Form 10-Q - Quarterly report [Sections 13 or 15(d)]

Share Name	Share Symbol	Market	Type
Quotemedia Inc (QB)	USOTC:QMCI	OTCMarkets	Common Stock

	Price Change	% Change	Share Price	Bid Price	Offer Price	High Price	Low Price	Open Price	Shares Traded	Last Trade
	-0.002685	-1.49%	0.177165	0.1655	0.185	0.177165	0.172	0.173925	8,500	21:34:31

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark one)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period _________ to _________

Commission File Number: 0-28599

QuoteMedia, Inc.

(Exact name of registrant as specified in its charter)

Nevada		91-2008633
(State or Other Jurisdiction of Incorporation or Organization)		(IRS Employer Identification Number)

17100 East Shea Boulevard, Suite 230, Fountain Hills, AZ 85268

(Address of Principal Executive Offices)

(602) 830-1443

(Registrant’s Telephone Number, Including Area Code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

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 pursuant to Section 13(a) of the Exchange Act. ☐

The Registrant has 90,477,798 shares of common stock outstanding as of August 5, 2024.

QUOTEMEDIA, INC.

FORM 10-Q for the Quarter Ended June 30, 2024

INDEX

		Page
Part I.	Financial Information

Item 1.	Consolidated financial statements (unaudited):	3

	Condensed Consolidated Balance Sheets at June 30, 2024 and December 31, 2023	3

	Condensed Consolidated Statements of Operations for the three and six-months ended June 30, 2024 and 2023	4

	Condensed Consolidated Statements of Stockholders’ Equity for the three and six-months ended June 30, 2024	5

	Condensed Consolidated Statements of Changes in Series A Redeemable Convertible Preferred Stock and Stockholders’ Deficit for the three and six-months ended June 30, 2023	6

	Condensed Consolidated Statements of Cash Flows for the six-months ended June 30, 2024 and 2023	7

	Notes to Condensed Consolidated Financial Statements	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18

Item 4.	Controls and Procedures	24

Part II.	Other Information

Item 6.	Exhibits	25

Signatures		26

Table of Contents

PART I - FINANCIAL INFORMATION

ITEM 1. Financial Statements

QUOTEMEDIA, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

	June 30, 2024			December 31, 2023
ASSETS

Current assets:
Cash and cash equivalents	$	232,735		$	342,014
Accounts receivable, net		1,250,482			1,154,787
Prepaid expenses		218,552			133,478
Other current assets		132,176			104,931
Total current assets		1,833,945			1,735,210

Deposits		16,404			16,850
Property and equipment, net		261,551			302,224
Capitalized internal-use software development costs, net		4,833,259			4,552,910
Goodwill		110,000			110,000
Intangible assets		56,570			65,636
Operating lease right-of-use assets (see note 5)		292,047			393,472

Total assets	$	7,403,776		$	7,176,302

LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK, AND STOCKHOLDERS’ EQUITY (DEFICIT)

Current liabilities:
Accounts payable and accrued liabilities	$	2,532,243		$	2,210,933
Deferred revenue (see note 3)		1,865,332			1,456,381
Operating lease liabilities (see note 5)		204,686			206,146
Total current liabilities		4,602,261			3,873,460

Long-term liabilities:
Deferred revenue (see note 3)		258,676			375,568
Operating lease liabilities (see note 5)		84,899			191,735
Preferred stock warrant liability (see note 6)		-			611,563
Total long-term liabilities		343,575			1,178,866

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 June 30, 2024 and December 31, 2023 (see note 6)		-			2,983,857
Stockholders’ 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 June 30, 2024 and December 31, 2023 (see note 6)		2,983,857			-
Common stock, $0.001 par value, 150,000,000 shares authorized, shares issued and outstanding: 90,477,798 at June 30, 2024 and December 31, 2023		90,479			90,479
Additional paid-in capital		19,523,795			18,910,482
Accumulated deficit		(20,140,191	)		(19,860,842	)
Total stockholders’ equity (deficit)		2,457,940			(859,881	)

Total liabilities, mezzanine equity and stockholders’ equity (deficit)	$	7,403,776		$	7,176,302

The accompanying notes are an integral part of these consolidated condensed financial statements.

Table of Contents

QUOTEMEDIA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	Three-months ended June 30,						Six-months ended June 30,
	2024			2023			2024			2023

REVENUE (see note 3)	$	4,675,946		$	4,712,977		$	9,355,146		$	9,463,025

COST OF REVENUE		2,431,460			2,324,798			4,773,574			4,644,733

GROSS PROFIT		2,244,486			2,388,179			4,581,572			4,818,292

OPERATING EXPENSES

Sales and marketing		857,524			829,712			1,634,726			1,653,765
General and administrative		860,327			770,187			1,668,681			1,622,701
Software development		787,074			684,015			1,590,396			1,314,088
		2,504,925			2,283,914			4,893,803			4,590,554

OPERATING INCOME (LOSS)		(260,439	)		104,265			(312,231	)		227,738

OTHER INCOME (EXPENSES)

Foreign exchange gain (loss)		10,415			(30,073	)		35,722			(38,074	)
Interest expense		(419	)		(404	)		(1,372	)		(1,856	)
		9,996			(30,477	)		34,350			(39,930	)
NET INCOME (LOSS) BEFORE INCOME TAXES		(250,443	)		73,788			(277,881	)		187,808

Income tax expense		(730	)		(752	)		(1,468	)		(1,482	)

NET INCOME (LOSS)	$	(251,173	)	$	73,036		$	(279,349	)	$	186,326

EARNINGS (LOSS) PER SHARE (see note 7)

Basic earnings (loss) per share	$	(0.00	)	$	0.00		$	(0.00	)	$	0.00
Diluted earnings (loss) per share	$	(0.00	)	$	0.00		$	(0.00	)	$	0.00

WEIGHTED AVERAGE SHARES OUTSTANDING (see note 7)

Basic		90,477,798			90,477,798			90,477,798			90,477,798
Diluted		90,477,798			121,000,418			90,477,798			120,876,073

The accompanying notes are an integral part of these consolidated condensed financial statements.

Table of Contents

QUOTEMEDIA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(UNAUDITED)

	Series A Redeemable Convertible Preferred Stock				Common Stock
Three-months ended June 30, 2024:	Number of Shares		Amount		Number of Shares		Amount		Additional Paid-in Capital		Accumulated Deficit			Total Stockholders’ Equity (Deficit)

Balance, March 31, 2024		-	$	-		90,477,798	$	90,479	$	18,910,482	$	(19,889,018	)	$	(888,057	)

Reclassification of preferred stock warrants		-		-		-		-		611,563		-			611,563

Reclassification of series A redeemable convertible preferred stock		123,685		2,983,857		-		-		-		-			2,983,857

Stock-based compensation		-		-		-		-		1,750		-			1,750

Net loss		-		-		-		-		-		(251,173	)		(251,173	)

Balance, June 30, 2024		123,685	$	2,983,857		90,477,798	$	90,479	$	19,523,795	$	(20,140,191	)	$	2,457,940

	Series A Redeemable Convertible Preferred Stock				Common Stock
Six-months ended June 30, 2024:	Number of Shares		Amount		Number of Shares		Amount		Additional Paid-in Capital		Accumulated Deficit			Total Stockholders’ Equity (Deficit)

Balance, December 31, 2023		-	$	-		90,477,798	$	90,479	$	18,910,482	$	(19,860,842	)	$	(859,881	)

Reclassification of preferred stock warrants		-		-		-		-		611,563		-			611,563

Reclassification of series A redeemable convertible preferred stock		123,685		2,983,857		-		-		-		-			2,983,857

Stock-based compensation		-		-		-		-		1,750		-			1,750

Net loss		-		-		-		-		-		(279,349	)		(279,349	)

Balance, June 30, 2024		123,685	$	2,983,857		90,477,798	$	90,479	$	19,523,795	$	(20,140,191	)	$	2,457,940

The accompanying notes are an integral part of these consolidated condensed financial statements.

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QUOTEMEDIA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SERIES A REDEEMABLE CONVERTIBLE

PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT

(UNAUDITED)

	Series A Redeemable Convertible Preferred Stock				Common Stock
Three-months ended June 30, 2023:	Number of Shares		Amount		Number of Shares		Amount		Additional Paid-in Capital		Accumulated Deficit			Total Stockholders’ Deficit
Balance, March 31, 2023		123,685	$	2,983,857		90,477,798	$	90,479	$	18,903,272	$	(20,109,136	)	$	(1,115,385	)

Net income		-		-		-		-		-		73,036			73,036

Balance, June 30, 2023		123,685	$	2,983,857		90,477,798	$	90,479	$	18,903,272	$	(20,036,100	)	$	(1,042,349	)

	Series A Redeemable Convertible Preferred Stock				Common Stock
Six-months ended June 30, 2023:	Number of Shares		Amount		Number of Shares		Amount		Additional Paid-in Capital		Accumulated Deficit			Total Stockholders’ 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		-		-		-		-		-		186,326			186,326

Balance, June 30, 2023		123,685	$	2,983,857		90,477,798	$	90,479	$	18,903,272	$	(20,036,100	)	$	(1,042,349	)

The accompanying notes are an integral part of these consolidated condensed financial statements.

Table of Contents

QUOTEMEDIA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Six-months ended June 30,
	2024			2023
OPERATING ACTIVITIES:

Net (loss) income	$	(279,349	)	$	186,326

Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		1,480,760			1,271,683
Allowance for doubtful accounts		350,000			125,000
Stock-based compensation expense – common stock warrants		1,750			-
Stock-based compensation expense – preferred stock warrants		-			137,813
Changes in assets and liabilities:
Accounts receivable		(445,695	)		(89,853	)
Prepaid expenses		(85,074	)		3,863
Other current assets		(27,245	)		(77,772	)
Deposits		446			(351	)
Accounts payable, accrued and other liabilities		314,439			(324,580	)
Deferred revenue		292,059			642,450
Net cash provided by operating activities		1,602,091			1,874,579

INVESTING ACTIVITIES:

Purchase of property and equipment		(28,655	)		(37,120	)
Capitalized application software		(1,682,715	)		(1,575,346	)
Net cash used in investing activities		(1,711,370	)		(1,612,466	)

Net (decrease) increase in cash		(109,279	)		262,113

Cash and equivalents, beginning of period		342,014			477,987

Cash and equivalents, end of period	$	232,735		$	740,100

The accompanying notes are an integral part of these consolidated condensed financial statements.

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QUOTEMEDIA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

1. BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the generally accepted accounting principles for interim financial statements and instructions for Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments considered necessary for a fair presentation, have been included. Operating results for any quarter are not necessarily indicative of the results for any other quarter or for a full year. In connection with the preparation of the condensed consolidated financial statements, management evaluated subsequent events after the balance sheet date of June 30, 2024 through the filing of this report.

These consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto for the fiscal year ended December 31, 2023 contained in the Form 10-K filed with the Securities and Exchange Commission dated April 8, 2024.

Risks and Uncertainties

Adverse macroeconomic conditions, including inflation, slower growth or recession, and higher interest rates could materially adversely affect demand for the Company’s services.

2. SIGNIFICANT ACCOUNTING POLICIES

a) Nature of operations

Quotemedia, Inc. (the “Company”) is a software developer and distributor of financial market data and related services to a global marketplace. The Company specializes in the collection, aggregation, and delivery of both delayed and real-time financial data content via the Internet. The Company develops and license software components that deliver dynamic content to banks, brokerage firms, financial institutions, mutual fund companies, online information and financial portals, media outlets, public companies, and corporate intranets.

b) Basis of consolidation

These consolidated financial statements include the operations of QuoteMedia, Ltd., a wholly owned subsidiary of QuoteMedia, Inc. All intercompany transactions and balances have been eliminated.

c) Foreign currency translation and transactions

The U.S. dollar is the functional currency of all of the Company's operations. Foreign currency asset and liability amounts are remeasured into U.S. dollars at end-of-period exchange rates, except for equipment and intangible assets, which are remeasured at historical rates. Foreign currency income and expenses are remeasured at average exchange rates in effect during the year, except for expenses related to balance sheet amounts remeasured at historical exchange rates. Because the U.S. dollar is the functional currency, exchange gains and losses arising from remeasurement of foreign currency-denominated monetary assets and liabilities are included in income in the period in which they occur.

d) Allowances for doubtful accounts

The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of the Company’s customers to make required payments. The Company believes that the historical loss information it has compiled is a reasonable base on which to determine expected credit losses for trade receivables held at June 30, 2024, because the composition of the trade receivables at that date is consistent with that used in developing the historical credit-loss percentages (i.e., the similar risk characteristics of its customers and its credit practices have not changed significantly over time). The allowance for doubtful accounts was $350,000 and $225,000 as of June 30, 2024 and December 31, 2023, respectively. Bad debt expenses were $127,650 and $25,852 for the three-months ended June 30, 2024 and 2023, respectively. Bad debt expenses (recovery) were $140,979 and ($38,241) for the six-months ended June 30, 2024 and 2023, respectively.

e) Revenue

The Company generates substantially all of its revenue from subscriptions for access to its software products and related support. The Company licenses financial market data information on a monthly, quarterly, or annual basis. The Company’s products and services are divided into two main categories:

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QUOTEMEDIA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Interactive Content and Data Applications

	·	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.

Portfolio Management and Real-Time Quote Systems

Corporate Quotestream (Business-to-Business)

	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.

Individual Quotestream (Business-to-Consumer)

	o	Web-delivered, embedded applications providing real-time, streaming market quotes and research information targeted to non-professional users.
	o	Subscriptions are typically sold for a fixed fee and revenue is recognized ratably over the term of the subscription.

The Company does not provide its customers with the right to take possession of its software products at any time.

The Company determines revenue recognition through the following steps:

	·	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

The Company executes a signed contract with the customer that specifies services to be provided, the payment amounts and terms, and the period of service, among other terms.

Contract Balances

The Company’s corporate customers are invoiced based on fee schedules that are agreed upon in each customer contract. Individual Quotestream customers are charged a subscription fee based on their subscription agreement. The Company recognizes revenue when performance obligations have been satisfied, which is the date the customer has access to the contracted market data. The timing of revenue recognition may differ from the timing of invoicing to customers. The Company records a receivable when revenue is recognized prior to invoicing, or deferred revenue when revenue is recognized subsequent to invoicing. Upfront set-up or development fees are deferred and recognized evenly from the date performance obligations have been met to the end of the service term of the contract, as set-up and development fees are not distinct from the market data service contracts to which they relate.

The Company considers the following factors when determining if collection of a fee is reasonably assured: customer creditworthiness, past transaction history with the customer, current economic industry trends, and changes in customer payment terms. If these factors do not indicate collection is reasonably assured, revenue is not recognized until collection becomes reasonably assured, which is generally upon receipt of cash.

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QUOTEMEDIA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Cost of revenue

Cost of revenue primarily consists of customer support personnel-related compensation expenses, including salaries, bonuses, benefits, payroll taxes, and stock-based compensation expense, as well as expenses related to third-party hosting costs, software license fees, amortization of capitalized software development costs, amortization of acquired technology intangible assets, and allocated overhead.

f) Accounting Pronouncements

Not Yet Adopted

In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). This standard improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments in ASU 2023-07 will be applied retrospectively to all prior periods presented in the consolidated financial statements. The Company does not expect that the adoption of ASU 2023-07 will have a significant impact on the Company’s consolidated financial statements.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosure (“ASU 2023-09”). This standard provides transparency to income tax disclosures related to the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024 for public entities with early adoption permitted. The amendments in ASU 2023-09 will be applied prospectively in the consolidated financial statements. The Company does not expect that the adoption of ASU 2023-09 will have a significant impact on the Company’s consolidated financial statements.

Other accounting standards that have been issued by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption.

3. REVENUE

Disaggregated Revenue

The Company provides market data, financial web content solutions and cloud-based applications. Revenue by type of service consists of the following:

	Three-months ended June 30,				Six-months ended June 30,
	2024		2023		2024		2023
Portfolio Management Systems
Corporate Quotestream	$	1,782,826	$	1,876,898	$	3,564,511	$	3,704,151
Individual Quotestream		466,695		474,143		935,700		961,710
Interactive Content and Data APIs		2,426,425		2,361,936		4,854,935		4,797,164
Total revenue	$	4,675,946	$	4,712,977	$	9,355,146	$	9,463,025

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QUOTEMEDIA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Deferred Revenue

Changes in deferred revenue were as follows for the periods ending June 30,

	2024			2023
Beginning balance at Jan 1,	$	1,831,949		$	1,166,848
Revenue recognized in the current period from the amounts in the beginning balance		(1,105,335	)		(868,395	)
New deferrals, net of amounts recognized in the current period		1,381,619			1,507,660
Effects of foreign currency translation		15,775			3,185
Total deferred revenue	$	2,124,008		$	1,809,298

Current portion of deferred revenue	$	1,865,332	$	1,530,329
Long-term portion of deferred revenue		258,676		278,969
Total deferred revenue	$	2,124,008	$	1,809,298

Practical Expedients

As permitted under ASU 2014-09 (and related ASUs), unsatisfied performance obligations are not disclosed, as the original expected duration of substantially of the Company’s contracts is one year or less.

4. RELATED PARTIES

The Company entered into a five-year office lease with 410734 B.C. Ltd. effective May 1, 2021 for approximately $6,500 per month. David M. Shworan, CEO of Quotemedia Ltd., is a control person of 410734 B.C. Ltd. There were no amounts due to 410734 B.C. Ltd. at June 30, 2024 and December 31, 2023.

The Company pays a monthly marketing service fee of $3,000 to Bravenet Web Services, Inc. (“Bravenet”). At June 30, 2024 and December 31, 2023, there was $15,000 and $12,500 due to Bravenet related to this agreement, respectively. David M. Shworan is a control person of Bravenet. At June 30, 2024 and December 31, 2023, there were $185,498 and $68,988 in unreimbursed expenses owed to Keith Randall, CEO of Quotemedia, Inc., respectively. As a matter of policy all significant related party transactions are subject to review and approval by the Company’s Board of Directors.

5 .LEASES

The Company has operating leases for corporate offices. The Company’s leases have remaining lease terms of 1 year to 3 years. Management determines if an arrangement is a lease at inception. Operating lease assets and liabilities are included in operating lease right-of-use assets and operating lease liabilities, respectively, on the Company’s consolidated balance sheets. Finance lease assets and liabilities are included in property and equipment and finance lease liabilities, respectively, on the Company’s consolidated balance sheets.

Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The Company elected the short-term lease exception and therefore only recognize right-of-use assets and lease liabilities for leases with a term greater than one year. When determining lease terms, the Company factors in options to extend or terminate leases when it is reasonably certain that the Company will exercise that option. The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. For certain leases the Company accounts for the lease and non-lease components as a single lease component.

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QUOTEMEDIA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Supplemental balance sheet information related to leases was as follows:

	June 30, 2024		December 31, 2023
Operating Leases

Operating lease right-of-use assets	$	292,047	$	393,472

Current portion of operating lease liability	$	204,686	$	206,146
Long-term portion of operating lease liability		84,899		191,735
Total operating lease liability	$	289,585	$	397,881

	June 30, 2024			December 31, 2023
Weighted Average Remaining Lease Term
Operating leases	1.5 years			1.9 years
Weighted Average Discount Rate
Operating leases		9.5	%		9.5	%

Maturities of lease liabilities were as follows:

Year ending December 31,	Operating Leases
2024 (excluding the six-months ended June 30, 2024)	$	114,182
2025		163,272
2026		33,861
Total lease payments		311,315
Less imputed interest		(21,730	)
Total	$	289,585

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QUOTEMEDIA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

The components of lease expense for the three and six-months ended June 30, 2024 and 2023 were as follows:

	Three-months ended June 30,				Six-months ended June 30,
	2024		2023		2024		2023
Operating lease costs:
Operating lease costs	$	58,969	$	59,165	$	118,010	$	117,592
Short-term lease costs		27,338		26,993		54,674		53,980
Total operating lease costs	$	86,307	$	86,158	$	172,684	$	171,572

Supplemental cash flow information for the six-months ended June 30, 2024 and 2023 related to leases was as follows:

	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	115,146	$	116,784

There was no additional right of use assets obtained in exchange for lease obligations for the six-months ended June 30, 2024 and 2023.

6. REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT

a) Redeemable Convertible Preferred Stock

The Company is authorized to issue up to 10,000,000 non-designated preferred shares at the Board of Directors’ discretion.

A total of 550,000 shares of the Company’s preferred stock are designated as “Series A Redeemable Convertible Preferred Stock.” The Series A redeemable convertible preferred stock has no dividend or voting rights.

At June 30, 2024 and December 31, 2023, 123,685 shares of Series A redeemable convertible preferred stock were outstanding. No shares of Series A redeemable convertible preferred stock were issued or redeemed during the three and six-months ended June 30, 2024 and 2023.

Redemption Rights

Holders of Series A redeemable convertible preferred stock shall have the right to convert their shares into shares of common stock at the rate of 83.33 shares of common stock for one share of Series A redeemable convertible preferred stock, at any time following the date the closing price of a share of common stock on a securities exchange or actively traded over-the-counter market has exceeded $0.30 for ninety (90) consecutive trading days. The conversion rights are subject to the availability of authorized but unissued shares of common stock.

