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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
November 7, 2023
PALTALK, INC. |
(Exact name of registrant as specified in its charter) |
Delaware |
|
001-38717 |
|
20-3191847 |
(State or other jurisdiction |
|
(Commission File Number) |
|
(IRS Employer |
of incorporation) |
|
|
|
Identification No.) |
30 Jericho Executive Plaza, Suite 400E
Jericho, NY |
|
11753 |
(Address of principal executive offices) |
|
(Zip Code) |
Registrant’s telephone number, including
area code: (212) 967-5120
(Former name or former address, if changed since
last report)
Not Applicable
Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General
Instruction A.2. below):
☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
|
Trading Symbol(s) |
|
Name of each exchange on which registered |
Common Stock, $0.001 par value |
|
PALT |
|
The Nasdaq Capital Market |
Indicate by check mark whether the registrant
is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the
Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Section 2 - Financial Information
Item 2.02 Results of Operations and Financial
Condition.
On November 7, 2023, Paltalk,
Inc. issued a press release announcing its financial results for the quarter ended September 30, 2023. The press release is furnished
as Exhibit 99.1.
The information in this Current
Report on Form 8-K (including Exhibit 99.1) is being furnished pursuant to Item 2.02 and shall not be deemed to be “filed”
for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise
be subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities
Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof and regardless of any general incorporation
language in such filing.
Section 9 - Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
Date: November 7, 2023 |
PALTALK, INC. |
|
|
|
|
By: |
/s/ Jason Katz |
|
|
Jason Katz |
|
|
Chief Executive Officer |
2
Exhibit 99.1
Paltalk, Inc. Reports
an Increase in Revenue of 5.5% in Third Quarter 2023
Generated Positive
Cash Flow from Operations for Quarter
Jericho,
NY – November 7, 2023 (GLOBE NEWSWIRE) -- via NewMediaWire -- Paltalk, Inc. (“Paltalk,” the “Company,”
“we,” “our” or “us”) (Nasdaq: PALT), a communications software innovator that powers multimedia
social applications, today announced financial and operational results for the third quarter ended September 30, 2023.
Key
Financial Highlights for Third Quarter Ended September 30, 2023 Compared to Prior Year Period
● |
Revenue increased 5.5% to $2.8 million |
● |
Subscription revenue increased 5% to $2.7 million |
|
|
● |
Advertising revenue increased 12% to $0.1 million |
● |
Net loss was $0.2 million compared to a net loss of $1.1 million, a decrease of 83% |
|
|
● |
Adjusted EBITDA loss, a non-GAAP measure, was $0.1 million compared to Adjusted EBITDA loss of $0.8 million, a decrease of 84% |
|
|
● |
Positive cash flow from operations for the quarter |
Key
Financial Highlights for Nine Months Ended September 30, 2023 Compared to Prior Year Period
● | Revenue increased 1% to $8.3 million |
| |
● | Subscription revenue increased 1% to $8.1 million |
| |
● | Advertising revenue decreased 10% to $0.2 million |
| |
● | Net loss was $0.8 million compared to a net loss of $2.9
million, a decrease of 73% |
● | Adjusted EBITDA loss, a non-GAAP measure, was $0.8 million compared to Adjusted
EBITDA loss of $2.2 million, a decrease of 64% |
● | Deferred revenue of $2.2 million as of September 30, 2023 |
● | The Company had $13.7 million in cash and no long-term debt on its balance sheet
as of September 30, 2023 |
Recent
Corporate and Business Highlights
● |
Appointed Geoff Cook to Board of Directors; previously, Mr. Cook co-founded and grew The Meet Group and ultimately sold it in 2020 for approximately $500 million |
|
|
● |
Engaged Cleverbridge to serve international markets and to optimize Paltalk’s geographic reach with global payment processing capabilities |
Near
Term Business Objectives
● |
Leveraging our integration of the ManyCam product into Paltalk through upselling initiatives |
● |
Further optimizing marketing spend to effectively realize a positive return on our investment |
|
|
● |
Evaluating ways to optimize and reduce expenses with our infrastructure |
● |
Continuing to explore strategic opportunities, including, but not limited to, potential mergers or acquisitions of other assets or entities that are synergistic to our businesses |
|
|
● |
Continuing to defend our intellectual property |
Management Commentary
Jason
Katz, Chairman and CEO of Paltalk, commented, “We are pleased with our continued revenue growth and achievement of generating positive
cash flow from operations in the third quarter. Our efforts to optimize our platforms and streamline our costs have resulted in a
significant decrease in operating expenses and an improvement in reducing our operating losses and net losses. As we continue to prudently
execute on our revenue growth plans, we believe we are well-positioned for profitability with our current expense infrastructure.”
