Giftify, Inc. Reports Fourth Quarter and Full Year 2024 Financial Results
Giftify (NASDAQ: GIFT) reported its Q4 and full-year 2024 financial results, showing mixed performance. Q4 2024 saw net sales rise 4.18% to $24.18M compared to Q3, with gross profit up 21.59% to $3.64M year-over-year. Gross margin improved to 15.04% from 12.88% in Q3.
For full-year 2024, net sales increased 2.05% to $88.93M, while gross profit grew 25.10% to $13.14M compared to 2023. However, modified EBITDA was negative $2.84M, deteriorating from negative $729,187 in 2023. The company ended the year with $3.57M in cash.
Notable developments include the CardCash.com acquisition (December 2023), successful Nasdaq listing (August 2024), and corporate rebranding from RDE to Giftify (October 2024). The company now facilitates gift card transactions from over 1,100 retailers and offers dining discounts at 170,000 restaurants nationwide.
Giftify (NASDAQ: GIFT) ha riportato i risultati finanziari del Q4 e dell'intero anno 2024, mostrando una performance mista. Nel Q4 2024, le vendite nette sono aumentate del 4,18% a $24,18 milioni rispetto al Q3, con un utile lordo in crescita del 21,59% a $3,64 milioni su base annua. Il margine lordo è migliorato al 15,04% rispetto al 12,88% del Q3.
Per l'anno completo 2024, le vendite nette sono aumentate del 2,05% a $88,93 milioni, mentre l'utile lordo è cresciuto del 25,10% a $13,14 milioni rispetto al 2023. Tuttavia, l'EBITDA modificato è stato negativo per $2,84 milioni, in deterioramento rispetto a un negativo di $729.187 nel 2023. L'azienda ha chiuso l'anno con $3,57 milioni in contante.
Sviluppi notevoli includono l'
Giftify (NASDAQ: GIFT) reportó sus resultados financieros del Q4 y del año completo 2024, mostrando un rendimiento mixto. En el Q4 2024, las ventas netas aumentaron un 4,18% a $24,18 millones en comparación con el Q3, con una ganancia bruta que creció un 21,59% a $3,64 millones interanualmente. El margen bruto mejoró al 15,04% desde el 12,88% en el Q3.
Para el año completo 2024, las ventas netas aumentaron un 2,05% a $88,93 millones, mientras que la ganancia bruta creció un 25,10% a $13,14 millones en comparación con 2023. Sin embargo, el EBITDA modificado fue negativo en $2,84 millones, deteriorándose desde un negativo de $729,187 en 2023. La empresa terminó el año con $3,57 millones en efectivo.
Desarrollos notables incluyen la adquisición de CardCash.com (diciembre de 2023), la exitosa cotización en Nasdaq (agosto de 2024) y el cambio de marca corporativa de RDE a Giftify (octubre de 2024). La empresa ahora facilita transacciones de tarjetas de regalo de más de 1,100 minoristas y ofrece descuentos en restaurantes en 170,000 locales en todo el país.
Giftify (NASDAQ: GIFT)는 2024년 4분기 및 전체 연도 재무 결과를 보고하며 혼합된 성과를 나타냈습니다. 2024년 4분기에는 순매출이 4.18% 증가하여 $24.18M에 달했으며, 총 이익은 전년 대비 21.59% 증가한 $3.64M을 기록했습니다. 총 마진은 12.88%에서 15.04%로 개선되었습니다.
2024년 전체로는 순매출이 2.05% 증가하여 $88.93M에 이르렀으며, 총 이익은 2023년 대비 25.10% 증가한 $13.14M에 달했습니다. 그러나 조정된 EBITDA는 -$2.84M로, 2023년의 -$729,187에서 악화되었습니다. 회사는 연말에 $3.57M의 현금을 보유하고 있었습니다.
