Thumzup Media Corporation(TZUP) - 2025 Q2 - Quarterly Report

PART I – FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS Presents Thumzup Media Corporation's unaudited consolidated financial statements and notes for Q2 2025 and FY 2024 Condensed Consolidated Balance Sheets | ASSETS (Unaudited) | June 30, 2025 | December 31, 2024 | | :------------------- | :------------ | :------------------ | | Cash | $60,430 | $4,680,840 | | Total current assets | $211,214 | $4,839,177 | | Digital assets, net | $2,046,942 | $- | | Capitalized software costs, net | $331,084 | $248,627 | | Total assets | $2,604,320 | $5,102,464 | | LIABILITIES & EQUITY | | | | Total current liabilities | $781,275 | $335,203 | | Total liabilities | $781,275 | $335,203 | | Total stockholders' equity | $1,823,045 | $4,767,261 | | Total liabilities and stockholders' equity | $2,604,320 | $5,102,464 | - The company's cash significantly decreased from $4.68 million at December 31, 2024, to $60,430 at June 30, 2025. Total assets also saw a substantial reduction from $5.10 million to $2.60 million over the same period, while total liabilities increased from $335,203 to $781,275[9] Condensed Consolidated Statements of Operations | (Unaudited) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $15 | $30 | $166 | $435 | | Total Operating Expenses | $1,658,893 | $529,091 | $3,394,956 | $857,445 | | Loss From Operations | $(1,658,878) | $(529,061) | $(3,394,790) | $(857,010) | | Total Other Income (Expense) | $465,638 | $1,288 | $67,374 | $1,288 | | Net Loss | $(1,193,240) | $(527,773) | $(3,327,416) | $(855,722) | | Net Loss Attributable to Common Stockholders | $(1,193,229) | $(550,717) | $(3,348,316) | $(881,432) | | Net Loss Per Common Share (Basic & Diluted) | $(0.12) | $(0.07) | $(0.35) | $(0.11) | - The company experienced a significant increase in net loss, with the net loss attributable to common stockholders rising by 116.69% for the three months ended June 30, 2025, and by 279.87% for the six months ended June 30, 2025, compared to the prior year periods. This was primarily driven by a substantial increase in operating expenses, particularly sales and marketing, and general and administrative costs[11][145][150] Condensed Consolidated Statements of Changes in Stockholder's Equity | Stockholders' Equity (Unaudited) | June 30, 2025 | December 31, 2024 | | :------------------------------- | :------------ | :------------------ | | Preferred Stock - Series A | $159 | $153 | | Preferred Stock - Series B | $1 | $16 | | Common Stock | $9,678 | $9,401 | | Treasury stock, at cost | $(298,207) | $- | | Additional paid in capital | $15,151,438 | $14,449,399 | | Accumulated deficit | $(13,040,024) | $(9,691,708) | | Total stockholders' equity | $1,823,045 | $4,767,261 | - Total stockholders' equity decreased from $4,767,261 at December 31, 2024, to $1,823,045 at June 30, 2025, primarily due to a significant increase in accumulated deficit from $(9,691,708) to $(13,040,024) and the repurchase of treasury stock totaling $298,207[9][15][154] Condensed Consolidated Statements of Cash Flows | Cash Flows (Unaudited) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(2,664,485) | $(675,323) | | Net cash used in investing activities | $(2,157,718) | $(126,665) | | Net cash provided by financing activities | $201,793 | $941,226 | | Net (decrease) increase in cash | $(4,620,410) | $139,238 | | Cash, end of period | $60,430 | $398,450 | - The company experienced a substantial net decrease in cash of $4,620,410 for the six months ended June 30, 2025, compared to a net increase of $139,238 in the prior year. This was driven by increased cash usage in operating activities (up 294% YoY) and significant investments in digital assets (Bitcoin) and capitalized software costs[18][155][156] Notes to the Condensed Consolidated Financial Statements Note 1 - Business Organization and Nature of Operations - Thumzup Media Corporation, incorporated in Nevada in 2020, operates as a software-as-a-service provider connecting businesses with consumers to incentivize social media posts about products/services via its proprietary mobile app. The company aims to democratize social media marketing by enabling non-professional individuals to promote products[20][123] - The company is an 'emerging growth company' and has elected to comply with reduced public company reporting requirements[22][126] Note 2 – Summary of Significant Accounting Policies Basis of Presentation - Unaudited Interim Financial Information - The unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP for interim financial information and SEC rules (Form 10-Q, Article 8 of Regulation S-X), reflecting all necessary recurring accruals[23] Use of Estimates - Financial statements require management's judgment and estimates, which can materially affect reported amounts. Significant estimates include the valuation allowance for deferred tax assets, and actual results may differ[25] Alleviation of Going Concern - Despite significant losses and cash used in operations for the three and six months ended June 30, 2025, the company's going concern doubt was alleviated by an approximately $6.5 million equity financing from Series C Convertible Preferred Stock in July 2025, providing sufficient cash for at least one year[26] Cash and Cash Equivalents | Cash and Cash Equivalents | June 30, 2025 | December 31, 2024 | | :------------------------ | :------------ |