In the event of any liquidation, dissolution, or winding up of the Company, whether voluntary or involuntary, before any distribution or payment is made to any holders of any shares of common stock, the holders of shares of Series A redeemable convertible preferred stock shall be entitled to be paid first out of the assets of the Company available for distribution to holders of the Company’s capital stock whether such assets are capital, surplus, or earnings, an amount equal to $25.00 per share of Series A redeemable convertible preferred stock.

Reclassification of Redeemable Convertible Preferred Stock resulting from Amendment to Redemption Rights

Prior to April 26, 2024, 1,000 Series A redeemable convertible preferred stock could be redeemed at the holder’s option at the liquidation value of $25 per share if the cash balance of the Company as reported at the end of each fiscal quarter exceeds $400,000. In accordance with Accounting Standards Update (“ASU”) 480-10-S99, because a limited number of Series A redeemable convertible preferred stock could be redeemed at the holder’s option if the above criteria are met, it was classified as mezzanine equity and not permanent equity.

On April 26, 2024, the Certificate of Designation of the Series A Redeemable Convertible Preferred Stock was amended removing the above redemption right, at no cost to the Company, resulting in a change in the classification of Series A redeemable preferred stock from mezzanine equity to permanent equity. In addition, the amendment resulted in a change to the classification of warrants to purchase shares of Series A redeemable convertible preferred stock (“preferred stock warrants”) from preferred stock warrant liability to additional paid-in capital. There was no impact on the consolidated statement of operations resulting from the amendment.

b) Common stock

No shares of common stock were issued during the three and six-months ended June 30, 2024 and 2023.

c) Stock Options and Warrants

FASB ASC 718, Stock Compensation, requires all share-based payments to employees, including grants of employee stock options, to be recognized as compensation expense over the service period (generally the vesting period) in the consolidated financial statements based on their fair values. The impact of forfeitures that may occur prior to vesting is also estimated and considered in the amount recognized.

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QUOTEMEDIA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Total stock-based compensation expense, related to all of the Company’s stock-based awards, recognized for the three and six-months ended June 30, 2024 and 2023 was comprised as follows:

	Three-months ended June 30,				Six-months ended June 30,
	2024		2023		2024		2023

Sales and marketing	$	1,750	$	-	$	1,750	$	-
Total stock-based compensation expense	$	1,750	$	-	$	1,750	$	-

Common Stock Options and Warrants

The following table summarizes the Company’s common stock option and warrant activity for the six-months ended June 30, 2024:

	Common Stock Options and Warrants			Weighted-Average Grant Date Exercise Price

Outstanding at December 31, 2023		25,772,803		$	0.06
Granted during the period		350,000		$	0.03
Forfeited during the period		(350,000	)	$	0.03
Outstanding at June 30, 2024		25,772,803		$	0.06

The following table summarizes the weighted average remaining contractual life and exercise price of common stock options and warrants outstanding and exercisable at June 30, 2024:

Weighted

Average

Weighted

Remaining

Average

Number

Contractual

Exercise

Outstanding

Life (Years)

Price

$0.03-0.11

25,772,803

5.33

0.06

At June 30, 2024, there was no unrecognized compensation cost related to non-vested options and warrants granted to purchase common stock.

Management calculates the fair value of stock options and warrants granted to purchase common stock under the provisions of FASB ASC 718 using the Black-Scholes valuation model with the following assumptions:

	Three-months ended June 30,					Six-months ended June 30,
	2024			2023		2024			2023

Expected dividend yield		-			N/A		-			N/A
Expected stock price volatility		76	%		N/A		76	%		N/A
Risk-free interest rate		4	%		N/A		4	%		N/A
Expected life of options (years)		2.50			N/A		2.50			N/A
Weighted average fair value of options and warrants granted	$	0.17			N/A	$	0.17			N/A

All stock options and warrants to purchase common stock have been granted with exercise prices equal to or greater than the market value of the underlying common shares on the date of grant. At June 30, 2024, the aggregate intrinsic value of options and warrants outstanding and exercisable was $3,147,838. The intrinsic value of stock options and warrants are calculated as the amount by which the market price of the Company’s common stock exceeds the exercise price of the option or warrant.

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QUOTEMEDIA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Preferred Stock Warrants

Pursuant to the December 28, 2017 Compensation Agreement with David M. Shworan, the President and Chief Executive Officer of QuoteMedia, Ltd., a wholly owned subsidiary of Quotemedia, Inc., the Company issued Mr. Shworan warrants to purchase shares of Series A redeemable convertible preferred stock (“compensation preferred stock warrants”) in lieu of a cash salary. From the period December 28, 2017 to December 31, 2019 the Company issued a total of 31,250 Compensation Preferred Stock Warrants at an exercise price equal to $1.00 per share.

Also pursuant to the Compensation Agreement with Mr. Shworan, on December 28, 2017 the Company issued Mr. Shworan warrants to purchase up to 382,243 shares of Series A redeemable convertible preferred Stock at an exercise price equal to $1.00 per share (“liquidity preferred stock warrant”). The liquidity preferred stock warrants only vest and become exercisable on the consummation of a liquidity event as defined in the Company’s Certificate of Designation of Series A Redeemable Convertible Preferred Stock. The probability of the liquidity event performance condition is not currently determinable or probable; therefore, no compensation expense has been recognized as of June 30, 2024. The probability is re-evaluated each reporting period. As of June 30, 2024, there was $7,480,496 in unrecognized stock-based compensation expense related to these liquidity preferred stock warrants. Since the liquidity preferred stock warrants only vest and become exercisable on the consummation of a liquidity event which is currently determined not to be probable, management is also unable to determine the weighted-average period over which the unrecognized compensation cost will be recognized.

As of June 30, 2024, there were a total of 413,493 preferred stock warrants outstanding with a weighted average remaining contractual life of 23.5 years. As of June 30, 2024, 31,250 preferred stock warrants were exercisable. No preferred stock warrants were granted or exercised for the six-months ended June 30, 2024 and 2023.

Reclassification of Preferred Stock Warrant Liability resulting from Amendment to Redemption Rights

As discussed in note 6 a), the amendment to the redemption rights for the Series A redeemable convertible preferred stock resulted in a change to the classification of preferred stock warrants on April 26, 2024. The preferred stock warrant liability of $611,563 was reclassified to additional paid-in capital. There was no impact on the consolidated statement of operations resulting from the amendment.

Fair Value Measurement of Compensation Preferred Stock Warrants

The Company adheres to ASC 820, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 applies to reported balances that are required or permitted to be measured at fair value under existing accounting pronouncements; accordingly, the standard does not require any new fair value measurements of reported balances.

ASC 820 emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy).

	·	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.

In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

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QUOTEMEDIA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

The estimated fair value of the preferred stock warrant liability is determined using Level 3 inputs. The preferred stock warrants were valued using a bond plus option framework reflecting the cash flow of the preferred stock warrants and used a probability weighted sum of the value in each potential year before expiration to estimate the fair value of the preferred stock warrants. Volatility was based on public peer companies, adjusted for size and leverage. Risk-free rate was selected based on term matched Treasury securities. Bond repayment depends on the Company’s timely access to the required cash and as such, is discounted at the Company’s assumed borrowing rate. This model was run based on the Management's expected term and probabilities of a liquidity event. The key inputs for the framework were as follows:

Valuation Inputs	June 30, 2024		December 31, 2023
Expected Time to Expiration (years)		N/A		24.05
Stock Price on Valuation Date		N/A	$	0.23
Peer Volatility		N/A		47.35	%
Cash Flow Discount Rate		N/A		15.86	%

The following table sets forth a summary of the changes in the fair value of the Level 3 preferred stock warrant liability for the three and six-months ended June 30, 2024 and 2023:

Fair value as of December 31, 2023 and 2022, respectively	$	611,563		$	629,375
Change in fair value		-			78,125
Fair value as of March 31, 2024 and 2023, respectively	$	611,563		$	707,500
Change in fair value		-			59,688
Reclassification of preferred stock warrants on April 26, 2024		(611,563	)		-
Fair value as of June 30, 2024 and 2024, respectively		-			767,188

The changes in fair value attributable to the preferred stock warrants are recorded as an adjustment to stock compensation expense and reported in sales and marketing expense on the three and six-months ended June 30, 2024 and 2023 statements of operations.

7. EARNINGS (LOSS) PER SHARE

Basic net income (loss) per share is computed by dividing net income (loss) during the period by the weighted-average number of common shares outstanding, excluding the dilutive effects of common stock equivalents. Common stock equivalents include redeemable convertible preferred stock, stock options and warrants. Diluted net income per share is computed by dividing net income by the weighted-average number of dilutive common shares outstanding during the period. Diluted shares outstanding is calculated using the treasury stock method by adding to the weighted shares outstanding any potential shares of common stock from outstanding redeemable convertible preferred stock, stock options and warrants that are in-the-money. In periods when a net loss is reported, all common stock equivalents are excluded from the calculation because they would have an anti-dilutive effect, meaning the loss per share would be reduced. Therefore, in periods when a loss is reported, the calculation of basic and dilutive loss per share results in the same value. The calculations for basic and diluted net income per share for the three and six-months ended June 30, 2024 and 2023 are as follows:

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QUOTEMEDIA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

	Three-months ended June 30,					Six-months ended June 30,
	2024			2023		2024			2023

Net income (loss)	$	(251,173	)	$	73,036	$	(279,349	)	$	186,326

Weighted average common shares used to calculate net income per share		90,477,798			90,477,798		90,477,798			90,477,798
Warrants to purchase redeemable convertible preferred stock		-			2,499,900		-			2,499,900
Redeemable convertible preferred stock		-			10,306,671		-			10,306,671
Stock options and warrants to purchase common stock		-			17,716,049		-			17,591,704
Weighted average common shares used to calculate diluted net income per share		90,477,798			121,000,418		90,477,798			120,876,073

Net income (loss) per share – basic	$	(0.00	)	$	0.00	$	(0.00	)	$	0.00
Net income (loss) per share – diluted	$	(0.00	)	$	0.00	$	(0.00	)	$	0.00

The number of shares of potentially dilutive common stock related to options and warrants that were excluded from the calculation of dilutive shares since the inclusion of such shares would be anti-dilutive for the three and six-months ended June 30, 2024 and 2023 are shown below:

	Three-months ended June 30,				Six-months ended June 30,
	2024		2023		2024		2023
Warrants to purchase redeemable convertible preferred stock	$	2,499,900	$	-	$	2,499,900	$	-
Redeemable convertible preferred stock		10,306,671		-		10,306,671		-
Stock options and warrants to purchase common stock		16,370,492		-		16,551,430		-
Total potential common shares excluded	$	29,177,063	$	-	$	29,358,001	$	-

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ITEM 2. Management’s Discussion and Analysis

The following discussion should be read in conjunction with our consolidated financial statements and notes thereto included elsewhere in this report. We caution readers regarding certain forward looking statements in the following discussion, elsewhere in this report, and in any other statements, made by, or on behalf of our company, whether or not in future filings with the Securities and Exchange Commission. Forward-looking statements are statements not based on historical information and which relate to future operations, strategies, financial results, or other developments. Forward-looking statements are necessarily based upon estimates and assumptions that are inherently subject to significant business, economic, and competitive uncertainties and contingencies, many of which are beyond our control and many of which, with respect to future business decisions, are subject to change. These uncertainties and contingencies can affect actual results and could cause actual results to differ materially from those expressed in any forward looking statements made by, or on behalf of, our company. Uncertainties and contingencies that might cause such differences include those risk factors disclosed in our annual report on Form 10-K for the year ended December 31, 2023 and other reports filed from time to time with the SEC.