주요 발전 사항으로는 CardCash.com 인수(2023년 12월), 성공적인 나스닥 상장(2024년 8월), RDE에서 Giftify로의 기업 리브랜딩(2024년 10월)이 있습니다. 이 회사는 이제 1,100개 이상의 소매업체의 상품권 거래를 지원하며, 전국 170,000개의 레스토랑에서 식사 할인 혜택을 제공합니다.
Giftify (NASDAQ: GIFT) a annoncé ses résultats financiers du 4ème trimestre et de l'année 2024, montrant une performance mitigée. Le 4ème trimestre 2024 a vu les ventes nettes augmenter de 4,18% pour atteindre 24,18 millions de dollars par rapport au 3ème trimestre, avec un bénéfice brut en hausse de 21,59% à 3,64 millions de dollars d'une année sur l'autre. La marge brute s'est améliorée à 15,04% contre 12,88% au 3ème trimestre.
Pour l'année complète 2024, les ventes nettes ont augmenté de 2,05% pour atteindre 88,93 millions de dollars, tandis que le bénéfice brut a augmenté de 25,10% pour atteindre 13,14 millions de dollars par rapport à 2023. Cependant, l'EBITDA modifié était négatif de 2,84 millions de dollars, se détériorant par rapport à un négatif de 729 187 dollars en 2023. L'entreprise a terminé l'année avec 3,57 millions de dollars en liquidités.
Parmi les développements notables, on trouve l'acquisition de CardCash.com (décembre 2023), la cotation réussie au Nasdaq (août 2024) et le rebranding de RDE à Giftify (octobre 2024). L'entreprise facilite désormais les transactions de cartes cadeaux de plus de 1 100 détaillants et propose des réductions dans 170 000 restaurants à travers le pays.
Giftify (NASDAQ: GIFT) hat seine finanziellen Ergebnisse für das 4. Quartal und das gesamte Jahr 2024 veröffentlicht, die eine gemischte Leistung zeigen. Im Q4 2024 stiegen die Nettoumsätze um 4,18% auf 24,18 Millionen Dollar im Vergleich zum Q3, während der Bruttogewinn um 21,59% auf 3,64 Millionen Dollar im Jahresvergleich anstieg. Die Bruttomarge verbesserte sich von 12,88% im Q3 auf 15,04%.
Für das gesamte Jahr 2024 stiegen die Nettoumsätze um 2,05% auf 88,93 Millionen Dollar, während der Bruttogewinn im Vergleich zu 2023 um 25,10% auf 13,14 Millionen Dollar wuchs. Das modifizierte EBITDA war jedoch negativ mit -2,84 Millionen Dollar und verschlechterte sich von -729.187 Dollar im Jahr 2023. Das Unternehmen schloss das Jahr mit 3,57 Millionen Dollar in bar ab.
Bemerkenswerte Entwicklungen umfassen die Akquisition von CardCash.com (Dezember 2023), die erfolgreiche Nasdaq-Notierung (August 2024) und das Unternehmensrebranding von RDE zu Giftify (Oktober 2024). Das Unternehmen erleichtert nun Geschenkkartentransaktionen von über 1.100 Einzelhändlern und bietet Essensrabatte in 170.000 Restaurants im ganzen Land an.
- Q4 net sales increased 4.18% quarter-over-quarter to $24.18M
- Q4 gross profit up 21.59% year-over-year to $3.64M
- Full-year gross profit improved 25.10% to $13.14M
- Gross margin improved to 14.78% from 12.06% year-over-year
- Successfully listed on Nasdaq Capital Market
- Modified EBITDA worsened to -$2.84M from -$729,187 in 2023
- Low cash position of $3.57M at year-end
- Modest 2.05% full-year revenue growth to $88.93M
Insights
Giftify's financial results present a mixed picture with operational improvements offset by deeper losses. The company's Q4 revenue increased
However, the more concerning metric is the company's modified EBITDA, which deteriorated substantially to a negative
With a cash position of
Giftify completed a strategic transformation in 2024, executing three major initiatives: integrating the CardCash.com acquisition, achieving Nasdaq listing, and completing a corporate rebrand. These moves appear designed to create a more cohesive market presence in the gift card marketplace sector, where the company now serves over 1,100 retailers and 170,000 restaurants.
