UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
November 12, 2024
| PALTALK, INC. |
| (Exact name of registrant as specified in its charter) |
| Delaware |
|
001-38717 |
|
20-3191847 |
| (State or other jurisdiction |
|
(Commission File Number) |
|
(IRS Employer |
| of incorporation) |
|
|
|
Identification No.) |
|
30 Jericho Executive Plaza, Suite 400E
Jericho, NY |
|
11753 |
| (Address of principal executive offices) |
|
(Zip Code) |
Registrant’s telephone number, including
area code: (212) 967-5120
(Former name or former address, if changed since
last report)
Not Applicable
Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General
Instruction A.2. below):
| ☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ☒ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class |
|
Trading Symbol(s) |
|
Name of each exchange on which registered |
| Common Stock, $0.001 par value |
|
PALT |
|
The Nasdaq Capital Market |
Indicate by check mark whether the registrant
is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the
Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act.☐
Section 2 - Financial Information
Item 2.02 Results of Operations and Financial
Condition.
On November 12, 2024, Paltalk,
Inc. issued a press release announcing its financial results for the quarter ended September 30, 2024. The press release is furnished
as Exhibit 99.1.
The information in this Current
Report on Form 8-K (including Exhibit 99.1) is being furnished pursuant to Item 2.02 and shall not be deemed to be “filed”
for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise
be subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities
Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof and regardless of any general incorporation
language in such filing.
Section 9 - Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
| Date: November 12, 2024 |
|
|
| |
PALTALK, INC. |
| |
|
|
| |
By: |
/s/ Jason Katz |
| |
|
Jason Katz |
| |
|
Chief Executive Officer |
2
Exhibit 99.1
Paltalk, Inc. Reports
Results for Third Quarter 2024
Awarded $65.7 Million
Final Judgment in Trial Against Cisco
Cash Balance of
$12.1 Million at September 30, 2024
Jericho, NY - November
12, 2024 (GLOBE NEWSWIRE) -- via NewMediaWire -- Paltalk, Inc. (“Paltalk,” the “Company,” “we,”
“our” or “us”) (Nasdaq: PALT), a communications software innovator that powers multimedia social applications,
today announced financial and operational results for the third quarter ended September 30, 2024.
Key
Financial Highlights Third Quarter Ended September 30, 2024 Compared to Prior Year Period
| ● | Revenue
decreased 23.4% to $2.1 million |
| ● | Subscription
revenue decreased 23.9% to $2.0 million |
| ● | Advertising
revenue decreased 7.1% to $0.1 million |
| ● | Net
loss was $1.5 million compared to a net loss of $0.2 million |
| ● | Adjusted
EBITDA1 loss was $1.4 million compared to Adjusted EBITDA1 loss of $0.1 million |
| ● | Cash
balance decreased $0.7 million from the second quarter of 2024 to $12.1 million |
Key
Financial Highlights for the Nine Months Ended September 30, 2024 Compared to Prior Year Period
| ● | Revenue
decreased 16.2% to $6.9 million |
| ● | Subscription
revenue decreased 17.5% to $6.6 million |
| ● | Advertising
revenue increased 31.4% to $0.3 million |
| ● | Net
loss was $2.9 million compared to a net loss of $0.8 million |
| ● | Adjusted
EBITDA1 loss was $2.9 million compared to Adjusted EBITDA1 loss of $0.8 million |
| ● | Net
cash used in operating activities increased 58.2% to $1.6 million |
| ● | Deferred
revenue decreased 6.0% to $2.0 million as of September 30, 2024 compared to September 30, 2023 |
| ● | The
Company had $12.1 million in cash and no long-term debt on its balance sheet as of September 30, 2024 |
| 1 | Adjusted EBITDA is a non-GAAP financial measure. Please see
the discussion below under the heading “Non-GAAP Financial Measures and Key Metrics” and the reconciliations at the end of
this release for additional information concerning this and other non-GAAP financial measures. |
Operational
Highlights
| ● | Entered
into an Agreement and Plan of Merger (the “Acquisition Agreement”) to acquire Newtek Technology Solutions, Inc. (“NTS”)
from NewtekOne, Inc. (“Newtek”), the sole stockholder of NTS, through a two-step merger process. We will pay $4,000,000 in
cash to Newtek and will issue to Newtek 4,000,000 shares of a newly created series of our preferred stock (in each case, subject to adjustment
as further described in the Acquisition Agreement) (the “Acquisition”). Newtek is also entitled to receive an earn-out payment
of up to $5,000,000 based on the achievement of certain cumulative average Adjusted EBITDA thresholds for the 2025 and 2026 fiscal years.
