Quotemedia Inc 10-Q for FY2023 Q1

Quotemedia Inc (QMCI)

10-Q 2023-05-12 For: 2023-03-31

Added on April 06, 2026

About this 10-Q

Quotemedia Inc filed this 10-Q on May 12, 2023, covering the quarter ended March 31, 2023 (FY2023 Q1).

Headline figures

Quarter ended March 31, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $4.75M; up 11.4% from $4.26M a year earlier
Net income: $113.29K; down 24.0% from net income of $149.04K a year earlier
Diluted EPS: $0.00; compared with $0.00 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated Filer	☐	Smaller reporting company	☒
(Do not check if a smaller reporting company)		Emerging growth company	☐

		Page
Part I.	Financial Information

Item 1.	Consolidated financial statements (unaudited):	3

	Condensed Consolidated Balance Sheets at March 31, 2023 and December 31, 2022	3

	Condensed Consolidated Statements of Operations for the three-months ended March 31, 2023 and 2022	4

	Condensed Consolidated Statements of Changes in Series A Redeemable Convertible Preferred Stock and Stockholders’ Deficit for the three-months ended March 31, 2023 and 2022	5

	Condensed Consolidated Statements of Cash Flows for the three-months ended March 31, 2023 and 2022	6

	Notes to Condensed Consolidated Financial Statements	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14

Item 4.	Controls and Procedures	20

Part II.	Other Information

Item 6.	Exhibits	21

Signatures		21

	March 31, 2023			December 31, 2022
ASSETS

Current assets:
Cash and cash equivalents	$	675,065		$	477,987
Accounts receivable, net		846,943			910,277
Prepaid expenses		255,652			231,694
Other current assets		52,196			29,092
Total current assets		1,829,856			1,649,050

Deposits		20,044			15,002
Property and equipment, net		4,377,548			4,208,250
Goodwill		110,000			110,000
Intangible assets		71,588			73,572
Operating lease right-of-use assets (see note 6)		459,587			506,219

Total assets	$	6,868,623		$	6,562,093

LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK, AND STOCKHOLDERS’ DEFICIT

Current liabilities:
Accounts payable and accrued liabilities	$	2,369,477		$	2,512,837
Current portion of deferred revenue (see note 4)		1,095,103			1,166,848
Current portion of operating lease liabilities (see note 6)		172,044			174,166
Total current liabilities		3,636,624			3,853,851

Long-term portion of deferred revenue		374,158			-
Long-term portion of operating lease liabilities (see note 6)		281,869			323,685
Preferred stock warrant liability (see note 7)		707,500			629,375

Mezzanine equity:
Preferred stock, 10,000,000 shares authorized:
Series A Redeemable Convertible Preferred stock, $0.001 par value,
550,000 shares designated; shares issued and outstanding:
123,685 at March 31, 2023 and December 31, 2022 (see note 7)		2,983,857			2,983,857

Stockholders’ deficit:
Common stock, $0.001 par value, 150,000,000 shares authorized, shares issued and outstanding: 90,477,798 at March 31, 2023 and December 31, 2022		90,479			90,479
Additional paid-in capital		18,903,272			18,903,272
Accumulated deficit		(20,109,136	)		(20,222,426	)
Total stockholders’ deficit		(1,115,385	)		(1,228,675	)

Total liabilities, mezzanine equity and stockholders’ deficit	$	6,868,623		$	6,562,093


	Three-months ended March 31,
	2023			2022 *(restated)*

REVENUE (see note 4)	$	4,750,048		$	4,263,796

COST OF REVENUE		2,319,935			2,240,116

GROSS PROFIT		2,430,113			2,023,680

OPERATING EXPENSES

Sales and marketing		824,053			748,268
General and administrative		852,514			671,891
Software development		630,073			470,056
		2,306,640			1,890,215

OPERATING INCOME		123,473			133,465

OTHER INCOME (EXPENSES), NET

Foreign exchange (loss) gain		(8,001	)		17,590
Interest expense		(1,452	)		(1,224	)
		(9,453	)		16,366

INCOME BEFORE INCOME TAXES		114,020			149,831

Income tax expense		(730	)		(790	)

NET INCOME	$	113,290		$	149,041

EARNINGS PER SHARE (see note 8)

Basic earnings per share	$	0.00		$	0.00
Diluted earnings per share	$	0.00		$	0.00

WEIGHTED AVERAGE SHARES OUTSTANDING (see note 8)

Basic		90,477,798			90,477,798
Diluted		120,743,864			119,835,799

	Series A Redeemable Convertible Preferred Stock				Common Stock				Additional					Total
Three-months ended March 31, 2023:	Number of Shares		Amount		Number of Shares		Amount		Paid-in Capital		Accumulated Deficit			Stockholders’ Equity (Deficit)
Balance, December 31, 2022		123,685	$	2,983,857		90,477,798	$	90,479	$	18,903,272	$	(20,222,426	)	$	(1,228,675	)

Net income		-		-		-		-		-		113,290			113,290

Balance, March 31, 2023		123,685	$	2,983,857		90,477,798	$	90,479	$	18,903,272	$	(20,109,136	)	$	(1,115,385	)

	·	Proprietary financial software applications and streaming market data feeds
	·	Subscriptions are typically sold for a fixed fee and revenue is recognized ratably over the term of the subscription.

	o	Web-delivered, embedded applications providing real-time, streaming market quotes and research information targeted to both professionals and non-professional users.
	o	Revenue is typically earned based on customer usage.

