$PAAI

Paradium.AI, Inc.

CIK:0000894871|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenue	$ 22,183	$ 45,012	$ 42,589	$ 76,827
Cost of revenue (includes amortization of platform development and developed technology for the three months ended June 30, 2026 and 2025 of $1,078 and $1,108, respectively, and for the six months ended June 30, 2026 and 2025 of $2,128 and $2,384, respectively)	13,515	19,577	26,840	35,723
Gross profit	8,668	25,435	15,749	41,104
Operating expenses
Selling and marketing	1,825	1,942	3,676	4,076
General and administrative	3,655	6,200	8,296	11,483
Depreciation and amortization	908	881	1,801	1,771
Total operating expenses	6,388	9,023	13,773	17,330
Income from operations	2,280	16,412	1,976	23,774
Other (expense)
Interest expense, net	(2,450)	(2,945)	(4,871)	(5,949)
Liquidated damages	(76)	(76)	(151)	(151)
Total other expense	(2,526)	(3,021)	(5,022)	(6,100)
(Loss) income before income taxes	(246)	13,391	(3,046)	17,674
Income tax benefit (provision)	70	(979)	212	(1,265)
(Loss) income from continuing operations	(176)	12,412	(2,834)	16,409
Income from discontinued operations, net of tax	0	96,227	0	96,250
Net (loss) income	$ (176)	$ 108,639	$ (2,834)	$ 112,659
Basic net income (loss) per common share (Note 2):
Continuing operations (in dollars per share)	$ 0	$ 0.26	$ (0.06)	$ 0.35
Discontinued operations (in dollars per share)	0.00	2.03	0	2.03
Basic net income (loss) per common share (in dollars per share)	0.00	2.29	(0.06)	2.38
Diluted net income (loss) per common share (Note 2):
Continuing operations (in dollars per share)	0.00	0.26	(0.06)	0.35
Discontinued operations (in dollars per share)	0	2.02	0	2.03
Diluted net income (loss) per common share (in dollars per share)	$ 0	$ 2.28	$ (0.06)	$ 2.38
Weighted average number of common shares outstanding (Note 2):
Basic (in shares)	47,498,571	47,398,767	47,494,677	47,397,193
Diluted (in shares)	47,498,571	47,635,146	47,494,677	47,503,269

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities
Net income (loss)	$ (2,834)	$ 112,659
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Depreciation of property and equipment	15	72
Amortization of platform development and intangible assets	3,914	4,083
Amortization of debt costs	28	63
Liquidated damages	151	151
Stock-based compensation	109	333
Deferred income taxes	(213)	69
Provision for credit losses	42	219
Non-cash lease expense	150	0
Other, net	(25)	0
Change in operating assets and liabilities:
Accounts receivable	3,739	(9,181)
Prepayments and other current assets	246	192
Other long-term assets	7	7
Accounts payable	639	(3,261)
Accrued expenses and other	(2,185)	(45,353)
Unearned revenue	(1,615)	(46,276)
Subscription and returns reserve liability	79	(88)
Operating lease liability	(196)	281
Net cash provided by operating activities	2,051	13,970
Cash flows from investing activities
Purchases of intangible assets	(450)	0
Capitalized platform development	(769)	(3,545)
Net cash used in investing activities	(1,219)	(3,545)
Cash flows from financing activities
Repayment of Simplify loan	0	(8,000)
Payments of taxes from common stock withheld	0	(16)
Net cash used in financing activities	0	(8,016)
Net change in cash and cash equivalents	832	2,409
Cash and cash equivalents — beginning of year	10,338	4,362
Cash and cash equivalents — end of period	11,170	6,771
Supplemental disclosures of cash flow information
Cash paid for interest	4,912	5,886
Cash paid for income taxes	237	0
Noncash investing and financing activities
Reclassification of stock-based compensation to platform development	0	24
Purchase of intangible asset with accrued expenses and other	$ 0	$ 1,000

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 11,170	$ 10,338
Accounts receivable (net of allowances of $1,073 and $1,255 at June 30, 2026 and December 31, 2025, respectively)	18,489	22,270
Prepayments and other current assets	2,776	3,022
Total current assets	32,435	35,630
Property and equipment, net	41	56
Operating lease right-of-use assets	1,881	2,031
Platform development, net	8,428	9,762
Acquired and other intangible assets, net	20,625	22,412
Other long-term assets	130	137
Goodwill	42,575	42,575
Total assets	106,115	112,603
Current liabilities:
Accounts payable	2,315	1,676
Accrued expenses and other	4,995	7,631
Unearned revenue	1,651	3,251
Subscription and returns reserve liability	587	508
Operating lease liability, current portion	424	402
Liquidated damages payable	3,686	3,535
Total current liabilities	13,658	17,003
Unearned revenue, net of current portion	28	43
Operating lease liability, net of current portion	1,853	2,071
Deferred tax liabilities	520	733
Term debt	97,606	97,578
Total liabilities	113,665	117,428
Commitments and contingencies (Note 24)
Stockholders' deficiency:
Common stock	482	482
Additional paid-in capital	349,307	349,198
Accumulated deficit	(357,339)	(354,505)
Total stockholders’ deficiency	(7,550)	(4,825)
Total liabilities and stockholders’ deficiency	$ 106,115	$ 112,603