Financial Performance - For the three months ended September 30, 2020, the company generated revenues of $2,316, a 154.7% increase from $909 in the same period in 2019, primarily due to the relaunch of product placements on its YouTube channel [142][143]. - Operating expenses for the three months ended September 30, 2020, were $208,238, down 81.4% from $1,122,617 in the same period in 2019, mainly due to reduced payroll and related expenses [142][144]. - The company reported a net income of $64,679,222 for the three months ended September 30, 2020, compared to a net loss of $23,550,345 in the same period in 2019, marking an increase of $88,229,567 [142][148]. - For the nine months ended September 30, 2020, revenues decreased to $2,316 from $23,658 in the same period in 2019, a decline of 90.2% due to service interruptions [149][150]. - Operating expenses for the nine months ended September 30, 2020, were $696,357, a decrease of 75.9% from $2,884,121 in the same period in 2019, attributed to lower stock-based compensation and payroll expenses [149][151]. - The company incurred a net loss of $142,405,892 for the nine months ended September 30, 2020, compared to a net loss of $94,457,638 in the same period in 2019, an increase of $47,948,254 [149][155]. Cash Flow and Financing - Net cash used in operations for the nine months ended September 30, 2020, was $717,062, a decrease of $672,150 from $1,389,212 in the same period in 2019 [156]. - Net cash provided by financing activities for the nine months ended September 30, 2020, was $716,592, a decrease from $1,271,300 in the same period of 2019 [158]. - As of September 30, 2020, the company had cash of $650 and a working capital deficit of $83,791,130 [159]. - Net cash used in operating activities during the nine months ended September 30, 2020, was $717,062, indicating ongoing negative cash flows from operations [159]. - The company has no committed source of financing and may need to consider additional financing options to support its operations and development plans [141]. - Management plans to obtain funding from new and current investors to alleviate the working capital deficiency and implement a revenue generation plan [160]. - The company’s ability to continue operations is dependent on obtaining additional capital through public or private equity offerings or debt financings [159]. - The company has contractual obligations that may require additional funds through equity or debt financings if operational funds are insufficient [164]. Operational Challenges - The company has experienced net losses since inception and expects these conditions to continue for the foreseeable future [159]. - The financial statements have been prepared under the assumption of the company continuing as a going concern for one year from the issuance date [161]. - The outcome of the company's plans to generate revenues cannot be determined with certainty [160]. - There are no off-balance sheet arrangements as of September 30, 2020 [162]. Audience and Monetization - The company has 920,000 opt-in email subscribers and over 265,000 subscribers on its YouTube channel, indicating a strong audience base for monetization efforts [132]. - The company is focusing on monetizing its existing media channels through product placements, display ads, and daily deals [134][135].
Greenwave Technology Solutions(GWAV) - 2020 Q3 - Quarterly Report