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QuoteMedia, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a slight decrease in revenue to $4,695,845 from $4,762,442 in the same quarter the previous year. This decrease is attributed to a reduction in the number of customers, offset by increases in average revenue per customer.
Cost of revenue for the quarter was $2,515,081, representing 54% of sales, compared to 48% in the same quarter of the previous year. This increase in cost ratio is due to increased amortization expenses associated with internally developed application software.
The company reported a gross profit of $2,180,764 for the quarter, compared to $2,465,706 in the previous year, with the decline attributed to increased costs.
Selling, general, and administrative expenses increased to $2,589,162 from $2,361,559, primarily due to increased personnel costs and bad debt expenses.
Net loss for the quarter was $440,941, compared to a net income of $126,036 in the previous year.
Cash provided by operating activities was $2,575,327, while cash used in investing activities was $2,626,124, primarily due to capitalized application software costs.
QuoteMedia had a working capital deficit of $3,330,119 as of September 30, 2024. The company believes its cash on hand and cash generated from operations will be sufficient to fund current operations for at least the next 12 months.
The filing also details a reclassification of Series A redeemable convertible preferred stock from mezzanine equity to permanent equity following an amendment to redemption rights.
The company identified a material weakness in its internal controls over financial reporting due to a lack of segregation of duties.
QuoteMedia continues to focus on expanding its product lines and improving infrastructure, with plans to introduce new and upgraded market information products.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the QuoteMedia Inc quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.