Financial Performance - For the nine months ended September 30, 2025, the net loss was approximately $2.8 million, compared to a net loss of approximately $5.4 million for the same period in 2024, indicating a reduction in losses by approximately 48.5%[157] - As of September 30, 2025, the accumulated deficit was approximately $28.5 million, up from approximately $25.7 million as of December 31, 2024[157] - Revenues for the three months ended September 30, 2025, were approximately $30,581, a decrease of approximately $24,782 or 44.8% compared to $55,363 in the same period of 2024[165] - Net revenues for the nine months ended September 30, 2025, were approximately $0.246 million, a decrease of $0.249 million or 50.3% compared to $0.495 million in 2024[174] - The net loss from operations improved to approximately $868,561 for the three months ended September 30, 2025, compared to a net loss of approximately $1,437,345 for the same period in 2024, a reduction of approximately 39.6%[165] - Net loss for the nine months ended September 30, 2025, was approximately $2.776 million, a reduction of $2.637 million or 48.7% compared to a net loss of $5.413 million in 2024[173] User Metrics - The total number of users with subscriptions decreased from 1,936 in September 2024 to 1,254 in September 2025, reflecting a decline of approximately 35.2%[168] - The number of users with subscriptions decreased to 4,755 for the nine months ended September 30, 2025, down from 6,762 in 2024, representing a decline of 14.9%[176] Expenses and Cost Management - General and administrative expenses decreased by approximately $576,862 or 39.4%, from approximately $1.464 million in September 2024 to approximately $0.887 million in September 2025[170] - The cost of revenues for the three months ended September 30, 2025, was approximately $8,642, a decrease of approximately $21,617 or 71.4% compared to $30,259 in the same period of 2024[165] - Total operating expenses for the nine months ended September 30, 2025, were approximately $3.506 million, down $1.361 million or 28.0% from $4.867 million in 2024[173] Cash Flow and Financing - Cash and cash equivalents as of September 30, 2025, were $215,539, compared to $1,408 at the end of the previous period[191] - Net cash used in operating activities was approximately $4.150 million for the nine months ended September 30, 2025, compared to $3.489 million in 2024, reflecting an increase in cash outflow[191] - The company is actively seeking funding to pay off existing indebtedness and accounts payable, primarily to avoid loan defaults and bankruptcy[158] - The company is actively seeking additional financing to meet anticipated cash needs until at least September 30, 2026, due to insufficient current cash levels[185] Agreements and Partnerships - The Company has entered into a Purchase Agreement with Helena Global Investment Opportunities 1 Ltd. allowing for the purchase of up to $10,000,000 in common stock[196] - The Business Combination Agreement with BlockchAIn Digital Infrastructure, Inc. involves a merger where the Company will become a wholly owned subsidiary of BlockchAIn[206] - The Company entered into a Sponsorship Agreement with Goat Farm Sports, LLC, granting exclusive National Recruiting Partner rights for events in 2024 and 2025[218][219] Compensation and Employment Agreements - The Company approved cash bonuses totaling $140,000 for the CEO and $50,000 for the CFO, among others, on April 17, 2025[216][217] - The Amended and Restated CEO Employment Agreement reduced the CEO's annual base salary from $425,000 to $200,000 effective March 1, 2024[250] - The Company will pay Damon Rich $120 per hour for up to 160 hours per month under the new Executive Employment Agreement[255] Debt and Credit Facilities - The Company established a $350,000 secured revolving line of credit with Southwest Heritage Bank, maturing on April 6, 2024[272] - The Company entered into a $2,000,000 secured revolving line of credit with SHB, incurring interest at a fixed rate of 7.21% per annum[273] - The Company fully repaid the Second SHB Promissory Note on July 26, 2024, incurring an early withdrawal penalty of $54,747[275] Accounting and Revenue Recognition - Revenue is recognized under ASC Topic 606, focusing on the transfer of control and entitlement to payment[293] - The Company accounts for contract modifications under ASC 606, recognizing revenue prospectively if new performance obligations are created[295] - The Company capitalizes costs related to internally developed software, amortizing these costs over an estimated useful life of five years[290]
Signing Day Sports(SGN) - 2025 Q3 - Quarterly Report