We disclaim any obligation to update forward-looking statements. All references to “we”, “our”, “us”, or “QuoteMedia” refer to QuoteMedia, Inc., and its predecessors, operating divisions, and subsidiaries.

This report should be read in conjunction with our Form 10-K for the fiscal year ended December 31, 2023 filed with the Securities and Exchange Commission.

Overview

We are a developer of financial software and a distributor of market data and research information to online brokerages, clearing firms, banks, media properties, public companies, and financial service corporations worldwide. Through the aggregation of information from many direct data, news, and research sources, we offer a comprehensive range of solutions for all market-related information provisioning requirements.

We have three general product lines: Interactive Content and Data APIs, Data Feed Services, and Portfolio Management Systems. For financial reporting purposes, our product categories share similar economic characteristics and share costs; therefore, they are combined into one reporting segment.

Our Interactive Content and Data APIs consist of a suite of software applications that provide publicly traded company and market information to corporate clients via the Internet. Products include stock market quotes, fundamentals, historical and interactive charts, company news, filings, option chains, insider transactions, corporate financials, corporate profiles, screeners, market research information, investor relations provisions, level II, watch lists, and real-time quotes. All our content solutions are completely customizable and embedded directly into client Web pages for seamless integration with existing content. We are continuing to develop and launch new modules of QMod^TM, our new proprietary Web delivery system. QMod was created for secure market data provisioning as well as ease of integration and unlimited customization. Additionally, QMod delivers search engine optimized (SEO) ready responsive content designed to adapt on the fly when rendered on mobile devices or standard Web pages – automatically resizing and reformatting to fit the device on which it is displayed.

Our Data Feed Services consist of raw streaming real-time market data delivered over the Internet or via dedicated telecommunication lines. We provide supplemental fundamental, historical, and analytical data, keyed to the same symbology, which provides a complete market data solution offered to our customers. Currently, QuoteMedia’s Data Feed services include complete coverage of North American exchanges and over 70 exchanges worldwide. For financial reporting purposes, Data Feed Services revenue is included in the Interactive Content and Data APIs revenue totals.

Our Portfolio Management Systems consist of Quotestream^TM, Quotestream Mobile, Quotestream Professional, and our Web Portfolio Management systems. Quotestream Desktop is an Internet-based streaming online portfolio management system that delivers real-time and delayed market data to both consumer and corporate markets. Quotestream has been designed for syndication and private branding by brokerage, banking, and Web portal companies. Quotestream’s enhanced features and functionality – most notably tick-by-tick true streaming data, significantly enhanced charting features, and a broad range of additional research and analytical content and functionality – offer a professional-level experience to nonprofessional users.

Quotestream Professional is specifically designed for use by financial services professionals, offering exceptional coverage and functionality at extremely aggressive pricing. Quotestream Professional features broad market coverage, reliability, complete flexibility, ultra-low-latency tick-by-tick data, as well as completely customizable screens, advanced charting, comprehensive technical analysis, news, and research data.

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Quotestream Mobile is a true companion product to the Quotestream desktop products (Quotestream and Quotestream Professional) – any changes made to portfolios in either the desktop or mobile application are automatically reflected in the other.

A key feature of QuoteMedia’s business model is that all our product lines generate recurring monthly licensing revenue from each client. Contracts to license Quotestream to our corporate clients, for example, typically have a term of one to five years and are automatically renewed unless notice is given at least 90 days prior to the expiration of the current license term. We also generate Quotestream revenue through individual end-user licenses on a monthly or annual subscription fee basis. Interactive Content and Data APIs and Market Data Feeds are licensed for a monthly, quarterly, annual, or semi-annual subscription fee. Contracts to license our Financial Data Products and Data Feeds typically have a term of one to five years and are automatically renewed unless notice is given 90 days prior to the expiration of the contract term.

Business Environment and Trends

While our licensed-based revenue is generally more recurring in nature, the uncertainty caused by the recent market downturn and rising inflation may result in some clients to delay purchasing decisions, product and service implementations or cancel or reduce spending with us. Events in Ukraine and Russia have continued to cause disruptions in the global financial markets. While we do not have any operations or customers in Ukraine or Russia, we will continue to monitor the situation as a prolonged conflict could impact our business.

Approximately 39% of our revenue and expenses are denominated in Canadian dollars. The Canadian dollar remained relatively unchanged against the U.S. dollar when comparing the average exchange rate for the six-months ended June 30, 2024 versus the comparative 2023 period. Because our Canadian dollar revenue and expenses are evenly matched, exchange rate fluctuations have minimal impact on our net income and cash flows.

Our revenue decreased 1% for the six-months ended June 30, 2024 versus the comparative 2023 period. Based on revenue already under contract, we expect revenue growth to improve for the remainder of fiscal 2024.

Plan of Operation

For the remainder of 2024 we plan to continue to expand our product lines and improve our infrastructure. We plan to continue to add more features and data to our existing products and release newer versions with improved performance and flexibility for client integration. This expansion is expected to result in both increased revenue and costs for the remainder of fiscal 2024.

We will maintain our focus on marketing Quotestream for deployments by brokerage firms to their retail clients and continue our expansion into the investment professional market with Quotestream Professional. We also plan to continue the growth of our Data Feed Services client base, particularly through the addition of major new international data feed coverage, as well as new data delivery products.

QuoteMedia will continue to focus on increasing the sales of its Interactive Content and Data APIs, particularly in the context of large-scale enterprise deployments encompassing solutions ranging across several product lines. QMod is a major component of this strategy, given the broad demand for mobile-ready, SEO-friendly Web content.

Important development projects for the remainder of 2024 include broad expansion of data and news coverage, including the addition of a wide array of international exchange data and news, video feeds, expansion of fixed-income coverage, and the introduction of several new and upgraded market information products.

New deployments of our trade integration capabilities, which allow our Quotestream applications to interact with our brokerage clients’ back-end trade execution and reporting platforms (enabling on-the-fly trade execution and tracking of holdings) are underway and will continue to be a priority for the remainder of 2024.

We are also creating new proprietary data sets, analytics, and scoring mechanisms. We are now aggregating data direct from the sources to produce data sets that are proprietary to QuoteMedia. This allows us to offer our clients new data products and lower our product costs structure as we replace some of our existing data providers with our own lower cost data.

Opportunistically, efforts will be made to evaluate and pursue the development of additional new products that may eventually be commercialized by our company. Although not currently anticipated, we may require additional capital to execute our proposed plan of operation. There can be no assurance that such additional capital will be available to our company on commercially reasonable terms or at all.

Our future performance will be subject to a number of business factors, including those beyond our control, such as a continuation of market uncertainty and evolving industry needs and preferences, as well as the level of competition and our ability to continue to successfully market our products and technology. There can be no assurance that we will be able to successfully implement our marketing strategy, continue our revenue growth, or maintain profitable operations.

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Critical Accounting Policies and Estimates

Critical Accounting Policies and Estimates

In the 2023 Annual Report, we disclose our critical accounting policies and estimates upon which our consolidated financial statements are derived. There have been no material changes to these policies since December 31, 2023. Readers are encouraged to read the 2023 Annual Report in conjunction.

Results of Operations

Revenue

Three-months ended June 30,	2024		2023		Change ($)			Change (%)

Corporate Quotestream	$	1,782,826	$	1,876,898	$	(94,072	)		(5	)%
Individual Quotestream		466,695		474,143		(7,448	)		(2	)%
Total Portfolio Management Systems		2,249,521		2,351,041		(101,520	)		(4	)%

Interactive Content and Data APIs		2,426,425		2,361,936		64,489			3	%

Total subscription revenue	$	4,675,946	$	4,712,977	$	(37,031	)		(1	)%

Six-months ended June 30,	2024		2023		Change ($)			Change (%)

Corporate Quotestream	$	3,564,511	$	3,704,151	$	(139,640	)		(4	)%
Individual Quotestream		935,700		961,710		(26,010	)		(3	)%
Total Portfolio Management Systems		4,500,211		4,665,861		(165,650	)		(4	)%

Interactive Content and Data APIs		4,854,935		4,797,164		57,771			1	%

Total subscription revenue	$	9,355,146	$	9,463,025	$	(107,879	)		(1	)%

Total licensing revenue decreased 1% when comparing the three and six-months ended June 30, 2024 and 2023.

Total Portfolio Management Systems revenue decreased 4% for the three and six-months ended June 30, 2024 and 2023. Corporate Quotestream revenue decreased 5% and 4% for the three and six-months ended June 30, 2024 from the comparative periods in 2023 due to decreases in average revenue per customer since the comparative periods. This decrease in average revenue per customer was due mainly to a decrease in usage for one of our larger Corporate Quotestream customers since the comparative periods in 2023.

Individual Quotestream revenue decreased 2% and 3% for the three and six-months ended June 30, 2024 from the comparative periods in 2023 due to decreases in total subscribers, offset by increases in average revenue per subscriber.

Interactive Content and Data APIs revenue increased 3% and 1% for the three and six-months ended June 30, 2024 from the comparative periods in 2023. Increases in average revenue per customer were offset by decreases in the number of customers since the comparative periods. The launch of new products and the expansion of our data coverage have allowed us to attract larger clients, increasing our average revenue per customer.

