10-K: Mobiquity Technologies, Inc. Files 10-K Annual Report and Certificate of Amendment

Mobiquity Technologies, Inc. releases its 2023 annual report, detailing financial results, operational strategies, and a recent amendment to its certificate of incorporation.

Summary

• Mobiquity Technologies, Inc., a next-generation advertising technology company, has filed its annual report on Form 10-K for the fiscal year ended December 31, 2023, revealing a net loss of $6,533,117 and cash used in operating activities of $4,395,868.
• The company's revenue for 2023 was $860,090, a significant decrease from $4,167,272 in 2022, attributed to a lack of political revenue and downturns in key sectors.
• Operating expenses decreased to $5,928,678 in 2023 from $9,213,632 in 2022, due to reduced computer expenses, professional fees, salaries, and commissions.
• The company's management has expressed substantial doubt about its ability to continue as a going concern, citing recurring losses and negative cash flows.
• Mobiquity operates through three proprietary software platforms: ATOS, a data intelligence platform, and a publisher platform for monetization and compliance.
• The company is focused on programmatic advertising, data management, and user compliance management, targeting publishers, brands, and advertising agencies.
• Mobiquity's strategy includes licensing its platforms as white-label products and offering managed services, aiming to become an industry standard for small and medium-sized advertisers.
• The company has a history of operating losses, with an accumulated deficit of $217,040,339 as of December 31, 2023.
• Mobiquity is subject to various risks, including competition, data security breaches, and regulatory changes.
• The company also filed a Certificate of Amendment to its Certificate of Incorporation on December 28, 2023, and another on November 27, 2023.

Sentiment

Score: 3

Explanation: The document presents a concerning financial picture with significant revenue decline, substantial losses, and management's doubt about the company's ability to continue as a going concern. While there are some positive aspects like cost reductions and new product development, the overall sentiment is negative due to the financial instability and high risks.

Positives

• The company has developed several new features which it believes will help grow revenue in 2024 and beyond.
• Operating expenses decreased by approximately $3.3 million year-over-year.
• The company is focused on developing proprietary software and technology platforms.
• The company has a diverse revenue model including licensing and managed services.
• The company has a cybersecurity program managed by its Chief Technology Officer.

Negatives

• The company has a history of operating losses and negative cash flows.
• Management has expressed substantial doubt about the company's ability to continue as a going concern.
• The company's revenue decreased significantly in 2023 compared to 2022.
• The company relies on a limited number of customers for a significant percentage of its sales.
• The company's common stock is subject to penny stock rules.
• The company has identified a material weakness in its internal control over financial reporting.

Risks

• The company has a history of operating losses and may not be able to achieve profitability.
• The company may not be able to secure additional financing on favorable terms.
• The company's product solutions rely on data from third parties, which may not be reliable.
• The company's business practices with respect to data and consumer protection could give rise to liabilities or reputational harm.
• The company could experience a significant breach of the confidentiality of the information it holds.
• The company faces intense and growing competition, which could result in reduced sales and operating margins.
• Changes in consumer sentiment or laws regarding tracking technologies could have a material adverse effect on the company's ability to generate revenue.
• The company is subject to payment-related risks and may not be able to collect from customers.
• The company's failure to recruit or the loss of management and highly trained personnel could adversely affect its operations.
• The company's common stock is subject to the penny stock rules, which may make it difficult to resell.

Future Outlook

The company expects to hire new sales and sales support individuals to help generate additional revenue using its platforms. The company also plans to explore and execute prospective partnering, distribution and acquisition opportunities, and identify unique market opportunities that represent potential positive short-term cash flow.

Management Comments

• Our mission is to help enterprises in the programmatic industry become more efficient and effective regarding the monetization of advertising, audience segments and data compliance.
• Our goal is to become the programmatic display advertising industry standard for small and medium sized advertisers.

Industry Context

The document highlights the shift in the publishing market due to privacy laws and the removal of identifiers, which is causing a paradigm shift where user data and targeting intelligence must shift from middlemen directly to content publishers. The company is positioning itself to capitalize on this shift by offering solutions that allow publishers to own their first-party data and manage their audience segments in-house.

Comparison to Industry Standards

• The document mentions competitors such as Liveramp, The TradeDesk and OneTrust, indicating that Mobiquity operates in a competitive market with both small and large players.
• The company believes its product offerings provide end-to-end solutions that its competitors do not, and that its minimum fees are substantially lower than its competitors for a comparative suite of solutions.
• The company's ATOS platform engages with approximately 10 billion advertisement opportunities per day, which is a significant scale in the programmatic advertising industry.
• The company's data intelligence platform is hosted and managed on Amazon Web Service (AWS), which is a common practice in the industry for scalability and reliability.

Legal Proceedings

• Michael Trepeta, a former Co-CEO and director of the Company, filed a lawsuit against the Company and its subsidiary, Mobiquity Networks in April 2023 in the New York State Supreme Court, Nassau County.
• The Company's motion to dismiss Mr. Trepeta's action was granted in December 2023, but Mr. Trepeta has filed a notice of appeal.

Related Party Transactions

• The company received a $300,000 loan from the Marital Trust GST Subject U/W/O Leopold Salkind, a related party through the Company's Board chair.
• The company's Chairman of the Board, Gene Salkind and parties associated with him, invested $1,503,495 into the company's newly created Series G Preferred Stock.
• The company's Chairman of the Board, Gene Salkind and parties associated with him, agreed to exchange all of their Series G Preferred Stock into the company's newly created Series H Preferred Stock.

Stakeholder Impact

• Shareholders are at risk of losing their investment due to the company's financial instability and going concern issues.
• Employees may be affected by potential layoffs or restructuring due to the company's financial difficulties.
• Customers may be impacted by potential service disruptions or changes in the company's offerings.
• Suppliers and creditors may face increased risk of non-payment due to the company's financial challenges.

Next Steps

• The company intends to hire new sales and sales support individuals to help generate additional revenue.
• The company plans to continue to develop, launch, and upgrade the technologies that enable it to provide its solutions.
• The company will continue to explore and execute prospective partnering, distribution and acquisition opportunities.
• The company will continue to identify unique market opportunities that represent potential positive short-term cash flow.

Key Dates

Keywords

programmatic advertising, data intelligence, ad tech, digital advertising, publisher platform, ATOS platform, MobiExchange, AdHere, data compliance, monetization