# IZEA Worldwide, Inc.: Form 10-Q for the period ended Jun 30, 2025

- Company: [IZEA Worldwide, Inc.](/companies/izea.md) (CIK 1495231)
- Form: 10-Q
- Filed: 2025-08-12
- Accepted by EDGAR: Aug 12, 2025, 16:07 ET
- Period: 2025-06-30
- Accession: 0001495231-25-000156
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/1495231/000149523125000156/izea-20250630.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/1495231/000149523125000156/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2025-06-30.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2025-04-01 to 2025-06-30 | $9.1m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Revenue | 6 months, 2025-01-01 to 2025-06-30 | $17.1m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Cost of revenue | 3 months, 2025-04-01 to 2025-06-30 | $4.4m | us-gaap:CostOfRevenue |
| Cost of revenue | 6 months, 2025-01-01 to 2025-06-30 | $8.8m | us-gaap:CostOfRevenue |
| Operating income | 3 months, 2025-04-01 to 2025-06-30 | $737.8k | us-gaap:OperatingIncomeLoss |
| Operating income | 6 months, 2025-01-01 to 2025-06-30 | $82.0k | us-gaap:OperatingIncomeLoss |
| Interest expense | 3 months, 2025-04-01 to 2025-06-30 | $1.8k | us-gaap:InterestExpenseNonoperating |
| Interest expense | 6 months, 2025-01-01 to 2025-06-30 | $3.4k | us-gaap:InterestExpenseNonoperating |
| Income tax | 3 months, 2025-04-01 to 2025-06-30 | $0 | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 6 months, 2025-01-01 to 2025-06-30 | $0 | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2025-04-01 to 2025-06-30 | $1.2m | us-gaap:NetIncomeLoss |
| Net income | 6 months, 2025-01-01 to 2025-06-30 | $1.1m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2025-04-01 to 2025-06-30 | $0.07 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 6 months, 2025-01-01 to 2025-06-30 | $0.06 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2025-04-01 to 2025-06-30 | $0.07 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 6 months, 2025-01-01 to 2025-06-30 | $0.06 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2025-04-01 to 2025-06-30 | 17,817,378 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 6 months, 2025-01-01 to 2025-06-30 | 17,827,552 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 6 months, 2025-01-01 to 2025-06-30 | $1.2m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 6 months, 2025-01-01 to 2025-06-30 | $29.7k | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Cash and equivalents | at 2025-06-30 | $50.6m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2025-06-30 | $57.4m | us-gaap:AssetsCurrent |
| Total assets | at 2025-06-30 | $59.6m | us-gaap:Assets |
| Current liabilities | at 2025-06-30 | $10.3m | us-gaap:LiabilitiesCurrent |
| Total liabilities | at 2025-06-30 | $10.3m | us-gaap:Liabilities |
| Long-term debt | at 2025-06-30 | $33.7k | us-gaap:LongTermDebt |
| Current portion of debt | at 2025-06-30 | $33.7k | us-gaap:LongTermDebtCurrent |
| Shareholders' equity | at 2025-06-30 | $49.4m | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 30,361 characters.

### Cautionary Note Regarding Forward-Looking Information

This Quarterly Report on Form 10-Q (this “Quarterly Report”) contains “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact contained in this report, including those contained in Management’s Discussion and Analysis of Financial Condition and Results of Operations and the notes to our consolidated financial statements, particularly those that utilize terminology such as “may,” “will,” “would,” “can,” “could,” “continue,” “design,” “should,” “expects,” “aims,” “anticipates,” “estimates,” “believes,” “thinks,” “intends,” “likely,” “projects,” “plans,” “pursue,” “strategy,” “future,” “forecasts,” “goal,” “hopes,” or the negative of these words or other words or expressions of similar meaning, are forward-looking statements. Such statements are based on currently available operating, financial and competitive information, and are subject to inherent risks, uncertainties, and changes in circumstances that are difficult to predict and many of which are outside of our control. Future events and our actual results and financial condition may differ materially from those reflected in these forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause these differences include, but are not limited to, the following:

