--- | | Subscription revenue | $2,538,764 | $3,148,822 | ($610,058) | (19.4)% | | Advertising revenue | $84,703 | $151,318 | ($66,615) | (44.0)% | | Technology service revenue | $0 | $77,507 | ($77,507) | (100.0)% | | **Total revenues** | **$2,623,467** | **$3,377,647** | **($754,180)** | **(22.3)%** | Revenue Comparison for Nine Months 2022 vs. 2021 | Revenue Source | Nine Months 2022 (USD) | Nine Months 2021 (USD) | $ Change (USD) | % Change | | :--- | :--- | :--- | :--- | :--- | | Subscription revenue | $7,945,809 | $9,410,096 | ($1,464,287) | (15.6)% | | Advertising revenue | $248,827 | $303,601 | ($54,774) | (18.0)% | | Technology service revenue | $0 | $451,755 | ($451,755) | (100.0)% | | **Total revenues** | **$8,194,636** | **$10,165,452** | **($1,970,816)** | **(19.4)%** | - Sales and marketing expenses for the nine months ended Sep 30, 2022 increased by **51.4% YoY** to **$1.3 million**, primarily due to a **$418,000** increase in marketing and user acquisition expenses[169](index=169&type=chunk)[171](index=171&type=chunk) - General and administrative expenses for the nine-month period increased **50.7% YoY** to **$3.2 million**, driven by higher stock-based compensation, professional fees, insurance, and amortization expense[169](index=169&type=chunk)[173](index=173&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) The company held $15.5 million in cash as of September 30, 2022, with adequate liquidity despite a $6.1 million cash decrease from operations, ManyCam acquisition, and repurchases - The company's primary source of liquidity is cash on hand, which stood at **$15,498,563** as of September 30, 2022[180](index=180&type=chunk) - Net cash used in operating activities was **$2.6 million** for the first nine months of 2022, a significant shift from **$1.1 million** in cash provided by operations in the same period of 2021, mainly due to lower subscription revenue and higher operating expenses[182](index=182&type=chunk) - Net cash used in investing activities was **$2.9 million**, primarily for the ManyCam Acquisition, compared to **$0.8 million** provided by investing activities in the prior year period[183](index=183&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This item is not applicable as the company is a smaller reporting company - The company has indicated that this section is not applicable[188](index=188&type=chunk) [Controls and Procedures](index=39&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of September 30, 2022, with no material changes in internal control over financial reporting - Management concluded that as of September 30, 2022, the company's disclosure controls and procedures were effective at a reasonable assurance level[190](index=190&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[191](index=191&type=chunk) [PART II. OTHER INFORMATION](index=40&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=40&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is involved in a patent infringement lawsuit against Cisco, with a Q1 2023 trial pending a USPTO reexamination motion - In July 2021, a subsidiary filed a patent infringement lawsuit against Cisco, alleging that Webex products infringe on U.S. Patent No. 6,683,858[194](index=194&type=chunk) - A trial is scheduled for Q1 2023. However, on September 16, 2022, Cisco filed a motion to stay the lawsuit pending a reexamination of the patent by the U.S. Patent Office[194](index=194&type=chunk)[195](index=195&type=chunk) [Risk Factors](index=40&type=section&id=ITEM%201A.%20Risk%20Factors) No material changes to the Risk Factors previously disclosed in the Form 10-K for the year ended December 31, 2021 - No material changes to the Risk Factors disclosed in the Form 10-K were reported[196](index=196&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities were reported, but the company repurchased 207,089 shares for $0.36 million in Q3 2022 - There were no sales of unregistered securities during the quarter ended September 30, 2022[197](index=197&type=chunk) Issuer Repurchases of Common Stock (Q3 2022) | Period | Total Number of Shares Purchased | Average Price Paid Per Share (USD) | | :--- | :--- | :--- | | July 2022 | — | $— | | August 2022 | 181,470 | $1.74 | | September 2022 | 25,619 | $1.67 | | **Total** | **207,089** | **$1.73** | [Defaults Upon Senior Securities](index=40&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported - The company reported no defaults upon senior securities[199](index=199&type=chunk) [Mine Safety Disclosures](index=40&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) No mine safety disclosures were reported - The company reported no mine safety disclosures[200](index=200&type=chunk) [Other Information](index=40&type=section&id=ITEM%205.%20Other%20Information) No other information was reported - The company reported no other information[201](index=201&type=chunk)[202](index=202&type=chunk) [Exhibits](index=42&type=section&id=ITEM%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO/CFO certifications and Inline XBRL data files