The strategic pivot to focus on quality gift card brands and pricing optimization is showing initial traction, evidenced by the sequential gross margin improvements. This suggests management has correctly identified operational inefficiencies in their marketplace model. The strategy aligns well with the specialty retail nature of the gift card business, where margin often matters more than pure volume.
However, the modest
The leadership expansion with a new CFO signals preparation for the next growth phase, but the company must demonstrate it can convert its strategic positioning into sustainable competitive advantage and eventually profitability. The current trajectory suggests a company in transition, with promising operational improvements that haven't yet translated to bottom-line results.
SCHAUMBURG, IL, March 31, 2025 (GLOBE NEWSWIRE) -- Giftify, Inc. (NASDAQ: GIFT) (the "Company"), the owner and operator of CardCash.com and Restaurant.com, and a leader in the incentives and rewards industry, today announced financial and operational results for the fourth quarter and year ended December 31, 2024.
Q4 2024 Financial Highlights:
- Q4 2024 net sales increased to
$24.18 million , a4.18% increase, as compared to Q3 2024 net sales of$23.21 million . - Q4 2024 gross profit improved
$645,785 , or21.59% , to$3.64 million , as compared to Q4 2023 gross profit of$2.99 million . - Q4 2024 gross margin improved to
15.04% , as compared to Q3 2024 gross margin of12.88% . - Deployed Enterprise Artificial Intelligence (AI) solutions driving operational excellence and innovation.
Full Year 2024 Financial Highlights:
- Full year 2024 net sales increased to
$88.93 million , a2.05% increase, as compared to full year 2023 net sales of$87.15 million . - Full year 2024 gross profit improved
$2.64 million , or25.10% , to$13.14 million , as compared to full year 2023 gross profit of$10.51 million . - Full year 2024 gross margin improved to
14.78% , as compared to full year 2023 gross margin of12.06% . - Full year 2024 modified EBITDA was a negative
$2.84 million , as compared to full year 2023 modified EBITDA of a negative$729,187. - Cash and cash equivalents balance of
$3.57 million at December 31, 2024. - Successful Nasdaq Listing and Integration of CardCash.com Acquisition Demonstrate Strategic Progress
- Focus on Quality Gift Card Brands and Optimized Pricing Drives Operational Improvements
Strategic Developments:
- Acquisition of CardCash.com: Completed on December 29, 2023, significantly enhancing Giftify’s market profile and brand focus.
- Gift Card Sales: Facilitated the purchase and sale of gift cards from over 1,100 retailers including Target, Home Depot, Starbucks, and TJ Maxx as well as discounted certificates for 10,000 restaurants and discount dining passes for 170,000 restaurants and retailers nationwide
- Nasdaq Listing: Successfully listed on the Nasdaq Capital Market on August 6, 2024
- Corporate Rebranding: Changed company name from RDE, Inc. to Giftify, Inc. with ticker symbol GIFT, effective October 28, 2024
- Expanded Leadership Team: Appointed Steve Handy as Chief Financial Officer in August 2024
Management Commentary:
Ketan Thakker, President and CEO of Giftify, Inc., stated, "2024 was a transformative year for our company as we fully integrated CardCash.com, which we acquired at the end of 2023, successfully listed on Nasdaq, and rebranded to Giftify to better reflect our expanded business model. We're pleased with the operational improvements we've achieved, particularly the significant increase in gross profit year-over-year. This highlights the success of our strategy to focus on improving profitability by assessing the quality of purchased gift card brands and optimizing our pricing structure."