- adverse economic or market conditions that may harm our business; including supply-chain issues, labor distribution, business closures, tariffs, and inflationary pressures;
- a few of our customers accounting for a significant portion of our gross billings and accounts receivable, and the loss of, or reduced purchases from, these or other customers having a material adverse effect on our operating results;
- any erroneous or inaccurate estimates or judgments relating to our critical accounting policies;
- our ability to raise the additional funding needed to fund our business operation in the future;
- our ability to satisfy the requirements for continued listing of our common stock on the Nasdaq Capital Market;
- our ability to maintain effective internal control over financial reporting and effective disclosure controls and procedures;
- our ability to protect our intellectual property and other proprietary rights;
- our ability to maintain and grow our business;
- results of any future litigation and costs incurred in connection with any such litigation;
- competition in the industry;
- variability of operating results;
- our ability to maintain and enhance our brand;
- accuracy of tracking the number of user accounts;
- any security breaches or other disruptions compromising our proprietary information and exposing us to liability;
- our development and introduction of new products and services;
- our reliance on, and compliance with, open-source software;
- the successful integration of acquired companies, technologies, and assets into our portfolio of software and services;
- marketing and other business development initiatives;
- general government regulation;
- dependence on key personnel;
- the ability to attract, hire, and retain personnel who possess the technical skills and experience necessary to meet the service requirements of our customers;
- the potential liability concerning actions taken by our existing and past employees;
- any losses or issues we may encounter as a consequence of accepting or holding digital assets;
- impacts of the situation in the Middle East and the military conflict between Russia and Ukraine, and the global responses to them;
- risks associated with doing business internationally; and
- the other risks and uncertainties described in the Risk Factors section of this Quarterly Report and the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on March 27, 2025.

All forward-looking statements in this document are based on current expectations, intentions, and beliefs using information available to us as of the date of this Quarterly Report; we assume no obligation to update any forward-looking statements, except as required by law. Forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results to differ materially from any future results, performance, or achievements expressed or implied by such forward-looking statements.

### Company Overview

IZEA Worldwide, Inc. (“IZEA”, “Company,” “we”, “us” or “our”) is a leading innovator in the creator economy, specializing in providing value through managing custom content workflow, creator search and targeting, bidding, analytics, and payment processing. The Company’s mission is to make creator economy solutions for marketers. We offer solutions that range from creator agency services to creator technologies to a marketplace that connects marketers with creators. By fostering these connections, we light up the creator economy with IZEAs - social-first content, made by creators, that are culturally relevant and move at the speed of culture, champion the creators, empowering individuals to monetize their creativity, content, and influence.

IZEA made a significant mark in the industry by launching the first influencer marketplace, PayPerPost, in 2006, setting a precedent for the evolution of digital marketing platforms. Today, the Company caters to a diverse range of clients, including independent creators and Fortune 10 brands, offering services in influencer marketing, customer-generated content, and custom content creation. IZEA provides tech-enabled managed services and self-service software tools, accommodating the varying needs of its clientele and ensuring mutually beneficial collaborations within its ecosystem.

IZEA Flex is a robust suite of tools that enhance IZEA’s ability to manage influencer marketing at scale. Beyond enabling seamless campaign execution, Flex empowers IZEA’s internal teams to measure influencer marketing performance with precision. The platform boasts a suite of core modules, which together provide a comprehensive toolkit for optimizing influencer marketing campaigns. Flex is distinguished by its ability to quantify the ROI of marketing efforts at scale, complemented by the introduction of AI-powered tools that streamline content and creative campaign ideation.

### Key Components of Results of Operations

Overall consolidated results of operations are evaluated based on Revenue, Cost of Revenue, Sales and Marketing expenses, General and Administrative expenses, Depreciation and Amortization, and Other Income (Expense), net.

### Revenue

We generate revenue primarily from our managed services, when a marketer (typically a brand, agency, or partner) pays us to provide custom content, influencer marketing, amplification, or other campaign management services (“Managed Services”).

### Cost of Revenue

Our cost of revenue consists of direct costs paid to our third-party creators who provide the custom content, influencer marketing, or amplification services for our Managed Service customers, where we report revenue on a gross basis. It also includes internal costs for our campaign fulfillment and SaaS support departments. These costs include salaries, bonuses, commissions, stock-based compensation, employee benefit costs, and miscellaneous departmental costs related to the personnel responsible for supporting our customers and ultimately fulfilling our obligations under our contracts with customers.

### Sales and Marketing

Our sales and marketing expenses consist primarily of salaries, bonuses, commissions, stock-based compensation, employee benefit costs, travel, and miscellaneous departmental costs for our marketing, sales, and sales support personnel. They also include marketing expenses such as brand marketing, public relations events, trade shows, marketing materials, and travel expenses.