Paltalk, Inc. (NASDAQ:PALT) Q2 2022 Earnings Conference Call August 9, 2022 4:30 PM ET Company Representatives Jason Katz - Chief Executive Officer Kara Jenny - Chief Financial Officer Conference Call Participants Operator Good afternoon, and welcome to the Paltalk Second Quarter 2022 Earnings Call. At this time all participants have been placed on a listen-only-mode. It is now my pleasure to turn the floor over to your host, Jason Katz, Chief Executive Officer of Paltalk and Kara Jenny, Chief Financial Off ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number 001-38717 PALTALK, INC. (Exact name of registrant as specified in its charter) Delaware 20-3191847 (Registrant's telephone num ...

Financial Data and Key Metrics Changes - Revenue for Q1 2022 decreased by 13% to $2.9 million compared to $3.4 million in Q1 2021, primarily due to a decrease in technology service revenue and subscription revenue [19][20] - Subscription revenue declined by 9.3% or approximately $300,000, attributed to the easing of COVID-19 restrictions in target markets [20] - Advertising revenue increased by 4.6% to approximately $100,000 [21] - Loss from operations totaled approximately $700,000, an increase of $1.1 million compared to operating income of approximately $400,000 in Q1 2021 [21] - Net loss per share for Q1 2022 was $0.08, compared to net income per share of $0.13 in Q1 2021 [21] - Adjusted EBITDA decreased by approximately $1 million to a loss of approximately $0.5 million compared to positive adjusted EBITDA of $0.5 million in Q1 2021 [22] - Cash and cash equivalents totaled $20.4 million at March 31, 2022, a decrease of $1.2 million from $21.6 million at December 31, 2021 [22] Business Line Data and Key Metrics Changes - The decline in subscription revenue was a significant factor in the overall revenue decrease, while advertising revenue showed a slight increase [20][21] - Increased marketing expenses of approximately $200,000 or 60% and increased product development expenses of approximately $200,000 or 18% were noted [21] Market Data and Key Metrics Changes - The easing of COVID-19 restrictions in certain target markets was identified as a primary reason for the decline in subscription revenue [20] Company Strategy and Development Direction - The company is focusing on increasing marketing spend and investing in product development to drive growth [8][11] - Recent marketing initiatives include partnerships with yellowHEAD and NoGood to enhance user acquisition and engagement [12][14] - The launch of a mobile backgammon game is part of the strategy to increase user engagement and attract new subscribers [15][16] - The company is actively exploring potential strategic acquisitions to bolster growth [11][16] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment over the decline in subscription revenue but remains optimistic about future growth through new marketing tools and partnerships [8][11] - The company is committed to a measured approach in its investments and growth initiatives [10][17] - Management is focused on carefully monitoring the results of marketing initiatives and adjusting strategies as needed [14][17] Other Important Information - The company has no long-term debt on its balance sheet, providing financial flexibility for future investments [22] Q&A Session Summary Question: How are yellowHEAD and NoGood performing versus your previous expectations? - Both yellowHEAD and NoGood just started implementing their strategies at the beginning of Q2, so there is not enough data yet to report on [24] Question: Is there any color you can provide on the impact of Hive Automated Content Moderation Solutions, your new message board feed, and newly revised reward point system? - The Hive solution screens a large number of photos and videos with excellent accuracy, and improvements are ongoing for the feeds and reward point systems [25] Question: In regards to M&A, are there any investment bankers assisting you with your search or are you doing it all internally? Should we expect something by year-end? Are you in discussions or negotiations for anything yet? - The company is working hard to find suitable acquisitions, with making an accretive acquisition being a clear goal for 2022 [26]

PeerStream, Inc. (PEER) Q3 2019 Earnings Conference Call November 7, 2019 4:30 PM ET Company Participants Stephanie Prince - PCG Advisory Alex Harrington – Chief Executive Officer and Principal Financial Officer Conference Call Participants Operator Good day and welcome to the PeerStream, Inc. Third Quarter 2019 Earnings Conference Call. Today's conference is being recorded. At this time I would like to turn the conference over to Stephanie Prince, PCG Advisory. Stephanie Prince Thank you, Chloe, and good a ...