"As we look ahead to 2025, our focus remains on growing both our CardCash.com and Restaurant.com platforms, brand awareness, expanding our retail partnerships, and improving our financial position. We believe our dual business model positions us well for growth in the expanding U.S. gift card market, which is projected to reach
About Giftify, Inc.
Giftify, Inc. is a pioneer in the incentive and rewards industry with a focus on retail, dining & entertainment experiences, as the owner and operator of leading digital platforms, CardCash.com and Restaurant.com. CardCash.com is a leading secondary gift card exchange platform, allowing consumers and retailers to realize value by buying and selling gift cards at various scales. Its Restaurant.com is the nation’s largest restaurant-focused digital deals brand. Restaurant.com and our Corporate Incentives division connect digital consumers, businesses and communities offering thousands of dining, retail and entertainment deals options nationwide at over 184,000 restaurants and retailers. Restaurant.com prides itself on offering the best deal, every meal. Our gift cards and restaurant certificates allow customers to save at thousands of restaurants across the country with just a few clicks.
For more information, visit: www.giftifyinc.com and www.cardcash.com and https://www.restaurant.com.
Modified EBITDA
In addition to our GAAP results, we present Modified EBITDA as a supplemental measure of our performance. However, Modified EBITDA is not a recognized measurement under GAAP and should not be considered as an alternative to net income, income from operations or any other performance measure derived in accordance with GAAP, or as an alternative to cash flow from operating activities as a measure of liquidity. We define Modified EBITDA as net income (loss), plus interest expense, depreciation and amortization, stock-based compensation, and fair value of common stock issued for services.
Management considers our core operating performance to be that which our managers can affect in any particular period through their management of the resources that affect our underlying revenue and profit generating operations during that period. Non-GAAP adjustments to our results prepared in accordance with GAAP are itemized below. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating Modified EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Modified EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.
Forward-Looking Statements
Press Releases may include forward-looking statements. In particular, the words “believe,” “may,” “could,” “should,” “expect,” “anticipate,” “estimate,” “project," "propose," "plan," "intend," and similar conditional words and expressions are intended to identify forward-looking statements. Any statements made in this news release about an action, event or development, are forward-looking statements. Such statements are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company. Accordingly, you should not place undue reliance on these forward-looking statements. Although the company believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that its forward-looking statements will prove to be correct. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from those projected. The forward-looking statements in this press release are made as of the date hereof. The company takes no obligation to update or correct its own forward-looking statements, except as required by law or those prepared by third parties that are not paid by the company. Statements in this press release that are not historical fact may be deemed forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although Giftify, Inc. believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, Giftify, Inc. is unable to give any assurance that its expectations will be attained. Factors that could cause actual results to differ materially from expectations include the company’s ability identify a suitable business model for the corporation.
Investors Contacts:
IR@giftifyinc.com
GIFTIFY, INC. AND SUBSIDIARIES (FKA RDE, INC.)
