Financial Performance - The net operating loss for the three months ended September 30, 2025, was $3.76 million, compared to a loss of $8.72 million for the same period in 2024, indicating a 56.9% improvement[10]. - The company reported a net loss of $4.66 million for the three months ended September 30, 2025, compared to a loss of $7.74 million in the same period of 2024, showing a reduction of 39.5%[10]. - Net loss for the nine months ended September 30, 2025, was $19,508,201, compared to a net loss of $20,855,682 for the same period in 2024, indicating a decrease of approximately 6.4%[14]. - The net loss attributable to MDB Capital Holdings, LLC for the nine months ended September 30, 2025, was $19,491,804[85]. - The net loss for the nine months ended September 30, 2025, was $(5,816,310), a 35.5% increase from $(4,293,474) in 2024[152]. Revenue and Income - Fee income for the nine months ended September 30, 2025, increased to $2.14 million, up from $1.30 million in 2024, reflecting a growth of 64.5%[10]. - For the nine months ended September 30, 2025, total operating income was $178,570, a decrease of $835,246 or 82.4% from $1,013,816 in 2024[146]. - Fee income for the nine-month period increased to $2,140,238, up $836,840 or 64.2% from $1,303,398 in 2024[146]. - The company reported a gain related to dilution events of $19,863 for both the three and nine-month periods, marking a 100% increase from no gain in the previous year[146]. Assets and Liabilities - As of September 30, 2025, total assets decreased to $61.51 million from $71.98 million as of December 31, 2024, representing a decline of approximately 14.5%[8]. - Total liabilities remained relatively stable at $1.88 million as of September 30, 2025, compared to $1.90 million as of December 31, 2024[8]. - Cash and cash equivalents decreased to $15.09 million as of September 30, 2025, down from $20.44 million at the end of 2024, a decline of 26.3%[8]. - The equity method investment decreased to $38.74 million as of September 30, 2025, from $41.76 million at the end of 2024, a decrease of 7.2%[8]. - The company had an accumulated deficit of $(18,049,729) as of September 30, 2025, compared to an accumulated income of $1,442,075 on December 31, 2024[8]. Cash Flow - The total cash used in operating activities for the nine months ended September 30, 2025, was $5,323,638, compared to $8,620,720 in 2024, showing an improvement of approximately 38.5%[14]. - Cash used in operating activities for the nine months ended September 30, 2025, was $5,323,638, an improvement from $8,620,720 in 2024, indicating a reduction of about 38.5%[14]. - The company had a net cash provided by investing activities of $(25,677) for the nine months ended September 30, 2025, compared to $20,045,260 in 2024, indicating a significant decline[14]. Costs and Expenses - General and administrative costs for the nine months ended September 30, 2025, totaled $17,236,426[85]. - Stock-based compensation for the nine months ended September 30, 2025, was $9,066,067, down from $11,717,587 in 2024, reflecting a reduction of about 22.6%[14]. - Total operating costs for the nine months ended September 30, 2025, were $17,236,426, down from $22,805,340 in 2024, representing a decrease of about 24.5%[10]. - Compensation expenses decreased to $3,317,168 for the three-month period, down $1,853,604 or 35.8% from $5,170,772 in 2024[145]. Investment and Financing - The company completed an initial public offering (IPO) on September 20, 2023, raising gross proceeds of $19,999,992 from the sale of 1,666,666 shares at $12.00 per share[22]. - The company has a revolving credit facility with a commitment of up to $2,000,000, with a current interest rate of 6.75%[59]. - The Company recognized no income tax expense for the nine months ended September 30, 2025, due to a full valuation allowance against net deferred tax assets[132]. Research and Development - Research and development costs for the nine months ended September 30, 2025, were $0, compared to $1.24 million in 2024, indicating a strategic shift in R&D spending[10]. - Research and development costs were $0 for the three-month period, a decrease of $723,487 or 100% compared to $723,487 in 2024[145]. Market and Economic Conditions - The company is monitoring potential recession risks that could impact the overall business environment and capital markets[185].
MDB Capital (MDBH) - 2025 Q3 - Quarterly Report