Financial Performance - Revenue for Q2 2024 decreased by 24.7% to $2.2 million compared to $2.9 million in Q2 2023[1] - Subscription revenue for Q2 2024 decreased by 26.1% to $2.1 million, while advertising revenue increased by 29.2% to $0.1 million[1] - Net loss for Q2 2024 was $0.9 million, a decline of 788.8% compared to a net income of $0.1 million in Q2 2023[1] - Total revenues for the three months ended June 30, 2024, were $2,224,625, a decrease of 25% compared to $2,956,002 for the same period in 2023[24] - The net loss for the three months ended June 30, 2024, was $(934,151), compared to a net income of $135,629 for the same period in 2023[24] - Adjusted EBITDA loss for Q2 2024 was $0.9 million, an increase of approximately 6164.5% compared to a loss of $14,945 in Q2 2023[1] - Adjusted EBITDA for the three months ended June 30, 2024, was $(936,227), compared to $(14,945) for the same period in 2023[17] Cash and Assets - Cash balance as of June 30, 2024, was $12.8 million, a decrease of $0.2 million from Q1 2024[1] - Total current assets decreased to $13,724,546 as of June 30, 2024, from $14,765,599 as of December 31, 2023[22] - Cash and cash equivalents were $12,796,004 as of June 30, 2024, down from $13,568,049 as of December 31, 2023[22] - The balance of cash and cash equivalents at the end of the period was $12,796,004, down from $13,650,942 at the end of June 2023[25] Liabilities and Expenses - Total liabilities as of June 30, 2024, were $3,674,642, a slight decrease from $3,752,581 as of December 31, 2023[22] - The company reported a total cost of revenue of $810,493 for the three months ended June 30, 2024, compared to $774,028 for the same period in 2023[24] - The company incurred product development expenses of $1,212,220 for the three months ended June 30, 2024, an increase from $1,163,640 in the same period of 2023[24] - Stock-based compensation decreased to $91,561 in June 2024 from $112,311 in June 2023, reflecting cost management efforts[25] Deferred Revenue and Future Outlook - Deferred revenue decreased by 12.6% to $1.9 million as of June 30, 2024, compared to the previous year[1] - Deferred subscription revenue increased by $64,317, from $87,998 in June 2023 to $152,315 in June 2024, indicating potential growth in future revenue[25] - The company plans to focus on improving and marketing its ManyCam software as part of its future business objectives[16] Acquisition and Legal Matters - The company entered into an agreement to acquire Newtek Technology Solutions for $4 million in cash and 4 million shares of preferred stock, with potential earn-out payments of up to $5 million[2] - The company is defending its intellectual property in a patent litigation case against Cisco, with the trial expected to begin on August 26, 2024[6] Cash Flow Management - Net cash used in operating activities for the six months ended June 30, 2024, decreased by 22.5% to $0.8 million[1] - Net cash used in operating activities decreased to $772,045 in June 2024 from $996,778 in June 2023, showing improved cash flow management[25] - The company did not make any payments for contingent consideration in June 2024, compared to $85,000 in June 2023[25] Tax and Credit Management - The company reported a tax expense of $9,550 in June 2024, down from $18,551 in June 2023, indicating a reduction in tax liabilities[25] - The company recorded an allowance for credit losses of $3,233 in June 2024, which was not present in June 2023, suggesting a cautious approach to credit risk[25]
Paltalk(PALT) - 2024 Q2 - Quarterly Results