CONSOLIDATED BALANCE SHEETS
| Successor | ||||||||
| December 31, 2024 | December 31, 2023 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents (includes restricted cash of | $ | 3,574,876 | $ | 4,099,737 | ||||
| Accounts receivable | 891,666 | 1,681,165 | ||||||
| Inventories | 4,116,180 | 4,152,273 | ||||||
| Prepaid expenses and other current assets | 63,210 | 177,119 | ||||||
| Total current assets | 8,645,932 | 10,110,294 | ||||||
| Property and equipment, net | 1,089,984 | 2,563,312 | ||||||
| Operating lease right of use asset, net | 1,406,242 | 315,183 | ||||||
| Deposits | 65,556 | 65,556 | ||||||
| Intangible assets, net | 4,268,332 | 6,700,000 | ||||||
| Goodwill | 20,007,670 | 20,007,669 | ||||||
| Total assets | $ | 35,483,716 | $ | 39,762,014 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,966,616 | $ | 2,218,285 | ||||
| Accrued expenses | 1,768,607 | 1,175,934 | ||||||
| Customer deposits | 95,000 | - | ||||||
| Deferred revenue | 77,051 | 336,996 | ||||||
| Secured revolving line of credit | 3,805,080 | 6,737,385 | ||||||
| Convertible promissory notes | 43,137 | 40,137 | ||||||
| Secured note payable — related party, net of debt discount of | 2,060,274 | - | ||||||
| Notes payable, current portion | 1,717,632 | 836,509 | ||||||
| Acquisition obligation | - | 500,000 | ||||||
| Operating lease liability, current portion | 316,612 | 134,475 | ||||||
| Total current liabilities | 11,850,009 | 11,979,721 | ||||||
| Notes payable, net of current portion | 615,000 | 1,458,270 | ||||||
| Deferred income taxes | 1,123,000 | 1,800,000 | ||||||
| Operating lease liability, net of current portion | 1,133,371 | 202,829 | ||||||
| Total liabilities | 14,721,380 | 15,440,820 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, | - | - | ||||||
| Common stock, | 27,015 | 24,114 | ||||||
| Additional paid-in-capital | 108,679,065 | 93,376,244 | ||||||
| Common stock issuable, 350,843 and 383,343 shares, respectively | 350,843 | 383,343 | ||||||
| Accumulated deficit | (88,294,587 | ) | (69,462,507 | ) | ||||
| Total stockholders’ equity | 20,762,336 | 24,321,194 | ||||||
| Total liabilities and stockholders’ equity | $ | 35,483,716 | $ | 39,762,014 | ||||
GIFTIFY, INC. AND SUBSDIARIES (FKA RDE, INC.)
CONSOLIDATED STATEMENTS OF OPERATIONS
| Successor | Predecessor | |||||||||||
| Year Ended December 31, 2024 | December 30, 2023 to December 31, 2023 | January 1, 2023 to December 29, 2023 | ||||||||||
| Net Sales | $ | 88,934,036 | $ | 484,860 | $ | 86,661,944 | ||||||
| Cost of sales | 75,789,255 | 418,350 | 76,220,645 | |||||||||
| Gross profit | 13,144,781 | 66,510 | 10,441,299 | |||||||||
| Operating Expenses | ||||||||||||
| Selling, general and administrative expenses | 27,615,865 | 5,086,510 | 11,152,428 | |||||||||
| Amortization of capitalized software costs | 1,472,974 | - | 1,080,537 | |||||||||
| Amortization of intangible assets | 2,431,668 | - | 300,000 | |||||||||
| Impairment of property and equipment | - | - | 738,740 | |||||||||
| Impairment of intangibles | - | - | 250,000 | |||||||||
| Total operating expenses | 31,520,507 | 5,086,510 | 13,521,705 | |||||||||
| Loss from operations | (18,375,726 | ) | (5,020,000 | ) | (3,080,406 | ) | ||||||
| Other income (expense): | ||||||||||||
| Interest expense | (1,002,354 | ) | - | (2,890,466 | ) | |||||||
| Financing costs | (131,000 | ) | - | - | ||||||||
| Gain on forgiveness of debt | - | - | 5,876,000 | |||||||||
| Total other income (expense), net | (1,133,354 | ) | - | 2,985,534 | ||||||||
| Net loss before income taxes | (19,509,080 | ) | (5,020,000 | ) | (94,872 | ) | ||||||
| Income tax (expense) benefit | 677,000 | - | (29,673 | ) | ||||||||
| Net loss | $ | (18,832,080 | ) | $ | (5,020,000 | ) | $ | (124,545 | ) | |||
| Net loss per share – basic and diluted | $ | (0.73 | ) | $ | (0.21 | ) | $ | (0.01 | ) | |||
| Weighted average common shares outstanding – basic and diluted | 25,745,113 | 24,119,967 | 15,927,387 | |||||||||
