AiAdvertising Reports First Quarter 2023 Financial Results
Q1 2023 Revenue up
Q1 Platform License Revenues Increased
Q1 Digital Marketing Revenues increased
Key First Quarter and Subsequent 2023 Highlights and Business Update
-
Revenue for Q1 2023 was
$2.2 million 81% from$1.2 million -
Platform License revenues for the quarter ended March 31, 2023, increased by
157% to$0.1 million -
Digital Marketing revenues for the quarter ended March 31, 2023, increased by
107% to$1.8 million -
Net Loss for the quarter ended March 31, 2023 decreased by
66% to( .$0.9) million -
Net Cash used in the quarter ended March 31, 2023 was
$0.6 million 263% from cash used of$1.6 million -
Received a
$5.0 million - Appointed independent directors James B. Renacci, with more than 30 years of experience in leadership of multiple businesses, and Thomas O. Hicks, Jr., bringing valuable experience and insights into technology, finance and the capital markets, to the Board of Directors.
- John C. Small joined the Company as Chief Financial Officer, bringing over 30 years of financial experience with a focus on strategy & operations, mergers & acquisitions, business development, and raising capital.
- Became one of the first to integrate ChatGPT’s commercial applications in AdTech, leveraging its PersonaAI signals and insights to power automated ChatGPT, enabling the PersonaAI to become more informative and more targeted.
Management Commentary
“Overall, this was a fairly good quarter for us as we saw improvement across all of our key operating metrics,” said Jerry Hug, Chairman and CEO of AiAdvertising. “The first quarter of 2023 saw continued client momentum led by our proprietary, patent-pending, Campaign Performance Platform (CPP) which harnesses AI to increase productivity, efficiency, and performance of advertising campaigns.
“Our focus remains on positioning AiAdvertising as an innovative leader in applying AI and ML technologies to marketing and advertising solutions to deliver superior results to our clients. Our CPP is attracting significant interest from direct-to-consumer brands that are looking to deploy large budgets at scale without having to add headcount. Our AI-powered AdTech software and optimization services are enabling our clients to eliminate guesswork, inform creative direction, and prove performance.
“During the first quarter we strengthened our management and board with several veteran executives. We welcomed John Small as our Chief Financial Officer, a C-Suite executive and capital markets industry veteran who will oversee our finances as we enter the next phase of growth. We also appointed independent directors James B. Renacci and Thomas O. Hicks, Jr. to the Board of Directors. James is an experienced businesses executive who we anticipate will help us expand the breadth and depth of our reach as a company, positioning us to scale our platform. Thomas brings valuable experience and insights into technology, finance and the capital markets and will assist in delivering additional technology services and strategic relationships to a growing trend of businesses nationwide that embrace foundational American values and self-governance principles such as freedom, faith, and equality.
“Looking ahead to the second half of 2023, with our recent strategic investment of
First Quarter 2023 Financial Results
Revenue for the quarter ended March 31, 2023, and 2022 was
Total operating expenses for the quarter ended March 31, 2023, were
Operating activities for continuing operations used
Net loss for the quarter ended March 31, 2023, was
Cash and cash equivalents totaled
John C. Small, Chief Financial Officer of AiAdvertising, added, “As of July 18, 2023, we believe that our existing cash, together with the recent strategic investment of
About AiAdvertising
AiAdvertising, Inc. (OTC: AIAD) is a next-generation AdTech company that is harnessing the power of artificial intelligence (AI) and machine learning (ML) to build software for today’s marketing leaders. We are focused on eliminating waste and maximizing the return on digital ad spend.
Our flagship product, the Campaign Performance Platform, is a subscription-based, end-to-end Ad Management solution. The platform empowers brands and agencies to easily target, predict, create, scale, and measure hyper-personalized campaigns.
For more information about the Company, please visit www.AiAdvertising.com or our LinkedIn or Twitter pages.
Forward-Looking Statements
This press release may contain “forward-looking statements.” Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations, and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements are included in our filings with the Securities and Exchange Commission, including the “Risk Factors” section of our annual report on Form 10-K for the year ended December 31, 2022. Any forward-looking statement made by us in this release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments, or otherwise, except as may be required under applicable law.
