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Mobiquity Technologies(MOBQ) - 2024 Q4 - Annual Report
MOBQMobiquity Technologies(MOBQ)2025-04-07 21:01

Revenue Generation and Business Model - The ATOS platform engages with approximately 10 billion advertisement opportunities per day, aiming to become the programmatic display advertising industry standard for brands and small to medium-sized advertisers[18]. - Mobiquity's data intelligence platform seeks to generate multiple revenue streams, including advertising, data licensing, and custom research, by providing precise data and insights on consumer behavior[21]. - The company launched a SaaS publisher platform to help content publishers manage compliance and monetize their first-party data, addressing increased costs and decreased revenue due to privacy regulations[26]. - Mobiquity anticipates generating revenue through two verticals: licensing platforms as white-label products and a managed services model, with the latter involving a higher percentage of revenue[40]. - The strategic partnership with Context Networks aims to integrate advanced ad tech solutions for casinos, enhancing player engagement and extending advertising across mobile and CTV platforms, expected to positively impact operations in fiscal 2025[41]. - A significant portion of revenue is derived from programmatic advertising, and any slowdown in this market could adversely affect growth prospects[72]. - The company must continually innovate and enhance its platform to meet evolving customer needs and industry standards, or risk losing market share[77]. Financial Performance and Risks - For fiscal 2024 and 2023, sales to two customers accounted for approximately 58% and 73% of revenues, respectively, indicating a high customer concentration risk[49]. - For the fiscal years ended December 31, 2024, and 2023, the company reported net losses of 8,593,182and8,593,182 and 6,533,117, respectively, with an accumulated deficit of 225,633,521asofDecember31,2024[55].−Thecompanyincurrednetcashusedinoperatingactivitiesof225,633,521 as of December 31, 2024[55]. - The company incurred net cash used in operating activities of 2,406,881 and 4,395,868forthefiscalyearsendedDecember31,2024,and2023,respectively[55].−Thecompanyhasahistoryofoperatinglossesandhasraisedsubstantialdoubtaboutitsabilitytocontinueasagoingconcern,asnotedbyitsauditorintheauditreportforthepastseveralfiscalyears[55].−Thesalescycleforthecompany′sproductscanrangefromtwoweeksto12months,makingrevenueforecastingdifficultandleadingtosignificantfluctuationsinoperatingresults[58].−Thecompanyreliesonthird−partydatasuppliersformuchofitsdata,andanydisruptionintheserelationshipscouldmateriallyimpactitsabilitytoprovideproductsandservices[59].−Thecompanyfacesincreasingcybersecurityrisksasitcollectsdatafromnewsources,andanysignificantbreachcouldmateriallyharmitsbusinessandfinancialcondition[62].−Thecompanyissubjecttopayment−relatedrisks,anddisputesoverinvoicescouldleadtowrite−offsthatnegativelyimpactfinancialresults[86].−Maintainingcustomerrelationshipsiscritical,asclientscanterminatecontractswithminimalnotice,leadingtopotentialrevenueloss[74].−Thecompanymustinvestsignificantlyintechnologyandinfrastructuretokeeppacewithrapidmarketchanges,whichrequiressubstantialfinancialresources[78].−Changesinconsumersentimentregardingdataprivacycouldadverselyaffectthecompany′sabilitytogeneraterevenueandcollectconsumerdata[83].−Thecompanyisexposedtoregulatoryrisksthatcouldimpedegrowthandresultinreputationaldamageifcomplianceisnotmaintained[84].−Failuretodetectadvertisingfraudcouldharmthecompany′sreputationandaffectitsabilitytoexecutebusinessplanseffectively[79].CompetitionandMarketEnvironment−Thecompanyfacesintensecompetitionfromlargerfirmswithgreaterfinancialandtechnicalresources,whichcouldimpactrevenuegrowthandoperatingmargins[68].−Thecompanyoperatesinahighlycompetitiveindustry,facingriskssuchaseconomicdownturnsandvariabilityinsalesandearnings[168][169].CorporateGovernanceandStructure−Thecompanyoperatesthroughtwowhollyownedsubsidiaries,Advangelists,LLCandMobiquityNetworks,Inc.,tostreamlineitsbusinessoperations[50].−AsofMarch14,2025,Mobiquityhas8employeesandutilizesindependentconsultantsforadditionalservices,indicatingaleanoperationalstructure[48].−Approximately454,395,868 for the fiscal years ended December 31, 2024, and 2023, respectively[55]. - The company has a history of operating losses and has raised substantial doubt about its ability to continue as a going concern, as noted by its auditor in the audit report for the past several fiscal years[55]. - The sales cycle for the company's products can range from two weeks to 12 months, making revenue forecasting difficult and leading to significant fluctuations in operating results[58]. - The company relies on third-party data suppliers for much of its data, and any disruption in these relationships could materially impact its ability to provide products and services[59]. - The company faces increasing cybersecurity risks as it collects data from new sources, and any significant breach could materially harm its business and financial condition[62]. - The company is subject to payment-related risks, and disputes over invoices could lead to write-offs that negatively impact financial results[86]. - Maintaining customer relationships is critical, as clients can terminate contracts with minimal notice, leading