GIFTIFY, INC. AND SUBSDIARIES (FKA RDE, INC.)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| Successor | Predecessor | |||||||||||
| Year Ended December 31, 2024 | December 30, 2023 to December 31, 2023 | January 1, 2023 to December 29, 2023 | ||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||
| Net loss | $ | (18,832,080 | ) | $ | (5,020,000 | ) | $ | (124,545 | ) | |||
| Adjustments to reconcile net loss to net cash used in operating activities | ||||||||||||
| Fair value of vested stock options | 8,031,289 | - | 1,942 | |||||||||
| Fair value of vested restricted common stock | 1,431,848 | |||||||||||
| Fair value of common stock issued for employment agreements | 1,250,000 | 5,000,000 | - | |||||||||
| Fair value of common stock issued for services | 771,500 | - | - | |||||||||
| Loss on settlement of vendor balance | 135,415 | - | - | |||||||||
| Fair value of common stock issued for financing costs | 131,000 | - | - | |||||||||
| Change in inventory reserve balance | (61,000 | ) | - | - | ||||||||
| Amortization of capitalized software costs | 1,472,974 | - | 1,290,190 | |||||||||
| Amortization of intangible assets | 2,431,668 | - | 300,000 | |||||||||
| Amortization of debt discount | 18,000 | - | - | |||||||||
| Impairment of intangible assets and property and equipment | - | - | 988,740 | |||||||||
| Accrued interest | 131,398 | - | 2,100,610 | |||||||||
| Gain on forgiveness of debt | - | - | (5,876,000 | ) | ||||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Accounts receivable | 789,499 | - | (74,340 | ) | ||||||||
| Inventories | 97,093 | - | 816,853 | |||||||||
| Prepaid expenses | 113,909 | - | (38,328 | ) | ||||||||
| Change in right of use asset | 304,481 | - | 191,953 | |||||||||
| Accounts payable | (236,732 | ) | - | 84,611 | ||||||||
| Accrued expenses | 592,673 | 20,000 | (39,515 | ) | ||||||||
| Customer deposits | 95,000 | - | - | |||||||||
| Deferred revenue | (259,945 | ) | - | 27,991 | ||||||||
| Deferred taxes | (677,000 | ) | - | - | ||||||||
| Operating lease liability | (282,861 | ) | - | (191,953 | ) | |||||||
| Net cash used in operating activities | $ | (2,551,870 | ) | $ | - | $ | (541,791 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||
| Cash, net, received from acquisition | - | 2,038,472 | - | |||||||||
| Capital expenditures | - | - | (900,000 | ) | ||||||||
| Net cash provided by (used in) investing activities | $ | - | $ | 2,038,472 | $ | (900,000 | ) | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||
| Proceeds from line of credit | 104,752,474 | - | 104,752,474 | |||||||||
| Repayment of line of credit | (107,684,779 | ) | - | (103,540,098 | ||||||||
| Proceeds from note payable – related party | 1,978,000 | - | - | |||||||||
| Repayment of acquisition obligation | (500,000 | ) | - | - | ||||||||
| Repayment of notes payable | (26,271 | ) | - | - | ||||||||
| Proceeds from sale of common stock under stock purchase agreement | 200,000 | - | - | |||||||||
| Proceeds from public sale of common stock under at-the-market sale agreement | 286,063 | |||||||||||
| Proceeds from private sale of common stock | 3,021,522 | |||||||||||
| Advance on purchase consideration from Giftify | - | - | 250,000 | |||||||||
| Net cash provided by financing activities | $ | 2,027,009 | $ | - | $ | 1,462,376 | ||||||
| Net increase (decrease) in cash and cash equivalents | (524,861 | ) | 2,038,472 | 20,585 | ||||||||
| Cash and cash equivalents beginning of period | 4,099,737 | 2,061,265 | 2,040,680 | |||||||||
| Cash and cash equivalents end of period | $ | 3,574,876 | $ | 4,099,737 | $ | 2,061,265 | ||||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||||||||||||
| Interest paid | $ | 841,260 | $ | - | $ | - | ||||||
| Taxes paid | $ | - | $ | - | $ | 29,673 | ||||||
| SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||||||||||||
| Present value of operating lease right of use asset and lease liability | $ | 1,395,541 | $ | $ | - | |||||||