### General and Administrative

Our general and administrative (“G&A”) expense consists primarily of salaries, bonuses, commissions, stock-based compensation, employee benefit costs, and miscellaneous departmental costs related to our executive, finance, legal, human resources, and other administrative personnel. It also includes travel, public company, investor relations expenses, accounting, legal professional services fees, and other corporate-related expenses.

Within G&A, we incorporate technology and development costs, consisting primarily of our payroll costs for our internal engineers and contractors responsible for developing, maintaining, and improving our technology, as well as hosting and software subscription costs. These costs are expensed as incurred, except to the extent that they are associated with internal-use software that qualifies for capitalization, which is then recorded as software development costs in the consolidated balance sheet. When major software components are developed, we capitalize these as intangible assets. Depreciation and amortization related to these costs are separately stated under depreciation and amortization in our consolidated statements of operations and comprehensive loss.

G&A expenses include current period gains and losses on our acquisition costs payable and gains and losses from the sale of fixed assets. Impairments on fixed assets are included as part of G&A expenses presented separately in our consolidated statements of operations and comprehensive loss when deemed material.

### Depreciation and Amortization

Depreciation and amortization expenses consists primarily of amortization of our internal-use software and acquired intangible assets from our business acquisitions. To a lesser extent, we also have depreciation and amortization on equipment used by our personnel. Costs are amortized or depreciated over the estimated useful lives of the associated assets.

### Other Income (Expense)

*Interest Expense.* Interest expense is primarily related to the payment plans for purchasing computer equipment.

*Other Income.* Other income consists primarily of interest income earned on investments, as well as realized gains and losses on foreign currency exchange transactions, primarily related to the Canadian and Australian Dollar.

### Results of Operations for the Three Months Ended June 30, 2025 and 2024

The following table sets forth a summary of our consolidated statements of operations and the change between the periods:

|  | Three Months Ended June 30, 2025 | 2024 | $ Change | % Change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | $9,133,232 | $9,093,816 | $39,416 | —% |
| Costs and expenses: |  |  |  |  |
| Cost of revenue | 4,386,612 | 5,177,600 | (790,988) | (15)% |
| Sales and marketing | 962,017 | 3,206,979 | (2,244,962) | (70)% |
| General and administrative | 2,897,551 | 3,372,797 | (475,246) | (14)% |
| Depreciation and amortization | 149,242 | 225,748 | (76,506) | (34)% |
| Total costs and expenses | 8,395,422 | 11,983,124 | (3,587,702) | (30)% |
| Income (loss) from operations | 737,810 | (2,889,308) | 3,627,118 | (126)% |
| Other income (expense): |  |  |  |  |
| Change in the fair value of digital assets | — | (26,043) | 26,043 | (100)% |
| Interest Expense | (1,784) | (1,999) | 215 | (11)% |
| Other income (expense), net | 469,042 | 634,226 | (165,184) | (26)% |
| Total other income (expense), net | $467,258 | $606,184 | $(138,926) | (23)% |
| Net income (loss) before income taxes | $1,205,068 | $(2,283,124) | $3,488,192 | (153)% |
| Tax benefit | — | 88,296 | (88,296) | (100)% |
| Net income (loss) | $1,205,068 | $(2,194,828) | $3,399,896 | (155)% |

### Revenue

Revenue during the three months ended June 30, 2025 was essentially flat compared to the prior year’s quarter. The three months ended June 30, 2024 total included $0.8 million of revenue from Hoozu that was divested in December 2024. Excluding $0.8 million in revenue from Hoozu, revenue grew 10.5% during the quarter ended June 30, 2025. Revenue from ongoing customers increased quarter-over-quarter due to higher spend from several of our larger existing customers and the addition of new customers.

### Cost of Revenue

For the three months ended June 30, 2025, the cost of revenue declined by 0.8 million compared to the same period in the prior year, primarily due to the absence of costs related to Hoozu, which was included in the prior year period. Excluding Hoozu, the cost of revenue remained relatively consistent year-over-year.

### Sales and Marketing

Sales and marketing expense for the three months ended June 30, 2025 decreased by $2.2 million, or approximately 70%, compared to the same period in 2024. This decrease is primarily due to lower payroll and related costs, following our December 2024 targeted workforce reduction, a pause in current period advertising and promotional spending, and decreased general contractor fees.