As a condition to the closing of the Acquisition, we must effectuate the sale of our “Paltalk” and “Camfrog”
applications and all assets and liabilities related to such applications in one or more transactions and cease the operations of our
“Tinychat” application. |
| ● | Entered
into an Asset Purchase Agreement (the “Divestiture Agreement”) with Meteor Mobile Holdings, Inc. (“Meteor Mobile”),
pursuant to which we and our subsidiaries party thereto agreed to sell our telecommunications services provider, “Vumber”,
as well as our “Paltalk” and “Camfrog” applications and all assets related to such services provider and applications,
other than certain excluded assets (the “Transferred Assets” and such transaction, the “Divestiture”), to Meteor
Mobile in exchange for (i) a cash payment of $1,350,000 and (ii) the assumption of all of our liabilities and obligations arising out
of or relating to the Transferred Assets on or after the closing of the Divestiture, other than certain excluded liabilities, upon the
terms and subject to the conditions set forth in the Divestiture Agreement. Following the Divestiture, we will retain all patents, patent
applications, and any rights or causes of action related to such patents and patent applications (including the patent litigation against
Cisco). We are also entitled to receive, for the six-month period beginning July 1, 2025 and each subsequent annual period beginning
on January 1, 2026, 2027 and 2028, certain cash earnout payments based on a percentage of cash revenue, net of any refunds, received
by Meteor Mobile that is attributable to the business of the Transferred Assets. |
Business
Objectives
As a
result of the entry into the Acquisition Agreement and the Divestiture Agreement, our near-term business objectives now include:
| ● | Consummation
of the Acquisition and the Divestiture; |
| ● | Integration
of the business of NTS following the closing of the Acquisition; |
| ● | Continuing
our efforts to improve user experience with our ManyCam software and optimize features for both consumer and enterprise applications;
and |
| ● | Continuing
to defend our intellectual property |
Management Commentary
Jason Katz, Chairman and CEO
of Paltalk, commented, “Our team had a very busy and productive end to the summer, with the signing of a definitive agreement to
acquire NTS from Newtek. We also recently announced our entry into a definitive agreement to complete the sale of Vumber and our Paltalk
and Camfrog applications. We are in midst of a transformational shift in our business strategy that we believe will enhance stockholder
value. Additionally, in our patent infringement litigation against Cisco, we were recently awarded a $65.7 million jury verdict. We will
continue to defend our intellectual property against any post-trial proceedings, including any potential appellate proceedings by Cisco.”
Katz, continued, “We expect
that the Acquisition, once completed, will have an immediate and meaningful impact on our revenue, since NTS’s revenue in 2023 was
approximately three times greater than Paltalk’s 2023 revenue. We look forward to moving towards the closing of the Divestiture
and the Acquisition. We have an ample cash balance of $12.1 million as of September 30, 2024, and we are excited to focus our attention
on growing the cybersecurity, cloud hosting and technology solutions business.”
Patent Litigation
Update – Awarded $65.7 Million Award in August 2024
On July 23, 2021, a wholly owned
subsidiary of the Company, Paltalk Holdings, Inc., filed a patent infringement lawsuit (the “Lawsuit”) against WebEx Communications,
Inc., Cisco WebEx LLC, and Cisco Systems, Inc. (collectively, “Cisco”), in the U.S. District Court for the Western District
of Texas (the “Court”). We alleged that certain of Cisco’s products have infringed U.S. Patent No. 6,683,858, and that
we were entitled to damages.
