Loop Media (LPTV) - 2021 Q3 - Quarterly Report

Revenue Performance - Total revenue for Q2 2021 reached $1,160,793, an increase of 83% compared to $635,740 in Q2 2020[136] - Content and streaming services revenue increased by $343,242, or 91%, primarily due to advertising revenue share of $365,835[137] - Content subscription services revenue rose by $175,772, or 75%, driven by Loop Stick revenues of $58,076 and an increase in ScreenCast subscription revenues of $140,813[137] - Total revenue for the six months ended June 30, 2021, increased by $492,708 or 34% compared to the same period in 2020, driven by a $335,116 increase in content and streaming services, which grew by 44%[143] Cost and Expenses - Cost of revenue increased by $590,698, or 342%, due to $308,590 in license content asset amortization and $110,791 in licensing costs[138] - Total operating expenses surged by $2,631,131, or 161%, primarily due to increased personnel costs and marketing activities[139] - The cost of revenue surged by 287% to $1,487,937, primarily due to license content asset amortization and increased contractor and inventory costs[144] - Total operating expenses rose by $7,478,762 or 159%, largely due to increased non-cash stock compensation and personnel costs[146] Profit and Loss - The net loss for Q2 2021 was $3,924,343, representing a 179% increase from a loss of $1,408,888 in Q2 2020[136] - The net loss for the six months ended June 30, 2021, was $12,171,458, a 54% increase from the net loss of $7,892,975 in the same period of 2020[162] - Gross profit decreased by 57% to $466,899, reflecting the significant rise in costs relative to revenue growth[1] Cash Flow and Financing - Cash at the end of the period was $929,403, up from $649,262 at the end of June 30, 2020, reflecting a net increase in cash of $91,242[158] - Net cash used in operating activities was $(4,713,000) for the six months ended June 30, 2021, primarily due to the net loss offset by various amortization expenses[152] - The company anticipates needing additional cash from equity investments or debt transactions to support its minimum operating cash requirements over the next twelve months[150] - The company plans to finance operations through equity and debt financing, but there are risks associated with the availability and terms of such financing[161] Strategic Focus - The company is focusing on expanding its operations in Latin America and Asia[125] - The company operates a "freemium" business model, offering services on both premium and ad-supported bases[124] Debt Management - Interest expense rose by $386,990 due to increased convertible debenture borrowings[141] - The company recorded a gain of $579,486 on extinguishment of debt due to loan forgiveness on the first PPP loan[141] - The company recorded a gain of $579,486 on extinguishment of debt, attributed to loan forgiveness on the first PPP loan[147]