Item 1. Financial Statements
Item 1. Financial Statements
BRIGHT MOUNTAIN MEDIA, INC.
CONSOLIDATE D BALANCE SHEETS
(in thousands, except share and per share figures)
September 30, 2025
December 31, 2024 *
(unaudited)
Assets
Current assets:
Cash and cash equivalents
$
553
$
2,546
Restricted cash
1,861
1,861
Accounts receivable, net
14,224
15,033
Prepaid expenses and other current assets
790
859
Total current assets
17,428
20,299
Property and equipment, net
61
69
Intangible assets, net
11,989
13,406
Goodwill
7,785
7,785
Operating lease right-of-use assets, net
195
253
Other long-term assets
159
158
Total assets
$
37,617
$
41,970
Liabilities and Stockholders' Deficit
Current liabilities:
Accounts payable and accrued expenses
$
21,215
$
22,667
Other current liabilities
3,081
4,401
Interest payable - Centre Lane Senior Secured Credit Facility - related party
-
21
Deferred revenue
5,296
2,883
Note payable - Centre Lane Senior Secured Credit Facility - related party (current)
5,120
3,808
Total current liabilities
34,712
33,780
Other long-term liabilities
52
169
Note payable - Centre Lane Senior Secured Credit Facility - related party (long-term)
76,117
71,043
Finance lease liabilities
-
20
Operating lease liabilities
103
185
Total liabilities
110,984
105,197
Stockholders' deficit:
Convertible preferred stock, par value $ 0.01 , 20,000,000 shares authorized, no shares issued or outstanding at September 30, 2025 and December 31, 2024, respectively
-
-
Common stock, par value $ 0.01 , 324,000,000 shares authorized, 180,347,712 and 177,464,827 issued, and 178,440,337 and 176,114,652 outstanding at September 30, 2025 and December 31, 2024, respectively
1,803
1,775
Treasury stock at cost, 1,907,375 and 1,350,175 shares at September 30, 2025 and December 31, 2024, respectively
( 220
)
( 220
)
Additional paid-in capital
101,975
101,798
Accumulated deficit
( 177,002
)
( 166,857
)
Accumulated other comprehensive income
77
277
Total stockholders' deficit
( 73,367
)
( 63,227
)
Total liabilities and stockholders' deficit
$
37,617
$
41,970
* Derived from audited consolidated financial statements.
See accompanying notes to unaudited consolidated financial statements.
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BRIGHT MOUNTAIN MEDIA, INC.
CONSOLIDATED STATEMENTS OF OPE RATIONS AND COMPREHENSIVE LOSS
(unaudited)
(in thousands, except share and per share figures)
Three Months Ended
Nine Months Ended
September 30, 2025
September 30, 2024
September 30, 2025
September 30, 2024
Revenue
$
13,940
$
14,151
$
43,538
$
39,602
Cost of revenue
9,686
9,764
31,975
28,656
Gross margin
4,254
4,387
11,563
10,946
General and administrative expenses
4,099
4,414
12,644
14,966
Income (loss) from operations
155
( 27
)
( 1,081
)
( 4,020
)
Financing and other expense:
Other income
52
31
143
428
Interest expense - Centre Lane Senior Secured Credit Facility - related party
( 3,034
)
( 3,250
)
( 9,189
)
( 9,602
)
Interest expense - 10 % convertible promissory notes - related party
-
-
-
( 4
)
Other interest expense
( 6
)
( 10
)
( 18
)
( 32
)
Total financing and other expense, net
( 2,988
)
( 3,229
)
( 9,064
)
( 9,210
)
Net loss before income tax
( 2,833
)
( 3,256
)
( 10,145
)
( 13,230
)
Income tax provision
-
-
-
-
Net loss
$
( 2,833
)
$
( 3,256
)
$
( 10,145
)
$
( 13,230
)
Foreign currency translation
( 43
)
( 8
)
( 200
)
64
Comprehensive loss
$
( 2,876
)
$
( 3,264
)
$
( 10,345
)
$
( 13,166
)
Net loss per common share:
Basic
$
( 0.02
)
$
( 0.02
)
$
( 0.06
)
$
( 0.08
)
Diluted
$
( 0.02
)
$
( 0.02
)
$
( 0.06
)
$
( 0.08
)
Weighted-average shares outstanding:
Basic
175,864,104
171,104,346
175,943,376
171,138,296
Diluted
175,864,104
171,104,346
175,943,376
171,138,296
See accompanying notes to unaudited consolidated financial statements.
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BRIGHT MOUNTAIN MEDIA, INC
CONSOLIDATED STATEMENTS OF CHANGE IN STOCKHOLDERS’ DEFICIT
(unaudited)
(in thousands, except share figures)
Common Stock
Treasury Stock
Additional Paid-in
Accumulated
Accumulated Other Comprehensive
Total Stockholders'
Shares
Amount
Shares
Amount
Capital
Deficit
Income
Deficit
Balance at December 31, 2024 *
177,464,827
$
1,775
( 1,350,175
)
$
( 220
)
$
101,798
$
( 166,857
)
$
277
$
( 63,227
)
Net loss
-
-
-
-
-
( 3,231
)
-
( 3,231
)
Common stock issued for options exercised
50,400
1
-
-
1
-
-
2
Treasury stock
-
-
( 200,000
)
-
-
-
-
-
Stock-based compensation
-
-
-
-
37
-
-
37
Adjustment from foreign currency translation, net
-
-
-
-
-
-
42
42
Balance at March 31, 2025
177,515,227
$
1,776
( 1,550,175
)
$
( 220
)
$
101,836
$
( 170,088
)
$
319
$
( 66,377
)
Net loss
-
-
-
-
-
( 4,081
)
-
( 4,081
)
Stock-based compensation
-
-
-
-
34
-
-
34
Adjustment from foreign currency translation, net
-
-
-
-
-
-
( 199
)
( 199
)
Balance at June 30, 2025
177,515,227
$
1,776
( 1,550,175
)
$
( 220
)
$
101,870
$
( 174,169
)
$
120
$
( 70,623
)
Net loss
-
-
-
-
( 2,833
)
-
( 2,833
)
Common stock issued to Centre Lane Partners
2,832,485
27
-
-
78
-
-
105
Treasury stock
-
-
( 357,200
)
-
-
-
-
-
Stock-based compensation
-
-
-
-
27
-
-
27
Adjustment from foreign currency translation, net
-
-
-
-
-
-
( 43
)
( 43
)
Balance at September 30, 2025
180,347,712
$
1,803
( 1,907,375
)
$
( 220
)
$
101,975
$
( 177,002
)
$
77
$
( 73,367
)
Common Stock
Treasury Stock
Additional Paid-in
Accumulated
Accumulated Other Comprehensive
Total Stockholders'
Shares
Amount
Shares
Amount
Capital
Deficit
Income
Deficit
Balance at December 31, 2023 *
172,103,134
$
1,721
( 825,175
)
$
( 220
)
$
101,405
$
( 149,833
)
$
262
$
( 46,665
)
Net loss
-
-
-
-
-
( 4,766
)
-
( 4,766
)
Common stock issued for services rendered
279,452
3
-
-
13
-
-
16
Treasury stock
-
-
( 525,000
)
-
-
-
-
-
Stock-based compensation
-
-
-
-
65
-
-
65
Adjustment from foreign currency translation, net
-
-
-
-
-
-
34
34
Balance at March 31, 2024
172,382,586
$
1,724
( 1,350,175
)
$
( 220
)
$
101,483
$
( 154,599
)
$
296
$
( 51,316
)
Net loss
-
-
-
-
-
( 5,208
)
-
( 5,208
)
Common stock issued for options exercised
63,250
1
-
-
-
-
1
Stock-based compensation
-
-
-
-
70
-
70
Adjustment from foreign currency translation, net
-
-
-
-
-
38
38
Balance at June 30, 2024
172,445,836
$
1,725
( 1,350,175
)
$
( 220
)
$
101,553
$
( 159,807
)
$
334
$
( 56,415
)
Net loss
-
-
-
-
-
( 3,256
)
-
( 3,256
)
Common stock issued for options exercised
17,000
-
-
-
1
-
-
1
Stock-based compensation
-
-
-
-
57
-
-
57
Adjustment from foreign currency translation, net
-
-
-
-
-
-
( 8
)
( 8
)
Balance at September 30, 2024
172,462,836
$
1,725
( 1,350,175
)
$
( 220
)
$
101,611
$
( 163,063
)
$
326
$
( 59,621
)
*Derived from audited consolidated financial statements.
See accompanying notes to unaudited consolidated financial statements.
