SAN ANTONIO--(BUSINESS WIRE)--AiAdvertising, Inc. (OTC: AIAD), an industry leader in AI-powered digital advertising solutions, has reported its financial results for the nine months ended September 30, 2024.
Third Quarter Highlights and Beyond
Announced a six-figure targeting campaign for De-dollarize News, a digital news and media platform, a property of GSI Exchange, a leading national coin and precious metals company specializing in wholesale trading, the establishment of a gold IRA or silver IRA for individual buyers, as well as direct sales to the general public.
Operationally we continued to focus on improving efficiencies across the organization, including efforts to reduce costs across all expense categories, while managing more clients and increased revenue. To help lead these efforts, we appointed Douglas Beck as our new CFO. Douglas is a senior level finance executive with over 30 years of hands-on experience and an established record with public and private companies for strategic and financial planning, business development, mergers and acquisitions, and public equity markets.
Looking ahead, we believe we are positioned for growth as we deliver value to new and existing customers. Strengthened by our new CFO, we are moving to the next phase as a company and executing on the company’s strategic and financial priorities, including a national exchange uplisting. We continue to expect FY 2024 revenue to be in the $9 to $10 million range, driven by high customer retention, increased digital marketing and new customers.
Nine Months September 30, 2024 Financial Results
Revenues for the nine months ended September 30, 2024 were $6.6 million as compared to compared $5.9 million for the nine months ended September 30, 2023. The increase of $0.7 million or 12% was primarily due to customer growth, increase in on boarding fees, the use by customers of the company’s platform, increase in digital marketing and creative design.
Gross profit margin increased by 2.6% for the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023. This is primarily from higher use of the company’s platform that has a fixed cost associated with it, and higher gross margin associated with on boarding revenues and a reduction in headcount.
Net loss for the nine months ended September 30, 2024 and 2023 was $4.3 million.
Deferred revenues and customer deposits as of September 30, 2024 were $1.1 million compared to $0.5 million, an increase of $0.6 million. Deferred revenue is revenue that has not been earned and represents products or services that are owed to a customer.
The table below summarizes the revenues for the nine months ended September 30, 2024 and 2023:
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|
Nine Months Ended |
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|
|
September 30,
|
|
September 30,
|
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Creative design |
|
$ |
1,315,929 |
|
|
$ |
1,059,863 |
|
Development |
|
|
- |
|
|
|
28,000 |
|
Digital marketing |
|
|
4,617,169 |
|
|
|
4,384,918 |
|
Platform license fees |
|
|
630,853 |
|
|
|
385,548 |
|
Total |
|
$ |
6,563,951 |
|
|
$ |
5,858,329 |
|
About AiAdvertising
AiAdvertising is an AI-powered solutions leader employing the industry’s most scientifically advanced, patent-pending AI targeting process. Transforming marketing and customer experiences, allowing marketers to personify client data and scientifically target their ideal customers with hyper-personalized campaigns. By harnessing artificial intelligence (AI) and machine learning (ML), we empower brands to easily target, predict, create, scale, measure campaign performance and reduce waste. Our clients gain the intelligence they need to prove advertising’s impact on the bottom line. This means more engaging, higher-impact campaigns that drive conversions and results. For more information about the Company, please visit www.AiAdvertising.com or our LinkedIn or X pages.
Forward-Looking Statements
This press release may contain "forward-looking statements." Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations, and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements are included in our filings with the Securities and Exchange Commission, including the "Risk Factors" section of our annual report on Form 10-K for the year ended December 31, 2023. Any forward-looking statement made by us in this release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments, or otherwise, except as may be required under applicable law.
AIADVERTISING, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS |
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|
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September 30,
|
|
December 31,
|
||||
|
|
(Unaudited) |
|
|
||||
ASSETS |
|
|
|
|
||||
Current assets |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
630 |
|
|
$ |
110,899 |
|
Accounts receivable, net |
|
|
981,914 |
|
|
|
517,344 |
|
Prepaid and other current Assets |
|
|
102,711 |
|
|
|
58,982 |
|
Total current assets |
|
|
1,085,255 |
|
|
|