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Cost of Revenue and Gross Profit Summary

Three-months ended June 30,	2024			2023			Change ($)			Change (%)

Cost of revenue	$	2,431,460		$	2,324,798		$	106,662			5	%
Gross profit	$	2,244,486		$	2,388,179		$	(143,693	)		(6	)%
Gross margin %		48	%		51	%

Six-months ended June 30,	2024			2023			Change ($)			Change (%)

Cost of revenue	$	4,773,574		$	4,644,733		$	128,841			3	%
Gross profit	$	4,581,572		$	4,818,292		$	(236,720	)		(5	)%
Gross margin %		49	%		51	%

Our cost of revenue consists of fixed and variable stock exchange fees and data feed provisioning costs. Cost of revenue also includes amortization of capitalized internal-use software costs. We capitalize the costs associated with developing new products during the application development stage.

Our cost of revenue increased 5% and 3% for the three and six-months ended June 30, 2024 from the comparative periods in 2023. This was mainly due to increased amortization expenses associated with internally developed application software resulting from our major growth initiative, which included investing in infrastructure, new product development, data collection, and the expansion of our global market coverage.

Overall, the cost of revenue increased as a percentage of sales, as evidenced by our gross margin percentage that decreased to 48% and 49% for the three and six-months ended June 30, 2024 from 51% in the comparative 2023 periods.

Operating Expenses Summary

Three-months ended June 30,	2024		2023		Change ($)		Change (%)

Sales and marketing	$	857,524	$	829,712	$	27,812		3	%
General and administrative		860,327		770,187		90,140		12	%
Software development		787,074		684,015		103,059		15	%
Total operating expenses	$	2,504,925	$	2,283,914	$	221,011		10	%

Six-months ended June 30,	2024		2023		Change ($)			Change (%)

Sales and marketing	$	1,634,726	$	1,653,765	$	(19,039	)		(1	)%
General and administrative		1,668,681		1,622,701		45,980			3	%
Software development		1,590,396		1,314,088		276,308			21	%
Total operating expenses	$	4,893,803	$	4,590,554	$	303,249			7	%

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Sales and Marketing

Sales and marketing consist primarily of sales and customer service salaries, investor relations, travel and advertising expenses. Sales and marketing expenses were relatively flat when comparing periods, increasing 3% and decreasing 1% for the three and six-months ended June 30, 2024 when compared to the same periods in 2023. Personnel costs increased for the three and six-months ended June 30, 2024 due to additional sales personnel hired since the comparative periods to support our product growth initiatives and salary increases for existing personnel. The increases in personnel costs were offset by decreases in stock-based compensation expenses as $78,125 and $59,688 in stock-based compensation expenses were incurred in March and June 2023, respectively, related to the fair value adjustment to our preferred stock warrant liability.

General and Administrative

General and administrative expenses consist primarily of salaries expense, office rent, insurance premiums, and professional fees. General and administrative expenses increased 12% and 3% for the three and six-months ended June 30, 2024, when compared to the same periods in 2023. The increases are due to increases in bad debt expenses, offset by decreases in professional fees as we incurred additional professional fees in the comparative 2023 periods resulting from the change of principal accountants in January 2023.

Software Development

Software development expenses consist primarily of costs associated with the design, programming, and testing of our software applications during the preliminary project stage. Software development expenses also include costs incurred to maintain our software applications.

Software development expenses increased 15% and 21% for the three and six-months ended June 30, 2024 when compared to the same periods in 2023, primarily due to new personnel hired since the comparative periods to improve our infrastructure, security, and business continuity management. The increase in software development expenses was also due to a decrease in the percentage of total development costs capitalized during the three and six-month periods ending June 30, 2024, when compared to the same periods in 2023.

We capitalized $867,400 and $1,682,715 of development costs for the three and six-month periods ended June 30, 2024 compared to $808,832 and $1,575,346 in the same periods in 2023. These costs relate to the development of application software used by subscribers to access, manage, and analyze information in our databases. Capitalized costs associated with application software are amortized over their estimated economic life of three years.

Other Income and (Expense) Summary

Three-months ended June 30,	2024			2023

Foreign exchange gain (loss)	$	10,415		$	(30,073	)
Interest expense, net		(419	)		(404	)
Total other income (expense), net	$	9,996		$	(30,477	)

Six-months ended June 30,	2024			2023

Foreign exchange gain (loss)	$	35,722		$	(38,074	)
Interest expense, net		(1,372	)		(1,856	)
Total other income (expenses), net	$	34,350		$	(39,930	)

Table of Contents

Foreign Exchange Gain

We incurred foreign exchange gains of $10,415 and $35,722 for the three and six-months periods ended June 30, 2024, compared to foreign exchange losses of $30,073 and $38,074 in the comparative 2023 periods. Foreign exchange gains and losses arise from the re-measurement of Canadian dollar monetary assets and liabilities into U.S. dollars and from exchange rate fluctuations between transaction and settlement dates for foreign currency denominated transactions.

Interest Expense, Net

Interest expense is netted against interest earned on cash balances. Net interest expenses of $953 and $1,372 were incurred for the three and six-months periods ended June 30, 2024, compared to $1,452 and $1,856 incurred in the same 2023 periods.

Provision for Income Taxes

For the three and six-months periods ended June 30, 2024, the Company recorded $730 and $1,468 in Canadian income tax expenses compared to $752 and $1,482 in the comparative periods in 2023.

Net Income (Loss) for the Period

As a result of the foregoing, our net losses for the three and six-months periods ended June 30, 2024 were $251,173 and $279,349 compared to net income of $71,036 and $186,326 in the comparative periods in 2023. The basic and diluted loss per share was $(0.00) for the three and six-months periods ended June 30, 2024, compared to the basic and diluted earnings per share of $0.00 for the three and six-months periods ended June 30, 2023.

Liquidity and Capital Resources

Our cash totaled $232,735 at June 30, 2024, as compared with $342,014 at December 31, 2023, a decrease of $109,279. Net cash of $1,602,091 was provided by operations for the six-months ended June 30, 2024, primarily due to adjustments for non-cash charges and the increase in accounts payable and accrued liabilities, offset by an increase in accounts receivable. Net cash used in investing activities for the six-months ended June 30, 2024 was $1,711,370, due to capitalized application software costs and purchases of computer equipment.

We typically operate with a working capital deficit. As of June 30, 2024, our working capital deficit was $2,768,316, however current liabilities include $1,865,332 in deferred revenue. The expected costs necessary to realize the deferred revenue are minimal. If circumstances dictate, we have the flexibility to reduce development spending to maintain a strong liquidity position.

Based on the factors discussed above, we believe that our cash on hand and cash generated from operations will be sufficient to fund our current operations for at least the next 12 months through July 2025. However, implementing our business plan may require additional financing. Additional financing may come from future equity or debt offerings that could result in dilution to our stockholders. Further, current adverse capital and credit market conditions could limit our access to capital. We may be unable to raise capital or bear an unattractive cost of capital that could reduce our financial flexibility.

Our long-term liquidity requirements will depend on many factors, including the rate at which we expand our business and whether we do so internally or through acquisitions. To the extent that the funds generated from operations are insufficient to fund our activities in the long term, we may be required to raise additional funds through public or private financing. No assurance can be given that additional financing will be available or that, if it is available, it will be on terms acceptable to us.

Foreign Exchange Risk

Currently, approximately 39% of our consolidated revenue and expenses are denominated in Canadian dollars. Since currently our Canadian dollar revenue and expenses are closely matched, our consolidated cashflows are not significantly impacted by foreign exchange fluctuations.

Off-Balance Sheet Arrangements

At June 30, 2024 and December 31, 2023, we did not have any unconsolidated entities or financial partnerships, or other off-balance sheet arrangements.

Table of Contents

ITEM 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation and supervision of our Chairman of the Board and Chairman of the Audit Committee, Chief Executive Officer and Chief Financial Officer, have evaluated our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) to the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of June 30, 2024, and concluded that our disclosure controls and procedures were not effective due to material weaknesses in internal control over financial reporting. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives, and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on that evaluation, our management identified the following material weaknesses in our internal control over financial reporting, as described below.

Notwithstanding the material weaknesses described below our management has concluded that our consolidated financial statements for the periods covered by and included in this Quarterly Report are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and fairly present, in all material respects, our financial position, results of operations and cash flows for each of the periods presented herein.

The following material weaknesses were identified during the preparation and review of the current period financial statements:

There is a lack of segregation of duties in financial reporting.

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company's annual or interim financial statements will not be prevented or detected on a timely basis.

Changes in Internal Control over Financial Reporting

There was no change in our internal control over financial reporting that occurred during the fiscal quarter ended June 30, 2024 covered by this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Table of Contents

PART II - OTHER INFORMATION

ITEM 6. EXHIBITS

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.

Table of Contents

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

QUOTEMEDIA, INC.

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

Dated: August 14, 2024

nullnullnull

Cover - shares	6 Months Ended
Cover - shares	Jun. 30, 2024	Aug. 05, 2024
Cover [Abstract]
Entity Registrant Name	QuoteMedia, Inc.
Entity Central Index Key	0001101433
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Jun. 30, 2024
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2024
Entity Common Stock Shares Outstanding		90,477,798
Entity File Number	0-28599
Entity Incorporation State Country Code	NV
Entity Tax Identification Number	91-2008633
Entity Address Address Line 1	17100 East Shea Boulevard
Entity Address Address Line 2	Suite 230
Entity Address City Or Town	Fountain Hills
Entity Address State Or Province	AZ
Entity Address Postal Zip Code	85268
City Area Code	602
Local Phone Number	830-1443
Security 12b Title	Common stock, par value $.001 per share
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 232,735	$ 342,014
Accounts receivable, net	1,250,482	1,154,787
Prepaid expenses	218,552	133,478
Other current assets	132,176	104,931
Total current assets	1,833,945	1,735,210
Deposits	16,404	16,850
Property and equipment, net	261,551	302,224
Capitalized internal-use software development costs, net	4,833,259	4,552,910
Goodwill	110,000	110,000
Intangible assets	56,570	65,636
Operating lease right-of-use assets (see note 5)	292,047	393,472
Total assets	7,403,776	7,176,302
Current liabilities:
Accounts payable and accrued liabilities	2,532,243	2,210,933
Deferred revenue (see note 3)	1,865,332	1,456,381
Operating lease liabilities (see note 5)	204,686	206,146
Total current liabilities	4,602,261	3,873,460
Long-term liabilities:
Deferred revenue (see note 3)	258,676	375,568
Operating lease liabilities (see note 5)	84,899	191,735
Preferred stock warrant liability (see note 6)	0	611,563
Total long-term liabilities	343,575	1,178,866
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 June 30, 2024 and December 31, 2023 (see note 6)	0	2,983,857
Stockholders' equity:
Common stock, $0.001 par value, 150,000,000 shares authorized, shares issued and outstanding: 90,477,798 at June 30, 2024 and December 31, 2023	90,479	90,479
Additional paid-in capital	19,523,795	18,910,482
Accumulated deficit	(20,140,191)	(19,860,842)
Total stockholders' equity (deficit)	2,457,940	(859,881)
Total liabilities, mezzanine equity and stockholders' equity (deficit)	7,403,776	7,176,302
Series A Convertible Preferred Stock [Member]
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 June 30, 2024 and December 31, 2023 (see note 6)	$ 2,983,857	$ 0