	·	Identification of the contract, or contracts, with a customer

	·	Identification of the performance obligations in the contract

	·	Determination of the transaction price

	·	Allocation of the transaction price to the performance obligations in the contract

	·	Recognition of revenue when, or as, the Company satisfies a performance obligation

	·	Sales and marketing expenses were increased by $55,625.
	·	Net income decreased by $55,625.

	·	Net income decreased by $55,625.
	·	Stock-based compensation expense – preferred stock warrants increased by $55,625.

	·	Additional Paid-in Capital was reduced by $750,000.
	·	Accumulated Deficit was reduced by $236,250.

	·	Additional Paid-in Capital was reduced by $750,000.
	·	Accumulated Deficit was reduced by $180,625.

	Three-months ended March 31,
	2023		2022
Portfolio Management Systems
Corporate Quotestream	$	1,827,253	$	1,716,097
Individual Quotestream		487,567		553,461
Interactive Content and Data APIs		2,435,228		1,994,238
Total revenue	$	4,750,048	$	4,263,796

Balance at December 31, 2022	$	1,166,848
Revenue recognized in the current period from the amounts in the beginning balance		(565,370	)
New deferrals, net of amounts recognized in the current period		866,786
Effects of foreign currency translation		997
Balance at March 31, 2023	$	1,469,261

Current portion of deferred revenue	$	1,095,103
Long-term portion of deferred revenue		374,158
Total deferred revenue	$	1,469,261

	March 31, 2023		December 31, 2022
Operating Leases

Operating lease right-of-use assets	$	459,587	$	506,219

Current portion of operating lease liability	$	172,044	$	174,166
Long-term portion of operating lease liability		281,868		323,685
Total operating lease liability	$	453,912	$	497,851

	March 31, 2023			December 31, 2022
Weighted Average Remaining Lease Term
Operating leases	2.5 years			2.7 years
Weighted Average Discount Rate
Operating leases		9.9	%		9.9	%

Year ending December 31,	Operating Leases

2023 (excluding the three-months ended March 31, 2023)	$	158,610
2024		202,030
2025		135,350
2026 and thereafter		19,168
Total lease payments		515,158
Less imputed interest		(61,245	)
Total	$	453,913

	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	56,719	$	85,820
Operating cash flows from finance leases		-		35
Financing cash flows from finance leases		-		690

	·	Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company could access.

	·	Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals.

	·	Level 3 inputs are unobservable inputs for the asset or liability, which is typically based on an entity’s own assumptions, as there is little, if any, related market activity.

Valuation Inputs	March 31, 2023			December 31, 2022
Expected Time to Expiration (years)		24.80			25.05
Stock Price on Valuation Date	$	0.28		$	0.21
Peer Volatility		51.52	%		52.31	%
Cash Flow Discount Rate		16.45	%		12.93	%

	Preferred Stock Warrant Liability
Fair value as of December 31, 2022	$	629,375
Change in fair value		78,125
Fair value as of March 31, 2023	$	707,500

Three-months ended March 31,	2023		2022		Change ($)			Change (%)

Corporate Quotestream	$	1,827,253	$	1,716,097	$	111,156			6	%
Individual Quotestream		487,567		553,461		(65,894	)		(12	%)
Total Portfolio Management Systems		2,314,820		2,269,558		45,262			2	%

Interactive Content and Data APIs		2,435,228		1,994,238		440,990			22	%

Total subscription revenue	$	4,750,048	$	4,263,796	$	486,252			11	%

Exhibit Number		Description of Exhibit
31.1		Certification of Principal Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a), promulgated under the Securities Exchange Act of 1934, as amended.
31.2		Certification of Principal Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a), promulgated under the Securities Exchange Act of 1934, as amended.
32.1		Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2		Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

By:	/s/ Keith J. Randall
	Keith J. Randall
	Chief Executive Officer and Chief Financial Officer
	(Duly authorized officer and principal financial officer)

1.	I have reviewed this Quarterly Report on Form 10-Q of Quotemedia, Inc.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have:

	a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

	a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

	By:	/s/ Keith J. Randall
		Keith J. Randall
		Chief Executive Officer

	By:	/s/ Keith J. Randall
		Keith J. Randall
		Chief Financial Officer

	(1)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and

	(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.