On August 29, 2024, the jury
awarded the Company $65.7 million (the “Award”) in a jury verdict in connection with the Lawsuit. On October 8, 2024, an order
granting a motion for final judgment was entered into in the Court in connection with the Lawsuit. The final judgment was entered in the
Company’s favor in the amount of the Award and started the time for filing any post-trial motions or appeal.
The exact amount of the Award
proceeds to be received by the Company will be determined based on a number of factors and will reflect the deduction of significant litigation-related
expenses, including legal fees. Consequently, the Company estimates that it would receive no more than one third of the gross proceeds
in connection with the Award, subject to post-trial proceedings (including any potential appellate proceedings by Cisco).
Financial
Results for Three Months Ended September 30, 2024
| ● | Revenue
for the three months ended September 30, 2024 decreased by 23.4% to $2.1 million, compared to $2.8 million for the three months ended
September 30, 2023. This decrease was attributed to a decrease in subscription revenue of 23.9%; |
| ● | Loss
from operations for the three months ended September 30, 2024 increased by 333.3%, or $1.3 million, to a loss of $1.7 million, compared
to a loss of $0.4 million for the three months ended September 30, 2023. The increase in loss from operations was attributed to a decrease
in revenue for the three months ended September 30, 2024, as well as an increase in professional fees of $0.8 million related to the
Acquisition and the Divestiture; |
| ● | Net
loss for the three months ended September 30, 2024 increased by 731.2%, or $1.3 million, to a net loss of $1.5 million, compared to net
loss of $0.2 million for the three months ended September 30, 2023; and |
| ● | Adjusted
EBITDA1 loss for the three months ended September 30, 2024 increased by approximately 1046.2%, or $1.3 million, to an Adjusted
EBITDA1 loss of $1.4 million, compared to Adjusted EBITDA1 loss of $0.1 million for the three months ended September
30, 2023. |
Financial
Results for Nine Months Ended September 30, 2024
| ● | Revenue
for the nine months ended September 30, 2024 decreased by 16.2% to $6.9 million, compared to $8.3 million for the nine months ended September
30, 2023. This decrease was attributed to a decrease in subscription revenue of 17.5%; |
| ● | Loss
from operations for the nine months ended September 30, 2024 increased by 129.9%, or $2.0 million, to a loss of $3.6 million, compared
to a loss of $1.6 million for the nine months ended September 30, 2023. The increase in loss from operations was attributed to a decrease
in revenue for the nine months ended September 30, 2024 as well as an increase in professional fees of $1.1 million related to the Acquisition
and the Divestiture; |
| ● | Net
loss for the nine months ended September 30, 2024 increased by 274.3%, or $2.2 million, to a net loss of $2.9 million, compared to a
net loss of $0.8 million for the nine months ended September 30, 2023; |
| ● | Adjusted
EBITDA1 loss for the nine months ended September 30, 2024 increased by approximately 265.1%, or $ 2.1 million, to an Adjusted
EBITDA1 loss of $2.9 million, compared to Adjusted EBITDA1 loss of $0.8 million for the nine months ended September
30, 2023; |
| ● | Cash
and cash equivalents totaled $12.1 million at September 30, 2024, a decrease of $1.5 million compared to $13.6 million at December 31,
2023; and |
| ● | The
