Wed, Apr 30, 10:20 AM (23 days ago)
**SRAX Inc. (SRAX) - Q2 2023 Financial Summary** **Company Overview:** SRAX Inc. (SRAX) is a technology firm focused on enhancing communications between public companies and their shareholders and investors. The company operates a unique SaaS platform, Sequire, which allows issuers to track shareholders' behaviors and trends, then use data-driven insights to engage with shareholders across marketing channels. **Financial Performance (Q2 2023):** - **Revenue:** $5,917,000 (a 61% decrease year-over-year) - Sequire SaaS platform revenue: $5,645,000 (a 59% decrease year-over-year) - LD Micro conference revenue: $272,000 (a 79% decrease year-over-year) - **Net Loss:** $3,390,000 (an 82% decrease year-over-year) - **Cash Flow:** - Net cash used in operating activities: $6,228,000 (a 14% decrease year-over-year) - Net cash provided by investing activities: $6,316,000 (a 76% increase year-over-year) - Net cash used in financing activities: $95,000 (a 104% decrease year-over-year) **Key Financial Metrics:** - **Gross Margin:** Negative due to high costs and expenses - **Operating Margin:** Negative due to high operating expenses - **Profit Margin:** Negative due to net loss **Trends and Uncertainties:** - **Revenue Trends:** Significant decrease in revenue due to the transition from accepting marketable securities to a cash-only payment model. - **Operating Expenses:** Decrease in cost of revenues and depreciation and amortization, but increase in general and administrative expenses. - **Cash Flow:** Decrease in cash used in operating activities, increase in cash provided by investing activities, and decrease in cash used in financing activities. - **Uncertainties:** Dependence on marketable securities sales for liquidity, potential difficulties in raising additional capital, and the impact of the transition to a cash-only payment model on revenue growth. **Future Operations Impact:** - **Strategic Focus:** Continued growth of the Sequire platform's functionality and potential expansion into new markets. - **Financial Strategy:** Need to raise additional capital to continue operations and fund working capital needs. The company is exploring alternative financing options and may seek to raise additional capital through equity or debt offerings. - **Operational Strategy:** Focus on optimizing the cost structure, investing in growth, and ensuring operational efficiency to deliver long-term shareholder value. **Conclusion:** SRAX Inc. faces significant financial challenges, including a substantial decrease in revenue, a net loss, and a dependence on marketable securities sales for liquidity. The company is taking steps to address these challenges, including a strategic focus on the Sequire platform, a financial strategy to raise additional capital, and an operational strategy to optimize costs and invest in growth. However, there are uncertainties and risks that could impact the company's ability to achieve its goals and continue as a going concern.