### General and Administrative

General and administrative expense for the three months ended June 30, 2025 decreased by $0.5 million, or approximately 14%, compared to the same period in 2024. The decrease is primarily due to lower employee-related costs following our December 2024 targeted workforce reduction, reduced use of external contractors, decreased professional service fees, and lower software licensing expenses.

### Depreciation and Amortization

Depreciation and amortization expense for the three months ended June 30, 2025 decreased by $76,506, or approximately 34%, compared to the same period in 2024. Depreciation expense on property and equipment was $21,729 and $26,701 for the three months ended June 30, 2025 and 2024, respectively. Amortization expense was $127,513 and $177,629 for the three months ended June 30, 2025 and 2024, respectively. Depreciation and amortization expense decreased compared to the prior-year quarter primarily due to lower amortization expense due to the absence of expense related to legacy platforms that were sunset in 2024.

### Other Income (Expense)

Interest expense totaled $1,784 during the three months ended June 30, 2025, compared to $1,999 in the prior year period.

Other income, net, totaled $0.5 million during the three months ended June 30, 2025, a decrease of $0.2 million compared to the same period in 2024, primarily from lower investment portfolio interest income.

### Net Income (Loss)

Net income for the three months ended June 30, 2025 was $1.2 million, compared to the net loss of $2.2 million for the same period in 2024.

### Results of Operations for the Six Months Ended June 30, 2025 and 2024

The following table sets forth a summary of our consolidated statements of operations and the change between the periods:

|  | Six Months Ended June 30, 2025 | 2024 | $ Change | % Change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | $17,101,595 | $16,046,699 | $1,054,896 | 7% |
| Costs and expenses: |  |  |  |  |
| Cost of revenue | 8,788,186 | 9,145,575 | (357,389) | (4)% |
| Sales and marketing | 2,083,799 | 6,263,270 | (4,179,471) | (67)% |
| General and administrative | 5,838,058 | 7,155,883 | (1,317,825) | (18)% |
| Depreciation and amortization | 309,594 | 429,934 | (120,340) | (28)% |
| Total costs and expenses | 17,019,637 | 22,994,662 | (5,975,025) | (26)% |
| Income (loss) from operations | 81,958 | (6,947,963) | 7,029,921 | (101)% |
| Other income (expense): |  |  |  |  |
| Change in the fair value of digital assets | — | 80,116 | (80,116) | (100)% |
| Interest Expense | (3,438) | (4,000) | 562 | (14)% |
| Other income (expense), net | 983,748 | 1,304,091 | (320,343) | (25)% |
| Total other income (expense), net | 980,310 | 1,380,207 | (399,897) | (29)% |
| Net income (loss) before income taxes | $1,062,268 | $(5,567,756) | $6,630,024 | (119)% |
| Tax benefit | $— | $107,078 | $(107,078) | (100)% |
| Net income (loss) | $1,062,268 | $(5,460,678) | $6,522,946 | (119)% |

### Revenue

Revenue during the during the six months ended June 30, 2025, increased by $1.1 million, or 7%, from the same period in 2024, which included $1.3 million from Hoozu, which was divested in December 2024. Excluding Hoozu, revenue increased $2.7 million, or 19%, during the six months ended June 30, 2025. Revenue from ongoing customers increased year-over-year due to higher spend from several of our larger existing customers and the addition of new customers.

### Cost of Revenue

For the six months ended June 30, 2025, the cost of revenue declined by $0.4 million compared to the same period in the prior year, primarily due to the absence of costs related to Hoozu, which was included in the prior year period. Excluding Hoozu, the cost of revenue increased by 1% year-over-year.

### Sales and Marketing

Sales and marketing expense for the six months ended June 30, 2025, decreased by $4.2 million, or approximately

67%, compared to the same period in 2024. Advertising expenses decreased due to lower payroll and related costs, following our December 2024 targeted workforce reduction, a pause in current period advertising and promotional spending, and decreased general contractor fees.

### General and Administrative

General and administrative expense for the six months ended June 30, 2025, decreased by $1.3 million, or approximately 18%, compared to the same period in 2024. The decrease is primarily due to lower employee-related costs following our December 2024 targeted workforce reduction, reduced use of external contractors, decreased professional service fees, and lower software licensing expenses.

