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Freeze Tag, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing revenues of $532,637, a slight decrease from $533,229 in the same quarter the previous year. The decrease is attributed to a reduction in demand for some product types.
Cost of sales for the quarter increased to $112,425 from $100,872 in the same quarter of the previous year. This increase was mainly due to higher server and supporting software product costs.
Selling, general, and administrative expenses decreased to $447,175 from $469,817, primarily due to reductions in rent and other expenses.
Net loss for the quarter was $37,995, compared to a net loss of $48,568 in the previous year. The company attributes the loss to increased operating costs.
Cash used in operating activities was $235,893 for the nine months ended September 30, 2024. The company reported a working capital deficit of $866,806 and a total stockholders’ deficit of $558,283.
Freeze Tag had capitalized software costs of $453,036 as of September 30, 2024, with amortization expenses of $69,048 for the nine months ended.
The company continues to face a going concern uncertainty due to its financial position, with management evaluating alternative financing sources to support the business plan.
Freeze Tag's management believes that cost reductions and increased revenue from updated product lines will support its business plan, though it acknowledges the need for potential financing.
The report details the company's debt, including related party notes payable totaling $379,825, which are non-interest bearing and convertible into common stock.
The filing also includes a discussion of the company's critical accounting policies, including revenue recognition, intangible assets, and software development costs.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Freeze Tag Inc quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.