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BRIGHT MOUNTAIN MEDIA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
For the Nine Months Ended
September 30, 2025
September 30, 2024
Cash flows from operating activities:
Net loss
$
( 10,145
)
$
( 13,230
)
Adjustments to reconcile net loss to net cash provided by (used in) operations:
Depreciation expense
39
111
Interest paid-in-kind on Centre Lane Senior Secured Credit Facility - related party
7,000
6,906
Amortization of operating lease right-of-use assets
57
50
Amortization of debt discount
1,678
2,243
Amortization of intangible assets
1,416
1,442
Stock-based compensation
98
191
Common stock issued for services rendered
-
16
Common stock issued to Centre Lane Partners
105
-
Provision for (recovery of) credit losses
103
( 9
)
Changes in operating assets and liabilities:
Accounts receivable
706
2,287
Prepaid expenses and other assets
69
159
Operating lease liabilities
( 69
)
( 36
)
Accounts payable and accrued expenses
( 1,649
)
( 543
)
Other liabilities
( 1,453
)
( 363
)
Interest payable - Centre Lane Senior Secured Credit Facility - related party
( 21
)
165
Interest payable - 10 % convertible promissory notes - related party
-
( 39
)
Deferred revenue
2,413
199
Net cash provided by (used in) operating activities
347
( 451
)
Cash flows from investing activities:
Purchase of property and equipment
( 30
)
( 14
)
Capitalization of website development costs
-
( 86
)
Net cash used in investing activities
( 30
)
( 100
)
Cash flows from financing activities:
Proceeds from stock option exercises
1
1
Principal payments on finance lease obligations
( 16
)
( 13
)
Repayment of principal on Centre Lane Senior Secured Credit Facility - related party
( 2,292
)
( 879
)
Repayment of principal on 10 % convertible promissory notes - related party
-
( 80
)
Net cash used in financing activities
( 2,307
)
( 971
)
Effect of foreign exchange rates on cash
( 3
)
7
Net decrease in cash, cash equivalents, and restricted cash
( 1,993
)
( 1,515
)
Cash, cash equivalents, and restricted cash at the beginning of the period
4,407
4,001
Cash, cash equivalents, and restricted cash at the end of the period
$
2,414
$
2,486
Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets:
Cash and cash equivalents
$
553
$
2,486
Restricted cash
1,861
-
Total cash, cash equivalents, and restricted cash
$
2,414
$
2,486
Supplemental disclosure of cash flow information:
Cash paid for interest
532
288
Interest paid-in-kind on Centre Lane Senior Secured Credit Facility - related party
7,000
6,906
Supplemental disclosure of non-cash investing and financing activities:
Agency and exit fees to Centre Lane for debt financing
8
672
Annual administration fee to Centre Lane for debt financing
35
35
See accompanying notes to unaudited consolidated financial statements.
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BRIGHT MOUNTAIN MEDIA, INC.
NOTES TO CONSOLID ATED FINANCIAL STATEMENTS
September 30, 2025
(Unaudited)
NOTE 1 – DESCRIPTION OF BUSINESS AND DEVELOPMENTS
Organization and Nature of Operations
Bright Mountain Media, Inc. (together with its wholly-owned subsidiaries, the “Company,” “Bright Mountain” or “we”) is an end-to-end digital media and advertising services company that efficiently connects brands with targeted consumer demographics. We focus on digital publishing, advertising technology, consumer insights, creative services, and media services.
Digital Publishing
Our digital publishing division focuses on developing content that attracts an audience and monetizes that audience through advertising. The current portfolio of owned and operated websites is focused on moms, parenting, families, and more broadly, women. The portfolio consists of popular websites including Mom.com, Cafemom.com, LittleThings.com, and MamasLatinas.com. This demographic is highly sought after by brands and their advertising agencies. We use internal and external technologies to constantly improve the effectiveness and efficiency of the content we create. Our publishing division monetizes its audiences through both direct and programmatic advertising sales.
Advertising Technology
Our advertising technology division focuses on delivering targeted ads to audiences on owned and operated sites as well as third-party publishers in a cost-effective manner through the deployment of proprietary technologies. By developing our own proprietary technology stack, we are able to pass along efficiencies to both the demand and supply side of the ecosystem. Our goal is to enable and support a streamlined, end-to-end advertising model that addresses both demand (buy side) and publisher supply (sell side) programmatic sales and delivery of digital advertisements using an array of audience targeting tools and advertising formats (display, audio, video, CTV, in-app). Programmatic advertising relies on software programs that leverage data and proprietary algorithms to match the optimal selection of an ad with a bid price offered by advertisers.
Consumer Insights
Our consumer insights division focuses on providing primary and secondary research and competitive intelligence to address customers' strategic issues. We provide cutting-edge and dynamic research, offering clients a comprehensive perspective on their consumers. This insight extends to strategic guidance on the optimal timing and channels to effectively connect with target audiences. Our cutting-edge approach combines advanced data analytics, artificial intelligence, and comprehensive market research, to uncover actionable insights that drive informed decision-making.
Creative Services
Our creative services division transforms data into award-winning campaigns. We are uniquely able to leverage insights teams with highly strategic media planning and buying teams to ensure brands not only position their advertising precisely, but also yield impactful business results. Our goal is to combine data-driven decisions with creativity fueled by a deep understanding of modern culture.
Media Services
Our media services division focuses on advertisers and agencies by providing access to premium inventory, leveraging data to optimize programmatic campaigns. Our aim is to empower clients to access the most sought-after advertising spaces across diverse platforms tailored to their specific needs and preferences. Our data-driven approach aims to ensure that ad placements are not only well-targeted, but also continuously optimized for maximum efficiency and return on investment ("ROI"). Our commitment to combining premium inventory access with data-driven programmatic campaign optimization makes us a valuable partner in the success of our clients' advertising and marketing endeavors.
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BRIGHT MOUNTAIN MEDIA, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2025
(Unaudited)
The Company generates revenue through:
• the selling of advertisements placed on our owned and managed sites and on partner websites where we earn a share of the revenue;
• fees for facilitating the seamless, real-time exchange of advertisements on a large scale, bridging networks of buyers (referred to as "DSPs") and networks of sellers (referred to as "SSPs");
• serving advertisers through providing access to premium resources and leveraging data to optimize programmatic campaigns, where revenue is derived from the planning and execution of creative and media marketing campaigns;
• providing primary and secondary research, competitive intelligence, and expert insights to address customers' strategic issues, where revenue is primarily derived from providing a single integrated service for such research; and
• provision of creative and media services to advertisers.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation and Basis of Presentation
The unaudited consolidated financial statements include the accounts of the Company and all of its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited consolidated financial statements for the three and nine months ended September 30, 2025 and 2024, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in accordance with rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all the information and disclosures required by GAAP for complete consolidated financial statements. In the opinion of management, such unaudited consolidated financial statements include all adjustments (consisting of normal recurring accruals) necessary for the fair presentation of the consolidated financial position and the consolidated results of operations. The consolidated results of operations for periods presented are not necessarily indicative of the results to be expected for the full year or any future periods. The consolidated balance sheet information as of December 31, 2024, was derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 . The interim consolidated financial statements should be read in conjunction with that report.
Going Concern and Liquidity
Historically, the Company has incurred losses, which have resulted in an accumulated deficit of approximately $ 177.0 million as of September 30, 2025. Cash flows provided by (used in) operating activities were $ 347,000 an d $( 451,000 ) for the nine months ended September 30, 2025 and 2024, respectively. As of September 30, 2025, the Company had approximately a $ 17.3 million working capital deficit, inclusive of $ 553,000 in cash and cash equivalents and $ 1.9 million in restricted cash.
The Company’s ability to continue as a going concern is dependent upon its ability to meet its liquidity needs through a combination of factors. The Company is currently exploring several strategic alternatives, including restructuring or refinancing its debt, or seeking additional debt, including borrowing under the Centre Lane Senior Secured Credit Facility, or raising equity capital. The ability to access the capital markets depends, in part, upon the volume and market price of the Company's stock, which cannot be assured. Other measures include reducing or delaying certain business activities, and reducing general and administrative expenses, including a reduction in headcount. The ultimate success of these plans is not guaranteed.
The Company's current cash and working capital, as of the filing of this Quarterly Report on Form 10-Q, is not expected to be sufficient to fund its anticipated level of operations over the next twelve months. As a result, such matters create a substantial doubt regarding the Company’s ability to meet its financial obligations and continue as a going concern.
The accompanying unaudited consolidated financial statements are prepared on a going concern basis and do not include any adjustments that might result from uncertainty about the Company’s ability to continue as a going concern.
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BRIGHT MOUNTAIN MEDIA, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2025
(Unaudited)
Cash and Cash Equivalents
The Company considers all highly liquid investments with a maturity of three months or less, when acquired, to be cash equivalents. The Company maintains its cash with various commercial banks in the United States, and other foreign countries in which the Company operates.
As of September 30, 2025 and December 31, 2024 , the Company exceeded the federally insured limit of $ 250,000 for interest and non-interest-bearing accounts. The Company held a cash balance with a single financial institution in excess of the Federal Deposit Insurance Corporation ("FDIC") insured limit in the amount of $ 249,000 as of September 30, 2025, and $ 2.3 million as of December 31, 2024.
As of September 30, 2025 and December 31, 2024, the Company did not exceed the insurance limit of $ 31,000 for its international bank accounts.
Any loss incurred or a lack of access to such funds could have a significant adverse effect on the Company's financial condition, results of operations, and cash flows.
At September 30, 2025, and December 31, 2024, the Company had $ 553,000 and $ 2.5 million , respectively, in cash and cash equivalents.
Restricted Cash
The Company considers cash to be restricted when withdrawal or general use is legally restricted. The Company reports restricted cash as a separate line item in the consolidated balance sheets. At September 30, 2025 and December 31, 2024, the Company had $ 1.9 million in restricted cash for both periods, which is designated specifically for settlement of a legal judgment. See Note 16, Commitments and Contingencies, to the unaudited consolidated financial statements.
Off-balance Sheet Arrangements
There were no off-balance sheet arrangements as of September 30, 2025 and December 31, 2024 .
