10-Q: GivBux Inc. Reports Q1 2025 Results: Revenue Up Slightly Year-Over-Year, Net Loss Widens Due to Increased Expenses

GivBux Inc.'s Q1 2025 shows a slight revenue increase compared to Q1 2024, but a significantly larger net loss due to higher operating and interest expenses.

Summary

• GivBux Inc. filed its Form 10-Q for the quarter ended March 31, 2025.
• The company's revenue increased slightly to $66,023 compared to $47,369 for the same period in 2024.
• However, revenue decreased compared to the previous quarter ending December 31, 2024, which had revenue of $214,008.
• The gross profit for the period was $10,873, down from $41,812 in the previous quarter.
• Operating expenses were $194,393, comparable to the $269,851 in the previous quarter, but included additional interest expense of $111,450 and a change in fair value of derivative liabilities of $231,849.
• The net loss for the quarter was $526,819, significantly higher than the $130,397 loss for the same period in 2024.
• Basic and diluted loss per common share was $0.01.
• As of March 31, 2025, the company had cash of $17,153 and total assets of $19,476.
• Total liabilities were $3,655,626, and the total stockholders' deficit was $3,636,150.
• The company acknowledges substantial doubt about its ability to continue as a going concern and intends to raise additional operating funds through equity and/or debt offerings.
• The company identified material weaknesses in its internal controls over financial reporting.

Sentiment

Score: 3

Explanation: The document presents a negative outlook due to the widening net loss, going concern warning, and material weaknesses in internal controls. While there was a slight revenue increase, the overall financial health of the company appears precarious.

Positives

• Revenue increased slightly year-over-year.
• The company changed auditors to LAO Professional Services.

Negatives

• Net loss significantly widened compared to the same period last year.
• The company has a substantial accumulated deficit and current liabilities exceed current assets.
• There is substantial doubt about the company's ability to continue as a going concern.
• The company identified material weaknesses in its internal control over financial reporting.
• The company recognized a significant loss on change in fair value of derivative liabilities.
• The company's previous auditor was dismissed due to SEC charges and OTC Markets' Prohibited Service Providers List.

Risks

• The company's ability to continue as a going concern is uncertain.
• Material weaknesses in internal control over financial reporting could lead to inaccurate financial reporting.
• The company's common stock is considered a penny stock, which may limit trading activity.
• There is very limited liquidity of the company's common stock.
• The company's senior management team has limited experience managing a public company.
• The company is subject to rules and regulations established by the SEC and PCAOB regarding internal control over financial reporting.
• The company is an emerging growth company and a smaller reporting company, which may make its securities less attractive to investors.

Future Outlook

Management intends to raise additional operating funds through equity and/or debt offerings, but there is no assurance they will be successful.

Industry Context

Without more specific industry information, it's difficult to provide a detailed industry context. However, the company's financial struggles and going concern warning suggest it is underperforming relative to its peers, especially given the slight revenue increase.

Comparison to Industry Standards

• Without knowing the specific industry GivBux operates in, it's challenging to provide a precise comparison to industry standards.
• However, the going concern warning and increasing net losses are significant red flags, suggesting the company is underperforming compared to industry benchmarks for financial stability.
• Companies in similar stages often aim for revenue growth exceeding expense increases, which GivBux did not achieve this quarter.
• Comparable companies would typically demonstrate stronger internal controls and avoid material weaknesses in financial reporting.

Legal Proceedings

• The company's previous auditor was dismissed due to charges brought against this entity by the SEC relating to securities fraud.

Related Party Transactions

• During the three months months ended March 31, 2025, and 2024, the Company obtained $7,250 and $15,430 loan from our related parties, repaid $41,481 and $17,431 to our related parties and recognized interest of $6,425 and $6,876 , respectively.
• As of March 31, 2025, and December 31,2024, the Company had notes payable related parties of $802,518 and $836,749 and accrued interest of $124,841 and $118,417 , respectively.
• The notes are unsecured, 3 % interest bearing and due on demand.
• As of March 31,2025, and December 31,2024, the Company had due to related party of $3,275 .

Stakeholder Impact

• Shareholders face significant risk due to the company's financial instability and potential dilution from future equity issuances.
• Employees face uncertainty due to the company's going concern issues.
• Creditors face increased risk of non-payment due to the company's financial difficulties.

Next Steps

• The company needs to secure additional financing to address its working capital requirements.
• The company needs to remediate the material weaknesses in its internal control over financial reporting.
• The company needs to improve its financial performance to alleviate going concern issues.

Key Dates

Keywords

financial statements, convertible notes, internal control, going concern, net loss, revenue, GivBux