Katz
concluded, “We are very excited to have Geoff Cook join our Board, as he has successfully accomplished what we intend to do, which
is to grow via strategic acquisitions to enhance shareholder value. In July of 2023, Geoff was named CEO of Noom, Inc., a leading digital
health platform combining personalized psychology with modern medicine. Before that, Geoff executed numerous acquisitions while growing
The Meet Group, and ultimately sold it in 2020 for approximately $500 million to ProSiebenSat.1 Media. We look forward to leveraging Geoff’s
experience, knowledge, success and relationships to complement what we are currently doing with our internal efforts with Roth Capital.”
Mr. Katz also added, “While our trial against Cisco was pushed back again to an expected trial date in May of 2024, the Court recently denied
Cisco’s motion for summary judgement, and we look forward to continuing to defend our intellectual property.”
Patent
Litigation
On July 23,
2021, a wholly owned subsidiary of the Company, Paltalk Holdings, Inc., filed a patent infringement lawsuit against WebEx Communications,
Inc., Cisco WebEx LLC, and Cisco Systems, Inc. (collectively, “Cisco”), in the U.S. District Court for the Western District
of Texas (the “Court”). The Company alleges that certain of Cisco’s products have infringed U.S. Patent No. 6,683,858,
and that the Company is entitled to damages.
A Markman
hearing took place on February 24, 2022. On September 7, 2022, the United States Patent Office issued a reexamination of U.S. Patent No.
6,683,858, and on January 19, 2023, the Examiner issued an Ex Parte Reexamination Certificate, ending the reexamination
and confirming the patentability of claims 1-10 of U.S. Patent No. 6,683,858. On June 29, 2023, the Court held a pretrial conference
with the parties and denied Cisco’s motion for summary judgement. The trial is expected to be held in May of 2024.
Financial Results for Three
Months Ended September 30, 2023
● |
Revenue for the three months ended September 30, 2023 increased by 5.5% to $2.8 million, compared to $2.6 million for the three months ended September 30, 2022. The increase in revenue was primarily attributed to an increase in virtual goods revenue from Paltalk, increased revenue from Vumber, as well as an increase in ManyCam revenue; |
|
|
● |
Loss from operations for the three months ended September 30, 2023 decreased by 63.3%, or $0.7 million, to a loss of $0.4 million, compared to a loss of $1.1 million for the three months ended September 30, 2022. The decrease in loss from operations was attributed to increased revenue for the three months ended September 30, 2023; |
● |
Net loss for the three months ended September 30, 2023 decreased 82.7% to $0.2 million, compared to a net loss of $1.1 million the three months ended September 30, 2022. The decrease in net loss was due to the increase in subscription revenue and the reduction of operating expenses; |
|
|
● |
Adjusted EBITDA loss, a non-GAAP measure, for the three months ended September 30, 2023 decreased by 83.8%, to an Adjusted EBITDA loss of $0.1 million, compared to Adjusted EBITDA loss of $0.8 million for the three months ended September 30, 2022; |
|
|
● |
Cash and cash equivalents totaled $13.7 million at September 30, 2023, a decrease of $1.0 million compared to $14.7 million at December 31, 2022; and |
|
|
● |