AIADVERTISING, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
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March 31, 2023 |
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December 31, 2022 |
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(unaudited) |
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ASSETS |
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|
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CURRENT ASSETS |
|
|
|
|
||||
Cash |
|
$ |
756 |
|
|
$ |
55,831 |
|
Accounts receivable, net |
|
|
880,069 |
|
|
|
95,300 |
|
Prepaid and other current Assets |
|
|
94,000 |
|
|
|
105,076 |
|
TOTAL CURRENT ASSETS |
|
|
974,825 |
|
|
|
256,207 |
|
|
|
|
|
|
|
|
||
PROPERTY & EQUIPMENT, net |
|
|
94,609 |
|
|
|
102,659 |
|
RIGHT-OF-USE ASSETS |
|
|
169,319 |
|
|
|
175,974 |
|
|
|
|
|
|
|
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||
OTHER ASSETS |
|
|
|
|
|
|
||
Lease deposit |
|
|
8,939 |
|
|
|
8,939 |
|
Goodwill and other intangible assets, net |
|
|
20,202 |
|
|
|
20,202 |
|
TOTAL OTHER ASSETS |
|
|
29,141 |
|
|
|
29,141 |
|
|
|
|
|
|
|
|
||
TOTAL ASSETS |
|
$ |
1,267,894 |
|
|
$ |
563,981 |
|
|
|
|
|
|
|
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LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) |
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CURRENT LIABILITIES |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
2,036,408 |
|
|
$ |
2,071,122 |
|
Accounts payable, related party |
|
|
10,817 |
|
|
|
10,817 |
|
Accrued expenses |
|
|
156,548 |
|
|
|
39,233 |
|
Operating lease liability |
|
|
29,717 |
|
|
|
28,494 |
|
Lines of credit |
|
|
- |
|
|
|
- |
|
Deferred revenue and customer deposit |
|
|
1,284,219 |
|
|
|
791,133 |
|
Convertible notes and interest payable, current, net |
|
|
- |
|
|
|
- |
|
Notes payable |
|
|
- |
|
|
|
- |
|
Notes payable, related parties |
|
|
- |
|
|
|
- |
|
TOTAL CURRENT LIABILITIES |
|
|
3,517,709 |
|
|
|
2,940,799 |
|
|
|
|
|
|
|
|
||
LONG TERM LIABILITIES |
|
|
|
|
|
|
||
Capital lease obligation, long term |
|
|
139,602 |
|
|
|
147,480 |
|
TOTAL LONG TERM LIABILITIES |
|
|
139,602 |
|
|
|
147,480 |
|
|
|
|
|
|
|
|
||
TOTAL LIABILITIES |
|
|
3,657,311 |
|
|
|
3,088,279 |
|
COMMITMENTS AND CONTINGENCIES (see Note 10) |
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SHAREHOLDERS’ EQUITY (DEFICIT) |
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Preferred stock, |
|
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|
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|
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Series A Preferred stock; 10,000 authorized, zero and 10,000 shares issued and outstanding; |
|
|
- |
|
|
|
- |
|
Series B Preferred stock; 25,000 authorized, 18,025 shares issued and outstanding; |
|
|
18 |
|
|
|
18 |
|
Series C Preferred stock; 25,000 authorized, 14,425 shares issued and outstanding; |
|
|
14 |
|
|
|
14 |
|
Series D Preferred stock; 90,000 authorized, 86,021 and 90,000 shares issued and outstanding; |
|
|
86 |
|
|
|
86 |
|
Series E Preferred stock; 10,000 authorized, 10,000 shares issued and outstanding; |
|
|
10 |
|
|
|
10 |
|
Series F Preferred stock; 800,000 authorized, zero and 2,413 shares issued and outstanding; |
|
|
- |
|
|
|
- |
|
Series G Preferred stock; 2,600 authorized, 2,597 shares issued and outstanding; |
|
|
3 |
|
|
|
3 |
|
Series H Preferred stock; 1,000 authorized, zero and zero shares issued and outstanding; |
|
|
- |
|
|
|
- |
|
Common stock, |
|
|
1,315,863 |
|
|
|
1,175,330 |
|
Additional paid in capital |
|
|
50,473,550 |
|
|
|
49,595,914 |
|
Common stock payable, consisting of 5,000,000 shares valued at |
|
|
564,000 |
|
|
|
564,000 |
|
Accumulated deficit |
|
|
(54,742,961 |
) |
|
|
(53,859,673 |
) |
TOTAL SHAREHOLDERS’ EQUITY (DEFICIT) |
|
|
(2,389,417 |
) |
|
|
(2,524,298 |
) |
|
|
|
|
|
|
|
||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) |
|
$ |
1,267,894 |
|
|
$ |
563,981 |
|
AIADVERTISING, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
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|
Three Months Ended |
||||||
|
|
March 31, 2023 |
|
March 31, 2022 |
||||
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|
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|
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REVENUE |
|
$ |