Company had no long-term debt on its balance sheet at September 30, 2024. |
Key
Financial and Operating Metrics from Operations:
(in
thousands, except for percentages)
| | |
Three Months Ended | | |
| |
| | |
September
30, (unaudited) | | |
Change | |
| | |
2024 | | |
2023 | | |
$ | | |
% | |
| Subscription revenue | |
$ | 2,033 | | |
$ | 2,673 | | |
$ | (640 | ) | |
| (23.9 | )% |
| Advertising revenue | |
| 88 | | |
| 95 | | |
| (7 | ) | |
| (7.1 | )% |
| Total revenues | |
| 2,121 | | |
| 2,768 | | |
| (647 | ) | |
| (23.4 | )% |
| Loss from operations | |
| (1,688 | ) | |
| (389 | ) | |
| (1,299 | ) | |
| (333.3 | )% |
| Net loss | |
| (1,509 | ) | |
| (182 | ) | |
| (1,327 | ) | |
| (731.2 | )% |
| Net cash used in operating activities | |
| (780 | ) | |
| 16 | | |
| (796 | ) | |
| (4955.5 | )% |
| Adjusted EBITDA (a non-GAAP measure) | |
$ | (1,449 | ) | |
$ | (127 | ) | |
$ | (1,322 | ) | |
| (1046.2 | )% |
| | |
Nine Months Ended | | |
| |
| | |
September
30, (unaudited) | | |
Change | |
| | |
2024 | | |
2023 | | |
$ | | |
% | |
| Subscription revenue | |
$ | 6,649 | | |
$ | 8,064 | | |
$ | (1,415 | ) | |
| (17.5 | )% |
| Advertising revenue | |
| 294 | | |
| 224 | | |
| 70 | | |
| 31.4 | % |
| Total revenues | |
| 6,943 | | |
| 8,288 | | |
| (1,345 | ) | |
| (16.2 | )% |
| Loss from operations | |
| (3,624 | ) | |
| (1,576 | ) | |
| (2,048 | ) | |
| (129.9 | )% |
| Net loss | |
| (2,935 | ) | |
| (784 | ) | |
| (2,151 | ) | |
| (274.3 | )% |
| Net cash used in operating activities | |
| (1,552 | ) | |
| (981 | ) | |
| (571 | ) | |
| (58.2 | )% |
| Adjusted EBITDA (a non-GAAP measure) | |
$ | (2,883 | ) | |
$ | (790 | ) | |
$ | (2,093 | ) | |
| (265.1 | )% |
ABOUT
PALTALK, INC. (Nasdaq: PALT)
Paltalk,
Inc. is a communications software innovator that powers multimedia social applications. Our product portfolio includes Paltalk and Camfrog,
which together host a large collection of video-based communities. Our other products include ManyCam,
Tinychat and Vumber. The Company has an over 20-year history of technology innovation and holds 8 patents. For more information, please
visit: http://www.paltalk.com.
To be
added to our news distribution list, please visit: http://www.paltalk.com/investor-alerts/.
IMPORTANT
INFORMATION ABOUT THE TRANSACTIONS AND WHERE TO FIND IT
In connection
with (i) the issuance of Paltalk’s securities as consideration in the Acquisition (the “Stock Issuance”) and (ii) the
Divestiture, Paltalk intends to file preliminary and definitive proxy statements and other materials with the Securities and Exchange
Commission (the “SEC”). In addition, Paltalk may also file other relevant documents with the SEC regarding the proposed transactions.
INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY STATEMENT WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED
WITH THE SEC BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. The definitive proxy statement and other
relevant documents will be sent or given to Paltalk’s stockholders as of the record date established for voting. Investors and stockholders
may also obtain a free copy of the proxy statement (when available) and other documents filed by Paltalk at its website, www.paltalk.com,
or at the SEC’s website, www.sec.gov. The proxy statement and other relevant documents may also be obtained for free from Paltalk
by directing such request to Paltalk, to the attention of the Investor Relations, 30 Jericho Executive Plaza, Suite 400E Jericho, New
York 11753.
