lective Audience(US:CAUD)2025-05-09 20:03Revenue Performance - Revenue for the three months ended September 30, 2024, was $3,128,238, a decrease of $137,436 or 4.2% compared to $3,265,674 in the same period in 2023[144]. Expenses - General and Administrative Expenses increased to $2,514,056 for the three months ended September 30, 2024, up by $1,188,800 or 90% from $1,325,256 in 2023, primarily due to legal costs and payroll expenses[147]. - Total Other Expenses, net, for the three months ended September 30, 2024, amounted to $(10,480,209), an increase of $(10,433,819) or 22,492% compared to $(46,390) in 2023, mainly due to impairment and write-off of intangible assets[149]. Acquisitions - The Company completed the acquisition of BeOp on August 1, 2024, resulting in BeOp becoming a wholly-owned subsidiary[129]. - The Company issued a total of 3,006,667 shares of restricted common stock as part of the BeOp acquisition, with 666,667 shares held back for 12 months[130]. - The Company entered into an Equity Exchange Agreement with DSL Digital, LLC, acquiring 51% of its membership interests in exchange for 3,242,875 shares of common stock[134]. - The acquisition of DSL is expected to enhance the Company's B2B and DTC advertising capabilities using proprietary AI technology[136]. Financial Position - As of September 30, 2024, the company had cash of $568,607 and a working capital deficiency of $(5,415,946) following the Initial Business Combination[150]. - Cash used in operating activities for the nine months ended September 30, 2024 was $11,952,010, indicating a need for additional capital to satisfy liquidity needs[151]. - The net cash used in operating activities increased by 229.2% from $(2,266,958) in 2023 to $(7,463,010) in 2024[155]. - The company reported a significant decrease in cash provided by financing activities, dropping 94.4% from $7,116,631 in 2023 to $399,999 in 2024[155]. - The company is obligated to pay $1,500,000 in deferred underwriting commissions upon consummation of its initial business combination[161]. Market and Trading - The Company faced Nasdaq delisting notifications due to non-compliance with listing requirements, but has since filed all delinquent reports[140]. - The Company’s common stock began trading on the OTCQB Market under the symbol "CAUD" effective August 16, 2024, following the Nasdaq delisting[142]. Financing and Capital Needs - The company has agreed to a financing arrangement with the Sponsor for up to $30 million, with expected terms including a 5% discount to the average of the three lowest VWAPs for the preceding 20 days[152]. - The company anticipates maintaining a lean operating structure in 2024, with potential increases in marketing spend if resources become available[158]. - The company has no off-balance sheet financing arrangements as of September 30, 2024[159]. Operational Challenges - The company is facing uncertainties due to fluctuating advertising revenues and regulatory changes impacting its operations and financial performance[165]. - The company has not identified any critical accounting estimates that could materially differ from actual results[163]. Business Combination - The Company has retained the right to extend the completion date of its Initial Business Combination up to six times, with the last extension valid until February 12, 2024[139].