SportsMap Tech Acquisition (SMAP) - 2025 Q2 - Quarterly Report

Financial Performance - For the three months ended June 30, 2025, net revenue was $1,419,000, a decrease of 33.3% compared to $2,125,000 for the same period in 2024[19] - The company reported a net loss of $3,322,000 for the three months ended June 30, 2025, compared to a net loss of $6,393,000 for the same period in 2024, representing a 48.0% improvement[19] - For the six months ended June 30, 2025, total net revenue was $2,589, down 41.2% from $4,400 in the prior year[39] - Hardware revenue for the three months ended June 30, 2025, was $874, a decline of 48.8% from $1,723 in 2024[39] - Software revenue grew 37% to $0.4 million for the three months ended June 30, 2025, reflecting the company's focus on expanding its SaaS business[97] - The net loss for the three months ended June 30, 2025, was $3.3 million, a reduction of 48% compared to a net loss of $6.4 million in the same period in 2024[96] - Basic net loss per share for the three months ended June 30, 2025, was $(0.10), an improvement from $(0.47) in the same period of 2024[63] Assets and Liabilities - Total current assets decreased to $9,377,000 as of June 30, 2025, down from $10,516,000 as of December 31, 2024, reflecting a decline of 10.8%[17] - Total liabilities increased to $4,878,000 as of June 30, 2025, compared to $3,190,000 as of December 31, 2024, marking a 53.0% rise[17] - The company’s cash and cash equivalents decreased to $3,192,000 as of June 30, 2025, down from $4,358,000 as of December 31, 2024, a decline of 26.8%[17] - The total shareholders' equity decreased to $9,751,000 as of June 30, 2025, down from $12,288,000 as of December 31, 2024, a decline of 20.6%[17] Operating Expenses - Operating expenses for the three months ended June 30, 2025, were $3,653,000, a decrease of 43.2% compared to $6,434,000 for the same period in 2024[19] - Total operating expenses for the three months ended June 30, 2025, were $3.7 million, a decrease of 43% from $6.4 million in the same period in 2024[96] - Selling, general and administrative expenses for the three months ended June 30, 2025, were $2,909,000, compared to $2,810,000 for the same period in 2024[80] - Selling, general and administrative expenses for the three months ended June 30, 2025, were $2.9 million, an increase of 4% from $2.8 million in the same period in 2024[99] - The company recognized share-based compensation expense related to RSUs of $220 for the three months ended June 30, 2025, down from $3,125 in 2024[54] - Share-based compensation expense decreased to $1.3 million for the six months ended June 30, 2025, from $3.3 million in the same period of 2024, primarily due to the vesting of 1,382,909 restricted stock units[108] Cash Flow - The company reported a net cash used in operating activities of $3,980,000 for the six months ended June 30, 2025, compared to net cash provided of $189,000 for the same period in 2024[25] - Net cash used in operating activities was $4.0 million for the six months ended June 30, 2025, an increase of $4.2 million compared to a net cash provided of $0.2 million in the same period of 2024[122] - Net cash provided by financing activities increased to $3.7 million for the six months ended June 30, 2025, compared to $0.0 million in the same period of 2024, primarily due to $4.8 million in proceeds from stock sales[124] Shareholder Activity - The company issued 1,791,732 shares of common stock during the six months ended June 30, 2025, contributing $4,657,000 to additional paid-in capital[22] - The weighted-average shares outstanding for basic and diluted shares were 33,551,398 for the three months ended June 30, 2025, compared to 13,681,678 for the same period in 2024[19] - The company sold 1,791,732 shares of common stock for cash proceeds totaling $4,657,000 during the six months ended June 30, 2025[61] - The company sold 109,389 shares under the Sales Agreement for cash proceeds totaling $82 thousand during the three and six months ended June 30, 2025[120] Going Concern - The company has incurred net losses and negative cash flows from operations, raising substantial doubt about its ability to continue as a going concern[32] - The company has substantial doubt about its ability to continue as a going concern for the next twelve months due to recurring losses and the need to raise additional capital[118] Strategic Initiatives - The company plans to pursue additional liquidity through raising funds and reducing operating expenses, although these plans are subject to market conditions[33] - The company plans to target the data center industry heavily in the second half of 2025, leveraging existing solutions for cooling management and server load-balancing[90] - Strategic cost optimization initiatives have been implemented to align the expense base with current operations, including a reduction in employee headcount and consolidation of real estate[95] - The company executed a reduction in force impacting 10 employees, expecting to incur approximately $65,000 in expenses related to severance payments[81] Risk Factors and Legal Proceedings - The company is not currently involved in any legal proceedings that would materially affect its business or financial condition[138] - There have been no material changes in risk factors since the 2024 Annual Report on Form 10-K[139] - No defaults upon senior securities were reported[141] Miscellaneous - The company filed several amendments to its Business Combination Agreement, with the latest amendment dated September 17, 2023[145] - The report was signed by the Chief Executive Officer and Chief Financial Officer on August 13, 2025[148]