The Company had no long-term debt on its balance sheet at September 30, 2023. |
Financial Results for Nine
Months Ended September 30, 2023
● |
Revenue for the nine months ended September 30, 2023 increased by 1.0% to $8.3 million, compared to $8.2 million for the nine months ended September 30, 2022. The increase in revenue was attributed to an increase in subscription revenue; |
|
|
● |
Loss from operations for the nine months ended September 30, 2023 decreased by 44.8%, or $1.3 million, to a loss of $1.6 million, compared to a loss of $2.9 million for the nine months ended September 30, 2022. The decrease in loss from operations was primarily attributable to an increase in revenue and reduced operating expenses in connection with the implementation of operating efficiencies; |
|
|
● |
Net loss for the nine months ended September 30, 2023 decreased by 73.1%, or $2.1 million, to $0.8 million, compared to a net loss of $2.9 million for the nine months ended September 30, 2022. The decrease in net loss was attributed to an increase in revenue and decreases in operating expenses as well as an increase in other income in connection with the Company’s recording of a refundable employee retention tax credit; and |
|
|
● |
Adjusted EBITDA loss, a non-GAAP measure, for the nine months ended September 30, 2023 decreased by 63.7%, or $1.4 million, to an Adjusted EBITDA loss of $0.8 million, compared to Adjusted EBITDA loss of $2.2 million for the nine months ended September 30, 2022. |
| |
Three Months Ended
September 30, | | |
| | |
| |
| |
(unaudited) | | |
Change | |
| |
2023 | | |
2022 | | |
$ | | |
% | |
Subscription revenue | |
$ | 2,673 | | |
$ | 2,539 | | |
$ | 134 | | |
| 5.3 | % |
Advertising revenue | |
| 95 | | |
| 85 | | |
| 10 | | |
| 11.7 | % |
Total revenues | |
| 2,768 | | |
| 2,624 | | |
| 144 | | |
| 5.5 | % |
Loss from operations | |
| (389 | ) | |
| (1,060 | ) | |
| 671 | | |
| 63.3 | % |
Net loss | |
$ | (182 | ) | |
$ | (1,050 | ) | |
$ | 868 | | |
| 82.7 | % |
Net Cash Provided by (Used in) Operating Activities | |
$ | 16 | | |
$ | (980 | ) | |
$ | 996 | | |
| 101.6 | % |
Adjusted EBITDA (a non-GAAP measure) | |
$ | (127 | ) | |
$ | (781 | ) | |
$ | 654 | | |
| 83.8 | % |
| |
Nine Months Ended
September 30, | | |
| | |
| |
| |
(unaudited) | | |
Change | |
| |
2023 | | |
2022 | | |
$ | | |
% | |
| |
| | |
| | |
| | |
| |
Subscription revenue | |
$ | 8,064 | | |
$ | 7,946 | | |
$ | 118 | | |
| 1.5 | % |
Advertising revenue | |
| 224 | | |
| 249 | | |
| (25 | ) | |
| -10.0 | % |
Total revenues | |
| 8,288 | | |
| 8,195 | | |
| 93 | | |
| 1.1 | % |
Loss from operations | |
| (1,576 | ) | |
| (2,857 | ) | |
| 1,281 | | |
| 44.8 | % |
Net loss | |
$ | (784 | ) | |
$ | (2,918 | ) | |
$ | 2,134 | | |
| 73.1 | % |
Net cash used in operating activities | |
$ | (981 | ) | |
$ | (2,624 | ) | |
$ | 1,643 | | |
| 62.6 | % |
Adjusted EBITDA (a non-GAAP measure) | |
$ | (790 | ) | |
$ | (2,174 | ) | |
$ | 1,384 | | |
| 63.7 | % |
ABOUT
PALTALK, INC. (Nasdaq: PALT)
Paltalk,
Inc. is a communications software innovator that powers multimedia social applications. Our product portfolio includes Paltalk and Camfrog,
which together host a large collection of video-based communities. Our other products include ManyCam, Tinychat and Vumber. The Company
has an over 20-year history of technology innovation and holds 10 patents. For more information, please visit: http://www.paltalk.com.