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Common Stock, Par Value	$ 0.001	$ 0.001
Common Stock, Shares Authorized	150,000,000	150,000,000
Common Stock, Shares Issued	90,477,798	90,477,798
Common Stock, Shares Outstanding	90,477,798	90,477,798
Preferred Stock, Par Value	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Issued	123,685	123,685
Preferred Stock, Outstanding	123,685	123,685
Convertible Preferred Stock Designated	550,000	550,000
Series A Convertible Preferred Stock [Member]
Preferred Stock, Par Value	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Issued	123,685	123,685
Preferred Stock, Outstanding	123,685	123,685
Convertible Preferred Stock Designated	550,000	550,000

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
REVENUE (see note 3)	$ 4,675,946	$ 4,712,977	$ 9,355,146	$ 9,463,025
COST OF REVENUE	2,431,460	2,324,798	4,773,574	4,644,733
GROSS PROFIT	2,244,486	2,388,179	4,581,572	4,818,292
OPERATING EXPENSES
Sales and marketing	857,524	829,712	1,634,726	1,653,765
General and administrative	860,327	770,187	1,668,681	1,622,701
Software development	787,074	684,015	1,590,396	1,314,088
Total operating expenses	2,504,925	2,283,914	4,893,803	4,590,554
OPERATING INCOME (LOSS)	(260,439)	104,265	(312,231)	227,738
OTHER INCOME (EXPENSES)
Foreign exchange gain (loss)	10,415	(30,073)	35,722	(38,074)
Interest expense	(419)	(404)	(1,372)	(1,856)
Total other income (expense)	9,996	(30,477)	34,350	(39,930)
NET INCOME (LOSS) BEFORE INCOME TAXES	(250,443)	73,788	(277,881)	187,808
Income tax expense	(730)	(752)	(1,468)	(1,482)
NET INCOME (LOSS)	$ (251,173)	$ 73,036	$ (279,349)	$ 186,326
Basic earnings (loss) per share	$ (0.00)	$ 0.00	$ (0.00)	$ 0.00
Diluted earnings (loss) per share	$ (0.00)	$ 0.00	$ (0.00)	$ 0.00
WEIGHTED AVERAGE SHARES OUTSTANDING (see note 7)
Basic	90,477,798	90,477,798	90,477,798	90,477,798
Diluted	90,477,798	121,000,418	90,477,798	120,876,073

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SERIES A REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS DEFICIT (UNAUDITED) - USD ($)	Total	Common Stock	Series A Redeemable Convertible Preferred Stock	Additional Paid-In Capital	Accumulated Deficit
Balance, shares at Dec. 31, 2022		90,477,798	123,685
Balance, amount at Dec. 31, 2022	$ (1,228,675)	$ 90,479	$ 2,983,857	$ 18,903,272	$ (20,222,426)
Net income	186,326	$ 0	$ 0	0	186,326
Balance, shares at Jun. 30, 2023		90,477,798	123,685
Balance, amount at Jun. 30, 2023	(1,042,349)	$ 90,479	$ 2,983,857	18,903,272	(20,036,100)
Balance, shares at Mar. 31, 2023		90,477,798	123,685
Balance, amount at Mar. 31, 2023	(1,115,385)	$ 90,479	$ 2,983,857	18,903,272	(20,109,136)
Net income	73,036	$ 0	$ 0	0	73,036
Balance, shares at Jun. 30, 2023		90,477,798	123,685
Balance, amount at Jun. 30, 2023	(1,042,349)	$ 90,479	$ 2,983,857	18,903,272	(20,036,100)
Balance, shares at Dec. 31, 2023		90,477,798
Balance, amount at Dec. 31, 2023	(859,881)	$ 90,479	0	18,910,482	(19,860,842)
Net income	(279,349)	0	0	0	(279,349)
Reclassification of preferred stock warrants	611,563	0	$ 0	611,563	0
Reclassification of series A redeemable convertible preferred stock, shares			123,685
Reclassification of series A redeemable convertible preferred stock, amount	2,983,857	0	$ 2,983,857	0	0
Stock-based compensation	1,750	$ 0	$ 0	1,750	0
Balance, shares at Jun. 30, 2024		90,477,798	123,685
Balance, amount at Jun. 30, 2024	2,457,940	$ 90,479	$ 2,983,857	19,523,795	(20,140,191)
Balance, shares at Mar. 31, 2024		90,477,798
Balance, amount at Mar. 31, 2024	(888,057)	$ 90,479	0	18,910,482	(19,889,018)
Net income	(251,173)	0	0	0	(251,173)
Reclassification of preferred stock warrants	611,563	0	$ 0	611,563	0
Reclassification of series A redeemable convertible preferred stock, shares			123,685
Reclassification of series A redeemable convertible preferred stock, amount	2,983,857	0	$ 2,983,857	0	0
Stock-based compensation	1,750	$ 0	$ 0	1,750	0
Balance, shares at Jun. 30, 2024		90,477,798	123,685
Balance, amount at Jun. 30, 2024	$ 2,457,940	$ 90,479	$ 2,983,857	$ 19,523,795	$ (20,140,191)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Net (loss) income	$ (279,349)	$ 186,326
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,480,760	1,271,683
Allowance for doubtful accounts	350,000	125,000
Stock-based compensation expense - common stock warrants	1,750	0
Stock-based compensation expense - preferred stock warrants	0	137,813
Changes in assets and liabilities:
Accounts receivable	(445,695)	(89,853)
Prepaid expenses	(85,074)	3,863
Other current assets	(27,245)	(77,772)
Deposits	446	(351)
Accounts payable, accrued and other liabilities	314,439	(324,580)
Deferred revenue	292,059	642,450
Net cash provided by operating activities	1,602,091	1,874,579
INVESTING ACTIVITIES:
Purchase of property and equipment	(28,655)	(37,120)
Capitalized application software	(1,682,715)	(1,575,346)
Net cash used in investing activities	(1,711,370)	(1,612,466)
Net (decrease) increase in cash	(109,279)	262,113
Cash and equivalents, beginning of period	342,014	477,987
Cash and equivalents, end of period	$ 232,735	$ 740,100

BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2024

BASIS OF PRESENTATION

BASIS OF PRESENTATION

1. BASIS OF PRESENTATION

Risks and Uncertainties

Adverse macroeconomic conditions, including inflation, slower growth or recession, and higher interest rates could materially adversely affect demand for the Company’s services.

SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2024

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES

2. SIGNIFICANT ACCOUNTING POLICIES

a) Nature of operations

b) Basis of consolidation

These consolidated financial statements include the operations of QuoteMedia, Ltd., a wholly owned subsidiary of QuoteMedia, Inc. All intercompany transactions and balances have been eliminated.

c) Foreign currency translation and transactions

d) Allowances for doubtful accounts

e) Revenue

Interactive Content and Data Applications

	·	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.

Portfolio Management and Real-Time Quote Systems

Corporate Quotestream (Business-to-Business)

	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.

Individual Quotestream (Business-to-Consumer)

	o	Web-delivered, embedded applications providing real-time, streaming market quotes and research information targeted to non-professional users.
	o	Subscriptions are typically sold for a fixed fee and revenue is recognized ratably over the term of the subscription.

The Company does not provide its customers with the right to take possession of its software products at any time.

The Company determines revenue recognition through the following steps:

	·	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

The Company executes a signed contract with the customer that specifies services to be provided, the payment amounts and terms, and the period of service, among other terms.

Contract Balances

Cost of revenue

f) Accounting Pronouncements

Not Yet Adopted

REVENUE

6 Months Ended

Jun. 30, 2024

REVENUE

REVENUE

3. REVENUE

Disaggregated Revenue

The Company provides market data, financial web content solutions and cloud-based applications. Revenue by type of service consists of the following:

	Three-months ended June 30,				Six-months ended June 30,
	2024		2023		2024		2023
Portfolio Management Systems
Corporate Quotestream	$	1,782,826	$	1,876,898	$	3,564,511	$	3,704,151
Individual Quotestream		466,695		474,143		935,700		961,710
Interactive Content and Data APIs		2,426,425		2,361,936		4,854,935		4,797,164
Total revenue	$	4,675,946	$	4,712,977	$	9,355,146	$	9,463,025

Deferred Revenue

Changes in deferred revenue were as follows for the periods ending June 30,

	2024			2023
Beginning balance at Jan 1,	$	1,831,949		$	1,166,848
Revenue recognized in the current period from the amounts in the beginning balance		(1,105,335	)		(868,395	)
New deferrals, net of amounts recognized in the current period		1,381,619			1,507,660
Effects of foreign currency translation		15,775			3,185
Total deferred revenue	$	2,124,008		$	1,809,298

Current portion of deferred revenue	$	1,865,332	$	1,530,329
Long-term portion of deferred revenue		258,676		278,969
Total deferred revenue	$	2,124,008	$	1,809,298

Practical Expedients

RELATED PARTIES

6 Months Ended

Jun. 30, 2024

RELATED PARTIES

RELATED PARTIES

4. RELATED PARTIES

LEASES

6 Months Ended

Jun. 30, 2024

LEASES

LEASES

5 .LEASES

Supplemental balance sheet information related to leases was as follows:

	June 30, 2024		December 31, 2023
Operating Leases

Operating lease right-of-use assets	$	292,047	$	393,472

Current portion of operating lease liability	$	204,686	$	206,146
Long-term portion of operating lease liability		84,899		191,735
Total operating lease liability	$	289,585	$	397,881

	June 30, 2024			December 31, 2023
Weighted Average Remaining Lease Term
Operating leases	1.5 years			1.9 years
Weighted Average Discount Rate
Operating leases		9.5	%		9.5	%

Maturities of lease liabilities were as follows:

Year ending December 31,	Operating Leases
2024 (excluding the six-months ended June 30, 2024)	$	114,182
2025		163,272
2026		33,861
Total lease payments		311,315
Less imputed interest		(21,730	)
Total	$	289,585

The components of lease expense for the three and six-months ended June 30, 2024 and 2023 were as follows:

	Three-months ended June 30,				Six-months ended June 30,
	2024		2023		2024		2023
Operating lease costs:
Operating lease costs	$	58,969	$	59,165	$	118,010	$	117,592
Short-term lease costs		27,338		26,993		54,674		53,980
Total operating lease costs	$	86,307	$	86,158	$	172,684	$	171,572

Supplemental cash flow information for the six-months ended June 30, 2024 and 2023 related to leases was as follows:

	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	115,146	$	116,784

There was no additional right of use assets obtained in exchange for lease obligations for the six-months ended June 30, 2024 and 2023.

REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS DEFICIT

6 Months Ended

Jun. 30, 2024

Stockholders' equity:

REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT

6. REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT

a) Redeemable Convertible Preferred Stock

The Company is authorized to issue up to 10,000,000 non-designated preferred shares at the Board of Directors’ discretion.

Redemption Rights

Reclassification of Redeemable Convertible Preferred Stock resulting from Amendment to Redemption Rights

b) Common stock

No shares of common stock were issued during the three and six-months ended June 30, 2024 and 2023.

c) Stock Options and Warrants

Total stock-based compensation expense, related to all of the Company’s stock-based awards, recognized for the three and six-months ended June 30, 2024 and 2023 was comprised as follows:

	Three-months ended June 30,				Six-months ended June 30,
	2024		2023		2024		2023

Sales and marketing	$	1,750	$	-	$	1,750	$	-
Total stock-based compensation expense	$	1,750	$	-	$	1,750	$	-

Common Stock Options and Warrants

The following table summarizes the Company’s common stock option and warrant activity for the six-months ended June 30, 2024:

	Common Stock Options and Warrants			Weighted-Average Grant Date Exercise Price

Outstanding at December 31, 2023		25,772,803		$	0.06
Granted during the period		350,000		$	0.03
Forfeited during the period		(350,000	)	$	0.03
Outstanding at June 30, 2024		25,772,803		$	0.06

The following table summarizes the weighted average remaining contractual life and exercise price of common stock options and warrants outstanding and exercisable at June 30, 2024:

Weighted

Average

Weighted

Remaining

Average

Number

Contractual

Exercise

Outstanding

Life (Years)

Price

$0.03-0.11

25,772,803

5.33

0.06

At June 30, 2024, there was no unrecognized compensation cost related to non-vested options and warrants granted to purchase common stock.

	Three-months ended June 30,					Six-months ended June 30,
	2024			2023		2024			2023

Expected dividend yield		-			N/A		-			N/A
Expected stock price volatility		76	%		N/A		76	%		N/A
Risk-free interest rate		4	%		N/A		4	%		N/A
Expected life of options (years)		2.50			N/A		2.50			N/A
Weighted average fair value of options and warrants granted	$	0.17			N/A	$	0.17			N/A

Preferred Stock Warrants

Reclassification of Preferred Stock Warrant Liability resulting from Amendment to Redemption Rights

Fair Value Measurement of Compensation Preferred Stock Warrants

	·	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	June 30, 2024		December 31, 2023
Expected Time to Expiration (years)		N/A		24.05
Stock Price on Valuation Date		N/A	$	0.23
Peer Volatility		N/A		47.35	%
Cash Flow Discount Rate		N/A		15.86	%

The following table sets forth a summary of the changes in the fair value of the Level 3 preferred stock warrant liability for the three and six-months ended June 30, 2024 and 2023:

Fair value as of December 31, 2023 and 2022, respectively	$	611,563		$	629,375
Change in fair value		-			78,125
Fair value as of March 31, 2024 and 2023, respectively	$	611,563		$	707,500
Change in fair value		-			59,688
Reclassification of preferred stock warrants on April 26, 2024		(611,563	)		-
Fair value as of June 30, 2024 and 2024, respectively		-			767,188

EARNINGS (LOSS) PER SHARE

6 Months Ended

Jun. 30, 2024

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS)PER SHARE

7. EARNINGS (LOSS) PER SHARE

	Three-months ended June 30,					Six-months ended June 30,
	2024			2023		2024			2023

Net income (loss)	$	(251,173	)	$	73,036	$	(279,349	)	$	186,326

Weighted average common shares used to calculate net income per share		90,477,798			90,477,798		90,477,798			90,477,798
Warrants to purchase redeemable convertible preferred stock		-			2,499,900		-			2,499,900
Redeemable convertible preferred stock		-			10,306,671		-			10,306,671
Stock options and warrants to purchase common stock		-			17,716,049		-			17,591,704
Weighted average common shares used to calculate diluted net income per share		90,477,798			121,000,418		90,477,798			120,876,073

Net income (loss) per share – basic	$	(0.00	)	$	0.00	$	(0.00	)	$	0.00
Net income (loss) per share – diluted	$	(0.00	)	$	0.00	$	(0.00	)	$	0.00

	Three-months ended June 30,				Six-months ended June 30,
	2024		2023		2024		2023
Warrants to purchase redeemable convertible preferred stock	$	2,499,900	$	-	$	2,499,900	$	-
Redeemable convertible preferred stock		10,306,671		-		10,306,671		-
Stock options and warrants to purchase common stock		16,370,492		-		16,551,430		-
Total potential common shares excluded	$	29,177,063	$	-	$	29,358,001	$	-

SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2024

SIGNIFICANT ACCOUNTING POLICIES

Nature Of Operations

Basis Of Consolidation

These consolidated financial statements include the operations of QuoteMedia, Ltd., a wholly owned subsidiary of QuoteMedia, Inc. All intercompany transactions and balances have been eliminated.

Foreign Currency Translation And Transactions

Allowances For Doubtful Accounts

Revenue

Interactive Content and Data Applications

	·	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.

Portfolio Management and Real-Time Quote Systems

Corporate Quotestream (Business-to-Business)

	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.

Individual Quotestream (Business-to-Consumer)

	o	Web-delivered, embedded applications providing real-time, streaming market quotes and research information targeted to non-professional users.
	o	Subscriptions are typically sold for a fixed fee and revenue is recognized ratably over the term of the subscription.

The Company does not provide its customers with the right to take possession of its software products at any time.

The Company determines revenue recognition through the following steps:

	·	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

The Company executes a signed contract with the customer that specifies services to be provided, the payment amounts and terms, and the period of service, among other terms.

Contract Balances

Cost of revenue

Accounting Pronouncements

Not Yet Adopted

REVENUE (Tables)

6 Months Ended

Jun. 30, 2024

REVENUE

Schedule of Disaggregated Revenue

	Three-months ended June 30,				Six-months ended June 30,
	2024		2023		2024		2023
Portfolio Management Systems
Corporate Quotestream	$	1,782,826	$	1,876,898	$	3,564,511	$	3,704,151
Individual Quotestream		466,695		474,143		935,700		961,710
Interactive Content and Data APIs		2,426,425		2,361,936		4,854,935		4,797,164
Total revenue	$	4,675,946	$	4,712,977	$	9,355,146	$	9,463,025

Schedule of Deferred Revenue

	2024			2023
Beginning balance at Jan 1,	$	1,831,949		$	1,166,848
Revenue recognized in the current period from the amounts in the beginning balance		(1,105,335	)		(868,395	)
New deferrals, net of amounts recognized in the current period		1,381,619			1,507,660
Effects of foreign currency translation		15,775			3,185
Total deferred revenue	$	2,124,008		$	1,809,298

Current portion of deferred revenue	$	1,865,332	$	1,530,329
Long-term portion of deferred revenue		258,676		278,969
Total deferred revenue	$	2,124,008	$	1,809,298

LEASES (Tables)

6 Months Ended

Jun. 30, 2024

LEASES

Supplemental Balance Sheet Information

	June 30, 2024		December 31, 2023
Operating Leases

Operating lease right-of-use assets	$	292,047	$	393,472

Current portion of operating lease liability	$	204,686	$	206,146
Long-term portion of operating lease liability		84,899		191,735
Total operating lease liability	$	289,585	$	397,881

Schdule Of Weighted Average Remaining Lease Term

	June 30, 2024			December 31, 2023
Weighted Average Remaining Lease Term
Operating leases	1.5 years			1.9 years
Weighted Average Discount Rate
Operating leases		9.5	%		9.5	%

Maturities Of Lease Liabilities

Year ending December 31,	Operating Leases
2024 (excluding the six-months ended June 30, 2024)	$	114,182
2025		163,272
2026		33,861
Total lease payments		311,315
Less imputed interest		(21,730	)
Total	$	289,585

Summary of components Of Lease Expense

	Three-months ended June 30,				Six-months ended June 30,
	2024		2023		2024		2023
Operating lease costs:
Operating lease costs	$	58,969	$	59,165	$	118,010	$	117,592
Short-term lease costs		27,338		26,993		54,674		53,980
Total operating lease costs	$	86,307	$	86,158	$	172,684	$	171,572

Schedule of supplemental Cash Flow Information

	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	115,146	$	116,784

REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS DEFICIT (Tables)

6 Months Ended

Jun. 30, 2024

Stockholders' equity:

Summary Of Stock Based Compensation Expense

	Three-months ended June 30,				Six-months ended June 30,
	2024		2023		2024		2023

Sales and marketing	$	1,750	$	-	$	1,750	$	-
Total stock-based compensation expense	$	1,750	$	-	$	1,750	$	-

Summary of stock option and warrant activity

	Common Stock Options and Warrants			Weighted-Average Grant Date Exercise Price

Outstanding at December 31, 2023		25,772,803		$	0.06
Granted during the period		350,000		$	0.03
Forfeited during the period		(350,000	)	$	0.03
Outstanding at June 30, 2024		25,772,803		$	0.06

Summary Of Weighted Average Remaining Contractual Life And Exercise Price Of Common Stock Options And Warrants Outstanding

Weighted

Average

Weighted

Remaining

Average

Number

Contractual

Exercise

Outstanding

Life (Years)

Price

$0.03-0.11

25,772,803

5.33

0.06

Schedule of assumptions

	Three-months ended June 30,					Six-months ended June 30,
	2024			2023		2024			2023

Expected dividend yield		-			N/A		-			N/A
Expected stock price volatility		76	%		N/A		76	%		N/A
Risk-free interest rate		4	%		N/A		4	%		N/A
Expected life of options (years)		2.50			N/A		2.50			N/A
Weighted average fair value of options and warrants granted	$	0.17			N/A	$	0.17			N/A

Fair Value Measurement of Compensation Preferred Stock Warrants

Valuation Inputs	June 30, 2024		December 31, 2023
Expected Time to Expiration (years)		N/A		24.05
Stock Price on Valuation Date		N/A	$	0.23
Peer Volatility		N/A		47.35	%
Cash Flow Discount Rate		N/A		15.86	%

Summary of the changes in the fair value of the Level 3 Preferred Stock Warrant Liability

Fair value as of December 31, 2023 and 2022, respectively	$	611,563		$	629,375
Change in fair value		-			78,125
Fair value as of March 31, 2024 and 2023, respectively	$	611,563		$	707,500
Change in fair value		-			59,688
Reclassification of preferred stock warrants on April 26, 2024		(611,563	)		-
Fair value as of June 30, 2024 and 2024, respectively		-			767,188

