Financial Performance - For the three months ended March 31, 2025, net sales were $22,277,013, an increase from $21,521,894 in the same period of 2024, representing a growth of 3.5%[145] - CardCash's net sales for the three months ended March 31, 2025, were $21,867,114, compared to $21,160,007 for the same period in 2024, reflecting an increase of 3.3%[146] - Restaurant.com reported net sales of $409,899 for the three months ended March 31, 2025, up from $361,886 in the same period of 2024, marking a growth of 13.2%[147] - Gross profit for the three months ended March 31, 2025, was $3,581,636, compared to $3,257,276 for the same period in 2024, indicating an increase of 9.9%[145] - The gross margin for CardCash improved to 14.7% for the three months ended March 31, 2025, up from 13.8% in the prior year period[146] Operating Expenses and Losses - Total operating expenses increased to $6,749,301 for the three months ended March 31, 2025, from $6,200,695 in the same period of 2024, an increase of 8.8%[151] - The loss from operations for the three months ended March 31, 2025, was $3,167,665, compared to a loss of $2,943,419 for the same period in 2024, reflecting a deterioration of 7.6%[155] - The company reported a net loss of $3,217,332 for the three months ended March 31, 2025, compared to a net loss of $3,190,720 for the same period in 2024, indicating a slight increase in net loss[158] - Modified EBITDA for the three months ended March 31, 2025, was $(626,320), an improvement from $(657,889) in the same period of 2024, reflecting adjustments for various non-cash items[161] Cash Flow and Liquidity - Cash used in operating activities for the three months ended March 31, 2025, was approximately $1,448,924, a significant increase from $6,636 in the same period of 2024[176][178] - The company had cash of $2,121,814 available to fund operations as of March 31, 2025, with a negative working capital of $2,075,999[138] - The company anticipates its cash balance will last until approximately December 2025, indicating potential liquidity challenges ahead[171] - The company has experienced operating losses and negative operating cash flows during 2024 and 2023, raising substantial doubt about its ability to continue as a going concern[140] Debt and Financing - Interest expense decreased to $209,571 for the three months ended March 31, 2025, from $247,301 in the same period of 2024, a reduction of 15.3%[156] - The company has a revolving line of credit with availability of up to $10,000,000, with an average interest rate of 12% as of March 31, 2025[183] - The company issued two-year promissory notes totaling $1,500,000 as partial consideration for the acquisition of CardCash, with an outstanding principal balance of $750,000 as of March 31, 2025[185] - The company entered into a secured promissory note with Real World Digital Assets LLC for $1,000,000, bearing annual interest of 11.5%, with a maturity date of December 31, 2025[186] - The Company received a total of $650,000 in Economic Injury Disaster Loans (EIDL) under the Covid-19 program, with $150,000 received on June 17, 2020, and an additional $350,000 on July 14, 2021[187] - The loans bear an interest rate of 3.75% per annum, with a combined repayment of principal and interest of $3,500 per month starting 12 months from the date of the promissory note over a period of 30 years[188] - As of December 31, 2024, the note payable had a principal balance outstanding of $664,500 and accrued interest payable of $15,558[188] - As of March 31, 2025, the note payable remained at a principal balance of $664,500, with accrued interest payable reduced to $8,638[189] Off-Balance Sheet Arrangements and Reporting - The Company did not have any off-balance sheet arrangements as of March 31, 2025, and December 31, 2024[190] - The Company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[191]
RDE, Inc.(GIFT) - 2025 Q1 - Quarterly Report