Verb(VERB) - 2024 Q3 - Quarterly Report

Financial Performance - Revenue for the three months ended September 30, 2024, was $128,000, compared to $29,000 for the same period in 2023, representing a significant increase of 341.38%[5] - Operating loss from continuing operations for the nine months ended September 30, 2024, was $(7,934,000), an improvement from $(10,783,000) in the same period of 2023, reflecting a reduction of 26.4%[5] - Net loss for the three months ended September 30, 2024, was $(1,965,000), compared to $(3,709,000) for the same period in 2023, indicating a decrease of 47%[5] - Total costs and expenses for the three months ended September 30, 2024, were $2,440,000, down from $3,419,000 in the same period of 2023, a reduction of 28.6%[5] - For the nine months ended September 30, 2024, the net loss was $7,141, a significant improvement from a net loss of $19,079 for the same period in 2023[21] Assets and Liabilities - As of September 30, 2024, total assets increased to $22.137 million from $10.839 million as of December 31, 2023, representing a growth of approximately 104.0%[12] - Cash reserves rose significantly to $10.515 million compared to $4.353 million at the end of 2023, marking an increase of about 141.0%[13] - Total current liabilities decreased to $3.903 million from $7.188 million, a reduction of approximately 45.9%[15] - Stockholders' equity increased to $18.029 million from $3.125 million, reflecting a growth of about 476.0%[17] - Total liabilities increased from $4,108,000 as of December 31, 2023, to $7,714,000 as of September 30, 2024[16] Cash Flow and Investments - Cash at the end of the period was $10,515, up from $918 at the end of September 30, 2023[21] - The company has cash of $10,515 and short-term investments of $5,077 as of September 30, 2024[31] - The company completed the sale of its SaaS assets for $6,500, with $4,750 received in cash at closing[30] - The company generated $18,596 from the sale of common stock offerings, compared to $6,628 in the previous year[21] Revenue Recognition and Segments - The Company operates through two reportable segments: MARKET.live and Go Fund Yourself, with revenue derived from contract-based recurring fee services and cash fees charged to issuers[41][43][44] - Revenue recognition is based on ASC 606, with significant revenue derived from SaaS application services, digital marketing, and sales support services prior to the sale of the SaaS business[42] - Revenue from MARKET.live is derived from contract-based recurring fee services, including onboarding clients to TikTok Shop and hosting training sessions[43] Strategic Initiatives and Market Conditions - The company aims to enhance its service offerings and launch new product platforms, including MARKET.live, to drive future growth[7] - Management anticipates challenges in maintaining profitable operations and expanding the customer base due to competitive market conditions[7] - The company is focused on increasing strategic relationships to boost revenue from existing partnerships[7] - The company is focused on mitigating risks from unfavorable economic conditions that could impact demand for its products[31] Stock and Equity - The company issued common shares valued at $18,596,000 from public offerings during the nine months ended September 30, 2024[19] - The weighted average number of common shares outstanding for the three months ended September 30, 2024, was 710,106, compared to 27,104 for the same period in 2023, indicating a significant increase in shares[5] - The company redeemed Series C Preferred Shares, resulting in a decrease of 2,105 shares, with a corresponding impact on equity[19] Impairments and Legal Matters - The company recorded an impairment of $5,441,000 related to the sale of its SaaS operating assets, which were sold for $6,500,000[82] - The company has accrued a liability of $584 related to a legal dispute with a former employee, which is currently under appeal[119] Future Outlook - The company has announced a technology integration with Pinterest and plans to expand its social platform access[25] - The MARKET.live platform allows for livestream shopping across multiple social media channels, enhancing user experience and sales potential[25] - The company expects to receive up to $1,750 in additional payments from the sale of its SaaS assets if certain profitability and revenue targets are met within two years[30][34]