PARTICIPANTS
IN THE SOLICITATION
Paltalk
and its respective directors and executive officers may be deemed to be participants in the solicitation of proxies from Paltalk’s
stockholders in connection with the proposed transactions. Investors and stockholders may obtain more detailed information regarding the
names, affiliations and interests of Paltalk’s directors and executive officers by reading Paltalk’s Definitive Proxy Statement
on Schedule 14A, which was filed with the SEC on October 21, 2024 (the “Annual Meeting Proxy Statement”). To the extent holdings
of common stock by Paltalk’s directors and executive officers have changed from the amounts of common stock held by such persons
as reflected in Paltalk’s the Annual Meeting Proxy Statement, such changes have been or will be reflected on Statements of Change
in Ownership on Form 4 filed with the SEC. Additional information regarding potential participants in such proxy solicitation and a description
of their direct and indirect interests, by security holdings or otherwise, will be included in the proxy statement and other relevant
materials filed with the SEC in connection with the proposed transactions when they become available.
NO
OFFER OR SOLICITATION
This
press release is not a proxy statement or solicitation of a proxy, consent, or authorization with respect to any securities or in respect
of the potential transactions and shall not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall
there be any sale of any securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to
registration or qualification under the securities laws of such state or jurisdiction.
FORWARD-LOOKING
STATEMENTS
Certain
statements contained in this press release constitute “forward-looking statements” as defined in Section 27A of the Securities
Act and Section 21E of the Exchange Act, that are based on current expectations, estimates, forecasts and assumptions and are subject
to risks and uncertainties. Words such as “anticipate,” “assume,” “began,” “believe,”
“budget,” “continue,” “could,” “estimate,” “expect,” “forecast,”
“goal,” “intend,” “may,” “plan,” “potential,” “predict,” “project,”
“seek,” “should,” “target,” “would” and variations of such words and similar expressions
are intended to identify such forward-looking statements. Investors are cautioned that any such statements are not guarantees of future
performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking
statements in this press release may include, but are not limited to, statements relating to (i) Paltalk’s future business objectives,
(ii) the Acquisition and the Divestiture and their expected timing and closing, including receipt of required approvals, (iii) estimates
of future synergies, savings and efficiencies, (iv) expectations regarding Paltalk’s ability to effectively integrate assets and
properties it may acquire as a result of the proposed transactions, (v) expectations regarding future investments or divestitures, including
the Divestiture, and (vi) expectations of future plans, priorities, focus and benefits of the proposed transactions. Such statements are
subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Paltalk, including but not limited
to (i) the ability of the parties to consummate the proposed transactions in a timely manner or at all, (ii) satisfaction of the conditions
precedent to consummation of the Acquisition and the Divestiture, including the ability to secure required consents and regulatory approvals
in a timely manner or at all, and approval by Paltalk’s stockholders of the Stock Issuance and the Divestiture, (iii) the possibility
of litigation (including related to the Acquisition and the Divestiture), (iv) Paltalk’s ability to improve, market and promote
its ManyCam software, (v) Paltalk’s ability to defend its intellectual property rights and (vi) other risks described in Paltalk’s
SEC filings. Paltalk does not undertake and expressly disclaims any obligation to update the forward-looking statements as a result of
new information, future events or otherwise, except as required by applicable securities laws. All forward-looking statements are based
on management’s estimates, projections and assumptions as of the date hereof. More information on potential factors that could affect
Paltalk’s financial results will be included in the preliminary and the definitive proxy statements that Paltalk intends to file
with the SEC in connection with Paltalk’s solicitation of proxies for the special meeting of Stockholders to be held to approve,
among other things, the Stock Issuance and the Divestiture in connection with the proposed transactions.
Investor Contacts:
IR@paltalk.com
ClearThink
nyc@clearthink.capital
917-658-7878
PALTALK, INC.