Q3 2019 EARNINGS PRESENTATION PeerStream, Inc. | OTCQB: PEER November 7, 2019 Safe Harbor This presentation is for discussion purposes only. Certain material is based upon third party information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Certain statements in this presentation constitute "forward-looking statements" relating to PeerStream, Inc. ("PEER," "PeerStream", the "Company", "we", "our", or "us") made under the safe h ...

Financial Data and Key Metrics Changes - Q2 2019 revenue was $4.9 million, a decrease of 16.3% compared to Q2 2018, with subscription revenue declining by 12.3% year-over-year [23][24] - Q2 2019 adjusted EBITDA was approximately $1 million, down by approximately $292,000 year-over-year, but showed significant improvement from $500,000 in Q1 2019 [30] - Total expenses in Q2 decreased by 14% compared to Q2 2018, driven by cost discipline [29] Business Line Data and Key Metrics Changes - The Secured Communication Software licensing business is targeting a $45 billion market in the information security industry, focusing on government and enterprise clients [9][10] - The video chat products, particularly Paltalk and Camfrog, are the largest contributors to revenue and have shown resilience due to recurring revenue streams [18] - Technology services revenue was down 18.2%, primarily from one client, ProximaX, and is expected to be unpredictable and lumpy [24][27] Market Data and Key Metrics Changes - The company is focusing on building partnerships and establishing a sales pipeline in the Secured Communications market, with over 40 active customer dialogues [15] - The integration of the Props token-based user rewards system is expected to improve user retention and monetization for video chat products [19][21] Company Strategy and Development Direction - The company is concentrating on the Secured Communications market, with a focus on military, intelligence, and emergency response sectors [11][12] - There is an emphasis on adapting software based on customer feedback to broaden capabilities and meet market demands [17] - The company aims to convert its customer prospect pipeline into sizable revenue-bearing contracts, with potential recognition of revenue starting in 2020 [27] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the near-term potential of converting customer prospects into contracts, although timing remains uncertain [27] - The company is excited about future growth prospects and is focused on reducing cash burn while transitioning expenses to R&D for Secured Communications [33][34] Other Important Information - The company sold its dating services business in January 2019, and those operations are now reported as discontinued [22] - Cash and cash equivalents were approximately $4.6 million at June 30, 2019, with zero debt and minimal operating lease obligations [33] Q&A Session Summary - No specific questions or answers were recorded during the Q&A session, as the operator concluded the conference call without further inquiries [35][36]

PeerStream, Inc. (PEER) Q1 2019 Earnings Conference Call April 30, 2019 4:30 PM ET Company Participants Stephanie Prince - IR Alex Harrington - CEO Judy Krandel - CFO Conference Call Participants Josh Goldtree - Maxim Group John Gilliam - Point Clear Strategic Capital Eric Tjaden - Private Investor Operator Good day and welcome to the PeerStream, Inc. First Quarter 2019 Earnings Conference Call. TodayÂ's conference is being recorded. At this time, I would like to turn the conference over to Stephanie Prince ...

PEERSTREAM Q1 2019 EARNINGS PRESENTATION PeerStream, Inc. | OTCQB: PEER April 2019 Safe Harbor This presentation is for discussion purposes only. Certain material is based upon third party information that we consider reliable, but we do not represent that it is acc complete, and it should not be relied upon as such. Certain statements in this presentation constitute "forward-looking statements" relating to PeerStream, Inc. ("PEER," "PeerStream", the "Company", "we", "our", or "us") made under the safe harb ...

Ticker: PEER FY 2018 EARNINGS PRESENTATION PeerStream, Inc. | OTCQB: PEER March 2019 Safe Harbor This presentation is for discussion purposes only. Certain material is based upon third party information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Certain statements in this presentation constitute "forward-looking statements" relating to PeerStream, Inc. ("PEER," "PeerStream" or the "Company") made under the safe harbor provisi ...