2,174,752 |
|
|
|
1,199,662 |
|
COST OF REVENUE |
|
|
1,655,449 |
|
|
|
1,535,832 |
|
Gross Profit |
|
|
519,303 |
|
|
|
(336,170 |
) |
|
|
|
|
|
|
|
||
OPERATING EXPENSES |
|
|
|
|
|
|
||
Salaries and outside services |
|
|
671,261 |
|
|
|
1,264,705 |
|
Selling, general and administrative expenses |
|
|
723,285 |
|
|
|
1,014,564 |
|
Depreciation and amortization |
|
|
8,050 |
|
|
|
9,113 |
|
TOTAL OPERATING (INCOME) EXPENSES |
|
|
1,402,596 |
|
|
|
2,288,382 |
|
|
|
|
|
|
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INCOME (LOSS) FROM OPERATIONS BEFORE OTHER INCOME AND TAXES |
|
$ |
(883,293 |
) |
|
|
(2,624,552 |
) |
|
|
|
|
|
|
|
||
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
||
Other expense |
|
|
(5 |
) |
|
|
- |
|
Gain (loss) on Sales of Discontinued Operations |
|
|
- |
|
|
|
(25,197 |
) |
TOTAL OTHER INCOME (EXPENSE) |
|
$ |
(5 |
) |
|
|
(25,197 |
) |
|
|
|
|
|
|
|
||
INCOME/(LOSS) FROM OPERATIONS BEFORE PROVISION FOR TAXES |
|
$ |
(883,288 |
) |
|
|
(2,599,355 |
) |
|
|
|
|
|
|
|
||
PROVISION (BENEFIT) FOR INCOME TAXES |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
||
NET INCOME/(LOSS) |
|
$ |
(883,288 |
) |
|
|
(2,599,355 |
) |
|
|
|
|
|
|
|
||
PREFERRED DIVIDENDS |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
||
NET INCOME/(LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS |
|
$ |
(883,288 |
) |
|
|
(2,599,355 |
) |
|
|
|
|
|
|
|
||
NET LOSS PER SHARE |
|
|
|
|
|
|
||
BASIC |
|
$ |
(0.00 |
) |
|
$ |
(0.00 |
) |
DILUTED |
|
$ |
(0.00 |
) |
|
$ |
(0.00 |
) |
|
|
|
|
|
|
|
||
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING |
|
|
|
|
|
|
||
BASIC |
|
|
1,231,401,433 |
|
|
|
1,057,633,026 |
|
DILUTED |
|
|
1,231,401,433 |
|
|
|
1,057,633,026 |
|
AIADVERTISING, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
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|
|
Three Months
|
|
Three Months
|
||||
|
|
March 31,
|
|
March 31,
|
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CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
||||
Net income (loss) from continued operations |
|
$ |
(883,288 |
) |
|
$ |
(2,599,355 |
) |
|
|
|
|
|
|
|
||
Adjustment to reconcile net loss to net cash (used in) operating activities |
|
|
|
|
|
|
||
Bad debt expense |
|
|
- |
|
|
|
(1,150 |
) |
Depreciation and amortization |
|
|
8,050 |
|
|
|
9,113 |
|
Gain on Sale of Discontinued Operations |
|
|
- |
|
|
|
(25,197 |
) |
Non-cash compensation expense |
|
|
462,163 |
|
|
|
393,546 |
|
Change in assets and liabilities: |
|
|
|
|
|
|
||
(Increase) Decrease in: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
(784,769 |
) |
|
|
141,514 |
|
Prepaid expenses and other assets |
|
|
11,076 |
|
|
|
33,152 |
|
Costs in excess of billings |
|
|
- |
|
|
|
16,638 |
|
Accounts payable |
|
|
(34,714 |
) |
|
|
409,699 |
|
Accrued expenses |
|
|
117,315 |
|
|
|
18,565 |
|
Customer Deposits |
|
|
493,086 |
|
|
|
(3,490 |
) |
|
|
|
|
|
|
|
||
NET CASH (USED IN) OPERATING ACTIVITIES |
|
|
(611,081 |
) |
|
|
(1,606,965 |
) |
|
|
|
|
|
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
||
Cash paid for purchase of fixed assets |
|
|
- |
|
|
|
(9,570 |
) |
Proceeds from the sale of discontinued operations |
|
|
- |
|
|
|
25,197 |
|
NET CASH (USED IN)/PROVIDED BY INVESTING ACTIVITIES |
|
|
- |
|
|
|
15,627 |
|
|
|
|
|
|
|
|
||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
||
Proceeds of issuance of common stock, net |
|
|
556,006 |
|
|
|
643,624 |
|
|
|
|
|
|
|
|
||
NET CASH (USED IN)/PROVIDED BY FINANCING ACTIVITIES |
|
|
556,006 |
|
|
|
643,624 |
|
|
|
|
|
|
|
|
||
NET INCREASE / (DECREASE) IN CASH |
|
|
(55,075 |
) |
|
|
(947,714 |
) |
|
|
|
|
|
|
|
||
CASH, BEGINNING OF PERIOD |
|
|
55,831 |
|
|
|
3,431,455 |
|
|
|
|
|
|
|
|
||
CASH, END OF PERIOD |
|
$ |
756 |
|
|
$ |
2,483,741 |
|
|
|
|
|
|
|
|
||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION |
|
|
|
|
|
|
||
Interest paid |
|
$ |
- |
|
|
$ |
- |
|
Taxes paid |
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
|
|
||
Non-cash financing activities: |
|
|
|
|
|
|
||
Right of Use Assets |
|
$ |
- |
|
|
|
27,972 |
|
Exercise of stock options |
|
$ |
- |
|
|
$ |
912 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230718477976/en/
Investor Contact:
Larry Holub/Chris Tyson
312-261-6412
AIAD@mzgroup.us
www.mzgroup.us
Source: AiAdvertising, Inc.
