Financial Report: Q1 2024 - Q3 2024
Financial Report: Q1 2024 - Q3 2024
The financial report highlights the company’s growth and financial performance from 2022 to 2024, with a focus on revenues, discounts, merchandise account fees, professional fees, amortization, stock, retained earnings, and noncontrolling interest. The report also mentions the acquisition of NuGene Inc. and the related merger agreement.
Overview
The company reported total revenues of $306,622 for the first quarter of 2024. This included sales from their Elisee software and management services business, as well as $1.1 million in movie margin income related to films entering the production phase.
Overall, revenues were driven primarily by software fees from clients in Europe and the US, along with ongoing management services provided by the Global Dot Logistics division. The company appears to have stable sources of recurring income.
Expenses
The main costs directly tied to revenue generation were:
- Amortization of Intangible Assets: $531,978
- Professional Fees: $195,657
These expenses relate to the Elisee software and represent comparable profit margins to similar companies. Relationships with suppliers and operational efficiency will be important factors in maintaining margins going forward.
In terms of operating expenses:
- Advertising and Promotion: $4,518
- Selling, General & Administrative: $148,255
Advertising costs dropped significantly from the same period last year, as the company shifts focus to online marketing of its core products. The decrease in SG&A was due to reallocation of some shared services expenses into other cost centers.
| Expense | Q1 2024 | Q1 2023 |
|---|---|---|
| Advertising and Promotion | $4,518 | $14,593 |
| Selling, General & Administrative | $148,255 | $2,506,923 |
Capital Resources
The company does not have any off-balance sheet arrangements or significant exposure to inflation risks that would impact operations or financial reporting. No major changes to accounting policies or critical estimates were reported.
Outlook
With steady sources of recurring revenue and expenses coming into line, the outlook for the company is positive. If they can maintain relationships with key suppliers and partners, while continuing to market their software and services efficiently, profit margins appear sustainable.
The company did not provide specific forward guidance in the report, but based on the financial health indicators, their diversified business lines seem poised for further growth. Execution of the movie production slate and expansion of software delivery will be key areas to watch going forward.