687,225 |
|
|
|
|
|
|
||||
Property and equipment, net |
|
|
52,792 |
|
|
|
72,948 |
|
Right-of-use asset |
|
|
116,910 |
|
|
|
147,480 |
|
|
|
|
|
|
||||
Other assets |
|
|
|
|
||||
Security deposits |
|
|
10,369 |
|
|
|
8,939 |
|
Goodwill and other intangible asset, net |
|
|
- |
|
|
|
20,202 |
|
Total other assets |
|
|
10,369 |
|
|
|
29,141 |
|
TOTAL ASSETS |
|
|
1,265,326 |
|
|
|
936,794 |
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS’ DEFICIT |
|
|
|
|
||||
|
|
|
|
|
||||
Current liabilities |
|
|
|
|
||||
Accounts payable |
|
$ |
1,581,094 |
|
|
$ |
1,567,751 |
|
Accrued expenses |
|
|
229,964 |
|
|
|
46,430 |
|
Operating lease liability |
|
|
37,393 |
|
|
|
33,572 |
|
Deferred revenue and customer deposit |
|
|
1,119,001 |
|
|
|
533,386 |
|
Total current liabilities |
|
|
2,967,452 |
|
|
|
2,181,139 |
|
|
|
|
|
|
||||
Operating lease obligation, net of current portion |
|
|
85,516 |
|
|
|
113,907 |
|
|
|
|
|
|
||||
Total liabilities |
|
|
3,052,968 |
|
|
|
2,295,046 |
|
Commitment and Contingencies |
|
|
|
|
||||
Shareholders’ deficit |
|
|
|
|
||||
Preferred stock, $0.001 par value; 5,000,000 Authorized shares: |
|
|
|
|
||||
Series A Preferred stock; $0.001 par value; 10,000 authorized shares; zero shares issued and outstanding |
|
|
- |
|
|
|
- |
|
Series B Preferred stock; $0.001; 25,000 authorized shares; 18,025 shares issued and outstanding |
|
|
18 |
|
|
|
18 |
|
Series C Preferred stock; $0.001 par value; 25,000 authorized; 14,425 shares issued and outstanding |
|
|
14 |
|
|
|
14 |
|
Series D Preferred stock; $0.001 par value; 90,000 authorized shares; 86,021 and 90,000 shares issued and outstanding as of September 30, 2024 and December 31, respectively |
|
|
86 |
|
|
|
86 |
|
Series E Preferred stock; $0.001 par value, 10,000 authorized; 10,000 shares issued and outstanding |
|
|
10 |
|
|
|
10 |
|
Series F Preferred stock; $0.001 par value, 800,000 authorized shares; zero shares issued and outstanding |
|
|
- |
|
|
|
- |
|
Series G Preferred stock; $0.001 per share; 2,600 authorized shares; 2,597 shares issued and outstanding |
|
|
3 |
|
|
|
3 |
|
Series H Preferred stock; $0.001 par value; 1,000 authorized shares; zero shares issued and outstanding |
|
|
- |
|
|
|
- |
|
Series I Preferred stock; $0.001 par value; 3,000,000 authorized shares; 2,272,727 and zero shares issued and outstanding |
|
|
2,273 |
|
|
|
2,273 |
|
Series J Preferred stock; $0.001 par value; 700 authorized shares; zero shares issued and outstanding |
|
|
- |
|
|
|
- |
|
Series K Preferred stock; $0.001 par shar; 1,000 authorized shares; zero shares issued and outstanding |
|
|
- |
|
|
|
- |
|
Common stock, $0.001 par value; 10,000,000,000 and 2,000,000,000 authorized shares; 1,344,231,504 and 1,134,408,773 shares issued and outstanding, respectively |
|
|
1,344,238 |
|
|
|
1,334,415 |
|
Additional paid-in capital |
|
|
58,237,559 |
|
|
|
56,865,961 |
|
Common stock payable, consisting of 5,000,000 shares valued at $0.1128 per share |
|
|
564,000 |
|
|
|
564,000 |
|
Preferred stock payable, consisting of 892,857 shares of Series I Preferred stock valued at $2.80 per share |
|
|
2,500,000 |
|
|
|
- |
|
|
|
|
|
|
||||
Accumulated deficit |
|
|
(64,435,843 |
) |
|
|
(60,125,032 |
) |
|
|
|
|
|
||||
Total shareholders’ deficit |
|
|
(1,787,642 |
) |
|
|
(1,358,252 |
) |
TOTAL LIABILITIES AND SHAREHOLDERS DEFICIT |
|
$ |
1,265,326 |
|
|
$ |
936,794 |
|
AIADVERTISING, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
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|
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Nine Months Ended
|
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|
|
2024 |
|
2023 |
||||
|
|
|
|
|
||||
Revenues |
|
$ |
6,563,951 |
|
|
$ |
5,858,329 |
|
|
|
|
|
|
|
|
||
Cost of revenues |
|
|
6,112,604 |
|
|
|
5,608,404 |
|
Gross profit |
|
|
451,347 |
|
|
|
249,925 |
|
|
|
|
|
|
|
|
||
Operating expenses |
|
|
|
|
|
|
||
Sales, general, and administrative expenses |
|
|
4,738,477 |
|
|
|
4,992,607 |
|
Impairment on intangible asset |
|
|
20,202 |
|
|
|
|
|
Total operating expenses |
|
|
4,758,679 |
|
|
|
4,992,607 |
|
|
|
|
|
|
|
|
||
Loss from operations |
|
|
(4,307,332 |
) |
|
|
(4,742,682 |
) |
Other income (expense) |
|
|
|
|
|
|
||
Other income (expense) |
|
|
(3,479 |
) |
|
|
- |
|
Employee retention credit |
|
|
- |
|
|
|
435,026 |
|
Total other income (expense) |
|
|
(3,479 |
) |
|
|
435,026 |
|
Loss from operations before income taxes |
|
|
(4,310,811 |
) |
|
|
(4,307,656 |
) |
|
|
|
|
|
|
|
||
Provision for income taxes |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
||
Net loss |
|
|
(4,310,811 |
) |
|
|
(4,307,656 |
) |
|
|
|
|
|
|
|
||
Dividends on preferred stock |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
||
Net loss attributable to common shareholders |
|
$ |
(4,310,811 |
) |
|
$ |
(4,307,656 |
) |
|
|
|
|
|
|
|
||
Net loss per share, basic and diluted |
|
$ |
(0.00 |
) |
|
$ |
(0.00 |
) |
|
|
|
|
|
|
|
||
Weighted-average common shares outstanding, basic and diluted |
|
|
1,345,682,415 |
|
|
|
1,281,214,213 |
|