To be
added to our news distribution list, please visit: http://www.paltalk.com/investor-alerts/.
FORWARD-LOOKING
STATEMENTS:
This
press release contains “forward-looking statements.” Such statements may be preceded by the words “intends,” “may,”
“will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,”
“aims,” “believes,” “hopes,” “potential,” or similar words. Forward-looking statements are
not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties,
many of which are beyond the Company’s control, and cannot be predicted or quantified and consequently, actual results may differ materially
from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, any economic
recession and the overall inflationary environment on our results of operations and our business; our ability to effectively market and
generate revenue from our applications; our ability to generate and maintain active users and to effectively monetize our user base; our
ability to improve, market and promote the ManyCam software; the Company’s ability to retain the listing of its common stock on
The Nasdaq Capital Market; our ability to release new applications or improve upon or add features to existing applications on schedule
or at all; risks and uncertainties related to our increasing focus on the use of new and novel technologies to enhance our applications,
and our ability to timely complete development of applications using new technologies; our ability to effectively compete with existing
competitors and new market entrants; our ability to effectively secure new software development and licensing customers; our ability to
protect our intellectual property rights; the use of the internet and privacy and protection of user data; our ability to consummate
favorable acquisitions and effectively integrate any companies or properties that we acquire; and our ability to manage our partnerships
and strategic alliances. More detailed information about the Company and the risk factors that may affect the realization of forward-looking
statements is set forth in the Company’s filings with the Securities and Exchange Commission (“SEC”), including the Company’s
most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents
free of charge on the SEC’s website at www.sec.gov.
All
forward-looking statements speak only as of the date on which they are made. The Company undertakes no obligation to update any forward-looking
statement or statements to reflect events or circumstances after the date on which such statement was made, except to the extent required
by applicable securities laws.
Investor Contacts:
IR@paltalk.com
ClearThink
nyc@clearthink.capital
917-658-7878
PALTALK, INC.
RECONCILIATION OF GAAP
TO NON-GAAP RESULTS
| |
Three Months Ended | | |
Nine Months Ended | |
| |
September 30, (unaudited) | | |
September
30,
(unaudited) | |
| |
2023 | | |
2022 | | |
2023 | | |
2022 | |
Reconciliation of net loss to Adjusted EBITDA: | |
| | | |
| | | |
| | | |
| | |
Net loss | |
$ | (181,576 | ) | |
$ | (1,050,365 | ) | |
$ | (784,245 | ) | |
$ | (2,918,016 | ) |
Interest (income) expense, net | |
| (169,925 | ) | |
| (19,750 | ) | |
| (462,433 | ) | |
| 3,004 | |
Other (income) expense, net | |
| - | | |
| - | | |
| (343,045 | ) | |
| 27,361 | |
Income tax (benefit) expense | |
| (37,915 | ) | |
| 9,712 | | |
| 13,590 | | |
| 30,496 | |
Impairment loss on digital tokens | |
| - | | |
| - | | |
| - | | |
| 7,262 | |
Depreciation and amortization expense | |
| 205,583 | | |
| 220,124 | | |
| 616,750 | | |
| 404,565 | |
Stock-based compensation expense | |
| 57,380 | | |
| 59,729 | | |
| 169,691 | | |
| 271,349 | |
Adjusted EBITDA | |
$ | (126,453 | ) | |
$ | (780,550 | ) | |
$ | (789,692 | ) | |
$ | (2,173,979 | ) |
Non-GAAP Financial
Measures and Key Metrics
The Company has provided in this release Adjusted
EBITDA, a non-GAAP financial measure, to supplement the consolidated financial statements, which are prepared in accordance with generally
accepted accounting principles in the United States (“GAAP”). Adjusted EBITDA is defined as net loss adjusted to exclude interest
(income) expense, net, other (income) expense, net, income tax (benefit) expense, impairment loss on digital tokens, depreciation and
amortization expense, and stock-based compensation expense.
