Financial Performance - Total revenue for Q3 2023 was $1,967,277, a decrease of $339,102 or 14.7% from $2,306,379 in Q3 2022[100] - Professional services revenue decreased by $192,712 or 9.1% to $1,921,300 in Q3 2023 from $2,114,012 in Q3 2022[100] - Gross profit for Q3 2023 was $649,812, down by $88,784 or 12.0% compared to $738,596 in Q3 2022[101] - Total revenue for the nine months ended September 30, 2023, was $6,152,022, a decrease of $2,900,389 or 32.0% from $9,052,411 in the prior year[105] - Gross profit for the nine months ended September 30, 2023, decreased by $327,284 or 14.0% to $2,011,623 compared to $2,338,907 in the prior year[106] Operating Loss and Expenses - Operating loss from continuing operations improved to $516,845 in Q3 2023, a reduction of $613,273 or 54.3% from a loss of $1,130,118 in Q3 2022[103] - Total Selling, General and Administrative (SG&A) expenses decreased by $2,312,807, from $6,745,357 in 2022 to $4,432,550 in 2023, primarily due to reductions in salaries, stock-based compensation, and legal fees[108] - The operating loss from continuing operations decreased by 77.8%, from $4,406,450 in 2022 to $978,459 in 2023, attributed to a litigation settlement gain of $1,442,468 and reduced SG&A expenses[109] - Discontinued operations resulted in a net loss of $335,993 in 2023, a significant improvement compared to a loss of $3,052,648 in 2022, reflecting a decrease in operating expenses and the sale of GMI[110] Cash Flow and Liquidity - As of September 30, 2023, the company had a net working capital of $537,375, with cash and cash equivalents totaling $877,198[116] - The company anticipates using $1.0 million to $1.5 million in operating activities over the next twelve months, indicating potential liquidity challenges[118] - The company received $1,400,000 from GMDC in August 2023, which included proceeds from the sale of common stock and contingent consideration[119] Strategic Focus and Growth - The company is focusing on organic growth and acquisitions, particularly in professional services, which are viewed as higher margin[98] - The company plans to leverage resources from the acquisition of Tellenger to capitalize on growth in the cybersecurity market[95] - The company plans to raise additional capital to support growth and is exploring strategic alternatives, including potential mergers or sales[117] Financial Management and Compliance - The company has no commitments for capital spending or plans for material capital expenditures, indicating a conservative approach to financial management[119] - The company has effective disclosure controls and procedures in place as of September 30, 2023, ensuring compliance with SEC regulations[121] - The company sold its remaining 24.9% interest in Gray Matters, Inc. for $400,000 in cash, recognizing a gain of $64,525[91]
WaveDancer(WAVD) - 2023 Q3 - Quarterly Report