$MRMD

WORLDS ONLINE INC.

CIK:0001522767|SEC Filings

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenue	$ 41,925	$ 39,506	$ 81,406	$ 77,412
Cost of revenue	25,700	23,579	49,905	46,396
Gross profit	16,225	15,927	31,501	31,016
Operating expenses:
Personnel	7,475	7,392	14,729	14,733
Marketing and promotion	847	781	1,612	1,689
General and administrative	6,864	6,343	13,751	12,593
Acquisition-related and other	116	139	285	251
Bad debt	505	256	581	1,644
Total operating expenses	15,807	14,911	30,958	30,910
Income from operations	418	1,016	543	106
Interest and other (expense) income:
Interest expense	(2,007)	(1,762)	(3,983)	(3,524)
Interest income	36	25	72	49
Gain on extinguishment of debt	0	0	699	0
Other income, net	0	17	0	17
Total interest and other expense, net	(1,971)	(1,720)	(3,212)	(3,458)
Loss before income taxes	(1,553)	(704)	(2,669)	(3,352)
Provision for income taxes	2,018	691	4,669	3,522
Net loss	(3,571)	(1,395)	(7,338)	(6,874)
Net income (loss) attributable to noncontrolling interests	18	(1)	36	31
Net loss attributable to common stockholders	$ (3,589)	$ (1,394)	$ (7,374)	$ (6,905)
Net loss per share attributable to common stockholders:
Basic (in dollars per share)	$ (0.01)	$ 0.00	$ (0.02)	$ (0.02)
Diluted (in dollars per share)	$ (0.01)	$ 0.00	$ (0.02)	$ (0.02)
Weighted average common shares outstanding:
Basic (in shares)	399,597	389,903	398,529	386,250
Diluted (in shares)	399,597	389,903	398,529	386,250

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net loss attributable to common stockholders	$ (7,374)	$ (6,905)
Net income attributable to noncontrolling interests	36	31
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization of property and equipment	4,484	3,921
Amortization of intangible assets	1,527	1,918
Stock-based compensation	675	1,096
Amortization of debt discount	311	222
Amortization of debt issuance costs	37	36
Payment-in-kind interest	0	30
Bad debt expense	581	1,644
Obligations settled with common stock	0	2
Loss on disposal of assets	0	256
Gain on extinguishment of debt	(699)	0
Changes in operating assets and liabilities:
Accounts receivable, net	(1,030)	1,301
Deferred rents receivable	0	12
Inventory	(74)	(1,718)
Other current assets	500	51
Other assets	2	(2,905)
Accounts payable	(1,439)	(2,713)
Accrued expenses and other	748	1,607
Deferred revenue	317	184
Income taxes payable	4,566	3,520
Net cash provided by operating activities	3,168	1,590
Cash flows from investing activities:
Purchases of property and equipment	(671)	(575)
Business combinations, net of cash acquired, and asset purchases	0	231
Advances toward future business combinations and asset purchases	0	(50)
Purchases and renewals of cannabis licenses	(580)	(301)
Proceeds from notes receivable	0	26
Interest receivable on notes receivable	(9)	0
Net cash used in investing activities	(1,260)	(669)
Cash flows from financing activities:
Proceeds from mortgages	0	2,000
Payment of third-party debt issuance costs in connection with debt	0	(9)
Principal payments of mortgages	(805)	(741)
Repayment and retirement of mortgages	0	(689)
Principal payments of promissory notes	(591)	(1,919)
Principal payments of finance leases	(879)	(626)
Distributions	(80)	(81)
Net cash used in financing activities	(2,355)	(2,065)
Net decrease in cash and cash equivalents	(447)	(1,144)
Cash and equivalents, beginning of year	8,884	7,282
Cash and cash equivalents, end of period	8,437	6,138
Supplemental disclosure of cash flow information:
Cash paid for interest	3,639	3,417
Cash paid for income taxes	138	2
Non-cash activities:
Notes payable issued to purchase property and equipment	27	393
Renewal of existing operating leases	94	0
Entry into new finance leases	279	56
Conversion of preferred stock to common stock	0	4,275
Return of stock to the Company in connection with withholding taxes	22	30
Exchange of preferred stock for preferred stock	6,933	0
Exchange of preferred stock for notes payable	$ 7,093	$ 0

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash, cash equivalents and restricted cash	$ 8,437	$ 8,884
Accounts receivable, net of allowances of $819 and $287 at June 30, 2026 and December 31, 2025, respectively	9,358	9,114
Inventory	36,675	36,601
Notes receivable, current portion	9	866
Other current assets	3,954	3,825
Total current assets	58,433	59,290
Property and equipment, net	86,411	89,385
Intangible assets, net	15,683	17,210
Goodwill	24,002	24,002
Notes receivable, net of current portion	866	0
Operating lease right-of-use assets	7,662	7,723
Finance lease right-of-use assets	3,247	4,024
Other assets	929	931
Total assets	197,233	202,565
Current liabilities:
Mortgages and notes payable, current portion	3,417	2,553
Accounts payable	13,147	14,586
Accrued expenses and other	9,972	9,509
Deferred revenue	1,711	1,394
Income taxes payable	31,547	26,981
Operating lease liabilities, current portion	2,025	1,952
Finance lease liabilities, current portion	1,934	2,092
Total current liabilities	63,753	59,067
Mortgages and notes payable, net of current portion	75,399	70,192
Operating lease liabilities, net of current portion	6,484	6,616
Finance lease liabilities, net of current portion	1,420	1,956
Total liabilities	147,056	137,831
Commitments and contingencies
Mezzanine equity
Total mezzanine equity	6,933	14,725
Stockholders’ equity
Undesignated preferred stock, $0.001 par value; 32,659,235 shares authorized; zero shares issued and outstanding at June 30, 2026 and December 31, 2025	0	0
Common stock, $0.001 par value; 700,000,000 shares authorized; 401,167,467 and 396,911,368 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively	401	397
Additional paid-in capital	180,054	179,405
Accumulated deficit	(135,306)	(127,932)
Noncontrolling interests	(1,905)	(1,861)
Total stockholders’ equity	43,244	50,009
Total liabilities, mezzanine equity and stockholders’ equity	197,233	202,565
Series B convertible preferred stock
Mezzanine equity
Total mezzanine equity	0	14,725
New Series B Convertible Preferred Stock
Mezzanine equity
Total mezzanine equity	$ 6,933	$ 0