Revenue Performance - Revenues for the three months ended March 31, 2025, were 7,056,116,anincreaseof2,178,738 (approximately 44.7%) compared to 4,877,378forthesameperiodin2024[138].−RevenueforQ12025was7,056,116, up from 4,877,378inQ12024,indicatingasignificantincreaseinsales[154].CostandExpenses−CostofrevenuesforthethreemonthsendedMarch31,2025,was3,131,622, an increase of 1,428,265(approximately83.81,703,357 for the same period in 2024, resulting in a gross profit margin decrease to 56% from 65%[140]. - Research and development expenses increased to 606,237forthethreemonthsendedMarch31,2025,up216,348 (approximately 55.5%) from 389,889in2024,primarilyduetotheKyberacquisition[141].−Salesandmarketingexpensesroseto1,382,727 for the three months ended March 31, 2025, an increase of 327,586(approximately311,055,141 in 2024, driven by the Kyber acquisition and higher compensation expenses[142]. - General and administrative expenses slightly decreased to 3,279,094forthethreemonthsendedMarch31,2025,down4,395 (approximately 0.1%) from 3,283,489in2024[143].OperatingPerformance−TheoperatinglossforthethreemonthsendedMarch31,2025,was1,394,665, an improvement compared to an operating loss of 1,772,350forthesameperiodin2024[138].−AdjustedEBITDAforQ12025was(50,778), a decrease of 155,195comparedto104,417 in Q1 2024, primarily due to higher costs of revenues and operating expenses[155]. - Adjusted EBITDA is used by management as a performance measure, excluding items such as depreciation, stock-based compensation, and interest expenses, to provide a clearer view of operational performance[146]. Cash Flow and Financial Position - Net cash provided by operating activities increased to 448,180inQ12025,ariseof2,656,250 compared to cash used of (2,208,070)inQ12024[159].−Netcashprovidedbyinvestingactivitieswas838,125 in Q1 2025, an increase of 2,612,550comparedto(1,774,425) in Q1 2024[160]. - As of March 31, 2025, the company's cash and marketable securities totaled 35,666,432,withoutstandingprincipalandaccruedinterestonnotesamountingto6,750,326[156]. - The company sold BioTrack for 30,000,000,consistingof20,000,000 in cash at closing and 10,000,000infuturepayments,enhancingliquidity[156].−Netcashusedinfinancingactivitiesdecreasedto172,295 in Q1 2025, down by 859,068from(1,031,363) in Q1 2024, primarily due to changes in tax payments[161]. - The company expects to fund future operations and acquisitions through a combination of cash flow, available cash, marketable securities, and debt financing[156]. - The company redeemed $18,881,466 in outstanding principal and interest on its notes during 2024, improving its financial position[156]. Strategic Initiatives - The company acquired all outstanding equity interests of Kyber Data Science, LLC on October 31, 2024, which is expected to enhance its data management capabilities[128]. - The company plans to license data from additional vendors due to a vendor exiting the data licensing business by the end of 2026, which may impact future operations[132]. - The company continues to focus on expanding its marketing and sales efforts to build brand awareness and attract new clients[134]. Accounting and Compliance - The company is currently evaluating the impact of new accounting standards on its consolidated financial statements and disclosures[173].