RECONCILIATION OF GAAP
TO NON-GAAP RESULTS
| | |
Three Months Ended | | |
Nine Months Ended | |
| | |
September 30,
(unaudited) | | |
September 30,
(unaudited) | |
| | |
2024 | | |
2023 | | |
2024 | | |
2023 | |
| Reconciliation of net loss to Adjusted EBITDA: | |
| | |
| | |
| | |
| |
| Net loss | |
$ | (1,509,250 | ) | |
$ | (181,576 | ) | |
$ | (2,935,708 | ) | |
$ | (784,245 | ) |
| Interest income, net | |
| (157,517 | ) | |
| (169,925 | ) | |
| (453,732 | ) | |
| (462,433 | ) |
| Other income | |
| - | | |
| - | | |
| (146,269 | ) | |
| (343,045 | ) |
| Income tax (benefit) expense | |
| (20,767 | ) | |
| (37,915 | ) | |
| (88,076 | ) | |
| 13,590 | |
| Depreciation and amortization expense | |
| 205,584 | | |
| 205,583 | | |
| 616,750 | | |
| 616,750 | |
| Stock-based compensation expense | |
| 32,569 | | |
| 57,380 | | |
| 124,130 | | |
| 169,691 | |
| Adjusted EBITDA | |
$ | (1,449,381 | ) | |
$ | (126,453 | ) | |
$ | (2,882,905 | ) | |
$ | (789,692 | ) |
Non-GAAP Financial
Measures and Key Metrics
The Company has provided in this release Adjusted
EBITDA, a non-GAAP financial measure, to supplement the consolidated financial statements, which are prepared in accordance with generally
accepted accounting principles in the United States (“GAAP”). Adjusted EBITDA is defined as net loss adjusted to exclude interest
(income) expense, net, other (income) expense, net, income tax (benefit) expense, depreciation and amortization expense, and stock-based
compensation expense.
Management uses Adjusted EBITDA internally in
analyzing the Company’s financial results to assess operational performance and to determine the Company’s future capital
requirements. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the
financial information prepared in accordance with GAAP. The Company believes that both management and investors benefit from referring
to Adjusted EBITDA in assessing its performance and when planning, forecasting and analyzing future periods. The Company believes Adjusted
EBITDA is useful to investors and others to understand and evaluate the Company’s operating results and it allows for a more meaningful
comparison between the Company’s performance and that of competitors. Our use of Adjusted EBITDA has limitations as an analytical
tool, and you should not consider this performance measure in isolation from or as a substitute for analysis of our results as reported
under GAAP. Some of these limitations are that Adjusted EBITDA does not reflect, among other things: cash capital expenditures for assets
underlying depreciation and amortization expense that may need to be replaced or for new capital expenditures; interest income, net; other
expense, net; income tax expense from continuing operations; our working capital requirements; the potentially dilutive impact of stock-based
compensation; and the provision for income taxes. Other companies, including companies in our industry, may calculate Adjusted EBITDA
differently, which reduces its usefulness as a comparative measure.
Because of these limitations, you should consider
Adjusted EBITDA along with other financial performance measures, including total revenues, subscription revenue, deferred revenue, net
loss, cash and cash equivalents, restricted cash, net cash used in operating activities and our financial results presented in accordance
with GAAP.
PALTALK, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| | |
Three Months Ended
September 30, | | |
Nine Months Ended