Use of Estimates
The preparation of consolidated financial statements in conformity with GAAP requires management to make certain estimates, judgments, and assumptions. We believe that the estimates, judgments, and assumptions upon which we rely are reasonable based upon information available to us at the time that these estimates, judgments, and assumptions are made. These estimates, judgments, and assumptions can affect the reported amounts of assets and liabilities as of the date of our consolidated financial statements as well as reported amounts of revenue and expenses during the periods presented. Our consolidated financial statements would be affected to the extent there are material differences between these estimates and actual results.
Significant estimates included in the accompanying consolidated financial statements include, valuation of goodwill and intangible assets, allowance for current expected credit losses, percentage of completion for revenue recognition, estimates of amortization period for intangible assets, estimates of depreciation period for property and equipment, discount rates used in the valuation of right-of-use assets and lease liabilities, litigation reserves, the valuation of equity-based transactions, valuation of the Centre Lane Senior Secured Credit Facility carrying value regarding debt modification or extinguishment, and the valuation allowance on deferred tax assets. While these estimates are based on our best knowledge of current events and actions that may affect us in the future, actual results may differ materially from these estimates.
Foreign Currency
We translate the consolidated financial statements of our foreign subsidiaries, which have a functional currency in the respective country’s local currency, to U.S. dollars using month-end exchange rates for assets and liabilities and actual exchange rates for revenue, cost and expenses on the date of the transaction. Translation gains and losses as a result of consolidation are included in accumulated other comprehensive income. Transaction gains and losses are included within general and administrative expenses on the consolidated statements of operations and comprehensive loss.
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BRIGHT MOUNTAIN MEDIA, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2025
(Unaudited)
Concentrations of Credit Risk
Financial instruments that potentially subject us to concentration of credit risk consist principally of cash, cash equivalents, restricted cash, and accounts receivable. We place our cash, cash equivalents, and restricted cash with high credit-quality financial institutions. Such deposits may be in excess of federally insured limits. In addition, the Company maintains various bank accounts in Thailand and Israel, with some level of insurance. We perform periodic evaluations of the relative credit standing of financial institutions. Any loss incurred or a lack of access to such funds could have a significant adverse impact on the Company's financial condition, results of operations, and cash flows.
We perform credit evaluations of our customers’ financial condition and require no collateral from our customers. We maintain an allowance for current expected credit losses based upon the expected collectability of accounts receivable balances.
The following tables provide information about concentrations that exceed 10% of revenue and accounts receivable for the period:
Three Months Ended
Nine Months Ended
September 30, 2025
September 30, 2024
September 30, 2025
September 30, 2024
Revenue Concentration
Customers exceeding 10% of revenue
2
1
1
1
Percentage of revenue:
Customer 1
11.7
%
11.8
%
14.4
%
13.4
%
Customer 2
10.3
%
*
*
*
Total percentage of revenue
22.0
%
11.8
%
14.4
%
13.4
%
* Represents a customer revenue balance less than the 10% threshold.
September 30, 2025
December 31, 2024
Accounts Receivable Concentration
Customers exceeding 10% of accounts receivable
2
3
Percentage of accounts receivable:
Customer 1
15.0
%
13.5
%
Customer 2
10.9
%
*
Customer 3
*
11.1
%
Customer 4
*
10.4
%
Total percentage of accounts receivable
25.9
%
35.0
%
* Represents a customer accounts receivable balance less than the 10% threshold.
Effective Accounting Pronouncements Adopted
In August 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40). This ASU simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. The FASB reduced the number of accounting models for convertible debt and convertible preferred stock instruments and made certain disclosure amendments to improve the information provided to users. The new standard was effective January 1, 2024 (early adoption was permitted, but not earlier than January 1, 2021). This standard did no t have an impact on our consolidated financial statements for the period ended September 30, 2025.
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BRIGHT MOUNTAIN MEDIA, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2025
(Unaudited)
For 2024 annual reporting, we adopted ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . This new standard requires an enhanced disclosure of significant segment expenses on an annual and interim basis, effective for fiscal years beginning after December 15, 2024. The adoption of ASU 2023-07 did no t have a significant impact on our consolidated financial statements for the period ended September 30, 2025 . Consistent with ASC 280, our Chief Financial Officer reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. Our components are digital publishing, advertising technology, consumer insights, creative services, and media services. There are no segment managers who are held accountable by the Chief Financial Officer, or anyone else, for operations, operating results and planning for levels or components below the consolidated unit level. Accordingly, we determined we have one operating and reportable segment.
Accounting Pronouncements Not Yet Adopted
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which improves the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the effective tax rate reconciliation and income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. This guidance is effective for our Annual Report on Form 10-K for the year ended December 31, 2025. The guidance should be applied on a prospective application, with retrospective application permitted. We are evaluating the effect that this guidance will have on our consolidated financial statements and related disclosures.
In July 2024, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets . When applying the current expected credit loss model to current accounts receivable and contract assets arising from transactions accounted for under ASC 606, this standard provides a practical expedient that assumes that current conditions as of the balance sheet date do not change for the remaining life of the asset. Entities are required to disclose whether they have elected the practical expedient and should be applied prospectively. This guidance is effective for our Annual Report on Form 10-K for the year ended December 31, 2025. We are evaluating the effect that this guidance will have on our consolidated financial statements and related disclosures.
In November 2024, and as amended in January 2025, the FASB issued ASU No. 2024-03, Income Statement Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses . The new guidance requires disaggregated information about certain income statement expense line items on an annual and interim basis. This guidance will be effective for annual periods beginning in the year ending December 31, 2027 and for interim periods thereafter. The new standard permits early adoption and can be applied prospectively or retrospectively. We are evaluating the effect that this guidance will have on our consolidated financial statements and related disclosures.
In September 2025, the FASB issued ASU No. 2025-06, Intangibles - Goodwill and Other Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software . This update provides revised guidance aimed at refining how costs related to internal-use software are accounted for. The update removes the concept of distinct project phases and requires that capitalization of software costs begins when management authorizes and commits to funding a computer software project, and when there is a high likelihood the project will be completed and the software will be used to perform the function as intended. When assessing whether completion is probable, entities must carefully consider any substantial uncertainties in development. In addition, the guidance introduces a requirement to disclose capitalized software costs as part of property and equipment. The new standard will take effect in the first quarter of 2028, though early adoption is permitted at the start of any annual reporting period. Entities may adopt the guidance using prospective application, retrospective application, or a modified transition approach. We are evaluating the effect that this guidance will have on our consolidated financial statements and related disclosures.
13
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BRIGHT MOUNTAIN MEDIA, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2025
(Unaudited)
NOTE 3 – ACCOUNTS RECEIVABLE
Accounts receivable, net, consisted of the following:
September 30, 2025
December 31, 2024
(in thousands)
Accounts receivable
$
9,840
$
12,460
Unbilled receivables (1)
4,522
2,698
14,362
15,158
Less: allowance for current expected credit losses
( 138
)
( 125
)
Accounts receivable, net
$
14,224
$
15,033
(1) - Unbilled receivables represent amounts for services rendered at the end of the period pending generation of invoice to the customer.
Accounts receivable, net, at January 1, 2024 was $ 14.7 million.
Expected credit losses (recoveries) were approximately $ 24,000 and $ 5,000 for the three months ended September 30, 2025 and 2024, respectively, and $ 103,000 and $( 9,000 ) for the nine months ended September 30, 2025 and 2024 , respectively. These amounts are included in general and administrative expenses in the consolidated statements of operations and comprehensive loss.
NOTE 4 – PREPAID EXPENSES AND OTHER ASSETS
Prepaid expenses and other assets consisted of the following:
September 30, 2025
December 31, 2024
(in thousands)
Prepaid insurance (1)
$
100
$
358
Prepaid software
142
93
Deposits
159
158
Subscriptions
276
213
Other current assets (2)
272
195
Total prepaid costs and other assets
949
1,017
Less: other long-term assets
( 159
)
( 158
)
Prepaid expenses and other current assets
$
790
$
859
(1) - Includes approximately $ 0 and $ 291,000 which is being paid over a period of time and is included in accounts payable at September 30, 2025 and December 31, 2024 , respectively.
(2) - Includes approximately $ 142,000 and $ 121,000 which is being paid over a period of time and is included in accounts payable at September 30, 2025 and December 31, 2024, respectively.
NOTE 5 – PROPERTY AND EQUIPMENT, NET
Property and equipment, net, consisted of the following:
Useful Life
September 30, 2025
December 31, 2024
(in thousands)
Computer equipment
3
$
106
$
76
Computer software
3
206
206
312
282
Less: accumulated depreciation
( 251
)
( 213
)
Property and equipment, net
$
61
$
69
Depreciation and amortization expense for the three months ended September 30, 2025 and 2024, was $ 11,000 and $ 36,000 , respectively, and $ 39,000 and $ 111,000 for the nine months ended September 30, 2025 and 2024 , respectively. The amounts are included in general and administrative expenses in the consolidated statements of operations and comprehensive loss.
