Thumzup Media Corporation(TZUP) - 2024 Q3 - Quarterly Report

Financial Performance - The Company generated revenues of $150 for the three months ended September 30, 2024, representing an increase of 108.33$72 for the same period in 2023[112]. - For the nine months ended September 30, 2024, revenues were $585, a decrease of 75.85$2,422 in the same period of 2023[120]. - The net loss available to common shareholders was $464,837 for the three months ended September 30, 2024, a decrease of 58.26$1,113,781 in the same period of 2023[112]. - The net loss available to common shareholders for the nine months ended September 30, 2024, was $1,346,269, a decrease of 54.36$2,949,450 in the same period of 2023[120]. - Operating expenses decreased by 38.37% to $442,847 for the three months ended September 30, 2024, down from$718,517 in the same period of 2023[112]. - Operating expenses for the nine months ended September 30, 2024, were $1,300,292, down 39.51$2,149,445 in the same period of 2023[120]. - The Company had cash balances of $110,246 as of September 30, 2024, down from$259,212 as of December 31, 2023[127]. - The Company used net cash in operations of $1,053,175 for the nine months ended September 30, 2024, compared to$1,911,767 for the same period in 2023[128]. - The Company raised approximately $7,125,000 from a public offering of common stock that closed on October 30, 2024[139]. Management Compensation - Mr. Steele's base salary will increase from$168,000 to $250,000 upon achieving$100,000 in net monthly ad revenue for twelve consecutive months[142]. - Mr. Steele's base salary will further increase to $350,000 upon reaching$250,000 in net monthly ad revenue for twelve consecutive months[142]. - The company will pay Mr. Steele a past performance bonus of $50,000 within 5 days of up-listing to a national stock exchange[142]. - Mr. Dietrich's base salary will also increase from$168,000 to $250,000 upon achieving$100,000 in net monthly ad revenue for twelve consecutive months[143]. - Mr. Dietrich's base salary will increase to $350,000 upon reaching$800,000 in net monthly ad revenue for twelve consecutive months[143]. - The company will pay Mr. Dietrich a past performance bonus of $25,000 within 5 days of up-listing to a national stock exchange[143]. Business Operations - Thumzup has paid out on 25,996 approved posts to 1,472 users regarding 559 advertisers since inception[106]. - Advertisers on the Thumzup platform have grown by a 209$1.00 to $1,000.00 per screened post[102]. - The Thumzup App connects brands with individuals willing to promote products, leveraging the gig economy[91]. - The Thumzup App is designed to generate scalable authentic social media content for advertisers[105]. Market Insights - In 2023,$148 billion was spent on digital display ads in the United States, with 43% of marketers considering display ads the least effective channel[94]. - 81% of consumers believe friends and family are the most reliable sources of information about products[95]. - The average American adult spent 7 hours and 58 minutes per day using digital media in 2020, with usage expected to continue accelerating[96]. Internal Controls and Legal Matters - As of September 30, 2024, the company identified a material weakness in internal control over financial reporting[151]. - The company plans to enhance internal control by appointing additional qualified personnel, contingent on securing financing or generating significant revenue[152]. - The company concluded that its financial statements present fairly its business and financial condition despite the identified weaknesses[147]. - The company is not currently involved in any legal proceedings that could materially affect its business[154]. Future Plans - The company aims to list its common stock on Nasdaq under the symbol "TZUP" following its admission to the OTCQB[88]. - The company has incurred losses since inception and is seeking to raise additional funds through loans or sales of common stock[108].