Management uses Adjusted
EBITDA internally in analyzing the Company’s financial results to assess operational performance and to determine the Company’s
future capital requirements. The presentation of this financial information is not intended to be considered in isolation or as a substitute
for the financial information prepared in accordance with GAAP. The Company believes that both management and investors benefit from referring
to Adjusted EBITDA in assessing its performance and when planning, forecasting and analyzing future periods. The Company believes Adjusted
EBITDA is useful to investors and others to understand and evaluate the Company’s operating results and it allows for a more meaningful
comparison between the Company’s performance and that of competitors. Our use of Adjusted EBITDA has limitations as an analytical
tool, and you should not consider this performance measure in isolation from or as a substitute for analysis of our results as reported
under GAAP. Some of these limitations are that Adjusted EBITDA does not reflect, among other things: interest (income) expense, net, income
tax (benefit) expense, depreciation and amortization expense, other (income) expense, net, and stock-based compensation. Other companies,
including companies in our industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure.
Because of these limitations,
you should consider Adjusted EBITDA along with other financial performance measures, including total revenues, subscription revenue, deferred
revenue, net loss, cash and cash equivalents, restricted cash, net cash used in operating activities and our financial results presented
in accordance with GAAP.
PALTALK, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
| |
September 30, | | |
December 31, | |
| |
2023 | | |
2022 | |
Assets | |
(unaudited) | | |
| |
Current assets: | |
| | |
| |
Cash and cash equivalents | |
$ | 13,667,000 | | |
$ | 14,739,933 | |
Accounts receivable, net of allowances of $13,648 as of September 30, 2023 and $3,648 as of December 31, 2022 | |
| 143,222 | | |
| 122,297 | |
Employee retention tax credit receivable, net | |
| 114,212 | | |
| - | |
Prepaid expense and other current assets | |
| 822,647 | | |
| 543,199 | |
Total current assets | |
| 14,747,081 | | |
| 15,405,429 | |
Operating lease right-of-use asset | |
| 97,727 | | |
| 159,181 | |
Goodwill | |
| 6,326,250 | | |
| 6,326,250 | |
Intangible assets, net | |
| 2,910,061 | | |
| 3,526,811 | |
Other assets | |
| 13,937 | | |
| 13,937 | |
Total assets | |
$ | 24,095,056 | | |
$ | 25,431,608 | |
| |
| | | |
| | |
Liabilities and stockholders’ equity | |
| | | |
| | |
Current liabilities: | |
| | | |
| | |
Accounts payable | |
$ | 680,187 | | |
$ | 1,013,637 | |
Accrued expenses and other current liabilities | |
| 65,466 | | |
| 225,193 | |
Operating lease liabilities, current portion | |
| 76,886 | | |
| 82,176 | |
Contingent consideration | |
| - | | |
| 85,000 | |
Deferred subscription revenue | |
| 2,200,517 | | |
| 2,257,452 | |
Total current liabilities | |
| 3,023,056 | | |
| 3,663,458 | |
Operating lease liabilities, non-current portion | |
| 20,841 | | |
| 77,005 | |
Deferred tax liability | |
| 698,684 | | |
| 716,903 | |
Total liabilities | |
| 3,742,581 | | |
| 4,457,366 | |
Commitments and contingencies (Note 9) | |
| | | |
| | |
Stockholders’ equity: | |
| | | |
| | |