### Depreciation and Amortization

Depreciation and amortization expense for the six months ended June 30, 2025, decreased by $120,340, or approximately 28%, compared to the same period in 2024. Depreciation expense on property and equipment was approximately $44,684 and $53,258 for the six months ended June 30, 2025, and 2024. Amortization expense was approximately $264,910 and $376,676 for the six months ended June 30, 2025 and 2024, respectively. Amortization expense related to internal-use software development costs was $264,910 and $252,686 for the six months ended June 30, 2025 and 2024, respectively. The Company did not have any amortization expense related to acquired intangible assets for the six months ended June 30, 2025. The Company recognized $123,990 amortization expense related to acquired intangible assets for the six months ended June 30, 2024.

### Other Income (Expense)

Interest expense totaled $3,438 during the six months ended June 30, 2025, compared to $4,000 in the prior year period.

Other income, net totaled $1.0 million for the six months ended June 30, 2025, compared to $1.3 million in the prior year period, reflecting interest earned on portfolio investments.

### Net Income (Loss) from Operations

Net income (loss) from operations for the six months ended June 30, 2025 was $1.1 million, a $6.5 million increase from the net loss of $5.5 million for the same period in 2024. The increase in net income was primarily the result of decreased operating costs in the current year period.

### Key Metrics

We review the information provided by our key financial metrics, Managed Services Bookings, and gross billings, to assess the progress of our business and make decisions on where to allocate our resources. As our business evolves, we may change the key financial metrics in future periods.

### Managed Services Bookings

Managed Services Bookings is a measure of all sales orders received during a time period, less any cancellations received, or refunds given during the same time period. Sales order contracts vary in complexity with each customer and range from custom content delivery to integrated marketing services; our contracts generally run from several months for smaller contracts up to twelve months for larger contracts. We recognize revenue from our Managed Services contracts on a percentage of completion basis as we deliver the content or services over time, which can vary greatly. Historically, bookings have converted to revenues over a 6-month period on average. However, since late 2020, we have received increasingly larger and more complex sales orders, which, in turn, has lengthened the average revenue period to approximately 9-months, with the largest contracts taking longer to complete. During the latter half of 2023, the time between bookings and revenue improved to an average of 7.5 months. For this reason, Managed Services Bookings, while an overall indicator of the health of our business, may not be used to predict quarterly revenues and could be subject to future adjustments. Managed Services Bookings is useful information as it reflects the number of orders received in one period, even though revenue from those orders may be reflected over varying amounts of time. We use the Managed Services Bookings metric to plan operational staffing, to identify key customer group trends to enlighten go-to-market activities, and to inform its product development efforts. Managed Services Bookings for the three months ended June 30, 2025 and 2024 was $5.6 million and $10.3 million, respectively. Managed Services Bookings for the six months ended June 30, 2025, and 2024, was $13.1 million and $19.6 million respectively.

### Non-GAAP Financial Measure

### Adjusted EBITDA

Adjusted EBITDA is a “non-GAAP financial measure” under the rules of the Securities and Exchange Commission (the “SEC”). We define Adjusted EBITDA as operating income (or loss) from operations before depreciation and amortization, non-cash stock-based compensation, and other operating adjustments that are non-recurring or unusual to our core ongoing operations.

We use Adjusted EBITDA as a measure of operating performance, for planning purposes, to allocate resources to enhance the financial performance of our business and in communications with our Board of Directors regarding our financial performance. We believe that Adjusted EBITDA also provides valuable information to investors as it excludes non-cash transactions, and it provides consistency to facilitate period-to-period comparisons.

You should not consider Adjusted EBITDA in isolation or as a substitute for an analysis of our results of operations as under GAAP. Not all companies calculate Adjusted EBITDA similarly, limiting its usefulness as a comparative measure. Moreover, Adjusted EBITDA has limitations as an analytical tool, including that Adjusted EBITDA:

- does not include stock-based compensation expense, which is a non-cash expense, but has been, and will continue to be for the foreseeable future, a significant recurring expense for our business and an essential part of our compensation strategy;
- does not include stock issued for payment of services, which is a non-cash expense, but has been, and is expected to be for the foreseeable future, an important means for us to compensate our directors, vendors, and other parties who provide us with services;
- does not include depreciation and intangible assets amortization expense, impairment charges, and gains or losses on disposal of equipment, which is not always a current period cash expense, but the assets being depreciated and amortized may have to be replaced in the future; and
- does not include non-operating activity, such as interest income and other gains, losses, and expenses that we believe are not indicative of our ongoing core operating results, but these items may represent a reduction or increase in cash available to us.

