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Aiadvertising Inc (AIAD+2.13%). has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in revenues to $2,236,899 from $2,089,536 in the same quarter the previous year. The increase is attributed primarily to digital marketing.
Cost of revenues for the quarter decreased to $1,857,465 from $1,999,019 in the same quarter of the previous year. This decrease was due to increased use of the company's platform by customers, which had associated fixed costs, and a reduction in head count.
The company reported a gross profit of $379,434 for the quarter, compared to $90,507 in the previous year, with the increase attributed to new customer contracts and increased use of the company's platform.
Selling, general, and administrative expenses decreased to $1,366,830 from $1,624,662, primarily due to a decrease in non-cash stock-based compensation expense, salaries, and cloud-based tools.
Net loss for the quarter was $986,977, down from $1,534,155 in the previous year. The decrease in net loss was primarily due to the factors described above.
Cash used in operating activities was $2,609,405 for the nine months ended September 30, 2024, compared to $4,943,454 in the previous year. This was primarily due to changes in accounts receivable, accrued expenses, and deferred revenue.
The company had a working capital deficit of $1,882,197 as of September 30, 2024, with an accumulated deficit of $64,435,843.
Aiadvertising highlights the need for additional capital to continue operations, acknowledging that the company historically does not generate significant revenues and has negative cash flows from operations.
The filing also details recent developments, including the issuance of Series I Preferred Stock and changes in executive leadership, with the termination of the Chief Marketing Officer and resignation of the Chief Financial Officer.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Aiadvertising Inc quarterly 10-Q report dated December 12, 2024. To report an error, please email earnings@qz.com.