Fri, Mar 7, 11:04 AM (50 days ago)
SRAX, Inc. (SRAX) reported significant financial developments for Q1 2023, ending March 31, with total revenues of $4,014,000, a sharp decline of 46.5% from $7,499,000 in Q1 2022. The decrease is attributed to the transition from accepting marketable securities to cash-only payments for services, impacting customer acquisition and revenue generation. Operating expenses fell to $3,124,000, down 64.6% from $8,827,000, mainly due to cost-cutting measures and reduced depreciation following asset impairments. The company recorded a net income of $2,627,000 compared to $3,728,000 in the prior year. Cash flow from operations was negative at $5,114,000, while investing activities generated $5,942,000, largely from the sale of its subsidiary, LD Micro. The company holds $765,000 in cash and has a working capital deficit of $5,627,000, raising concerns about liquidity and the ability to sustain operations without additional capital. Overall, SRAX faces uncertainties regarding future operations and financing, particularly due to its reliance on marketable securities for cash flow and the impact of recent operational changes.