TZUP
Thumzup Media CORP
NASDAQ
10-Q: Thumzup Media Corporation Reports First Quarter 2024 Results, Revenue Declines but Losses Narrow
Sentiment:
Quarterly Report
14 May 2024 5:28 PM
Thumzup Media Corporation's first quarter 2024 results show a decrease in revenue compared to the same period last year, but also a significant reduction in net losses.
Better than expected
The company's net loss decreased significantly compared to the same period last year, indicating improved financial performance.
Capital raise
The company raised approximately $161,846 from the sale of common stock during the quarter.
The company raised approximately $190,000 from the sale of Series B preferred stock during the quarter.
Management is proposing to raise additional funds not provided by operations through loans or through sales of its common stock.
Summary
- Thumzup Media Corporation reported a net loss of $330,712 for the three months ended March 31, 2024, compared to a net loss of $911,237 for the same period in 2023.
- The company's revenue decreased to $405 in Q1 2024 from $1,770 in Q1 2023.
- Operating expenses decreased significantly from $722,075 in Q1 2023 to $328,352 in Q1 2024.
- The company's cash balance was $225,673 as of March 31, 2024, down from $259,212 at the end of 2023.
- Thumzup raised approximately $161,846 from the sale of common stock and $190,000 from the sale of Series B preferred stock during the quarter.
- The company has an accumulated deficit of $6,022,516 as of March 31, 2024.
- The company is focused on developing its app and expanding its user base.
Sentiment
Score: 5
Explanation: The document presents a mixed picture. While the company has reduced its losses and raised capital, it is still early stage, has low revenue, and faces significant risks. The material weakness in internal controls is also a concern.
Positives
- The company significantly reduced its net loss and operating expenses compared to the same quarter last year.
- The company successfully raised capital through the sale of common and preferred stock.
- The company is seeing growth in the number of advertisers using its platform.
- The company's platform is generating a significant reach on social media.
Negatives
- The company's revenue decreased significantly compared to the same quarter last year.
- The company continues to operate at a loss and has an accumulated deficit.
- The company's cash balance decreased during the quarter.
- The company has identified a material weakness in its internal control over financial reporting.
Risks
- The company has not yet established profitable operations and has incurred losses since inception, raising substantial doubt about its ability to continue as a going concern.
- The company may need to raise additional funding to continue operations.
- The company's internal controls over financial reporting are not effective due to a material weakness.
- The company faces competition in the social media marketing space.
- The company's success depends on its ability to attract and retain both advertisers and content creators.
Future Outlook
The company is focused on developing its app, expanding its user base, and securing more advertisers. The company may need to raise additional funding to continue as a going concern.
Management Comments
- Management is proposing to raise additional funds not provided by operations through loans or through sales of its common stock.
- Management believes that the Thumzup App is a conduit for Advertisers to connect directly with consumers.
- Management believes that acceptance of its App and subsequent revenue growth can be driven by empowering everyday people to make money by posting about brands and services that they already find enjoyable and attractive on social media.
Industry Context
The company operates in the social media marketing and advertising space, which is rapidly evolving. The company is attempting to create a new market segment by paying non-professional advocates to promote products on social media. This is similar to the influencer marketing market, which is experiencing rapid growth.
Comparison to Industry Standards
- The company's revenue of $405 for the quarter is significantly lower than established social media marketing companies.
- The company's net loss of $330,712 is substantial for a company of its size and stage of development.
- The company's reliance on equity funding is common for early-stage tech companies, but the need for additional funding raises concerns about its long-term viability.
- The company's cost per reach of $0.0064 is competitive with other social media advertising costs, but this is based on promotional campaigns and may not be sustainable.
- The company's average follower count of 1,624 per campaign is relatively low compared to professional influencers, but the company is targeting the general public.
Stakeholder Impact
- Shareholders may be concerned about the company's continued losses and need for additional funding.
- Employees may be affected by the company's financial situation and potential need for cost-cutting measures.
- Customers (advertisers) may be attracted by the company's platform but may be hesitant due to its early stage and financial risks.
- Suppliers and creditors may be concerned about the company's ability to pay its obligations.
Next Steps
- The company plans to enhance and improve the design of its internal control over financial reporting.
- The company may need to raise additional funding to continue as a going concern.
- The company will continue to develop its app and expand its user base.
Related Party Transactions
- On March 14, 2024, Westside acquired 1,000 shares of our Series B Preferred Stock at $50 per share for a subscription in the amount of $50,000.
- On March 15, 2024, Westside received a dividend of 580 shares of Series A Preferred Stock.
Key Dates
- 2020-10-27: Thumzup Media Corporation was incorporated.
- 2022-09-26: The company submitted a Certificate of Designation for Series A Preferred Stock.
- 2024-01-18: A holder converted 556 shares of Series A preferred into 8,340 shares of common stock.
- 2024-03-05: The company submitted a Certificate of Designation for Series B Preferred Stock.
- 2024-03-15: The company issued 2,765 Series A shares as a dividend.
