10-K: Mobiquity Technologies Reports Fiscal Year 2024 Results, Highlights Strategic Partnership Expansion

Mobiquity Technologies, Inc. files its 10-K report for fiscal year 2024, detailing financial performance and strategic initiatives, including an expanded partnership with Context Networks.

Summary

• Mobiquity Technologies, Inc. reported a net loss of $8,593,182 for fiscal year 2024, compared to a net loss of $6,533,117 in 2023.
• Revenue increased to $2,085,471 in 2024 from $860,090 in 2023, driven by political revenue.
• Operating expenses rose to $9,172,687 in 2024, primarily due to a non-cash increase in stock-based compensation.
• The company's management has concluded that the company's historical recurring losses from operations and negative cash flows from operations as well as its dependence on private equity and other financings raise substantial doubt about its ability to continue as a going concern.
• The company is focusing on technology development, seeking equity and debt financing, exploring partnerships, and identifying market opportunities to improve its financial position.
• The company's strategic partnership with Context Networks is expected to significantly impact fiscal 2025 results.
• The company had cash of $1,159,933 at December 31, 2024.
• The company is subject to a lawsuit filed by a former Co-CEO, claiming damages of not less than $2.5 million, which the company intends to vigorously defend.
• The company is working to remediate deficiencies and material weaknesses in its internal controls.

Sentiment

Score: 4

Explanation: The document presents a mixed sentiment. While revenue increased, the company experienced a significant net loss and faces challenges related to its ability to continue as a going concern. The strategic partnership and efforts to remediate internal controls offer some positive outlook, but the overall financial situation is concerning.

Positives

• Revenue increased significantly in fiscal year 2024 compared to 2023.
• The strategic partnership with Context Networks is expected to positively impact future financial results.
• The company is actively working to remediate internal control deficiencies.
• The company is developing new features which management believes will help grow revenue in 2025 and beyond.

Negatives

• The company experienced a substantial net loss in fiscal year 2024.
• Operating expenses increased significantly, primarily due to stock-based compensation.
• The company's auditor has included an explanatory paragraph relating to the company's ability to continue as a going concern in its audit report for the fiscal year ended December 31, 2024.
• The company is subject to a lawsuit filed by a former Co-CEO.

Risks

• The company's ability to continue as a going concern is dependent on generating sufficient cash flow from operations and obtaining additional capital and financing.
• The company faces intense competition in the programmatic advertising, data management, and user compliance management industries.
• A significant breach of the confidentiality of the information the company holds could be detrimental to its business, reputation, and results of operations.
• Changes in consumer sentiment or laws regarding tracking technologies could adversely affect the company's ability to generate net revenues.
• The company relies substantially on a limited number of customers for a significant percentage of its sales.
• The company may be required to invest significant monies upfront in capital intensive project(s) which it may be unable to recover.
• The company is subject to payment-related risks and, if its customers do not pay or dispute their invoices, its business, financial condition, and operating results may be adversely affected.
• If the company defaults on its credit obligations, its operations may be interrupted, and its business and financial results could be adversely affected.
• The company's failure to recruit or the loss of management and highly trained and qualified personnel could adversely affect its operations.
• The company's common stock is subject to the penny stock rules, making it difficult to resell securities classified as penny stock.
• The market price of the company's common stock is likely to remain highly volatile because of several factors, including a limited public float.
• The company in the past identified significant deficiencies in its internal control over financial reporting that, if not corrected, could result in material misstatements of its financial statements.

Future Outlook

The company expects its strategic partnership with Context Networks to significantly impact fiscal 2025 results and is focusing on technology development, seeking financing, exploring partnerships, and identifying market opportunities to improve its financial position.

Management Comments

• Management believes that the strategic partnership with Context Networks will have a significant favorable impact on the company's results of operations in fiscal 2025 and beyond.
• Management believes that by combining Context's innovation in gaming-specific advertising with Mobiquity's programmatic expertise, they are creating a first-of-its-kind platform.

Industry Context

The document highlights the company's position in the programmatic advertising industry, which is experiencing significant growth, with global ad spend expected to surpass $800 billion by 2028.

Comparison to Industry Standards

• The document mentions competitors such as Liveramp, The TradeDesk and OneTrust.
• The company believes it has a competitive advantage with its proprietary software and technology platform based on its view that its competitors' products do not provide the end-to-end solutions that its product solutions do, and their minimum fees are substantially higher than theirs for a comparative suite of solutions.

Legal Proceedings

• Michael Trepeta, a former Co-CEO and director of the Company, filed a lawsuit against the Company and its subsidiary, Mobiquity Networks in April 2023 in the New York State Supreme Court, Nassau County.

Related Party Transactions

• On October 10, 2023, the Company received a $300,000 loan from the Marital Trust GST Subject U/W/O Leopold Salkind, a related party through the Company's Board chair.
• On February 2, 2024, Dr. Salkind, Board Chairman, loaned the Company $150,000 of short-term debt financing for working capital.
• During the quarter ended June 30, 2024, the Company entered into the loan agreements with its corporate attorney in exchange for cash or the cancellation of invoices outstanding related to legal services performed by the attorney.

Stakeholder Impact

• Shareholders may experience dilution if the company raises additional funds by issuing equity securities.
• The company's ability to continue as a going concern could impact employees, customers, and suppliers.

Next Steps

• The company intends to hire several new sales and sales support individuals to help generate additional revenue.
• The company will focus on Advertising Agencies, Brands, and publishers to help increase both supply and demand across the ATOS platform while providing unique data segments utilizing MobiExchange.
• The company will continue to refine and improve internal control procedures.

Key Dates

Keywords

programmatic advertising, data intelligence, AdTech, ATOS platform, MobiExchange, AdHere, financial results, 10-K, Mobiquity Technologies