September 30, | |
| | |
2024 | | |
2023 | | |
2024 | | |
2023 | |
| Revenues: | |
| | |
| | |
| | |
| |
| Subscription revenue | |
$ | 2,033,324 | | |
$ | 2,673,333 | | |
$ | 6,649,206 | | |
$ | 8,063,992 | |
| Advertising revenue | |
| 87,910 | | |
| 94,606 | | |
| 294,383 | | |
| 223,966 | |
| Total revenues | |
| 2,121,234 | | |
| 2,767,939 | | |
| 6,943,589 | | |
| 8,287,958 | |
| Costs and expenses: | |
| | | |
| | | |
| | | |
| | |
| Cost of revenue | |
| 760,166 | | |
| 826,662 | | |
| 2,389,734 | | |
| 2,403,165 | |
| Sales and marketing expense | |
| 202,876 | | |
| 210,573 | | |
| 585,987 | | |
| 685,953 | |
| Product development expense | |
| 1,209,326 | | |
| 1,193,430 | | |
| 3,633,247 | | |
| 3,605,652 | |
| General and administrative expense | |
| 1,636,400 | | |
| 926,690 | | |
| 3,958,406 | | |
| 3,169,321 | |
| | |
| | | |
| | | |
| | | |
| | |
| Total costs and expenses | |
| 3,808,768 | | |
| 3,157,355 | | |
| 10,567,374 | | |
| 9,864,091 | |
| Loss from operations | |
| (1,687,534 | ) | |
| (389,416 | ) | |
| (3,623,785 | ) | |
| (1,576,133 | ) |
| Interest income, net | |
| 157,517 | | |
| 169,925 | | |
| 453,732 | | |
| 462,433 | |
| Other income, net | |
| - | | |
| - | | |
| 146,269 | | |
| 343,045 | |
| Loss from operations before provision for income taxes | |
| (1,530,017 | ) | |
| (219,491 | ) | |
| (3,023,784 | ) | |
| (770,655 | ) |
| Income tax(expense) benefit | |
| 20,767 | | |
| 37,915 | | |
| 88,076 | | |
| (13,590 | ) |
| Net loss | |
$ | (1,509,250 | ) | |
$ | (181,576 | ) | |
$ | (2,935,708 | ) | |
$ | (784,245 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| Net loss per share of common stock: | |
| | | |
| | | |
| | | |
| | |
| Basic | |
$ | (0.16 | ) | |
$ | (0.02 | ) | |
$ | (0.32 | ) | |
$ | (0.09 | ) |
| Diluted | |
$ | (0.16 | ) | |
$ | (0.02 | ) | |
$ | (0.32 | ) | |
$ | (0.09 | ) |
| Weighted average number of shares of common stock used in calculating net loss per share of common stock: | |
| | | |
| | | |
| | | |
| | |
| Basic | |
| 9,227,307 | | |
| 9,222,157 | | |
| 9,223,886 | | |
| 9,222,223 | |
| Diluted | |
| 9,227,307 | | |
| 9,222,157 | | |
| 9,223,886 | | |
| 9,222,223 | |
PALTALK, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
| | |
September 30, | | |
December 31, | |
| | |
2024 | | |
2023 | |
| Assets | |
(unaudited) | | |
| |
| Current assets: | |
| | |
| |
| Cash and cash equivalents | |
$ | 12,056,085 | | |
$ | 13,568,049 | |
| Accounts receivable, net of allowances of $13,264 as of September 30, 2024 and $23,326 as of December 31, 2023, respectively | |
| 114,856 | | |
| 92,704 | |
| Employee retention tax credit receivable, net | |
| 114,212 | | |
| 114,212 | |
| Prepaid expense and other current assets | |
| 868,428 | | |
| 990,634 | |
| Total current assets | |
| 13,153,581 | | |
| 14,765,599 | |
| Operating lease right-of-use assets | |
| 95,306 | | |
| 77,005 | |
| Goodwill | |
| 6,326,250 | | |
| 6,326,250 | |
| Intangible assets, net | |
| 2,087,727 | | |
| 2,704,477 | |
| Other assets | |
| 13,937 | | |
| 13,937 | |
| Total assets | |
$ | 21,676,801 | | |
$ | 23,887,268 | |
| | |
| | | |
| | |
| Liabilities and stockholders’ equity | |
| | | |
| | |
| Current liabilities: | |
| | | |
| | |
| Accounts payable | |
$ | 1,426,124 | | |
$ | 792,053 | |
| Accrued expenses and other current liabilities | |
| 213,377 | | |
| 226,120 | |
| Operating lease liabilities, current portion | |
| 81,645 | | |
| 77,005 | |
| Deferred subscription revenue | |
| 2,067,220 | | |
