Mobiquity Technologies(US:MOBQ)2025-11-14 20:59Advertising Market Overview - In 2024, global programmatic ad spend reached an estimated $595 billion, projected to surpass $800 billion by 2028[166]. - The strategic alliance with Context Networks targets approximately 4,700 global casinos and 2.9 million slot machines, with a potential audience exceeding 1.6 billion global gamblers[175]. - The annual gross revenue potential from programmatic advertising across 1,000 slot machines could exceed $20 million, depending on play time rates and ad inventory pricing[175]. - The anticipated launch of the strategic alliance with Context Networks is expected in the fourth quarter of 2025, which aims to access a market of approximately 4,700 global casinos and 2.9 million slot machines[219]. Company Performance and Financials - Revenues for the quarter ended September 30, 2025, were $117,074, a decrease of $448,970 or 79% compared to $566,044 in the same period in 2024, primarily due to the absence of political advertising revenue[217]. - Gross profit for the third quarter of 2025 was $87,773, representing 75% of revenues, compared to $335,748 or 59% of revenues in the same period of 2024[223]. - Total operating expenses increased to $2,039,999 in the third quarter of 2025, up by $725,160 from $1,314,839 in the prior year, largely due to a non-cash increase in professional fees[224]. - The loss from operations for the third quarter of 2025 was $1,952,226, an increase of approximately $973,000 compared to a loss of $979,091 in the prior year[225]. - For the nine months ended September 30, 2025, revenues were $160,795, a decrease of $935,423 or 85% compared to $1,096,218 in the same period in 2024[227]. - The cost of revenues for the third quarter of 2025 was $29,301, or 25% of revenues, compared to $230,296, or 41% of revenues in the same period of 2024[222]. - The cost of revenues for the first nine months of 2025 was $60,939, representing 38% of revenues, a decrease from $625,690 or 57% of revenues in the same period of 2024[232]. - Gross profit for the first nine months of 2025 was $99,856, or 62% of revenues, compared to $470,528 or 43% of revenues in the same period of 2024[233]. - Operating expenses increased to $6,157,017 for the first nine months of 2025, up from $3,520,726 in the prior year, primarily due to a non-cash increase in professional fees of approximately $2,198,000[234]. - The loss from operations for the first nine months of 2025 was $6,057,161, an increase of approximately $3,007,000 compared to the prior year[235]. - As of September 30, 2025, the Company had cash of $361,894, with cash used in operating activities amounting to $4,127,980 for the nine months ended September 30, 2025[237]. - The Company had cash of $189,810 at September 30, 2024, with cash used in operating activities of $1,798,860 for the same period[238]. Strategic Initiatives - The ATOS platform engages with approximately 10 billion advertisement opportunities per day, enhancing speed and performance in digital advertising campaigns[169]. - The initial deployment with River City Amusements spans 38 venues with over 150 digital screens, expected to grow to over 70 venues with more than 340 screens[182]. - CMOne, an AI-driven marketing platform, was launched in August 2025, aimed at improving campaign efficiency and supporting subscription-based revenue models[180]. - The partnership with NRT Technology provides access to over 800 North American casinos, enhancing the delivery of targeted digital advertising[187]. - The Contextual Promotions Media Network™ is designed to create new non-gaming advertising revenue streams for casino operators[189]. - The company launched CMOne, an AI-powered marketing platform, in August 2025, aimed at providing small and medium-sized businesses with enterprise-grade marketing capabilities[220]. - The company plans to invest in product development, sales enablement, and customer onboarding workflows to support broader commercial deployment of CMOne[214]. - The company expects initial monetization from its new initiatives to begin in the fourth quarter of 2025, with growth anticipated to accelerate on a quarter-over-quarter basis[221]. Operational Challenges - The company operates in a highly competitive industry, facing risks related to economic conditions and variability in sales and earnings[192][193]. - The Company has a history of operating losses, raising substantial doubt about its ability to continue as a going concern, as noted in the auditor's report for the fiscal year ended December 31, 2024[236]. - The Company continues to address control gaps and deficiencies in its internal controls, with remediation efforts ongoing into fiscal 2025[247].