Remark Media, Inc.

CIK:0001368365|SEC Filings

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Statement [Abstract]
Revenue	$ 320	$ 183	$ 4,406	$ 4,176
Cost and expense
Cost of revenue (excluding depreciation and amortization)	107	254	3,382	3,220
Sales and marketing	281	340	850	1,093
Technology and development	698	768	1,410	1,504
General and administrative	2,763	2,843	9,080	8,920
Depreciation and amortization	53	107	175	178
Impairments	6,463	0	6,624	392
Total cost and expense	10,365	4,312	21,521	15,307
Operating loss	(10,045)	(4,129)	(17,115)	(11,131)
Other expense
Interest expense	(376)	(949)	(2,280)	(3,351)
Finance cost related to obligations to issue common stock	809	(2,086)	(9,263)	(6,712)
Other loss, net	(2)	(8)	(6)	(14)
Total other expense, net	431	(3,043)	(11,549)	(10,077)
Net loss	(9,614)	(7,172)	(28,664)	(21,208)
Other comprehensive income
Foreign currency translation adjustments	(52)	175	(83)	(370)
Comprehensive loss	$ (9,666)	$ (6,997)	$ (28,747)	$ (21,578)
Weighted-average shares outstanding, basic (in shares)	50,815,505	18,377,384	43,583,994	15,355,583
Weighted-average shares outstanding, diluted (in shares)	50,815,505	18,377,384	43,583,994	15,355,583
Net loss per share, basic (in dollars per share)	$ (0.19)	$ (0.39)	$ (0.66)	$ (1.38)
Net loss per share, diluted (in dollars per share)	$ (0.19)	$ (0.39)	$ (0.66)	$ (1.38)

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities:
Net loss	$ (28,664)	$ (21,208)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	175	178
Share-based compensation	17	149
Cost of extending note payable	0	750
Finance cost related to obligations to issue common stock	9,700	6,712
Finance cost related to secured convertible debenture liability	(437)	0
Accrued interest included in note payable	0	1,139
Impairment of assets	6,624	392
Provision for doubtful accounts	665	138
Other	(82)	224
Changes in operating assets and liabilities:
Accounts receivable	318	(593)
Inventory	(174)	83
Deferred cost of revenue	150	1,564
Prepaid expense and other assets	233	85
Operating lease assets	193	(503)
Accounts payable, accrued expense and other liabilities	4,552	1,437
Contract liability	(139)	90
Operating lease liabilities	(165)	280
Net cash used in operating activities	(7,034)	(9,083)
Cash flows from investing activities:
Purchases of property, equipment and software	(569)	(32)
Net cash used in investing activities	(569)	(32)
Cash flows from financing activities:
Funds received in advance of potential financing	2,750	0
Proceeds from obligations to issue common stock - ELOC	4,750	7,000
Proceeds from obligations to issue common stock - Debentures	0	2,500
Proceeds from debt	50	0
Advances from related parties	1,489	1,002
Repayments of advances from related parties	(1,536)	(1,145)
Repayments of debt	(24)	(24)
Net cash provided by financing activities	7,479	9,333
Net change in cash	(124)	218
Cash:
Beginning of period	145	52
End of period	21	270
Supplemental cash flow information:
Cash paid for interest	150	1,578
Supplemental schedule of non-cash investing and financing activities:
Issuance of common stock - Ionic ELOC and Debentures (Note 12)	12,640	8,910
Transfer of software to inventory	0	233
Purchase of property and equipment pursuant to notes payable	21	0
Common stock issuance pursuant to secured convertible debentures	55	0
Exchange of non-convertible debentures for convertible debentures	$ 19,981	$ 0

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Assets
Cash	$ 21	$ 145
Trade accounts receivable, net	302	1,287
Inventory, net	814	750
Deferred cost of revenue, current	0	6,644
Prepaid expense and other current assets	477	614
Total current assets	1,614	9,440
Property and equipment, net	615	189
Operating lease assets	324	517
Other long-term assets	59	90
Total assets	2,612	10,236
Liabilities
Accrued expense and other current liabilities (including $1,391 and $495 of delinquent payroll taxes as of September 30, 2024 and December 31, 2023, respectively)	11,328	11,687
Contract liability	433	570
Notes payable	19,489	16,307
Obligations to issue common stock	11,844	10,033
Funds received in advance of potential financing	2,750	0
Total current liabilities	58,106	49,540
Operating lease liabilities, long-term	121	286
Total liabilities	58,227	49,826
Commitments and contingencies
Stockholders’ Deficit
Preferred stock, $0.001 par value; 1,000,000 shares authorized; zero issued	0	0
Common stock, $0.001 par value; 175,000,000 shares authorized; 53,770,968 and 22,038,855 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively	54	22
Additional paid-in-capital	391,934	379,244
Accumulated other comprehensive loss	(1,269)	(1,186)
Accumulated deficit	(446,334)	(417,670)
Total stockholders’ deficit	(55,615)	(39,590)
Total liabilities and stockholders’ deficit	2,612	10,236
Nonrelated Party
Liabilities
Accounts payable	10,714	9,348
Related Party
Liabilities
Accounts payable	$ 1,548	$ 1,595