Common stock, $0.001 par value, 25,000,000 shares authorized, 9,864,120 shares issued and 9,222,157 and 9,227,349 shares outstanding as of September 30, 2023 and December 31, 2022, respectively | |
| 9,864 | | |
| 9,864 | |
Treasury stock, 641,963 and 636,771 shares repurchased as of September 30, 2023 and December 31, 2022, respectively | |
| (1,199,337 | ) | |
| (1,192,124 | ) |
Additional paid-in capital | |
| 36,143,426 | | |
| 35,973,735 | |
Accumulated deficit | |
| (14,601,478 | ) | |
| (13,817,233 | ) |
Total stockholders’ equity | |
| 20,352,475 | | |
| 20,974,242 | |
Total liabilities and stockholders’ equity | |
$ | 24,095,056 | | |
$ | 25,431,608 | |
PALTALK, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| |
Three Months Ended September 30, | | |
Nine Months Ended September 30, | |
| |
2023 | | |
2022 | | |
2023 | | |
2022 | |
Revenues: | |
| | |
| | |
| | |
| |
Subscription revenue | |
$ | 2,673,333 | | |
$ | 2,538,764 | | |
$ | 8,063,992 | | |
$ | 7,945,809 | |
Advertising revenue | |
| 94,606 | | |
| 84,703 | | |
| 223,966 | | |
| 248,827 | |
Total revenues | |
| 2,767,939 | | |
| 2,623,467 | | |
| 8,287,958 | | |
| 8,194,636 | |
Costs and expenses: | |
| | | |
| | | |
| | | |
| | |
Cost of revenue | |
| 826,662 | | |
| 775,330 | | |
| 2,403,165 | | |
| 2,088,974 | |
Sales and marketing expense | |
| 210,573 | | |
| 370,772 | | |
| 685,953 | | |
| 1,266,387 | |
Product development expense | |
| 1,193,430 | | |
| 1,485,479 | | |
| 3,605,652 | | |
| 4,537,384 | |
General and administrative expense | |
| 926,690 | | |
| 1,052,289 | | |
| 3,169,321 | | |
| 3,151,784 | |
Impairment loss on digital tokens | |
| - | | |
| - | | |
| - | | |
| 7,262 | |
Total costs and expenses | |
| 3,157,355 | | |
| 3,683,870 | | |
| 9,864,091 | | |
| 11,051,791 | |
Loss from operations | |
| (389,416 | ) | |
| (1,060,403 | ) | |
| (1,576,133 | ) | |
| (2,857,155 | ) |
Interest income (expense), net | |
| 169,925 | | |
| 19,750 | | |
| 462,433 | | |
| (3,004 | ) |
Other income (expense), net | |
| - | | |
| - | | |
| 343,045 | | |
| (27,361 | ) |
Loss from operations before provision for income taxes | |
| (219,491 | ) | |
| (1,040,653 | ) | |
| (770,655 | ) | |
| (2,887,520 | ) |
Income tax benefit (expense) | |
| 37,915 | | |
| (9,712 | ) | |
| (13,590 | ) | |
| (30,496 | ) |
Net loss | |
$ | (181,576 | ) | |
$ | (1,050,365 | ) | |
$ | (784,245 | ) | |
$ | (2,918,016 | ) |
| |
| | | |
| | | |
| | | |
| | |
Net loss per share of common stock: | |
| | | |
| | | |
| | | |
| | |
Basic | |
$ | (0.02 | ) | |
$ | (0.11 | ) | |
$ | (0.09 | ) | |
$ | (0.30 | ) |
Diluted | |
$ | (0.02 | ) | |
$ | (0.11 | ) | |
$ | (0.09 | ) | |
$ | (0.30 | ) |
Weighted average number of shares of common stock used in calculating net loss per share of common stock: | |
| | | |
| | | |
| | | |
| | |
Basic | |
| 9,222,157 | | |
| 9,722,157 | | |
| 9,222,223 | | |
| 9,774,904 | |
Diluted | |
| 9,222,157 | | |
| 9,722,157 | | |
| 9,222,223 | | |
| 9,774,904 | |
PALTALK, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| |
Nine Months Ended September 30, | |
| |
2023 | | |
2022 | |
Cash flows from operating activities: | |
| | |
| |
Net loss | |
$ | (784,245 | ) | |
$ | (2,918,016 | ) |
Adjustments to reconcile net loss from operations to net cash used in operating activities: | |
| | | |
| | |
Depreciation of property and equipment | |
| - | | |
| 65,317 | |
Amortization of intangible assets | |
| 616,750 | | |
| 339,247 | |
