DatChat(US:DATS)2024-05-14 20:41User Engagement and Platform Development - The company had over 140,000 users on the Habytat platform as of May 12, 2024[140]. - The company launched the open mobile metaverse, Habytat 1.0, in May 2023, aiming to democratize access to the metaverse[141]. - The company introduced AI-powered pets called "HabyPets" in August 2023, enhancing user engagement within the Habytat world[142]. - The "Myseum" platform is scheduled to launch in Q2 2024, allowing users to create personal museums for sharing digital media[143]. - The company aims to leverage patents and develop new technology to enhance user experience in the metaverse[137]. Financial Performance - Revenue for the three months ended March 31, 2024, was $131, a decrease of 14.9% from $154 in the same period of 2023[161]. - Operating expenses decreased by $759,121, or 31.3%, to $1,663,550 for the three months ended March 31, 2024, compared to $2,422,671 in 2023[162]. - Compensation and related expenses fell by $652,028, or 42.1%, to $897,664 in Q1 2024 from $1,549,692 in Q1 2023[164]. - Marketing and advertising expenses decreased by $79,086, or 69.5%, to $34,717 in Q1 2024 from $113,803 in Q1 2023[165]. - Research and development expenses decreased by $48,855, or 17.3%, to $233,918 in Q1 2024 from $282,773 in Q1 2023[167]. - Net loss for the three months ended March 31, 2024, was $1,561,807, or $(0.56) per share, a decrease of $837,407, or 34.9%, from a net loss of $2,399,214, or $(1.16) per share, in 2023[173]. Cash Flow and Financing - Cash and cash equivalents as of March 31, 2024, were $249,983, with short-term investments totaling $5,836,175[174]. - Net cash used in operating activities was $1,477,240 for the three months ended March 31, 2024, a decrease of $282,322 from $1,759,562 in 2023[178]. - Net cash provided by financing activities was approximately $1,420,773 for the three months ended March 31, 2024, compared to net cash used of $(312,489) in 2023[183]. - The company raised aggregate gross proceeds of $1,799,939 from an underwritten public offering, with net proceeds of $1,420,773 after discounts and costs[176]. Corporate Structure and Spin-off Plans - The company plans to spin off the Habytat platform into a standalone public company, currently owning approximately 71.4% of Dragon Interactive[144]. - An underwritten public offering of 382,972 shares and pre-funded warrants was conducted for gross proceeds of approximately $1.4 million[148]. - The company recorded a gain on the initial consolidation of variable interest entities of $42,737 on February 14, 2023[156]. - The company deconsolidated Metabizz, LLC and Metabizz SAS on March 31, 2024, recording a gain on deconsolidation of $107[157]. Product Innovation - The company’s flagship product, DatChat Messenger, allows users to delete messages even after they are sent, enhancing privacy control[134].