Verb(VERB)2025-03-25 12:20Business Operations - MARKET.live platform enables livestream shopping across multiple social media channels, enhancing audience reach and engagement[21] - The partnership with TikTok Shop allows for contract-based recurring fee revenue services, including onboarding and creative services for brands[23] - The acquisition of LyveCom, an AI-driven video commerce platform, is expected to enhance MARKET.live's capabilities and is set to close in early summer 2025[24][25] - The Go Fund Yourself business unit generates revenue from issuer appearance fees ranging from 60,000, and charges up to 25% of gross sales revenue for products sold during the show[28][33] - Vanity Prescribed, through GoodGirlRx.com, offers telehealth services and pharmaceuticals with fixed pricing, aiming to disrupt traditional healthcare pricing models[29] - The company operates three distinct business units, with the first being MARKET.live, which focuses on interactive video-based social commerce and allows brands to broadcast livestream shopping events across multiple social media platforms[128] - The Company has established technology integrations with major platforms like META, TikTok, and Pinterest, enhancing the shopping experience for users[129] - The integration of LyveCom's technology is expected to enhance the omnichannel livestream shopping experience, officially launched on March 4, 2025[132] - Vanity Prescribed, a new telehealth initiative, aims to provide affordable healthcare solutions leveraging MARKET.live's social commerce technology[136] Financial Performance - Revenue for the year ended December 31, 2024, was 832,000 or 1,321% compared to 723,000, representing an increase of 29,000 in the same quarter of 2023, attributed to growth in MARKET.live and Go Fund Yourself[153] - Operating expenses for the year ended December 31, 2024, decreased to 2,331 million in 2023, a reduction of 11,238 million for the year ended December 31, 2024, down 2% from 1,134 million, consisting of 455 million in interest income, offset by financing costs of 7,617 million as of December 31, 2024, compared to 13,408 million[161] - The company issued 278,501 shares under the ATM offerings in December 2023, generating net proceeds of 8,495 and highly liquid investments of 0.1 million as of December 31, 2024, which was fully repaid on March 7, 2025[59] - The company may need significant additional capital for future operations, which could result in substantial dilution for stockholders and restrict operational capabilities[93] - The market price of the company's common stock has been subject to significant volatility, influenced by various external factors[98] - A prolonged decline in the stock price could adversely affect the company's ability to raise capital and continue operations[100] - The company does not intend to pay any cash dividends on its common stock in the near future, focusing instead on retaining earnings for business development and expansion[102] Competition and Market Conditions - The company faces intense competition in the livestream shopping platform market, with many competitors having greater resources and established customer bases[65] - Economic conditions significantly influence demand for the company's products, with declines potentially leading to excess capacity and reduced prices[81] - The company anticipates that economic conditions, such as inflation and increased interest rates, may negatively impact demand for its products[146] Risks and Compliance - The company is dependent on third-party internet providers for service delivery, which could be disrupted by outages or cyber incidents[70] - The company has limited capital resources and may struggle to obtain additional funding on favorable terms, which could hinder growth and operational flexibility[58] - The company is subject to various data protection laws, which may impose additional operational constraints and liabilities[72] - The company recognizes the importance of maintaining and expanding its customer base to drive revenue growth, as customer usage levels are difficult to predict[63] - The company may face challenges in developing new features and enhancements to its platform, which are critical for maintaining competitiveness in a rapidly evolving technological landscape[68] - The company has integrated AI technologies into its platform, which may present operational, compliance, and reputational risks that could adversely affect business operations[75] - The company anticipates new laws or regulations regarding AI technology that may be burdensome and limit the enhancement of existing tools and features[76] - The company relies on third-party service providers for essential services, and any operational difficulties faced by these vendors could materially impact the company's ability to serve users[79] - The company faces challenges in attracting and retaining skilled software developers due to high demand and labor shortages, which could hinder software development and maintenance[80] Internal Controls and Governance - The company is committed to maintaining effective internal controls over financial reporting to meet regulatory requirements[111] - The company has implemented stringent processes to oversee and manage risks associated with third-party service providers[116] - The company concluded that its disclosure controls and procedures were effective as of December 31, 2024[195] - Management assessed the internal control over financial reporting and found it effective as of December 31, 2024[197] - There were no changes in internal control over financial reporting during the three months ended December 31, 2024 that materially affected its effectiveness[198] - The company maintains a standing Audit Committee, Compensation Committee, Governance and Nominating Committee, Risk and Disclosure Committee, and Fiscal Oversight Committee[218] - All Board members attended 100% of the Board meetings and committee meetings during fiscal year 2024[218] - The company has a policy requiring all directors to attend the annual meeting of stockholders, and all directors attended the 2024 meeting[219] - The company’s management is responsible for establishing and maintaining adequate internal control over financial reporting[196] - The company’s internal control system is designed to provide reasonable assurance regarding the reliability of financial reporting[196] - Management acknowledges that inherent limitations exist in the effectiveness of controls, which may not prevent or detect all errors and fraud[199] Shareholder Considerations - The company has registered 16,000,000 shares of common stock underlying options and shares granted under its equity incentive plans, which may lead to dilution for existing stockholders[94] - The company has repaid all outstanding obligations associated with a Securities Purchase Agreement, which previously prohibited the declaration or payment of dividends[124] - The company’s bylaws contain provisions that may limit stockholders' ability to bring claims in a judicial forum they find favorable[110] - The company’s common stock is subject to "penny stock" rules, which may limit trading activity and affect marketability[103]