What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2021-11-10 compared with 2021-08-12 · 83 added, 84 removed, 308 unchanged (35% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

September 30,

Current assets:

21 unchanged sentences

Shares issued and outstanding:

123,685 at June 30, 2021 and December 31, 2020

123,685 at September 30, 2021 and December 31, 2020

Stockholders’ deficit:

Common stock, $ 0.001 par value, 150,000,000 shares authorized, shares issued and

90,477,798 at June 30, 2021 and December 31, 2020

90,477,798 at September 30, 2021 and December 31, 2020

Additional paid-in capital

4 unchanged sentences

( 1,419,156 )

Total liabilities and stockholders’ deficit

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three-months ended June 30,

Six-months ended June 30,

Three-months ended September 30,

Nine-months ended September 30,

COST OF REVENUE

3 unchanged sentences

Software development

OPERATING LOSS

OPERATING INCOME (LOSS)

OTHER INCOME (EXPENSES)

Foreign exchange gain (loss)

Foreign exchange gain

Interest expense

Other income (Note 8)

NET LOSS BEFORE INCOME TAXES

NET INCOME (LOSS) BEFORE INCOME TAXES

Income tax expense

$ ( 127,098 )

NET INCOME (LOSS)

$ ( 319,728 )

LOSS PER SHARE

Basic and diluted loss per share

EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share

Diluted earnings (loss) per share

WEIGHTED AVERAGE SHARES OUTSTANDING

Basic and diluted

QUOTEMEDIA, INC.

1 unchanged sentence

PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT

Series A Redeemable

Series A Redeemable Convertible

Preferred Stock

Total Stockholders’

Three-months ended June 30, 2021:

Three-months ended September 30, 2021:

Number of Shares

Paid-in Capital

Accumulated Deficit

Equity (Deficit)

Balance, March 31, 2021

Balance, June 30, 2021

$ ( 21,172,056 )

1 unchanged sentence

Stock-based compensation

Balance, June 30, 2021

Balance, September 30, 2021

$ ( 21,017,125 )

$ ( 1,299,946 )

Series A Redeemable

Series A Redeemable Convertible

Preferred Stock

Total Stockholders’

Six-months ended June 30, 2021:

Nine-months ended September 30, 2021:

Number of Shares

Paid-in Capital

Accumulated Deficit

Equity (Deficit)

Balance, December 31, 2020

2 unchanged sentences

Stock-based compensation

Balance, June 30, 2021

Balance, September 30, 2021

$ ( 21,017,125 )

$ ( 1,299,946 )

Series A Redeemable

Series A Redeemable Convertible

Preferred Stock

Total Stockholders’

Three-months ended June 30, 2020:

Stockholders’

Three-months ended September 30, 2020:

Number of Shares

Paid-in Capital

Accumulated Deficit

Equity (Deficit)

Balance, March 31, 2020

Balance, June 30, 2020

$ ( 20,713,617 )

1 unchanged sentence

Stock-based compensation

Balance, June 30, 2020

Balance, September 30, 2020

$ ( 20,788,922 )

$ ( 1,099,499 )

Series A Redeemable

Series A Redeemable Convertible

Preferred Stock

Total Stockholders’

Six-months ended June 30, 2020:

Nine-months ended September 30, 2020:

Number of Shares

Paid-in Capital

Accumulated Deficit

Equity (Deficit)

Balance, December 31, 2019

2 unchanged sentences

Stock-based compensation

Balance, June 30, 2020

Balance, September 30, 2020

$ ( 20,788,922 )

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Six-months ended June 30,

Nine-months ended September 30,

OPERATING ACTIVITIES:

Net income (loss)

$ ( 319,728 )

Adjustments to reconcile loss to net cash provided by operating activities:

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization

13 unchanged sentences

( 1,621,738 )

( 1,225,899 )

Net cash used in investing activities

( 1,721,364 )

( 1,354,086 )

FINANCING ACTIVITIES:

2 unchanged sentences

Net cash provided by (used) in financing activities

Net increase (decrease) in cash

Net decrease in cash

Cash and equivalents, beginning of period

7 unchanged sentences

Operating results for any quarter are not necessarily indicative of the results for any other quarter or for a full year.

In connection with the preparation of the condensed consolidated financial statements the Company evaluated subsequent events after the balance sheet date of June 30, 2021 through the filing of this report.

As of June 30, 2021, the Company has a working capital deficit of $ 1,990,292 .

In connection with the preparation of the condensed consolidated financial statements the Company evaluated subsequent events after the balance sheet date of September 30, 2021 through the filing of this report.

As of September 30, 2021, the Company has a working capital deficit of $ 2,063,727 .

Our current liabilities include deferred revenue of $ 753,409 .

8 unchanged sentences

While our licensed-based revenue is generally more recurring in nature, the uncertainty caused by the COVID-19 pandemic has led some clients to delay purchasing decisions, product and service implementations or cancel or reduce spending with us.