Because of these limitations, Adjusted EBITDA should not be considered a measure of discretionary cash available to us to invest in the operation and growth of our business or as a measure of cash that will be available to us to meet our obligations. You should compensate for these limitations by relying primarily on our GAAP results and using these non-GAAP financial measures as supplements. In evaluating this non-GAAP financial measure, you should be aware that in the future, we may incur expenses similar to those for which adjustments are made in calculating Adjusted EBITDA. Our presentation of this non-GAAP financial measure should also not be construed to infer that our future results will be unaffected by unusual or non-recurring items.

The following table sets forth a reconciliation from the GAAP measurement of net income (loss) to our non-GAAP financial measure of Adjusted EBITDA for the three and six months ended June 30, 2025, and 2024:

|  | Three Months Ended June 30, 2025 | 2024 | Six Months Ended June 30, 2025 | 2024 |
| --- | ---: | ---: | ---: | ---: |
| Net income (loss) from operations | $1,205,068 | $(2,194,828) | $1,062,268 | $(5,460,678) |
| Adjustment to the fair market value of digital assets | — | 26,044 | — | (80,115) |
| Non-cash stock-based compensation | 355,714 | 394,931 | 640,846 | 749,120 |
| Non-cash stock issued for payment of services | 89,994 | 75,000 | 179,996 | 150,006 |
| Depreciation and amortization | 149,242 | 225,748 | 309,594 | 429,934 |
| Interest expense | 1,784 | 1,999 | 3,438 | 4,000 |
| Interest income | (475,342) | (634,765) | (946,532) | (1,301,017) |
| Tax benefit | $— | $(88,296) | — | (107,078) |
| Adjusted EBITDA (1) | $1,326,460 | $(2,194,167) | $1,249,610 | $(5,615,828) |
| Revenue | $9,133,232 | $9,093,816 | $17,101,595 | $16,046,699 |
| Adjusted EBITDA as a % of Revenue | 15% | (24)% | 7.3% | (35.0)% |

(1) The 2024 measure excludes interest income to ensure comparability with the Company’s revised definition of the metric, which no longer includes interest income beginning in 2025.

### Liquidity and Capital Resources

### Near-Term Liquidity and Capital Resources

The Company’s cash requirements have historically included funding the development and integration of our technology platforms, marketing initiatives, and general and administrative expenses, such as salaries, bonuses, and commissions. The Company has incurred losses and negative cash flow from operations for most periods since inception, primarily the result of costs associated with third-party creators, salaries, bonuses and stock-based compensation, and other G&A expenses, including technology and development costs, which exceeded revenue, has resulted in a total accumulated deficit of $103.2 million as of June 30, 2025. These deficits have been funded through public equity.

We had cash and cash equivalents of $50.6 million as of June 30, 2025, as compared to $44.6 million as of December 31, 2024. This $6.0 million increase is the result of the maturation of certain investments, supplemented by cash generated from operating activities.

| Net cash (used for)/provided by: | Six Months Ended June 30, 2025 | 2024 |
| --- | ---: | ---: |
| Operating activities | $1,245,988 | $(7,256,857) |
| Investing activities | 6,013,506 | 14,245,536 |
| Financing activities | (1,128,145) | (116,508) |
| Effect of exchange rates on cash | $(132,802) | $(17,033) |
| Net increase in cash and cash equivalents | $5,998,547 | $6,855,138 |

Net cash provided by operating activities was $1.2 million during the six months ended June 30, 2025, which is consistent with our net income. Net cash provided by investing activities was $6.0 million during the six months ended June 30, 2025, primarily due to the maturity of marketable securities. Net cash used for financing activities during the six months ended June 30, 2025 was $1.1 million, primarily due to payments for shares withheld for taxes and the repurchase of treasury stock.

### Financial Condition and Outlook

Revenue from ongoing customers grew 16.2% in the first six months of 2025 compared to the prior-year period. Contract backlog declined from $15.5 million at the start of the year to $11.6 million as of June 30, 2025, reflecting slower contract bookings during the period. Net bookings totaled $13.1 million for the six months ended June 30, 2025, down $5.4 million, or 29%, from the prior year. We believe several factors drove the decline in backlog:

- a strategic shift toward larger, more profitable recurring accounts and away from smaller, less economic projects;
- cautious marketing spend among some enterprise and agency clients due to broader economic uncertainty, including tariffs; and
- reduced internal resource allocation during our organizational transition.