EARNINGS (LOSS) PER SHARE (Tables)

6 Months Ended

Jun. 30, 2024

EARNINGS (LOSS) PER SHARE

Schedule Of Earnings Per Share, Basic And Diluted

	Three-months ended June 30,					Six-months ended June 30,
	2024			2023		2024			2023

Net income (loss)	$	(251,173	)	$	73,036	$	(279,349	)	$	186,326

Weighted average common shares used to calculate net income per share		90,477,798			90,477,798		90,477,798			90,477,798
Warrants to purchase redeemable convertible preferred stock		-			2,499,900		-			2,499,900
Redeemable convertible preferred stock		-			10,306,671		-			10,306,671
Stock options and warrants to purchase common stock		-			17,716,049		-			17,591,704
Weighted average common shares used to calculate diluted net income per share		90,477,798			121,000,418		90,477,798			120,876,073

Net income (loss) per share – basic	$	(0.00	)	$	0.00	$	(0.00	)	$	0.00
Net income (loss) per share – diluted	$	(0.00	)	$	0.00	$	(0.00	)	$	0.00

Schedule Of Antidilutive Securities

	Three-months ended June 30,				Six-months ended June 30,
	2024		2023		2024		2023
Warrants to purchase redeemable convertible preferred stock	$	2,499,900	$	-	$	2,499,900	$	-
Redeemable convertible preferred stock		10,306,671		-		10,306,671		-
Stock options and warrants to purchase common stock		16,370,492		-		16,551,430		-
Total potential common shares excluded	$	29,177,063	$	-	$	29,358,001	$	-

SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
SIGNIFICANT ACCOUNTING POLICIES
Allowance for doubtful accounts		$ 350,000		$ 225,000
Bad debt expense	$ 25,852	$ 140,979	$ (38,241)

REVENUE (Details) - USD ($)	3 Months Ended		6 Months Ended
REVENUE (Details) - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Total revenue	$ 4,675,946	$ 4,712,977	$ 9,355,146	$ 9,463,025
Interactive Content and Data APIs
Total revenue	2,426,425	2,361,936	4,854,935	4,797,164
Corporate Quotestream [Member]
Total revenue	1,782,826	1,876,898	3,564,511	3,704,151
Individual Quotestream [Member]
Total revenue	$ 466,695	$ 474,143	$ 935,700	$ 961,710

REVENUE (Details 1) - USD ($)	6 Months Ended
REVENUE (Details 1) - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
REVENUE
Deferred Revenue, Beginning Balance	$ 1,831,949	$ 1,166,848
Revenue Recognized In The Current Period From The Amounts In The Beginning Balance	1,105,335	868,395
New deferrals, net of amounts recognized in the current period	1,381,619	1,507,660
Effects of foreign currency translation	15,775	3,185
Deferred Revenue, Ending Balance	2,124,008	1,809,298
Current portion of deferred revenue	1,865,332	1,530,329	$ 1,456,381
Long-term portion of deferred revenue	258,676	278,969	$ 375,568
Total deferred revenue	$ 2,124,008	$ 1,809,298

RELATED PARTIES (Details Narrative) - USD ($)	6 Months Ended	12 Months Ended
RELATED PARTIES (Details Narrative) - USD ($)	Jun. 30, 2024	Dec. 31, 2023	Mar. 31, 2024
Bravenet Web Services, Inc. [Member]
Due To Related Party		$ 12,500	$ 15,000
Lease Per Month	$ 6,500
Monthly marketing service fee	3,000
Keith Randall [Member]
Unreimbursed expenses	$ 185,498	$ 68,988

LEASES (Details) - USD ($)	6 Months Ended	12 Months Ended
LEASES (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
LEASES
Operating lease right-of-use assets	$ 292,047	$ 393,472
Current portion of operating lease liability	204,686	206,146
Long-term portion of operating lease liability	84,899	191,735
Total operating lease liability	$ 289,585	$ 397,881
Weighted Average Remaining Lease Term
Operating Leases	1 year 6 months	1 year 10 months 24 days
Weighted Average Discount Rate
Operating Leases	9.50%	9.50%

LEASES (Details 1) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Operating Lease Obligations
2024 (excluding the six-months ended June 30, 2024)	$ 114,182
2025	163,272
2026	33,861
Total Lease Payments	311,315
Less Imputed Interest	(21,730)
Total	$ 289,585	$ 397,881

LEASES (Details 2) - USD ($)	3 Months Ended		6 Months Ended
LEASES (Details 2) - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Operating lease costs:
Operating lease costs	$ 58,969	$ 59,165	$ 118,010	$ 117,592
Short-term lease costs	27,338	26,993	54,674	53,980
Total operating lease costs	$ 86,307	$ 86,158	$ 172,684	$ 171,572

LEASES (Details 3) - USD ($)	6 Months Ended
LEASES (Details 3) - USD ($)	Jun. 30, 2024	Jun. 30, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 115,146	$ 116,784

LEASES (Details Narrative)	6 Months Ended
LEASES (Details Narrative)	Jun. 30, 2024
LEASES
Lessee, Operating Lease, Description	lease terms of 1 year to 3 years

REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS DEFICIT (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Stockholders' equity:
Sales and marketing	$ 1,750	$ 0	$ 1,750	$ 0
Stock-based compensation expense	$ 1,750	$ 0	$ 1,750	$ 0

REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS DEFICIT (Details 1) - Stock Options and Warrants [Member]	6 Months Ended
	Jun. 30, 2024 $ / shares shares
Common Stock Options and Warrants, Beginning \| shares	25,772,803
Common Stock Options and Warrants, Granted during the period \| shares	350,000
Common Stock Options and Warrants, Forfeited during the period \| shares	(350,000)
Common Stock Options and Warrants, Ending \| shares	25,772,803
Weighted-Average Grant Date Exercise Price, Beginning Balance \| $ / shares	$ 0.06
Weighted-Average Grant Date Exercise Price, Granted during the period \| $ / shares	0.03
Weighted-Average Grant Date Exercise Price, Forfeited during the period \| $ / shares	0.03
Weighted-Average Grant Date Exercise Price, Ending Balance \| $ / shares	$ 0.06

REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS DEFICIT (Details 2) - Common Stock Options and Warrants [Member]	6 Months Ended
	Jun. 30, 2024 $ / shares shares
Range of exercise price, minimum	$ 0.03
Range of exercise price, maximum	$ 0.11
Number Outstanding \| shares	25,772,803
Weighted average remaining contractual life	5 years 3 months 29 days
Weighted-average exercise price	$ 0.06

REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS DEFICIT (Details 3) - $ / shares	3 Months Ended	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2024
Stockholders' equity:
Expected dividend yield	0.00%	0.00%
Expected stock price volatility	76.00%	76.00%
Risk-free interest rate	4.00%	4.00%
Expected life of options (years)	2 years 6 months	2 years 6 months
Weighted average fair value of options and warrants granted	$ 0.17	$ 0.17

REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS DEFICIT (Details 4)	12 Months Ended
	Dec. 31, 2023 $ / shares
Stockholders' equity:
Expected Time to Expiration (years)	24 years 18 days
Stock Price on Valuation Date	$ 0.23
Peer Volatility	47.35%
Cash Flow Discount Rate	15.86%

REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS DEFICIT (Details 5) - USD ($)	3 Months Ended				6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024
Beginning balance		$ 611,563			$ 611,563
Reclassification of preferred stock warrants on April 26, 2024	$ (611,563)				(611,563)
Ending balance	0				0
Preferred Stock Warrant Liability [Member]
Beginning balance	611,563	611,563	$ 707,500	$ 629,375	611,563
Change in fair value	0	0	59,688	78,125
Reclassification of preferred stock warrants on April 26, 2024	611,563		0
Ending balance	$ 0	$ 611,563	$ 767,188	$ 707,500	$ 0

REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS DEFICIT (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023	Dec. 28, 2017
Preferred stock, shares authorized	10,000,000	10,000,000
Common Stock Options and Warrants [Member]
Aggregate intrinsic value, outstanding	$ 3,147,838
Series A Redeemable Convertible Preferred [Member]
Preferred stock, shares designated	550,000
Convertible Preferred Stock redeemed	$ 123,685	$ 123,685
Redeemable convertible preferred stock, amount	400,000
Preferred stock liquidation value	$ 25
Conversion price per share	$ 83.33
Number of consecutive trading days	90 days
Closing price of share of common stock on securities exchange exceed price per share	$ 0.30
Warrant to purchase of common stock			382,243
Warrant to purchase of common stock exercise price per share			$ 1.00
Preferred Stock Warrant [Member]
Warrant to purchase of common stock exercise price per share			$ 1.00
Weighted average remaining contractual life	23 years 6 months
Preferred stock warrants exercisable			31,250
Fair value of the Preferred Stock Warrant Liability	$ 611,563
Stock Warrants Exercisable	31,250
Preferred stock warrant outstanding	413,493
Unrecognized share-based compensation	$ 7,480,496

EARNINGS (LOSS) PER SHARE (Details) - USD ($)	3 Months Ended		6 Months Ended
EARNINGS (LOSS) PER SHARE (Details) - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
EARNINGS (LOSS) PER SHARE
Net income (loss)	$ (251,173)	$ 73,036	$ (279,349)	$ 186,326
Weighted average common shares used to calculate net income per share	90,477,798	90,477,798	90,477,798	90,477,798
Warrants to purchase redeemable convertible preferred stock	$ 0	$ 2,499,900	$ 0	$ 2,499,900
Redeemable convertible preferred stock	$ 0	$ 10,306,671	$ 0	$ 10,306,671
Stock options and warrants to purchase common stock	0	17,716,049	0	17,591,704
Weighted average common shares used to calculate diluted net income per share	90,477,798	121,000,418	90,477,798	120,876,073
Net income (loss) per share - basic	$ (0.00)	$ 0.00	$ (0.00)	$ 0.00
Net income (loss) per share - diluted	$ (0.00)	$ 0.00	$ (0.00)	$ 0.00

EARNINGS (LOSS) PER SHARE (Details 1) - shares	3 Months Ended		6 Months Ended
EARNINGS (LOSS) PER SHARE (Details 1) - shares	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Total potential common shares excluded	29,177,063	0	29,358,001	0
Redeemable Convertible Preferred Stock [Member]
Total potential common shares excluded	10,306,671	0	10,306,671	0
Warrants To Purchase Redeemable Convertible Preferred Stock [Member]
Total potential common shares excluded	2,499,900	0	2,499,900	0
Stock Options and Warrants To Purchase Common Stock [Member]
Total potential common shares excluded	16,370,492	0	16,551,430	0

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