| Fair value of common stock issued for settlement of vendor balance | $ | 150,000 | $ | - | $ | - | ||||||
| Issuance of common stock issued for common stock issuable | $ | 32,500 | $ | - | $ | - | ||||||
| Fair value of Giftify common stock received | $ | - | $ | - | $ | 22,962,739 | ||||||
| Gain on forgiveness of notes payable | $ | - | $ | - | $ | 5,462,739 | ||||||
| Settlement of notes payable and accrued interest | $ | - | $ | - | $ | 28,873,696 | ||||||
| Termination of Series B convertible preferred stock | $ | - | $ | - | $ | 4,084,353 | ||||||
Modified EBITDA
In addition to our GAAP results, we present Modified EBITDA as a supplemental measure of our performance. However, Modified EBITDA is not a recognized measurement under GAAP and should not be considered as an alternative to net income, income from operations or any other performance measure derived in accordance with GAAP, or as an alternative to cash flow from operating activities as a measure of liquidity. We define Modified EBITDA as net income (loss), plus interest expense, depreciation and amortization, stock-based compensation, and fair value of common stock issued for services.
Management considers our core operating performance to be that which our managers can affect in any particular period through their management of the resources that affect our underlying revenue and profit generating operations during that period. Non-GAAP adjustments to our results prepared in accordance with GAAP are itemized below. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating Modified EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Modified EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.
Set forth below is a reconciliation of net loss to Modified EBITDA for the year ended December 31, 2024 and 2023 (unaudited):
| Successor | Predecessor | |||||||||||
| Year Ended December 31, 2024 | December 30, 2023 to December 31, 2023 | January 1, 2023 to December 29, 2023 | ||||||||||
| Net Loss | $ | (18,832,080 | ) | $ | (5,020,000 | ) | $ | (124,545 | ) | |||
| Modified EBITDA adjustments: | ||||||||||||
| Income taxes | (677,000 | ) | 29,673 | |||||||||
| Interest expense | 1,002,354 | - | 2,890,466 | |||||||||
| Financing costs | 131,000 | - | - | |||||||||
| Gain on forgiveness of debt | - | - | (5,876,000 | ) | ||||||||
| Amortization of intangible assets | 2,431,668 | - | 300,000 | |||||||||
| Amortization of capitalized software costs | 1,472,974 | - | 1,080,537 | |||||||||
| Stock option and other noncash compensation | 11,484,708 | 5,000,000 | 1,942 | |||||||||
| Fair value of stock issued on vendor settlement | 150,000 | - | - | |||||||||
| Impairment of intangible assets and property and equipment | - | - | 988,740 | |||||||||
| Total Modified EBITDA adjustments | 15,995,704 | 5,000,000 | (584,642 | ) | ||||||||
| Mofified EBITDA | $ | (2,836,376 | ) | $ | (20,000 | ) | $ | (709,187 | ) | |||
We present Modified EBITDA because we believe it assists investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. In addition, we use Modified EBITDA in developing our internal budgets, forecasts and strategic plan; in analyzing the effectiveness of our business strategies in evaluating potential acquisitions; making compensation decisions; and in communications with our board of directors concerning our financial performance. Modified EBITDA has limitations as an analytical tool, which includes, among others, the following:
| ● | Modified EBITDA does not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments; | |
| ● | Modified EBITDA does not reflect changes in, or cash requirements for, our working capital needs; | |
| ● | Modified EBITDA does not reflect future interest expense, or the cash requirements necessary to service interest or principal payments, on our debts; and | |
| ● | Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Modified EBITDA does not reflect any cash requirements for such replacements. |
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