10-Q - SpringBig Holdings, Inc. (0001801602) (Filer)

Tue, May 14, 8:40 PM (13 days ago)

SpringBig Holdings, Inc. reported a net income of $417,000 for Q1 2024, a significant improvement from a net loss of $2.3 million in Q1 2023. Revenue decreased by 10% year-on-year to $6.5 million, primarily due to subscription and excess use revenue declines, influenced by economic challenges in the cannabis sector. Cost of revenue increased by 33% due to higher messaging distribution costs, reducing the gross profit margin from 81% to 72%. Operating expenses were reduced by 34% through lower compensation, technology, and general administrative costs. Interest expense rose to $875,000 due to short-term financing. The company raised $8 million through debt financing in January 2024, improving liquidity but also repurchasing $2.9 million of senior secured notes, resulting in a gain. Cash flow from operations was negative $1.9 million. The company maintains $1.7 million in cash and a working capital deficit of $1.4 million, indicating a need for strategic financial management to ensure liquidity.