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BRIGHT MOUNTAIN MEDIA, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2025
(Unaudited)
NOTE 6 – INTANGIBLE ASSETS, NET
Website acquisitions, net, consisted of the following:
September 30, 2025
December 31, 2024
(in thousands)
Website acquisition assets
$
1,125
$
1,125
Add: website development costs
96
96
1,221
1,221
Less: accumulated amortization
( 1,141
)
( 1,127
)
Website acquisition assets, net
$
80
$
94
Other intangible assets, net, consisted of the following:
September 30, 2025
December 31, 2024
Useful
Life
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
(in thousands)
Trade name
2 - 10
$
8,380
$
( 4,262
)
$
4,118
$
8,381
$
( 3,795
)
$
4,586
IP/technology
10
5,821
( 2,871
)
2,950
5,821
( 2,575
)
3,246
Customer relationships
5 - 10
13,380
( 8,539
)
4,841
13,380
( 7,900
)
5,480
Non-compete agreements
3 - 5
402
( 402
)
-
402
( 402
)
-
Other intangible assets, net
$
27,983
$
( 16,074
)
$
11,909
$
27,984
$
( 14,672
)
$
13,312
September 30, 2025
December 31, 2024
(in thousands)
Website
$
80
$
94
Other intangible assets
11,909
13,312
Intangible assets, net
$
11,989
$
13,406
Amortization expense for the three months ended September 30, 2025 and 2024 was approximately $ 446,000 and $ 480,000, respectively, and $ 1.4 million and $ 1.4 million for the nine months ended September 30, 2025 and 2024, respectively.
As of September 30, 2025, expected remaining amortization expense of intangible assets and website acquisition by fiscal year is as follows (in thousands):
Remainder of 2025
$
447
2026
1,788
2027
1,788
2028
1,788
2029
1,785
Thereafter
4,393
Total expected amortization expense
$
11,989
15
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BRIGHT MOUNTAIN MEDIA, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2025
(Unaudited)
NOTE 7 – GOODWILL
The following table represents the allocation of goodwill as of September 30, 2025, and December 31, 2024:
Owned & Operated
Ad Network
Insights
Total
(in thousands)
December 31, 2024
$
2,865
$
4,013
$
907
$
7,785
Additions
-
-
-
-
Impairment
-
-
-
-
September 30, 2025
$
2,865
$
4,013
$
907
$
7,785
We allocate goodwill to reporting units based on the expected benefit and synergies with our current reporting units. The Company categorizes goodwill into three reporting units: "Owned & Operated", "Ad Network", and "Insights".
Goodwill is tested for impairment at least annually and if triggering events are noted prior to the annual assessment. Impairment is deemed to occur when the carrying value of the goodwill associated with the reporting unit exceeds the implied value of the goodwill associated with the reporting unit.
During the year ended December 31, 2024 , an impairment assessment was performed on goodwill for the Ad Network, Owned & Operated and Insights reporting units. The assessment used a quantitative assessment, including consideration of the economic, industry and market conditions in addition to the overall financial performance of the Company and these assets. Our quantitative assessment concluded that it was more likely than not that the estimated fair value of the Ad Network, Owned & Operated and Insights reporting units exceeds their carrying amounts. Since the assets are considered recoverable, no impairment charge was recognized for the year ended December 31, 2024.
There was no triggering event or impairment for the nine months ended September 30, 2025 .
NOTE 8 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES
Accounts payable and accrued expenses consisted of the following:
September 30, 2025
December 31, 2024
(in thousands)
Accounts payable (1)
$
14,361
$
14,428
Accrued wages, commissions, and bonus
541
527
Publisher cost
2,094
2,811
Professional fees
737
1,138
Subcontractor
3,242
3,438
Other
240
325
Total accounts payable and accrued expenses
$
21,215
$
22,667
(1) - Accounts payable includes $ 5.4 million and $ 5.2 million at September 30, 2025 and December 31, 2024 , respectively, for Slutzky & Winshman Ltd. and Mediahouse Inc., whose operations were terminated during the year ended December 31, 2023. Accounts payable includes $ 299,000 and $ 266,000 at September 30, 2025 and December 31, 2024 , respectively, for Wild Sky Media, Ltd., whose operations were terminated during the year ended December 31, 2024.
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BRIGHT MOUNTAIN MEDIA, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2025
(Unaudited)
NOTE 9 – OTHER CURRENT LIABILITIES
Other current liabilities consisted of the following:
September 30, 2025
December 31, 2024
(in thousands)
Current portion of long-term operating and financing leases
$
117
$
101
Dividend payable
691
691
Project advance expense (1)
( 179
)
1,546
Litigation reserves
2,499
2,224
Other current liabilities
5
8
Total other liabilities
3,133
4,570
Less: other long-term liabilities
( 52
)
( 169
)
Other current liabilities
$
3,081
$
4,401
(1) - Represents amounts advanced by customers to cover third-party expenses specifically related to their project. These expenses are offset against the advance and are not part of the Company's statement of operations and comprehensive loss.
NOTE 10 – CENTRE LANE SENIOR SECURED CREDIT FACILITY
Effective June 1, 2020, the Company entered into a membership interest purchase agreement to acquire 100 % of Wild Sky Media, which is now a subsidiary of the Company (the “Purchase Agreement”). To finance the acquisition, the Company obtained a first lien senior loan in the amount of $ 16.5 million, comprised of $ 15.0 million of initial indebtedness, repayment of Wild Sky's existing accounts receivable factoring facility of approximately $ 900,000 , and approximately $ 500,000 of expenses, from, and entered into a secured credit facility with, Centre Lane Partners Master Credit Fund II, L.P. (“Centre Lane Partners”).
Additional Draws
As of September 30, 2025, Centre Lane Partners had loaned the Company an additional $ 39.9 million through Amendments One through Eight (the “Second Out Loans”), Amendments Nine through Sixteen and Nineteen (the “First Out Loans”), and Amendments Seventeen and Twenty-One (the “Third Out Loans”) to provide liquidity to fund operations. The Nineteenth Amendment Term Loan had a maturity date of December 31, 2024 , and the loan balance was repaid. The Centre Lane Senior Secured Credit Facility has been determined to qualify as a related party transaction as shares were issued to Centre Lane Partners as part of the transaction. A related party is a party that can exercise significant influence over the Company in making financial and/or operating decisions.
On December 26, 2024, the Company and its subsidiaries entered into the Twenty-First Amendment to the Credit Agreement with Centre Lane Partners for the purpose of securing a bond to stay execution of a judgment in the amount of approximately $ 1.7 million that was entered against the Company as a result of certain disclosed litigation (the “Ladenburg litigation”), as the Company intends to appeal the judgment. The Company borrowed an additional $ 1.9 million from the Lenders, which funds were used to secure the bond. Amounts drawn pursuant to the Twenty-First Amendment, including all accrued but unpaid principal and interest thereon, will mature and become payable in December 2026. Interest to be paid in cash accrues at a rate of 0 % per annum, and interest to be paid in kind accrues at a rate of 15 % per annum. For further information on this judgment, see Note 16, Commitments and Contingencies, to the consolidated financial statements.
In connection with the Twenty-First Amendment, and as consideration therefore, the Company agreed to issue a number of shares of the common stock of the Company, par value $ 0.01 per share, equal to 2.5 % of the fully diluted pro forma ownership of the Company, or 5,001,991 shares of the common stock, to an affiliate of the Lenders.
17
Table of Contents
BRIGHT MOUNTAIN MEDIA, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2025
(Unaudited)
Optional Prepayment
The Company may, at any time, voluntarily prepay, in whole or in part (with a minimum prepayment of $ 250,000 ) the outstanding principal of the loans, plus any accrued but unpaid interest on the aggregate principal amount of the loans being prepaid. There is no prepayment penalty associated with the Centre Lane Senior Secured Credit Facility. However, partial or full prepayments of the Centre Lane Senior Secured Credit Facility is required in the event of certain future capital raises.
Repayment of Loans
Effective March 31, 2025, the Company, the Lenders, and Centre Lane Partners entered into the Twenty-Second Amendment to the Credit Agreement, pursuant to which the following adjustments were made to the outstanding loans:
• Extending the maturity date of the First Out Loans (which no longer include the Seventeenth Amendment Term Loans and the Twenty-First Amendment Term Loans), Second Out Loans (formerly defined as the "Last Out Loans"), and Third Out Loans (comprised of the Seventeenth Amendment Term Loans and the Twenty-First Amendment Term Loans) from April 20, 2026 to December 20, 2026;
• Changing the Second Out Loans PIK rate to the Term Secured Overnight Financing Rate (" SOFR ") plus 3 % and the Second Out Loans cash interest rate to 2 %. At September 30, 2025 , the SOFR floor was 5.00 % per annum, thus the overall PIK rate on these facilities was 8.00 % ;
• Changing the First Out Loans cash interest rate to the Term SOFR plus 2 %. The overall PIK rate on these facilities was 7.00 % at September 30, 2025;
• Changing the Third Out Loans PIK rate to 15 %;
• Adjusting the amortization of the Second Out Loans such that quarterly installments of 1 % of the aggregate principal amount (after giving effect to capitalized PIK interest) are paid for each quarter in 2025, and quarterly installments of 2 % of the aggregate principal amount (after giving effect to capitalized PIK interest) are paid thereafter until maturity; and
• Adjusting the amortization of the First Out Loans such that an installment of $ 700,000 was paid on March 31, 2025, and quarterly installments of $ 575,000 were to be paid thereafter until maturity.
Effective September 30, 2025, the Company, the Lenders, and Centre Lane Partners entered into the Twenty-Third Amendment to the Credit Agreement, which applied the following adjustments to loans with outstanding payments due on September 30, 2025, including the following temporary modifications:
• Converting the First Out Loans cash interest due on September 30, 2025 to interest PIK;
• Reducing the First Out Loans amortization payment from $ 575,000 to $ 250,000 due on September 30, 2025, with the difference deferred to the maturity date of the First Out Loans, which is December 20, 2026 ;
• Incurring an amendment fee equal to 25 basis points of the First Out Loans, approximately $ 8,000 , which was added to the principal balance of the First Out Loans as of September 30, 2025;
• Converting the Second Out Loans cash interest due on September 30, 2025 to interest PIK; and
• Deferring the Second Out Loans amortization payment due on September 30, 2025 to the maturity date of the Second Out Loans, which is December 20, 2026 ;
• Following the payments made on September 30, 2025, all loan terms, including cash interest and PIK rates, will revert to the terms established under the Twenty-Second Amendment. Quarterly amortization payments will resume and become due commencing on December 31, 2025.
