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WaveDancer(WAVD) - 2024 Q2 - Quarterly Report
WAVDWaveDancer(WAVD)2024-08-19 21:17

Financial Performance - Total revenue for Q2 2024 was 1,903,602,adecreaseof1,903,602, a decrease of 121,020 or 6.0% compared to Q2 2023[131] - Professional services revenue decreased by 93,860or4.893,860 or 4.8% to 1,874,097 in Q2 2024 from 1,967,957inQ22023[131]−GrossprofitforQ22024was1,967,957 in Q2 2023[131] - Gross profit for Q2 2024 was 682,695, a decrease of 22,318or3.222,318 or 3.2% from 705,013 in Q2 2023[132] - Operating loss from continuing operations was 382,070inQ22024,comparedtooperatingincomeof382,070 in Q2 2024, compared to operating income of 493,116 in Q2 2023, a decrease of 875,186[134]−TotalrevenueforthesixmonthsendedJune30,2024,was875,186[134] - Total revenue for the six months ended June 30, 2024, was 3,818,975, a decrease of 365,770or8.7365,770 or 8.7% from the prior year[136] - Professional services revenue for the six months ended June 30, 2024, decreased by 311,449 or 7.6% to 3,759,966[136]−GrossprofitforthesixmonthsendedJune30,2024,increasedby3,759,966[136] - Gross profit for the six months ended June 30, 2024, increased by 20,142 or 1.5% to 1,381,953[137]−OperatinglossfromcontinuingoperationsforthesixmonthsendedJune30,2024,was1,381,953[137] - Operating loss from continuing operations for the six months ended June 30, 2024, was 1,056,041, an increase of 594,427or128.8594,427 or 128.8% from the prior year[140] - For the six months ended June 30, 2024, the company reported a net loss from continuing operations of 1,056,041[145] Expenses and Cost Management - Significant reductions in SG&A expenses were noted, totaling 2,437,994forthesixmonthsendedJune30,2024,down2,437,994 for the six months ended June 30, 2024, down 827,899 from 3,265,893intheprioryear[139]CashFlowandFinancialPosition−AsofJune30,2024,thecompanyhadanetworkingcapitaldeficitof3,265,893 in the prior year[139] Cash Flow and Financial Position - As of June 30, 2024, the company had a net working capital deficit of 746,040, with cash and cash equivalents totaling 244,137[145]−Thecompanyanticipatescashusagefromoperationstobebetween244,137[145] - The company anticipates cash usage from operations to be between 1.0 million to 1.5millionoverthenexttwelvemonths[146]−Thecompanyexpectstocontinueincurringnegativecashflowsfromoperationswhileinvestinginsales,marketing,andresearchanddevelopmentofthenextgenerationBNAPlatform[147]−SignificantcostsareexpectedforatleasttwotofouryearstocommercializeanddistributetheBNAPlatform,raisingdoubtsaboutthecompany′sabilitytocontinueasagoingconcern[148]−Thecompanyplanstofinanceoperationsthroughequitysales,debtfinancing,orothersourcesuntiladequaterevenuesaregenerated[149]DevelopmentandFutureOutlook−TheBNAPlatformispositionedforcommerciallaunch,havingtaken15yearsandaninvestmentofapproximately1.5 million over the next twelve months[146] - The company expects to continue incurring negative cash flows from operations while investing in sales, marketing, and research and development of the next generation BNA Platform[147] - Significant costs are expected for at least two to four years to commercialize and distribute the BNA Platform, raising doubts about the company's ability to continue as a going concern[148] - The company plans to finance operations through equity sales, debt financing, or other sources until adequate revenues are generated[149] Development and Future Outlook - The BNA Platform is positioned for commercial launch, having taken 15 years and an investment of approximately 60 million to develop[126] Legal and Regulatory Matters - There were no changes in the company's internal control over financial reporting during the quarter ended June 30, 2024[152] - The merger on August 12, 2024, will affect the company's control environment and future reporting[153] - The company has no pending legal proceedings against it[156]