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SRAX Inc (SRAX). has submitted its 10-Q filing for the quarterly period ended March 31, 2023.
The filing includes financial statements for the quarter, showing a decrease in revenues to $4,014,000 from $7,499,000 in the same quarter the previous year. This decline is attributed to the company's transition from accepting marketable securities to a cash-only payment model for services.
Cost of revenues for the quarter was $149,000, representing 4.77% of revenues, compared to 37.31% in the same quarter of the previous year. The reduction in cost ratio is due to decreased data and media costs.
The company reported a net income of $2,627,000 for the quarter, compared to $3,728,000 in the previous year, with the decline attributed to reduced revenues.
Operating expenses for the quarter were $3,124,000, down from $8,827,000 in the previous year. This decrease was driven by cost-cutting measures and reduced depreciation and amortization expenses.
Cash provided by investing activities was $5,942,000, primarily from the sale of LD Micro, Inc. and the monetization of assets acquired from DNA Holdings, LLC.
SRAX had a working capital deficit of $5,627,000 as of March 31, 2023. The company acknowledges its dependence on the sale of marketable securities to meet future obligations.
The filing also details various financial arrangements, including a senior secured revolving credit facility and convertible notes payable.
The company identified material weaknesses in its internal controls over financial reporting due to a lack of internal valuation experts and reliance on manual reporting processes.
SRAX continues to focus on expanding its Sequire platform and enhancing communications between public companies and their shareholders.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the SRAX Inc quarterly 10-Q report dated March 7, 2025. To report an error, please email earnings@qz.com.