Amortization of operating lease right-of-use assets | |
| 61,454 | | |
| 60,059 | |
Impairment loss on digital tokens | |
| - | | |
| 7,262 | |
Bad debt expense | |
| 10,000 | | |
| - | |
Deferred tax benefit | |
| (18,219 | ) | |
| - | |
Stock-based compensation | |
| 169,691 | | |
| 271,349 | |
Changes in operating assets and liabilities: | |
| | | |
| | |
Accounts receivable | |
| (30,925 | ) | |
| 33,176 | |
Operating lease liability | |
| (61,454 | ) | |
| (60,059 | ) |
Prepaid expense and other current assets | |
| (279,448 | ) | |
| (68,838 | ) |
Accounts payable, accrued expenses and other current liabilities | |
| (493,177 | ) | |
| (498,553 | ) |
Employee retention tax credit receivable, net | |
| (114,212 | ) | |
| - | |
Deferred subscription revenue | |
| (56,935 | ) | |
| 145,374 | |
Net cash used in operating activities | |
| (980,720 | ) | |
| (2,623,682 | ) |
Cash flows from investing activities: | |
| | | |
| | |
Acquisition of ManyCam assets | |
| - | | |
| (2,700,000 | ) |
Acquisition related costs of ManyCam assets | |
| - | | |
| (242,279 | ) |
Payment of contingent consideration | |
| (85,000 | ) | |
| - | |
Net cash used in investing activities | |
| (85,000 | ) | |
| (2,942,279 | ) |
Cash flows from financing activities: | |
| | | |
| | |
Purchase of treasury stock | |
| (7,213 | ) | |
| (572,336 | ) |
Net cash used in financing activities | |
| (7,213 | ) | |
| (572,336 | ) |
Net decrease in cash and cash equivalents | |
| (1,072,933 | ) | |
| (6,138,297 | ) |
Balance of cash and cash equivalents at beginning of period | |
| 14,739,933 | | |
| 21,636,860 | |
Balance of cash and cash equivalents at end of period | |
$ | 13,667,000 | | |
$ | 15,498,563 | |
Supplemental disclosure of cash flow information: | |
| | | |
| | |
Cash paid during the periods: | |
| | | |
| | |
Interest | |
$ | 512 | | |
$ | - | |
Taxes | |
$ | 23,551 | | |
$ | - | |
Non-cash investing and financing activities: | |
| | | |
| | |
Write-off of property and equipment | |
$ | - | | |
$ | 1,475,649 | |
Deferred tax liability associated with the acquisition of ManyCam assets | |
$ | - | | |
$ | 851,298 | |
Accrued contingent consideration | |
$ | - | | |
$ | 150,000 | |
9
v3.23.3
Cover
|
Nov. 07, 2023 |
Cover [Abstract] |
|
Document Type |
8-K
|
Amendment Flag |
false
|
Document Period End Date |
Nov. 07, 2023
|
Entity File Number |
001-38717
|
Entity Registrant Name |
PALTALK, INC.
|
Entity Central Index Key |
0001355839
|
Entity Tax Identification Number |
20-3191847
|
Entity Incorporation, State or Country Code |
DE
|
Entity Address, Address Line One |
30 Jericho Executive Plaza
|
Entity Address, Address Line Two |
Suite 400E
|
Entity Address, City or Town |
Jericho
|
Entity Address, State or Province |
NY
|
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11753
|
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212
|
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967-5120
|
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false
|
Soliciting Material |
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|
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false
|
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false
|
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Common Stock, $0.001 par value
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PALT
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NASDAQ
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