18
Table of Contents
BRIGHT MOUNTAIN MEDIA, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2025
(Unaudited)
Also in connection with the Twenty-Third Amendment, the Company agreed to issue a number of shares of the common stock of the Company, par value $ 0.01 per share, equal to 1.5 % of the fully-diluted pro forma ownership of the Company, or 2,832,485 shares of the common stock, to Centre Lane Partners. As of September 30, 2025 , BV Agency, LLC, an affiliate of the lenders, and Centre Lane Partners owned approximately 14.8 % and 10.1 % of the Company’s outstanding common stock, respectively.
For the three and nine months ended September 30, 2025 , the Company paid approximately $ 250,000 and $ 2.3 million toward the principal loan balance, respectively. For the three and nine months ended September 30, 2024 , the Company paid $ 0 and $ 879,000 toward the principal loan balance, respectively. During the three and nine months ended September 30, 2025 , the Company paid approximately $ 0 and $ 532,000 toward outstanding interest payable, respectively. During the three and nine months ended September 30, 2024 , the Company paid approximately $ 150,000 and $ 288,000 toward outstanding interest payable, respectively.
At December 31, 2025, the total amount of principal repayment and interest due is approximately $ 1.2 million. At each of March 31, 2026, June 30, 2026, and September 30, 2026, the total amount of principal repayment and interest due is approximately $ 1.6 million. At December 31, 2026, the balance of approximately $ 90.5 million is due.
The below table summarizes the loan balances at September 30, 2025, and December 31, 2024:
September 30, 2025
December 31, 2024
(in thousands)
Note payable - Centre Lane Senior Secured Credit Facility - related party (current)
$
5,120
$
3,808
Note payable - Centre Lane Senior Secured Credit Facility - related party (net of discount)
76,117
71,043
Net principal
81,237
74,851
Add: debt discount
2,336
3,971
Outstanding principal
$
83,573
$
78,822
The below table summarizes the movement in the outstanding principal during the nine months ended September 30, 2025 and the year ended December 31, 2024:
September 30, 2025
December 31, 2024
(in thousands)
Opening balance
$
78,822
$
70,228
Add:
Draws
-
1,861
Exit and other fees
43
505
Interest capitalized
7,000
9,353
85,865
81,947
Less
Payments
( 2,292
)
( 3,125
)
Outstanding principal
$
83,573
$
78,822
Fees
Under the terms of the Centre Lane Senior Secured Credit Facility, the Company is required to pay Centre Lane Partners a non-refundable annual administration fee equal to $ 35,000 for agency services. The Centre Lane Senior Secured Credit Facility provides that this fee shall be, in all respects, fully earned, due and PIK by the Company on the effective date of the Centre Lane Senior Secured Credit Facility, and on each anniversary of the effective date during the term of the agreement by adding and capitalizing the full amount of such fee to the outstanding principal balance of the loans. The accumulated administrative fee since inception of the fa cility is $ 210,000 and is included in outstanding principal. The administrative fee charged during the nine months ended September 30, 2025 and 2024 was $ 35,000 and $ 35,000 , respectively.
19
Table of Contents
BRIGHT MOUNTAIN MEDIA, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2025
(Unaudited)
Amendments to Centre Lane Senior Secured Credit Facility
Commencing April 2021, the Company and certain subsidiaries entered into various amendments to the Amended and Restated Senior Secured Credit Facility. The Credit Agreement was amended a number of times to provide for additional loans used for working capital and acquisitions. In addition, as part of the transaction, there are exit fees (the "Exit Fees"), which are added and capitalized to the principal amount of the original loan. As of September 30, 2025, there were 23 amendments to the Credit Agreement.
Consistent with FASB Accounting Standards Codification ("ASC") Topic 470, Debt (“ASC 470”), the Company is required to perform an analysis of the change in each amendment to determine whether the change is a modification or an extinguishment of debt. Under a modification, no gain or loss is recorded, and a new effective interest rate is established based on the carrying value of the debt and revised cash flow. If the debt is extinguished, the old debt is derecognized and the new debt is recorded at fair value, which becomes the new carrying value. A gain or loss is recorded for the difference between the net carrying value of the original debt and the fair value of the new debt. Additionally, in the event the transaction is with a related party, this gain or loss should be recognized against additional paid-in capital. Interest expense is recorded based on the effective interest rate of the new debt. A debt is considered extinguished if the present value of the new cash flows under the term of the new debt is at least 10% different from the present value of the remaining cash flows under the terms of the old debt.
20
Table of Contents
BRIGHT MOUNTAIN MEDIA, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2025
(Unaudited)
The below table summarizes the amendments that were executed by the Company from the inception of the facility to September 30, 2025 (in thousands, except for share data):
Amendment No.
Date
Draw
Repayment Date
Interest Rate
Paid-in-Kind
a
Interest Rate
Cash
a
Amendment Fee
b
Common Stock Issued
Accounting Impact
(in thousands, except share data)
1
4/26/2021
$
-
12/20/2026
8.00 %
2.00 %
$
-
150,000
Extinguishment
c
2
5/26/2021
1,500
12/20/2026
8.00 %
2.00 %
750
3,000,000
Modification
c
3
8/12/2021
500
12/20/2026
8.00 %
2.00 %
250
2,000,000
Modification
c
4
8/31/2021
1,100
12/20/2026
8.00 %
2.00 %
550
-
Modification
c
5
10/8/2021
725
12/20/2026
8.00 %
2.00 %
363
-
Extinguishment
c
6
11/5/2021
800
12/20/2026
8.00 %
2.00 %
800
7,500,000
Modification
c
7
12/23/2021
500
12/20/2026
8.00 %
2.00 %
500
-
Modification
c
$
5,125
$
3,213
12,650,000
8
1/26/2022
350
12/20/2026
8.00 %
2.00 %
350
-
Modification
c
9
2/11/2022
250
12/20/2026
0.00 %
7.00 %
13
-
Modification
d
10
3/11/2022
300
12/20/2026
0.00 %
7.00 %
15
-
Modification
d
11
3/25/2022
500
12/20/2026
0.00 %
7.00 %
25
-
Modification
d
12
4/15/2022
450
12/20/2026
0.00 %
7.00 %
23
-
Modification
d
13
5/10/2022
500
12/20/2026
0.00 %
7.00 %
25
-
Modification
d
14
6/10/2022
350
12/20/2026
0.00 %
7.00 %
18
-
Modification
d
15
7/8/2022
350
12/20/2026
0.00 %
7.00 %
( 58
)
-
Modification
d
$
3,050
$
411
-
16
2/10/2023
1,500
12/20/2026
0.00 %
7.00 %
75
-
Modification
d
17
f
4/20/2023
26,316
12/20/2026
15.00 %
0.00 %
708
21,401,993
Extinguishment
e
19
7/28/2023
2,000
12/31/2024
0.00 %
7.00 %
100
-
Modification
d
$
29,816
$
883
21,401,993
20
6/5/2024
-
12/20/2026
0.00 %
0.00 %
472
-
Modification
g
21
f
12/26/2024
1,861
12/20/2026
15.00 %
0.00 %
-
5,001,991
Modification
e
$
1,861
$
472
5,001,991
23
9/30/2025
-
12/20/2026
0.00 %
0.00 %
8
2,832,485
Modification
g
$
-
$
8
2,832,485
$
39,852
$
4,987
41,886,469
a) - New rates in effect in connection with Amendment Twenty-Two.
b) - Added and capitalized to the principal amount of the original loan.
c) - Second Out Loans.
d) - First Out Loans.
e) - Third Out Loans.
f) - There was no impact on principal or interest and no fees incurred by the Company under Amendments Eighteen and Twenty-Two, thus they are excluded from the table.
g) - There was no loan draw under Amendments Twenty and Twenty-Three, thus no interest rates were incurred. Amendments Twenty and Twenty-Three adjusted the existing outstanding loan terms, thus the balances of the interest rate PIK and interest rate cash are 0.00 %.
Our debt financing arrangements, including long-term debt, expose us to counterparty credit risk as they are solely with a single related party lender. We manage this risk by closely monitoring the related party's financial stability and ensuring it maintains a strong credit rating. No other financial institutions are involved in our debt obligations. As of September 30, 2025 and December 31, 2024, the carrying value of the Centre Lane Senior Secured Credit Facility was $ 81.2 million and $ 74.9 million , respectively, net of unamortized debt discount of $ 2.3 million and $ 4.0 million , respectively. The discount is being amortized over the remaining life of the Centre Lane Senior Secured Credit facility using the effective interest method.
During the three and nine months ended September 30, 2025, the Company recorded amortization of debt discount of $ 489,000 and $ 1.7 million , respectively, on the Centre Lane Senior Secured Credit Facility. Amortization of debt discount for the three and nine months ended September 30, 2024, was $ 691,000 and $ 2.2 million , respectively.