to potential revenue loss[74]. - The company must invest significantly in technology and infrastructure to keep pace with rapid market changes, which requires substantial financial resources[78]. - Changes in consumer sentiment regarding data privacy could adversely affect the company's ability to generate revenue and collect consumer data[83]. - The company is exposed to regulatory risks that could impede growth and result in reputational damage if compliance is not maintained[84]. - Failure to detect advertising fraud could harm the company's reputation and affect its ability to execute business plans effectively[79]. Competition and Market Environment - The company faces intense competition from larger firms with greater financial and technical resources, which could impact revenue growth and operating margins[68]. - The company operates in a highly competitive industry, facing risks such as economic downturns and variability in sales and earnings[168][169]. Corporate Governance and Structure - The company operates through two wholly owned subsidiaries, Advangelists, LLC and Mobiquity Networks, Inc., to streamline its business operations[50]. - As of March 14, 2025, Mobiquity has 8 employees and utilizes independent consultants for additional services, indicating a lean operational structure[48]. - Approximately 45% of the outstanding common stock is beneficially owned by principal stockholders, directors, and executive officers, potentially influencing corporate actions[108]. - The board of directors has the authority to issue preferred stock without further shareholder approval, which could adversely affect the rights of common shareholders[112]. Stock and Financing Activities - The company's common stock and warrants were delisted from the Nasdaq Capital Markets in December 2023 due to failure to meet listing requirements, now trading on OTC Markets as "MOBQ" and "MOBQW" respectively[95]. - Approximately 20 million shares of common stock were outstanding as of March 31, 2025, with significant potential for market price volatility due to the limited public float[103]. - The company does not intend to pay dividends for the foreseeable future, relying instead on stock appreciation for returns on investment[107]. - In fiscal year 2024, the company raised a total of 4,026,950 in cash from various accredited investors, resulting in the issuance of 5,908,734 shares at per share prices ranging from 0.30to0.30 to 1.75[154]. - The company completed a public offering on June 30, 2023, selling 375,000 shares of common stock for total gross proceeds of 3,000,000[148].InternalControlsandCompliance−Thecompanyhasidentifiedsignificantdeficienciesininternalcontroloverfinancialreporting,whichcouldleadtomaterialmisstatementsinfinancialstatementsifnotcorrected[104].−RemediationeffortsforinternalcontroldeficienciesincludehiringadditionalstaffwithGAAPexperienceandengagingaconsultantforinternalcontrolreviewandmonitoring[105].−Thecompanyhasimplementedpoliciestomanagecybersecurityrisks,althoughitcannotguaranteetheeffectivenessofthesemeasures[90].−Cybersecuritythreatshavenotmateriallyaffectedthecompany,withnoknownmaterialsecuritybreachesinthepasttwoyears[94].FinancialMetrics−Revenuesforfiscal2024were3,000,000[148]. Internal Controls and Compliance - The company has identified significant deficiencies in internal control over financial reporting, which could lead to material misstatements in financial statements if not corrected[104]. - Remediation efforts for internal control deficiencies include hiring additional staff with GAAP experience and engaging a consultant for internal control review and monitoring[105]. - The company has implemented policies to manage cybersecurity risks, although it cannot guarantee the effectiveness of these measures[90]. - Cybersecurity threats have not materially affected the company, with no known material security breaches in the past two years[94]. Financial Metrics - Revenues for fiscal 2024 were 2,085,471, an increase of 1,225,381or142.51,225,381 or 142.5% compared to 860,090 in fiscal 2023[191]. - Cost of revenues was 1,123,849,representing541,123,849, representing 54% of revenues in fiscal 2024, a decrease from 56% in fiscal 2023[192]. - Gross profit for fiscal 2024 was 961,622, or 46% of revenues, compared to 379,930or44379,930 or 44% of revenues in fiscal 2023[193]. - Total operating expenses increased to 9,172,687 in fiscal 2024 from 5,928,678infiscal2023,anincreaseof5,928,678 in fiscal 2023, an increase of 3,244,009[193]. - The loss from operations for fiscal 2024 was 8,211,065,anincreaseofapproximately8,211,065, an increase of approximately 2,662,000 compared to a loss of 5,548,748infiscal2023[194].−Cashprovidedbyfinancingactivitiesinfiscal2024was5,548,748 in fiscal 2023[194]. - Cash provided by financing activities in fiscal 2024 was 4,482,938, primarily from the issuance of common stock for cash of 4,026,950[196].−Thecompanyhadcashof4,026,950[196]. - The company had cash of 1,159,933 at December 31, 2024, compared to 528,272atDecember31,2023[196][197].−Thecompanycapitalized528,272 at December 31, 2023[196][197]. - The company capitalized 1.4 million of internal-use software costs during the year ended December 31, 2024[213]. - The company has a working capital deficit of 1,257,393andanaccumulateddeficitof1,257,393 and an accumulated deficit of 225,633,521 as of December 31, 2024[205].