We implemented significant cost savings beginning in December 2024 and continuing into early 2025 to better align operating expenses with anticipated revenue and accelerate our path to profitability. This is demonstrated in part by our profitability during the first half of 2025. We have a strong and growing pipeline that we believe will support profitable growth over the next twelve months. While we expect revenue to grow over time, such growth may not occur consistently each quarter. We anticipate that operating expenses will increase gradually to support this growth; however, we believe our current cost structure is better aligned to scale efficiently, limiting the recurrence of historical cash losses and reducing the strain on working capital as we expand our business.

We believe our cash and cash equivalents are sufficient to fund growth initiatives over the next twelve months. If additional capital is needed, we expect to obtain it primarily through equity, equity-linked, or debt financing unless and until our operations generate sufficient profitability to meet ongoing capital requirements.

### Off-Balance Sheet Arrangements

The Company did not engage in any “off-balance sheet arrangements” (as that term is defined in Item 303(a)(4)(ii) of Regulation S-K) as of June 30, 2025.

### Critical Accounting Policies and Use of Estimates

There have been no material changes to our critical accounting policies as set forth in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” included in our Annual Report on Form 10-K for the year ended December 31, 2024. For a summary of our significant accounting policies, please refer to “Note 1 Company and Summary of Significant Accounting Policies” included in Item 1 of this Quarterly Report.

### Recent Accounting Pronouncements

See “Note 1. Company and Summary of Significant Accounting Policies,” under Part I, Item 1 of this Quarterly Report for information on additional recent pronouncements.

## Controls and procedures

As filed, 4,588 characters.

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed by us in the reports that the Company files or submits under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized, and reported within the periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports that the Company files under the Exchange Act is accumulated and communicated to management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosures.

In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Furthermore, controls and procedures could be circumvented by the individual acts of some

persons, by collusion of two or more people, or by management override of the control. Misstatements due to error or fraud may occur and not be detected on a timely basis.

### Evaluation of Disclosure Controls and Procedures

In connection with the preparation of this Quarterly Report on Form 10-Q for the period ended June 30, 2025, an

evaluation was performed under the supervision and with the participation of our management including our principal executive

officer and principal financial officer to determine the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of June 30, 2025. Based on this evaluation, our management concluded that, as of June 30, 2025, our disclosure controls and procedures were effective as designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the rules and forms of the SEC, and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, to allow timely decisions regarding required disclosures.

### Changes in Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining effective internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act). Internal control over financial reporting is a process designed by, or under the supervision of, our principal executive officer and principal financial officer and effected by our Board of Directors, management, and other personnel, to provide reasonable assurance regarding the reliability of our financial reporting and the preparation of financial statements for external purposes in accordance with GAAP. Internal control over financial reporting includes policies and procedures that:

(i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the Company’s transactions;

(ii) provide reasonable assurance that transactions are recorded as necessary for the preparation of our financial statements in accordance with GAAP, and that receipts and expenditures are made only in accordance with authorizations of our management and directors; and

(iii) provide reasonable assurance regarding prevention or timely detection of any unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect financial statement misstatements. Also, projections of any evaluation of internal control effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

There were no changes in our internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) during the fiscal quarter ended June 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

## Risk factors

As filed, 899 characters.

You should carefully consider the factors discussed under Item 1A of Part I to our Annual Report on Form 10-K for the year ended December 31, 2024 regarding the numerous and varied risks, known and unknown, that may prevent us from achieving our goals. If any of these risks occur, our business, financial condition, or results of operation may be materially and adversely affected. In such a case, the trading price of our common stock could decline, and investors could lose all or part of their investment. These risk factors may not identify all risks that we face, and our operations could also be affected by factors that are not presently known to us or that we currently consider to be immaterial to our operations. There have been no material changes to the risk factors described under “Risk Factors,” included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

Filed Aug 12, 2025.
Source: SEC EDGAR, the filing index for accession 0001495231-25-000156. Last ingested by Listed: Nov 2, 2026, 16:20 ET. No prices; not investment advice.