21
Table of Contents
BRIGHT MOUNTAIN MEDIA, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2025
(Unaudited)
Interest expense for the three and nine months ended September 30, 2025 and 2024, consisted of the following:
Three Months Ended
Nine Months Ended
September 30, 2025
September 30, 2024
September 30, 2025
September 30, 2024
(in thousands)
Interest expense
$
2,545
$
2,559
$
7,511
$
7,359
Amortization
489
691
1,678
2,243
Total interest expense
$
3,034
$
3,250
$
9,189
$
9,602
NOTE 11 – 10% CONVERTIBLE PROMISSORY NOTES
On November 30, 2018, the Company issued 10 % convertible promissory notes ("Convertible Notes") in the amount of $ 80,000 to our then Chairman of the Board, a related party. The Convertible Notes were unsecured and matured five years from issuance and were convertible at the option of the holder into shares of common stock at any time prior to maturity at a conversion price of $ 0.40 per share. A beneficial conversion feature existed on the date the Convertible Notes were issued whereby the fair value of the underlying common stock into which the Convertible Notes was convertible was in excess of the face value of the Convertible Notes of $ 80,000 .
The outstanding principal and interest of the Convertible Notes were due and payable in November 2023, and on July 1, 2024, the Company repaid the outstanding principal of $ 80,000 and outstanding interest of $ 43,000 on the Convertible Notes due to its former Chairman of the Board.
NOTE 12 – LEASES
The Company accounts for its operating lease under FASB ASC Topic 842, Leases (“ASC 842”), which requires lessees to recognize on the balance sheet at lease commencement, the lease assets and the related lease liabilities for the rights and obligations created by operating and finance leases with lease terms of more than 12 months.
Operating Lease
The Company leases its corporate offices in Boca Raton, Florida under a long-term non-cancellable lease agreement. An addendum to the lease dated June 14, 2022, set a lease renewal term of five years beginning upon completion of improvements to the office space by the landlord, which were completed on September 12, 2022. The annual base rent as of the beginning of this renewal term is approximately $ 143,000 , with a provision for a 3 % increase on each anniversary of the rent commencement date. The Company has the option to renew the lease for one additional five-year term.
At September 30, 2025 and December 31, 2024, the operating lease right-of-use asset was $ 195,000 and $ 253,000 , respectively, and is included under assets on the consolidated balance sheets.
At September 30, 2025 and December 31, 2024, the operating lease right-of-use liability was $ 182,000 and $ 252,000, respectively, including the current portion of $ 91,000 and $ 79,000 , respectively, and is included under liabilities on the consolidated balance sheets.
Over the lease term, the Company is required to amortize the operating lease asset and record interest expense on the lease liability created at lease commencement. Operating lease expense was approximately $ 47,000 and $ 43,000 for the three months ended September 30, 2025 and 2024, respectively. Operating lease expense was approximately $ 139,000 and $ 128,000 for the nine months ended September 30, 2025 and 2024, respectively.
The Company’s non-lease components are primarily related to property maintenance and other operating services, which vary based on future outcomes and are recognized in rent expense when incurred and not included in the measurement of the lease liability.
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BRIGHT MOUNTAIN MEDIA, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2025
(Unaudited)
Operating Lease Subleases
On April 14, 2024 and July 1, 2024, the Company entered into two sublease agreements for its Boca Raton corporate office suites. The subleases continue for the remaining term on the initial lease agreement of three years with no option to extend. The aggregate minimum annual rental income under the subleases is approximately $ 137,000 with 3 % escalations per annum. The Company retains the ability to use the address as its corporate office.
At September 30, 2025 and December 31, 2024, the operating lease subleases right-of-use liability was $ 12,000 , and is included as an offset to right-of-use assets within other non-current liabilities on the consolidated balance sheet.
Operating lease sublease income was approximately $ 34,000 and $ 35,000 for the three months ended September 30, 2025 and 2024, respectively. Operating lease sublease income was approximately $ 102,000 and $ 55,000 for the nine months ended September 30, 2025 and 2024, respectively.
Finance Lease
On October 1, 2023, the Company entered into a lease agreement for computer equipment with a lease term of three years .
At September 30, 2025 and December 31, 2024, finance lease asset was $ 26,000 and $ 42,000 , respectively, and is included under assets on the consolidated balance sheets.
At September 30, 2025 and December 31, 2024, finance lease liability was $ 26,000 and $ 42,000 , respectively, including the current portion of $ 26,000 and $ 22,000 , respectively, and is included under liabilities on the consolidated balance sheets.
Finance lease expense for the three months ended September 30, 2025 was $ 7,300 , inclusive of interest of $ 1,600 and amortization of $ 5,700 , and $ 21,600 for the nine months ended September 30, 2025, inclusive of interest of $ 5,500 and amortization of $ 16,100 . Finance lease expense for the three months ended September 30, 2024 was $ 7,200 , inclusive of interest of $ 2,600 and amortization of $ 4,600 , and $ 21,700 for the nine months ended September 30, 2024 , inclusive of interest of $ 8,600 and amortization of $ 13,100 .
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BRIGHT MOUNTAIN MEDIA, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2025
(Unaudited)
As of September 30, 2025 and December 31, 2024, the asset and lease liability for the operating and finance lease are summarized as follows (in thousands):
September 30, 2025
December 31, 2024
(in thousands)
Assets:
Total operating lease right-of-use asset
$
195
$
253
Total finance lease asset (1)
$
26
$
42
Liabilities:
Operating lease liability, current
$
91
$
79
Operating sublease liability, net of current portion
12
12
Operating lease liability, net of current portion
91
173
Total operating lease liability
$
194
$
264
Finance lease liability, current
$
26
$
22
Finance lease liability, net of current portion
-
20
Total finance lease liability
$
26
$
42
Weighted-average remaining lease term (in years):
Operating lease
2.00
2.75
Finance lease
1.00
1.75
Weighted-average discount rate:
Operating lease
14.39
%
14.39
%
Finance lease
21.12
%
21.12
%
(1) - Finance lease represents computer software, see Note 5, Property and Equipment, Net, to the Company's consolidated financial statements.
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BRIGHT MOUNTAIN MEDIA, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2025
(Unaudited)
NOTE 13 – REVENUE RECOGNITION
The following table represents our revenue disaggregated by type:
Three Months Ended
Nine Months Ended
September 30, 2025
September 30, 2024
September 30, 2025
September 30, 2024
(in thousands)
Revenue:
Digital publishing
$
280
$
519
$
1,222
$
1,468
Advertising technology
5,073
4,661
14,419
10,874
Consumer insights
6,362
6,765
20,733
20,132
Creative services
1,497
1,616
4,725
5,332
Media services
728
590
2,438
1,796
Total revenue
$
13,940
$
14,151
$
43,538
$
39,602
Geographic Information
Revenue by geography is based on the country of the Company’s contracting entity. Total United States revenue was approximately 100 % of total revenue for the three months ended September 30, 2025 and 2024 and the nine months ended September 30, 2025 and 2024, respectively.
As of September 30, 2025, and December 31, 2024 , approximately 100 % of our long-lived assets, including websites and other intangible assets used in revenue generation, were attributable to operations in the United States.
Deferred Revenue
The movement in deferred revenue during the nine months ended September 30, 2025 and the year ended December 31, 2024 comprised the following:
September 30, 2025
December 31, 2024
(in thousands)
Deferred revenue at the start of the period
$
2,883
$
4,569
Amounts invoiced during the period
45,951
40,529
Less: revenue recognized during the period
( 43,538
)
( 42,215
)
Deferred revenue at the end of the period
$
5,296
$
2,883
NOTE 14 – STOCK-BASED COMPENSATION
On April 14, 2022, the Board of Directors of the Company and the Compensation Committee of the Board of Directors adopted and approved the 2022 Bright Mountain Media Stock Option Plan (the “2022 Stock Option Plan”). The 2022 Stock Option Plan provides for the grant of awards to eligible employees, directors and consultants in the form of stock options. The purpose of the 2022 Stock Option Plan is to provide an incentive to attract and retain directors, officers, consultants, advisors and employees whose services are considered valuable, to encourage a sense of proprietorship and to stimulate an active interest of such persons in our development and financial success. The 2022 Stock Option Plan has a term of 10 years and authorizes the issuance of up to 22,500,000 shares of the Company’s common stock. As of September 30, 2025 , 12,283,017 s hares were remaining under the 2022 Stock Option Plan for future issuance.
Options
As of September 30, 2025, options to purchase 10,216,983 shares of common stock were outstanding, in the aggregate, under the Company's 2013 Stock Option Plan, 2015 Stock Option Plan, 2019 Stock Option Plan, and the 2022 Stock Option Plan at a weighted-average exercise price of $ 0.10 per share. No further grants can be made under any of the Company's stock option plans other than the 2022 Stock Option Plan.
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BRIGHT MOUNTAIN MEDIA, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2025
(Unaudited)
Compensation expense recorded in connection with the 2022 Stock Option Plan was $ 27,000 and $ 57,000 for the three months ended September 30, 2025 and 2024, respectively, and $ 98,000 and $ 191,000 for the nine months ended September 30, 2025 and 2024, respectively. These amounts have been recognized as a component of general and administrative expenses in the accompanying consolidated financial statements.
The following table presents the activity of the Company’s outstanding common stock options for the nine months ended September 30, 2025:
Number of Options
Weighted Average Exercise Price
Weighted Average Remaining Contractual Term
Aggregate Intrinsic Value
Common stock options:
Balance outstanding at December 31, 2024
10,459,033
$
0.10
8.0
$
79
Granted
400,000
$
0.04
-
$
1
Exercised
( 50,400
)
$
-
-
$
-
Forfeited
( 444,150
)
$
0.08
-
$
0
Expired
( 147,500
)
$
0.17
-
$
0
Balance outstanding at September 30, 2025
10,216,983
$
0.10
7.3
$
89
Exercisable at September 30, 2025
5,936,294
$
0.12
6.9
$
68
Unvested at September 30, 2025
4,280,689
$
0.07
7.8
$
20
During the nine months ended September 30, 2025, 400,000 options were issued. During the nine months ended September 30, 2024 , 219,673 options were issued.