| 2,043,362 | |
| Total current liabilities | |
| 3,788,366 | | |
| 3,138,540 | |
| Operating lease liabilities, non-current portion | |
| 13,661 | | |
| - | |
| Deferred tax liability | |
| 511,893 | | |
| 614,041 | |
| Total liabilities | |
| 4,313,920 | | |
| 3,752,581 | |
| Commitments and contingencies | |
| | | |
| | |
| Stockholders’ equity: | |
| | | |
| | |
| Common stock, $0.001 par value, 25,000,000 shares authorized, 9,864,120 shares issued and 9,236,987 shares outstanding as of September 30, 2024 and 9,222,157 shares outstanding as of December 31, 2023, respectively | |
| 9,879 | | |
| 9,864 | |
| Treasury stock, 641,963 shares repurchased as of September 30, 2024 and December 31, 2023, respectively | |
| (1,199,337 | ) | |
| (1,199,337 | ) |
| Additional paid-in capital | |
| 36,372,615 | | |
| 36,208,728 | |
| Accumulated deficit | |
| (17,820,276 | ) | |
| (14,884,568 | ) |
| Total stockholders’ equity | |
| 17,362,881 | | |
| 20,134,687 | |
| Total liabilities and stockholders’ equity | |
$ | 21,676,801 | | |
$ | 23,887,268 | |
PALTALK, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| | |
Nine Months Ended
September 30, | |
| | |
2024 | | |
2023 | |
| Cash flows from operating activities: | |
| | |
| |
| Net loss | |
$ | (2,935,708 | ) | |
$ | (784,245 | ) |
| Adjustments to reconcile net loss from operations to net cash used in operating activities: | |
| | | |
| | |
| Amortization of intangible assets | |
| 616,750 | | |
| 616,750 | |
| Amortization of operating lease right-of-use assets | |
| 62,884 | | |
| 61,454 | |
| Credit loss expense | |
| 8,794 | | |
| 10,000 | |
| Income tax benefit | |
| (14,072 | ) | |
| - | |
| Deferred tax benefit | |
| (88,076 | ) | |
| (18,219 | ) |
| Stock-based compensation | |
| 124,130 | | |
| 169,691 | |
| Changes in operating assets and liabilities: | |
| | | |
| | |
| Accounts receivable | |
| (30,946 | ) | |
| (30,925 | ) |
| Operating lease liability | |
| (62,884 | ) | |
| (61,454 | ) |
| Prepaid expense and other current assets | |
| 122,206 | | |
| (279,448 | ) |
| Accounts payable, accrued expenses and other current liabilities | |
| 621,328 | | |
| (493,177 | ) |
| Employee retention tax credit receivable, net | |
| - | | |
| (114,212 | ) |
| Deferred subscription revenue | |
| 23,858 | | |
| (56,935 | ) |
| Net cash used in operating activities | |
| (1,551,736 | ) | |
| (980,720 | ) |
| Cash flows from investing activities: | |
| | | |
| | |
| Payment of contingent consideration | |
| - | | |
| (85,000 | ) |
| Net cash used in investing activities | |
| - | | |
| (85,000 | ) |
| Cash flows from financing activities: | |
| | | |
| | |
| Proceeds from the exercise of employee stock options | |
| 39,772 | | |
| - | |
| Purchase of treasury stock | |
| - | | |
| (7,213 | ) |
| Net cash used in financing activities | |
| 39,772 | | |
| (7,213 | ) |
| Net decrease in cash and cash equivalents | |
| (1,511,964 | ) | |
| (1,072,933 | ) |
| Balance of cash and cash equivalents at beginning of period | |
| 13,568,049 | | |
| 14,739,933 | |
| Balance of cash and cash equivalents at end of period | |
$ | 12,056,085 | | |
$ | 13,667,000 | |
| Supplemental disclosure of cash flow information: | |
| | | |
| | |
| Cash paid during the periods: | |
| | | |
| | |
| Interest | |
$ | - | | |
$ | 512 | |
| Taxes | |
$ | 9,550 | | |
$ | 23,551 | |
10
Paltalk (NASDAQ:PALT)
Historical Stock Chart
From Dec 2024 to Jan 2025
Paltalk (NASDAQ:PALT)
Historical Stock Chart
From Jan 2024 to Jan 2025
