10-Q - STARTENGINE CROWDFUNDING, INC. (0001661779) (Filer)

Thu, Nov 14, 5:56 PM (62 days ago)

StartEngine Crowdfunding, Inc. (STGC) reported significant financial performance for the quarter ending September 30, 2024, with revenues of $9,579,000, a 68% increase from $5,702,000 in Q3 2023. This growth was driven primarily by the introduction of StartEngine Private, which generated $5,011,000. However, operating losses increased to $6,792,000 from $4,430,000 year-over-year, reflecting rising operating expenses totaling $10,960,000, up 30% due to increased staffing and amortization costs related to the SeedInvest acquisition. The company's net loss for the nine months ended September 30, 2024, was $13,829,000, compared to $10,562,000 in the prior year. Current assets decreased to $10,126,000, primarily due to reduced cash reserves, while total liabilities rose slightly to $8,368,000. The company continues to face uncertainties in the evolving crowdfunding landscape, which may affect future operations and profitability. Despite these challenges, management believes available cash and assets will sustain operations for the foreseeable future.