As of September 30, 2025, there were total unrecognized compensation costs related to non-vested share-based compensation arrangements of $ 110,000 to be recognized through July 2027.
The Company estimates the fair value of share-based compensation utilizing the Black-Scholes option pricing model, which is dependent upon several variables such as the expected option term, expected volatility of our stock price over the expected option term, expected risk-free interest rate over the expected option term, expected dividend yield rate over the expected option term, and an estimate of expected forfeiture rates.
The following table provides the weighted-average assumptions used in determining the fair value of the stock option awards for the nine months ended September 30, 2025 and 2024:
September 30, 2025
September 30, 2024
Expected life (years)
5.50 yrs
0 yrs
Expected volatility
448.88
%
0.00
%
Risk-free interest rate
4.40
%
0.00
%
Dividend yield
0.00
%
0.00
%
Expected forfeiture rate
0.00
%
0.00
%
The expected life is computed using the simplified method, which is the average of the vesting term and the contractual term. The expected volatility is based on an average of similar public company's historical volatility, as the Company's common stock is quoted in the over-the-counter market on the OTCQB Tier of the OTC Markets, Inc. The risk-free interest rate is based on the U.S. Treasury yields with terms equivalent to the expected term of the related option at the time of the grant.
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BRIGHT MOUNTAIN MEDIA, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2025
(Unaudited)
Dividend yield is based on historical trends. While the Company believes these estimates are reasonable, the compensation expense recorded would increase if the expected life was increased, a higher expected volatility was used, or if the expected dividend yield increased. The Company has elected to account for forfeitures as they occur.
NOTE 15 – FAIR VALUE MEASUREMENTS
The fair value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities).
The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and liabilities:
Level 1: Valuation is based on unadjusted quoted prices in active markets for identical assets and liabilities that are accessible at the reporting date. Because valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment.
Level 2 : Valuation is determined from pricing inputs that are other than quoted prices in active markets that are either directly or indirectly observable as of the reporting date. Observable inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and interest rates and yield curves that are observable at commonly quoted intervals.
Level 3 : Valuation is based on inputs that are both significant to the fair value measurement and unobservable. Level 3 inputs includes situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value generally require significant management judgment or estimation.
Fair Value Considerations
Financial instruments recognized in the consolidated balance sheets consist of cash, cash equivalents, restricted cash, accounts receivable, other liabilities and accounts payable. The Company believes that the carrying value of its current financial instruments approximates their fair value due to the short-term nature of these instruments. The carrying value of the Centre Lane Senior Secured Credit Facility approximates the fair value due to their nature and level of risk.
Assets Measured at Fair Value on a Non-Recurring Basis
The Company has certain non-financial assets that are measured at fair value on a non-recurring basis when there is an indicator of impairment, and they are recorded at fair value only when impairment is recognized. These assets include goodwill and intangible assets, net.
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BRIGHT MOUNTAIN MEDIA, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2025
(Unaudited)
Goodwill and Intangibles Assets
Goodwill and intangible assets are tested for impairment at least annually, and if triggering events are noted prior to the annual assessment. Impairment is deemed to occur when the carrying value associated with the reporting unit exceeds the implied value associated with the reporting unit. We estimated the fair value of our reporting units utilizing an income approach (discounted cash flow method), which incorporated significant unobservable Level 3 inputs.
During the year ended December 31, 2024 , an impairment assessment was performed on goodwill for the Ad Network, Owned & Operating and Insights reporting units. The assessment used a quantitative assessment, including consideration of the economic, industry and market conditions in addition to the overall financial performance of the Company and these assets. Our quantitative assessment concluded that it was more likely than not that the estimated fair value of the Ad Network, Owned & Operating and Insights reporting units exceeds its carrying amount. Since the assets are considered recoverable, no impairment charge was recognized for the year ended December 31, 2024.
There was no triggering event or impairment for the nine months ended September 30, 2025.
Centre Lane Senior Secured Credit Facility
The Company is required to perform an analysis of the change in each amendment to the Centre Lane Senior Secured Credit Facility to determine whether the change is a modification or an extinguishment of debt. Under a modification, no gain or loss is recorded, and a new effective interest rate is established based on the carrying value of the debt and revised cash flow. If the debt is extinguished, the old debt is derecognized and the new debt is recorded at fair value, which becomes the new carrying value.
The Company utilizes a third-party valuation company to calculate the present value of the cash flows under the terms of each new amendment and determines if it was substantially different by at least 10 % from the present value of the remaining cash flow of the original debt instrument. Amendments Twenty-Two and Twenty-Three were considered modifications. For further information on modifications and extinguishments, see the amendments table within Note 10, Centre Lane Senior Secured Credit Facility, to the consolidated financial statements.
NOTE 16 – COMMITMENTS AND CONTINGENCIES
Litigation
In accordance with applicable accounting guidance, the Company establishes an accrued liability for litigation and regulatory matters when those matters present loss contingencies that are both probable and estimable. In such cases, there may be exposure to loss in excess of any amounts accrued. When a loss contingency is not both probable and estimable, the Company does not establish an accrued liability. As a litigation or regulatory matter develops, the Company, in conjunction with any outside counsel handling the matter, evaluates on an ongoing basis whether such matter presents a loss contingency that is probable and estimable. If, at the time of evaluation, the loss contingency related to a litigation or regulatory matter is not both probable and estimable, the matter will continue to be monitored for further developments that would make such loss contingency both probable and estimable. When a loss contingency related to a litigation or regulatory matter is deemed to be both probable and estimable, the Company will establish an accrued liability with respect to such loss contingency and record a corresponding amount of litigation-related expense. The Company will then continue to monitor the matter for further developments that could affect the amount of any such accrued liability.
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BRIGHT MOUNTAIN MEDIA, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2025
(Unaudited)
Ladenburg
On July 11, 2023, Ladenburg Thalmann & Co. Inc. (“Ladenburg”) filed an action against the Company for breach of contract in the United States District Court for the Southern District of Florida (the “District Court”), Case No. 9:23-cv-81019-AMC. Ladenburg alleges that it entered into an Investment Banking Agreement (the “Agreement”) with the Company on September 1, 2020. According to Ladenburg, that Agreement provided that Ladenburg would be the exclusive investment advisor and banker for the Company. Ladenburg alleges that the Agreement entitles them to a fee for any financing transactions (debt financing or merger and acquisition transactions) that the Company engages in during the term of the contract. In April 2023, the Company informed Ladenburg of the impending acquisition of Big Village Insights, Inc. and Big Village Agency, LLC (together, the "Big Village Acquisition"). Ladenburg now seeks $ 1.5 million, plus interest, costs and attorneys’ fees and expenses as a result of that acquisition and debt financing, claiming that it is entitled to a fee. The Company disputes the allegations and disputes that Ladenburg is entitled to receive any fee since it did not perform any work pertaining to such acquisition. On November 27, 2024, the District Court entered a judgment in favor of Ladenburg and against the Company granting damages of $ 1.7 million to Ladenburg. On December 26, 2024, the Company filed a motion with the District Court requesting that the District Court reconsider its judgment. This motion was denied on January 30, 2025. Also on December 26, 2024, the Company and its subsidiaries entered into the Twenty-First Amendment to the Credit Agreement with Centre Lane Partners for the purpose of securing a bond to stay execution of the judgment. See Note 10, Centre Lane Senior Secured Credit Facility, to the consolidated financial statements. The Company obtained the bond and a stay of execution of the judgment was granted on February 3, 2025. On May 9, 2025, the Company appealed to the United States Court of Appeals for the Eleventh Circuit. Ladenburg filed a response on July 9, 2025, and the Company accrued an additional $ 242,000 to cover fees related to this matter. The Company replied to Ladenburg's response on August 29, 2025. The matter is now fully briefed for the appellate court. The outcome of this matter is not determinable as of the date of issuance of these consolidated financial statements.
Other Litigation
Other litigation is defined as smaller claims or litigation that are neither individually nor collectively material. It does not include lawsuits that relate to collections.
The Company is party to various other legal proceedings that arise in the ordinary course of business, separate from normal course accounts receivable collections matters. Due to the inherent difficulty of predicting the outcome of these other legal proceedings, the Company cannot predict the eventual outcome of these matters, and it is reasonably possible that some of them could be resolved unfavorably to the Company. As a result, it is possible that the Company’s results of operations or cash flows in a particular fiscal period could be materially affected by an unfavorable resolution of pending litigation or contingencies. The outcome is not determinable as of the issuance of these consolidated financial statements.
NOTE 17 – STOCKHOLDERS’ DEFICIT
Preferred Stock
The Company has authorized 20,000,000 shares of preferred stock with a par value of $ 0.01 (the “Preferred Stock”), issuable in such series and with such designations, rights and preferences as the board of directors may determine. The Company’s board of directors has designated six series of preferred stock, consisting of:
1. 10% Series A Convertible Preferred Stock;
2. 10% Series B Convertible Preferred Stock;
3. 10% Series C Convertible Preferred Stock;
4. 10% Series D Convertible Preferred Stock;
5. 10% Series E Convertible Preferred Stock; and
6. 10% Series F Convertible Preferred Stock.