- 2024-03-14: Westside acquired 1,000 shares of Series B Preferred Stock.
- 2024-03-14: The company issued 3,800 Series B shares for cash proceeds of $190,000.
- 2024-03-28: The company issued 3,800 Series B shares for cash proceeds of $190,000.
- 2024-03-31: End of the reporting period for the quarterly report.
- 2024-05-10: The company had 7,720,084 shares of common stock issued and outstanding.
- 2024-05-10: The company issued 11,900 shares of Series B Preferred Stock for $595,000.
- 2024-05-14: Date of the quarterly report filing.
Keywords
social media marketing, influencer marketing, mobile app, advertising, software as a service, gig economy, content creators, digital marketing, preferred stock, common stock
TZUP
Thumzup Media CORP
NASDAQ
Sector: Communication Services
Filings with Classifications
Better than expected
29 May 2025 5:05 PM
Insider Transaction Report
- The conversion was triggered because the common stock's closing price exceeded 100% of the $4.00 conversion price for 10 consecutive trading days, indicating positive stock performance for THUMZUP MEDIA Corp.
Better than expected
29 May 2025 5:05 PM
Insider Transaction Report
- The automatic conversion was triggered because the common stock's closing price exceeded 100% of the $4.00 conversion price for 10 consecutive trading days, indicating positive stock performance that met the pre-defined threshold.
Capital raise
15 May 2025 4:40 PM
Quarterly Report
- The company's financial statements have been prepared on a going concern basis, with substantial doubt about its ability to continue as a going concern for one year from the issuance of the financial statements.
- The company may need to raise additional funds through equity or debt financings to meet its future requirements.
- The company has a Master Loan Agreement with Coinbase, allowing it to borrow digital assets or cash against collateral.
Worse than expected
15 May 2025 4:40 PM
Quarterly Report
- The company's net loss increased significantly compared to the same period last year.
- Revenues decreased year-over-year.
- Operating expenses increased substantially.
Capital raise
13 May 2025 10:15 AM
Current Report on Form 8-K
- Thumzup recently filed a shelf registration statement to raise up to $500 million for working capital and to accelerate its Bitcoin (BTC) acquisition strategy.
Capital raise
12 May 2025 9:00 PM
Information Statement
- The document includes a proposal to approve the issuance of securities in one or more non-public offerings.
- The maximum discount at which securities will be offered will be equivalent to a discount of 20% below the market price of the common stock.
- The aggregate number of shares issued in the offerings will not exceed 40,000,000 shares of common stock.
- The total aggregate consideration will not exceed $200,000,000.
- Such offerings will occur, if at all, on or before October 27, 2025.
Worse than expected
11 March 2025 5:00 PM
Annual Results
- The company's net loss increased from 2023 to 2024.
- The company's revenues decreased from 2023 to 2024.
Worse than expected
14 November 2024 4:05 PM
Quarterly Report
- The company's revenue decreased significantly compared to the same periods in the previous year, indicating a worse than expected performance in revenue generation.
Capital raise
14 November 2024 4:05 PM
Quarterly Report
- The company completed a public offering on October 30, 2024, raising approximately $8.2 million in gross proceeds.
- Management is proposing to raise additional funds not provided by operations through loans or through sales of its common stock.
Capital raise
1 November 2024 4:15 PM
Capital Raise Announcement
- Thumzup Media Corporation completed a public offering of 1,425,000 shares of common stock at $5.00 per share.
- The offering was upsized from an initial target of $6,250,000 to $7,125,000.
- The company granted underwriters a 45-day over-allotment option to purchase up to an additional 213,750 shares.
Worse than expected
9 October 2024 5:27 PM
S-1 Amendment
- The company has incurred net losses since inception and expects to continue to incur losses.
- The company's independent registered public accounting firm's reports have raised substantial doubt as to its ability to continue as a going concern.
Capital raise
9 October 2024 5:27 PM
S-1 Amendment
- The company is offering 1,250,000 shares of common stock to the public.
- The estimated public offering price is between $5.00 and $7.00 per share.
- The underwriter, Dawson James Securities, Inc., has a 45-day option to purchase up to 187,500 additional shares to cover over-allotments.
- The company will issue warrants to the underwriter to purchase up to 5% of the shares sold in the offering.
Capital raise
26 August 2024 5:01 PM
S-1/A Filing
- Thumzup Media Corporation is planning an initial public offering of 1,200,000 shares of common stock.
- The company estimates the public offering price to be between $5.00 and $7.00 per share.
- The company plans to use the net proceeds for software development ($1.50 million), advertising ($1.25 million), salaries and operational expenses ($1.70 million), and professional services ($0.695 million).
- Dawson James Securities, Inc. is acting as the sole book-running manager for the offering.
- The underwriter has a 45-day option to purchase up to 180,000 additional shares to cover over-allotments.
- The company will issue warrants to the underwriter to purchase up to 5% of the shares sold in the offering.
