Mon, May 20, 9:30 PM (67 days ago)
Grom Social Enterprises, Inc. reported a net loss of $4.1 million for Q1 2024, an increase from the $2.2 million loss in Q1 2023. Revenues dropped by 27.1% to $874,232, primarily due to reduced animation projects and decreased sales in social and technology segments. Operating expenses decreased by 12.2% to $2.0 million, driven by lower SG&A costs. However, interest expenses surged to $3.4 million from $480,778 due to amortization of debt discounts on convertible notes. Cash used in operations was $2.2 million, with cash reserves at $452,454 as of March 31, 2024. The company raised $204,827 from financing activities. Management is focused on securing additional funding to sustain operations, highlighting significant uncertainties about the company's ability to continue as a going concern.