Given the dynamic nature of these circumstances, it is too early to assess the full impact of the COVID-19 pandemic on our ongoing business, results of operations, and overall future financial performance.

SIGNIFICANT ACCOUNTING POLICIES

17 unchanged sentences

If the financial condition of our customers were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required.

The allowance for doubtful accounts was $ 175,000 as of June 30, 2021 and December 31, 2020.

Bad debt expense was $ 58,502 and $ 23,914 for the three-months ended June 30, 2021 and 2020, respectively.

Bad debt expense was $ 78,324 and $ 94,845 for the six-months ended June 30, 2021 and 2020, respectively.

The allowance for doubtful accounts was $ 175,000 as of September 30, 2021 and December 31, 2020.

Bad debt expense was $ 9,866 and $ 25,664 for the three-months ended September 30, 2021 and 2020, respectively.

Bad debt expense was $ 88,210 and $ 120,509 for the nine-months ended September 30, 2021 and 2020, respectively.

QUOTEMEDIA, INC.

2 unchanged sentences

Recently Adopted

In December 2019, the FASB issued ASU No.

2019-12, Income Taxes (Topic 740):

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740):

Simplifying the Accounting for Income Taxes, which is intended to simplify various aspects related to accounting for income taxes.

12 unchanged sentences

Our revenue by type of service consists of the following:

Three-months ended June 30,

Six-months ended June 30,

Three-months ended September 30,

Nine-months ended September 30,

Portfolio Management Systems

9 unchanged sentences

Effects of foreign currency translation

Balance at June 30, 2021

Balance at September 30, 2021

Practical Expedients

6 unchanged sentences

Shworan is a control person of 410734 B.C.

At June 30, 2021 and December 31, 2020, there were no amounts due to 410734 B.C.

At September 30, 2021 and December 31, 2020, there were no amounts due to 410734 B.C.

The Company entered into a marketing agreement with Bravenet Web Services, Inc.

1 unchanged sentence

Shworan is a control person of Bravenet.

At June 30, 2021 and December 31,2020, there was $ 5,000 and $ 7,500 , respectively, due to Bravenet related to this agreement.

At September 30, 2021 and December 31,2020, there was $ 7,500 due to Bravenet related to this agreement.

As a matter of policy all related party transactions are subject to review and approval by the Company’s Board of Directors.

11 unchanged sentences

Supplemental balance sheet information related to leases was as follows:

September 30,

Operating Leases

10 unchanged sentences

Total finance lease liability

September 30,

Weighted Average Remaining Lease Term

7 unchanged sentences

Maturities of lease liabilities were as follows:

Year ending December 31,

2021 (excluding the six-months ended June 30, 2021)

2021 (excluding the nine-months ended September 30, 2021)

Total lease payments

Less imputed interest

The components of lease expense for the three and six-month periods ended June 30, 2021 and 2020 were as follows:

Three-months ended June 30,

Six-months ended June 30,

The components of lease expense for the three and nine-month periods ended September 30, 2021 and 2020 were as follows:

Three-months ended September 30,

Nine-months ended September 30,

Operating lease costs:

4 unchanged sentences

Total finance lease costs

Supplemental cash flow information for the six-month period ended June 30, 2021 and 2020 related to leases was as follows:

Supplemental cash flow information for the nine-month period ended September 30, 2021 and 2020 related to leases was as follows:

Cash paid for amounts included in the measurement of lease liabilities:

7 unchanged sentences

A total of 550,000 shares of the Company’s Preferred Stock are designated as “Series A Redeemable Convertible Preferred Stock.” The Series A Redeemable Convertible Preferred Stock has no dividend or voting rights.

At June 30, 2021, 123,685 shares of Series A Redeemable Convertible Preferred Stock were outstanding.

No shares of Series A Redeemable Convertible Preferred Stock were issued or redeemed during the three and six-months ended June 30, 2021 and 2020.

At September 30, 2021, 123,685 shares of Series A Redeemable Convertible Preferred Stock were outstanding.

No shares of Series A Redeemable Convertible Preferred Stock were issued or redeemed during the three and nine-months ended September 30, 2021 and 2020.

Redemption Rights

7 unchanged sentences

b) Common stock

No shares of common stock were issued during the three and six-months ended June 30, 2021 and 2020.

No shares of common stock were issued during the three and nine-months ended September 30, 2021 and 2020.

c) Stock Options and Warrants

1 unchanged sentence

The impact of forfeitures that may occur prior to vesting is also estimated and considered in the amount recognized.