The designations, rights and preferences of the Series F-1, Series F-2 and Series F-3 are identical, other than the dividend rate, liquidation preference and date of automatic conversion into shares of our common stock.
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BRIGHT MOUNTAIN MEDIA, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2025
(Unaudited)
Additional terms of the designations, rights and preferences of the Series F-1, Series F-2 and Series F-3 include:
• the shares have no voting rights, except as may be provided under Florida law;
• the shares pay cash dividends subject to the provisions of Florida law at the dividend rates set forth above, payable monthly in arrears;
• the shares are convertible at any time at the option of the holder into shares of our common stock on a 1:1 basis. The conversion ratio is proportionally adjusted in the event of stock splits, recapitalization or similar corporate events. Any shares not previously converted will automatically convert into shares of our common stock on the dates set forth above;
• the shares rank junior to the 10 % Series A Convertible Preferred Stock and our 10 % Series E Convertible Preferred Stock;
• in the event of a liquidation or winding up of the Company, the shares have a liquidation preference of $ 0.50 per share for the Series F-1, $ 0.50 per share for the Series F-2 and $ 0.40 per share for the Series F-3; and
• the shares are not redeemable by the Company.
Other designations, rights and preferences of each series of preferred stock are identical, including:
• shares do not have voting rights, except as may be permitted under Florida law;
• shares are convertible into our common stock at the holder’s option on a one for one basis;
• shares are entitled to a liquidation preference equal to a return of the capital invested; and
• each share will automatically convert into shares of common sto ck five years from the date of issuance or upon a change in control.
Both the voluntary and automatic conversion formulas are subject to proportional adjustment in the event of stock splits, stock dividends and similar corporate events.
There were no shares of preferred stock issued or outstanding at September 30, 2025, and December 31, 2024.
At September 30, 2025 and December 31, 2024, there was an accrued unpaid preference dividend of $ 691,000 . This amount is payable to the Company's former Chairman of the Board, Mr. Kip Speyer, and is included under other current liabilities in the consolidated balance sheets.
Common Stock
Shares of Common Stock under the 2022 Stock Option Plan
On April 14, 2022, the Board and the Compensation Committee of the Board adopted and approved the 2022 Stock Option Plan. The 2022 Stock Option Plan has a term of 10 years and authorizes the issuance of up to 22,500,000 shares of the Company’s common stock. As of September 30, 2025, 12,283,017 shares were remaining under the 2022 Stock Option Plan for future issuance.
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BRIGHT MOUNTAIN MEDIA, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2025
(Unaudited)
Issue of Common Stock
During the three and nine months ended September 30, 2025, the Company issued shares of our common stock as follows (in thousands, except share data):
Three Months Ended
Nine Months Ended
September 30, 2025
September 30, 2025
Shares (#)
Value
Shares (#)
Value
Common stock issued to Centre Lane related to debt financing
2,832,485
$
105
2,832,485
$
105
Common stock issued for options exercised
-
$
-
50,400
$
2
Shares of common stock issued, net
2,832,485
$
105
2,882,885
$
107
During the three and nine months ended September 30, 2024, the Company issued shares of our common stock as follows (in thousands, except share data):
Three Months Ended
Nine Months Ended
September 30, 2024
September 30, 2024
Shares (#)
Value
Shares (#)
Value
Common stock issued for options exercised
17,000
$
1
80,250
$
2
Common stock issued for services rendered
-
$
-
279,452
$
16
Shares of common stock issued, net
17,000
$
1
359,702
$
18
Treasury Stock
During the nine months ended September 30, 2025 , two shareholders relinquished 557,200 shares of the Company's common stock, which were acquired by the Company at no cost to the Company. A total of 1,907,375 shares of the Company's common stock, with a value of $ 220,000 , are being held as Treasury Stock by the Company.
Warrants
At September 30, 2025 and December 31, 2024, we had 175,000 and 10,573,700 c ommon stock warrants outstanding to purchase shares of our common stock, respectively, with exercise prices ranging between $ 0.75 and $ 1.00 per share. Of the 175,000 common stock warrants outstanding at September 30, 2025, all 175,000 will expire in 2030.
Approximately 4,256,200 and 10,398,700 common stock warrants expired during the three and nine months ended September 30, 2025, respectively, and 660,720 and 3,153,470 common stock warrants expired during the three and nine months ended September 30, 2024, respectively.
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BRIGHT MOUNTAIN MEDIA, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2025
(Unaudited)
A summary of the Company’s warrants outstanding as of September 30, 2025 and December 31, 2024, is presented below.
September 30, 2025
Exercise Price
Number Outstanding
Gross Cash Proceeds
(if exercised, in thousands)
$
0.75
-
$
-
$
1.00
175,000
$
175
175,000
$
175
December 31, 2024
Exercise Price
Number Outstanding
Gross Cash Proceeds
(if exercised, in thousands)
$
0.75
10,398,700
$
7,799
$
1.00
175,000
$
175
10,573,700
$
7,974
NOTE 18 – LOSS PER SHARE
As of September 30, 2025 and 2024, there were 180,347,712 and 172,462,836 shares of common stock issued, respectively, and 178,440,337 and 171,112,661 shares of common stock outstanding, respectively. Outstanding shares as of September 30, 2025 and 2024, have been adjusted to reflect 1,907,375 and 1,350,175 treasury shares, respectively.
Basic net loss per share is computed by dividing the net earnings attributable to common shareholders by the weighted-average number of common shares outstanding during the period.
Diluted loss per share is computed by dividing net income attributable to common shareholders by the weighted-average number of common shares outstanding, increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued. Conversion or exercise of the potential common shares is not reflected in diluted earnings per share unless the effect is dilutive. The dilutive effect, if any, of outstanding common share equivalents is reflected in diluted earnings per share by application of the treasury stock method, and if-converted method, as applicable.
The following tables reconcile actual basic and diluted earnings per share for the three and nine months ended September 30, 2025 and 2024.
Three Months Ended
Nine Months Ended
September 30, 2025
September 30, 2024
September 30, 2025
September 30, 2024
(in thousands, except per share data)
Numerator:
Net loss
$
( 2,833
)
$
( 3,256
)
$
( 10,145
)
$
( 13,230
)
Denominator:
Weighted-average common shares outstanding:
Basic
175,864,104
171,104,346
175,943,376
171,138,296
Diluted
175,864,104
171,104,346
175,943,376
171,138,296
Net loss per common share
Basic
$
( 0.02
)
$
( 0.02
)
$
( 0.06
)
$
( 0.08
)
Diluted
$
( 0.02
)
$
( 0.02
)
$
( 0.06
)
$
( 0.08
)
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BRIGHT MOUNTAIN MEDIA, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2025
(Unaudited)
The anti-dilutive securities excluded from the weighted-average shares used to calculate the diluted net loss per common share for the three and nine months ended September 30, 2025 and 2024 were as follows:
September 30, 2025
September 30, 2024
Shares unvested and subject to exercise of stock options
10,216,983
10,349,033
Shares subject to exercise of warrants
175,000
18,208,596
NOTE 19 – RELATED PARTIES
Centre Lane Partners
Centre Lane Partners has provided, and continues to provide, funding to assist the Company with its liquidity needs through the Centre Lane Senior Secured Credit Facility.
In connection with the Twenty-First Amendment, on December 26, 2024, the Company issued 5,001,991 shares of common stock of the Company to BV Agency, LLC, an entity beneficially owned by Centre Lane Partners. In connection with the Twenty-Third Amendment, on September 30, 2025, the Company issued an additional 2,832,485 shares of common stock of the Company to Centre Lane Partners.
BV Agency, LLC, and Centre Lane Partners own approximately 14.8 % and 10.1 % of the Company’s outstanding common stock, respectively.
SEC rules define a related party as including (i) any director or executive officer of the Company, or any immediate family member thereof, (ii) any director nominee, or any immediate family member thereof, and (iii) a 5% or greater shareholder of the Company, or any immediate family member thereof. As a result, BV Agency, LLC, and Centre Lane Partners together are considered to be related parties of the Company. Through September 30, 2025, the Company has entered into 23 amendments to the Credit Agreement between itself and Centre Lane Partners.
The total related party debt owed to Centre Lane Partners was $ 83.6 million and $ 78.8 million as of September 30, 2025 and December 31, 2024, respectively. See Note 10, Centre Lane Senior Secured Credit Facility, to the Company’s consolidated financial statements for details on this facility.
Preferred Stock
At September 30, 2025 and December 31, 2024, there was an accrued unpaid preference dividend of $ 691,000 . This amount is payable to the Company's former Chairman of the Board, Mr. Kip Speyer.
NOTE 20 – INCOME TAXES
The Company recorded a tax provision of $ 0 for the three and nine months ended September 30, 2025 and 2024, due in large part to its expected tax losses for the period and maintained a full valuation allowance against its net deferred tax assets.
At September 30, 2025 and December 31, 2024 , the Company had no unrecognized tax benefits or accrued interest and penalties recorded. No interest and penalties were recognized during the three and nine months ended September 30, 2025 and 2024.
On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was signed into law. The OBBBA introduces changes to U.S. tax policy, trade regulations, and federal spending priorities, including provisions such as the permanent extension of certain expiring provisions of the 2017 Tax Cuts and Jobs Act. We do not anticipate the OBBBA to have a significant impact to our consolidated financial statements, and will continue to evaluate the impact as more guidance becomes available.
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