Tue, May 13, 12:46 PM (34 days ago)
**Giftify, Inc. (GIFT) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** Q1 2025 revenue was $22.28 million, up from $21.52 million in Q1 2024. - **Gross Profit:** Gross profit increased to $3.58 million (16.1% margin) from $3.26 million (15.2% margin) in the prior year. - **Operating Loss:** Operating loss widened to $3.17 million from $2.94 million due to higher operating expenses. - **Net Loss:** Net loss was $3.22 million, slightly higher than the $3.19 million loss in Q1 2024. - **Cash Flow:** Net cash used in operating activities was $1.45 million, compared to $6,636 in Q1 2024. **Key Metrics & Trends:** - **Gross Margin:** Improved to 16.1% from 15.2%, indicating better cost management. - **Operating Expenses:** Increased by 8.8% due to higher stock-based compensation and payroll expenses. - **Cash Position:** Cash and cash equivalents decreased to $2.12 million from $3.57 million in Q4 2024. - **Debt:** Total debt decreased to $12.56 million from $14.72 million in Q4 2024. **Uncertainties & Future Operations:** - **Going Concern:** Giftify faces substantial doubt about its ability to continue as a going concern due to historical losses and negative cash flows. - **Financing:** The company relies on additional debt or equity financing to fund operations and achieve profitability. - **Market Conditions:** Uncertainty in securing additional funds and the impact of COVID-19 and geopolitical events on business plans. **Segment Performance:** - **CardCash:** Generated 98% of total revenue, with a 14.7% gross margin. - **Restaurant.com:** Contributed 1.8% of total revenue, with a 9.3% gross margin. **Subsequent Events:** - **Line of Credit Amendment:** Reduced the required minimum cash collateral balance, releasing $250,000 to CashCard. - **Note Payable Repayment:** Repaid the GameIQ acquisition note payable in full. - **Common Stock Issuance:** Sold additional shares under the At-the-Market Issuance Sales Agreement. **Ticker:** GIFT