Mon, Jun 30, 8:44 PM (19 days ago)
**Summary of Specificity, Inc. (SPTY) Q1 2025 Financial Report** **Financial Health and Performance:** - **Revenue:** Decreased to $298,050 from $398,861 in Q1 2024, primarily due to the absence of two large one-time marketing campaigns. - **Gross Profit:** Dropped to $143,274 from $284,202 in Q1 2024. - **Operating Expenses:** Increased to $270,990 from $248,621 in Q1 2024, driven by higher legal, accounting, and advisory fees. - **Net Loss:** Increased to $140,216 from $36,480 in Q1 2024, due to lower revenues and higher operating expenses. - **Cash Flow:** Positive cash flow from operations of $12,777, primarily due to the conversion of outstanding accounts payable into common stock. **Liquidity and Capital Resources:** - **Working Capital Deficit:** Increased to $1,250,597 from $1,171,822 in Q4 2024. - **Cash and Cash Equivalents:** Decreased to $0 from $3,413 in Q4 2024. - **Debt:** Total liabilities increased to $2,265,937 from $2,179,075 in Q4 2024, including working capital funding loans and related party advances. **Future Operations and Uncertainties:** - **Capital Raising:** The company plans to raise additional capital through debt or equity financing to support operations and growth. - **Going Concern:** The company's ability to continue as a going concern is dependent on its ability to increase revenues and raise additional funds. - **Controls and Procedures:** The company's disclosure controls and procedures were not effective due to material weaknesses in internal controls over financial reporting. **Trends and Outlook:** - The company is focused on its three service offerings: Tradigital Partners, Put-Thru, and Pickpocket. - The company anticipates higher operating expenses as it supports sales growth initiatives and capital market equity raise activity. - The company's future depends on its ability to execute its business plan, raise capital, and generate sufficient revenues to achieve positive cash flows. **Note:** Amounts are in thousands, except for share and per share data.