Capital raise
12 August 2024 5:14 PM
S-1/A
- The company is offering 1,200,000 shares of common stock in an initial public offering.
- The company has granted the underwriter a 45-day option to purchase up to 180,000 additional shares of common stock.
- The company intends to use the net proceeds of this offering for general corporate purposes.
Worse than expected
12 August 2024 5:14 PM
S-1/A
- The company's net losses have increased from $1,504,681 in 2022 to $3,324,180 in 2023.
- The company's independent auditor has raised substantial doubt about its ability to continue as a going concern.
Worse than expected
12 August 2024 4:15 PM
Quarterly Report
- The company's revenue decreased significantly compared to the same periods in the previous year, indicating worse than expected performance.
Capital raise
12 August 2024 4:15 PM
Quarterly Report
- The company is proposing to raise additional funds not provided by operations through loans or through sales of its common stock.
- The company raised approximately $805,000 from the sale of Series B preferred stock and $161,226 from the sale of common stock during the six months ended June 30, 2024.
Capital raise
30 July 2024 4:34 PM
S-1/A Amendment
- The company is offering shares of its common stock to the public to raise capital.
- The offering includes firm shares and an over-allotment option for the underwriters.
- The company estimates the maximum aggregate offering price to be $8,050,000 for the common stock and $503,125 for the underwriter warrants.
Worse than expected
26 July 2024 4:16 PM
S-1/A Filing
- The company has incurred operating losses since inception and expects to continue to incur losses.
- The company's independent registered public accounting firms reports have raised substantial doubt as to its ability to continue as a going concern.
Capital raise
26 July 2024 4:16 PM
S-1/A Filing
- The company is conducting an initial public offering of 1,000,000 shares of common stock.
- The company has granted the underwriter a 45-day option to purchase up to 150,000 additional shares.
- The company will issue warrants to the underwriter to purchase 5% of the shares sold in the offering.
- The company recently raised $805,000 in a Series B Preferred offering during the period March May 2024.
Capital raise
11 July 2024 5:22 PM
S-1 Amendment
- The company is conducting an initial public offering of common stock.
- The company has granted the underwriter a 45-day option to purchase additional shares to cover over-allotments.
- The company will issue warrants to the underwriter to purchase 5% of the shares sold in the offering.
- The company recently raised $805,000 in a Series B Preferred offering during the period March May 2024.
Worse than expected
11 July 2024 5:22 PM
S-1 Amendment
- The company's net loss increased from $1,504,681 in 2022 to $3,324,180 in 2023.
- The company's independent auditor has raised substantial doubt about its ability to continue as a going concern.
Worse than expected
20 June 2024 5:25 PM
S-1/A
- The company's net losses have increased from 2022 to 2023, indicating a worsening financial situation.
- The company's independent registered public accounting firms reports have raised substantial doubt as to its ability to continue as a going concern.
Capital raise
20 June 2024 5:25 PM
S-1/A
- The company is offering [_______] shares of common stock in this initial public offering.
- The company has granted the underwriter a 45-day option to purchase up to [______] additional shares of common stock.
- The company recently raised $805,000 in a Series B Preferred offering during the period March May 2024.
- The company sold 424,144 shares for aggregate proceeds of $1,732,869, net offering expenses of $19,539 through a Regulation A+ offering.
Capital raise
30 May 2024 4:16 PM
S-1 Filing
- The company is conducting an initial public offering (IPO) of common stock.
- The company recently raised $805,000 in a Series B Preferred offering during the period March May 2024.
- The company previously conducted an offering under Regulation A+, raising $1,732,869.
Worse than expected
30 May 2024 4:16 PM
S-1 Filing
- The company's net loss increased from $1,504,681 in 2022 to $3,324,180 in 2023.
- The company's operating expenses increased from $1,213,035 in 2022 to $2,521,078 in 2023.
Capital raise
14 May 2024 5:28 PM
Quarterly Report
- The company raised approximately $161,846 from the sale of common stock during the quarter.
- The company raised approximately $190,000 from the sale of Series B preferred stock during the quarter.
- Management is proposing to raise additional funds not provided by operations through loans or through sales of its common stock.
Better than expected
14 May 2024 5:28 PM
Quarterly Report
- The company's net loss decreased significantly compared to the same period last year, indicating improved financial performance.
Capital raise
20 March 2024 5:17 PM
Annual Results
- The company anticipates needing to raise additional capital through the issuance of debt or equity financings or other arrangements to fund operations.
- The company is seeking to obtain additional capital through the issuance of debt or equity financings or other arrangements to fund operations.
- The company is planning an underwritten offering in conjunction with a listing on a national exchange.
Worse than expected
20 March 2024 5:17 PM
Annual Results
- The company's net loss of $3,324,180 is significantly worse than the $1,504,681 loss in the previous year.
- The company's revenue of $2,048 is worse than the $2,421 in the previous year.
- The company's operating expenses increased significantly, indicating higher spending without a corresponding increase in revenue.
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