Total stock-based compensation expense, related to all of the Company’s stock-based awards, recognized for the three and six-month periods ended June 30, 2021 and 2020 was comprised as follows:

Three-months ended June 30,

Six-months ended June 30,

Total stock-based compensation expense, related to all of the Company’s stock-based awards, recognized for the three and nine-month periods ended September 30, 2021 and 2020 was comprised as follows:

Three-months ended September 30,

Nine-months ended September 30,

Sales and marketing

2 unchanged sentences

Common Stock Options and Warrants

The following table summarizes our common stock option and warrant activity for the six-months ended June 30, 2021:

The following table summarizes our common stock option and warrant activity for the nine-months ended September 30, 2021:

Common Stock Options

2 unchanged sentences

Forfeited during the period

Outstanding at June 30, 2021

The following table summarizes our non-vested common stock option and warrant activity for the six-months ended June 30, 2021:

Outstanding at September 30, 2021

The following table summarizes our non-vested common stock option and warrant activity for the nine-months ended September 30, 2021:

Common Stock Options

2 unchanged sentences

Vested during the period

Non-vested at June 30, 2021

Non-vested at September 30, 2021

QUOTEMEDIA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The following table summarizes the weighted average remaining contractual life and exercise price of common stock options and warrants outstanding at June 30, 2021:

The following table summarizes the weighted average remaining contractual life and exercise price of common stock options and warrants outstanding at September 30, 2021:

Common Stock Options and Warrants Outstanding

2 unchanged sentences

$ 0.03 - 0.11

At June 30, 2021, there was $ 13,878 of unrecognized compensation cost related to non-vested options and warrants granted to purchase common stock which is expected to be recognized over a weighted-average period of 1.3 years.

At September 30, 2021, there was $ 6,939 of unrecognized compensation cost related to non-vested options and warrants granted to purchase common stock which is expected to be recognized over a weighted-average period of 1.1 years.

All stock options and warrants to purchase common stock have been granted with exercise prices equal to or greater than the market value of the underlying common shares on the date of grant.

At June 30, 2021, the aggregate intrinsic value of options and warrants outstanding was $ 2,890,110 .

At September 30, 2021, the aggregate intrinsic value of options and warrants outstanding was $ 3,405,566 .

The aggregate intrinsic value of options and warrants exercisable was $ 3,076,691 .

10 unchanged sentences

The probability of the liquidity event performance condition is not currently determinable or probable;

therefore, no compensation expense has been recognized as of June 30, 2021.

therefore, no compensation expense has been recognized as of September 30, 2021.

The probability is re-evaluated each reporting period.

As of June 30, 2021, there was $ 9,173,832 in unrecognized stock-based compensation expense related to these Liquidity Preferred Stock Warrants.

As of September 30, 2021, there was $ 9,173,832 in unrecognized stock-based compensation expense related to these Liquidity Preferred Stock Warrants.

Since the Liquidity Preferred Stock Warrants only vest and become exercisable on the consummation of a Liquidity Event which is currently determined not to be probable, we are also unable to determine the weighted-average period over which the unrecognized compensation cost will be recognized.

As of June 30, 2021, there were a total of 413,493 preferred stock warrants outstanding with a weighted average remaining contractual life of 26.5 years.

As of June 30, 2021, 31,250 preferred stock warrants were exercisable.

No preferred stock warrants were exercised for the three and six-month periods ended June 30, 2021 and 2020.

As of September 30, 2021, there were a total of 382,243 preferred stock warrants outstanding with a weighted average remaining contractual life of 24 years.

As of September 30, 2021, 31,250 preferred stock warrants were exercisable.

No preferred stock warrants were exercised for the three and nine-month periods ended September 30, 2021 and 2020.

QUOTEMEDIA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

LOSS PER SHARE

INCOME (LOSS) PER SHARE

Basic net income per share is computed by dividing net income during the period by the weighted-average number of common shares outstanding, excluding the dilutive effects of common stock equivalents.

4 unchanged sentences

Therefore, in periods when a loss is reported, the calculation of basic and dilutive loss per share results in the same value.

The calculations for basic and diluted loss per share for the three and six-month periods ended June 30, 2021 and 2020 are as follows:

Three-months ended June 30,

Six-months ended June 30,

$ ( 127,098 )

The calculations for basic and diluted loss per share for the three and nine-month periods ended September 30, 2021 and 2020 are as follows:

Three-months ended September 30,

Nine-months ended September 30,

Net income (loss)

$ ( 319,728 )

Weighted average shares outstanding - basic and diluted

Net loss per share – basic and diluted

The number of shares of potentially dilutive common stock related to options, warrants and redeemable convertible preferred stock that were excluded from the calculation of dilutive shares since the inclusion of such shares would be anti-dilutive for the three and six-month periods ended June 30, 2021 and 2020 are shown below:

Three-months ended June 30,

Six-months ended June 30,

Stock options and warrants to purchase common stock

Warrants to purchase redeemable convertible preferred stock

Redeemable convertible preferred stock

Weighted average shares outstanding - basic and diluted

Net income (loss) per share – basic

Net income (loss) per share – diluted

The number of shares of potentially dilutive common stock related to options, warrants and redeemable convertible preferred stock that were excluded from the calculation of dilutive shares since the inclusion of such shares would be anti-dilutive for the three and nine-month periods ended September 30, 2021 and 2020 are shown below:

Three-months ended September 30,

Nine-months ended September 30,

Stock options and warrants to purchase

10 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements