Mobiquity Technologies(MOBQ) - 2024 Q3 - Quarterly Report

Financial Performance - The company generated revenues of $566,044 in Q3 2024, an increase of$388,773 or 219% compared to $177,271 in Q3 2023, attributed to an uptick in political revenue[223]. - For the first nine months of 2024, revenues were$1,096,218, an increase of $655,208 or 149$441,010 in the same period of 2023, again linked to political revenue growth[231]. - Cost of revenues was $230,296 or 41$114,174 or 64% in Q3 2023, indicating improved cost efficiency[224]. - Gross profit for Q3 2024 was $335,748 or 59$63,097 or 36% in Q3 2023, reflecting a significant increase in profitability[225]. - Operating expenses decreased by $143,297 or 10$1,314,839 in Q3 2024 from $1,458,136 in Q3 2023, primarily due to reduced professional fees and licenses[228]. - The loss from operations in Q3 2024 was$979,091, a decrease of $416,000 or 30$1,395,039 in Q3 2023, driven by lower operating expenses[229]. - Cost of revenues for the first nine months of 2024 was $625,690 or 57$281,071 or 64% in the same period of 2023[232]. - Gross profit for the first nine months of 2024 was $470,528 or 43$159,939 or 36% in the same period of 2023[233]. Cash Flow and Financing - Cash used in operating activities for the nine months ended September 30, 2024, was $1,798,860, primarily due to a net loss of$2,918,723[237]. - As of September 30, 2023, the company had cash of $140,939 and cash used in operating activities was$3,732,469, primarily due to a net loss of $5,220,014[238]. - Cash flows provided by financing activities totaled$5,159,599, which included net proceeds from the sale of common stock and pre-funded warrants of $5,735,499[238]. - The company has relied on equity financing and borrowings from outside investors since 1999 and expects this to continue in 2024 and beyond[239]. - As of September 30, 2024, the company did not have any off-balance-sheet arrangements[240]. Market Trends and Strategic Initiatives - The global programmatic ad spend reached an estimated$558 billion in 2023, projected to surpass $700 billion by 2026[179]. - The company believes there is a significant paradigm shift occurring in the market, requiring publishers to manage their first-party data in-house[182]. - The company announced a strategic partnership with Context Networks to enhance advertising technology in casinos, expected to materially impact operations in fiscal 2025 and beyond[235]. Product and Service Offerings - The ATOS platform engages with approximately 10 billion advertisement opportunities per day, enhancing speed and performance in digital advertising campaigns[183]. - The company offers a managed services model where users are billed a higher percentage of revenue run through the platform, with all services managed by the company[190]. - The data intelligence platform provides precise data and insights on consumer behavior, believed to be one of the most accurate solutions in the industry[185]. - The publisher platform allows content publishers to monetize their opt-in user data and advertising inventory while ensuring data privacy compliance[188]. - The company targets publishers, brands, advertising agencies, and other advertising technology companies as its audience for its three platform products[189]. - The company operates under a single-vendor end-to-end solution that integrates various capabilities, reducing costs and increasing efficiency for users[184]. Revenue Recognition and Accounting - The company recognizes revenue in accordance with ASC Topic 606, aligning revenue recognition with the delivery of services[206]. - The company has experienced variability in sales and earnings due to factors such as industry cyclicality and economic conditions[195].