What changed in this filing

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Item 1. Financial Statements

2025-05-15 compared with 2024-11-14 · 111 added, 210 removed, 254 unchanged (56% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

September 30,

Current assets:

8 unchanged sentences

Operating lease right-of-use assets (see note 4)

LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK, AND STOCKHOLDERS’ EQUITY (DEFICIT)

LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK, AND STOCKHOLDERS’ EQUITY

Current liabilities:

1 unchanged sentence

Deferred revenue (see note 3)

Operating lease liabilities (see note 5)

Current portion of operating lease liabilities (see note 4)

Total current liabilities

Long-term liabilities:

Deferred revenue (see note 3)

Operating lease liabilities (see note 5)

Preferred stock warrant liability (see note 6)

Long-term portion of deferred revenue (see note 3)

Long-term portion of operating lease liabilities (see note 4)

Total long-term liabilities

Mezzanine equity:

Preferred stock, 10,000,000 shares authorized:

Series A redeemable convertible preferred stock, $ 0.001 par value,

550,000 shares designated;

shares issued and outstanding:

123,685 at September 30, 2024 and December 31, 2023 (see note 6)

Stockholders’ equity:

Preferred stock, 10,000,000 shares authorized:

Series A redeemable convertible preferred stock, $ 0.001 par value,

550,000 shares designated;

Series A Redeemable Convertible Preferred stock, $ 0.001 par value, 550,000 shares designated;

shares issued and outstanding:

123,685 at September 30, 2024 and December 31, 2023 (see note 6)

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

90,477,798 at September 30, 2024 and December 31, 2023

123,685 at March 31, 2025 and December 31, 2024 (see note 6)

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

90,477,798 at March 31, 2025 and December 31, 2024

Additional paid-in capital

2 unchanged sentences

( 21,187,879 )

Total stockholders’ equity (deficit)

Total liabilities, mezzanine equity and stockholders’ equity (deficit)

The accompanying notes are an integral part of these consolidated condensed financial statements.

Total stockholders’ equity

Total liabilities and stockholders’ equity

The accompanying notes are an integral part of these consolidated condensed interim financial statements.

QUOTEMEDIA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three-months ended

September 30,

Nine-months ended

September 30,

Three-months ended March 31,

REVENUE (see note 3)

4 unchanged sentences

Software development

OPERATING INCOME (LOSS)

OTHER INCOME (EXPENSES)

Foreign exchange gain (loss)

OPERATING LOSS

OTHER INCOME (EXPENSES), NET

Foreign exchange income

Interest expense

NET INCOME (LOSS) BEFORE INCOME TAXES

NET LOSS BEFORE INCOME TAXES

Income tax expense

NET INCOME (LOSS)

$ ( 440,941 )

NET LOSS INCOME

$ ( 499,811 )

EARNINGS (LOSS) PER SHARE (see note 7)

Basic earnings (loss) per share

Diluted earnings (loss) per share

LOSS PER SHARE (see note 7)

Basic loss per share

Diluted loss per share

WEIGHTED AVERAGE SHARES OUTSTANDING (see note 7)

The accompanying notes are an integral part of these consolidated condensed financial statements.

The accompanying notes are an integral part of these consolidated condensed interim financial statements.

QUOTEMEDIA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

Series A Redeemable

CONSOLIDATED STATEMENTS OF CHANGES IN SERIES A REDEEMABLE CONVERTIBLE

PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT)

For the three-months ended March 31, 2025 and 2024

Series A Redeemable Convertible

Preferred Stock

Accumulated Deficit

Stockholders’

Three-months ended September 30, 2024:

Balance, June 30, 2024

$ ( 20,140,191 )

Balance, September 30, 2024

$ ( 20,581,132 )

Series A Redeemable

Preferred Stock

Total Stockholders’

Nine-months ended September 30, 2024:

Paid-in Capital

Balance, December 31, 2024

$ ( 21,187,879 )

$ ( 859,881 )

Reclassification of preferred stock warrants

Reclassification of series A redeemable convertible preferred stock

Stock-based compensation

Balance, September 30, 2024

$ ( 20,581,132 )

The accompanying notes are an integral part of these consolidated condensed financial statements.

QUOTEMEDIA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SERIES A REDEEMABLE CONVERTIBLE

PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT

Series A Redeemable

Preferred Stock

Three-months ended September 30, 2023:

Stockholders’

Balance, June 30, 2023

$ ( 20,036,100 )

$ ( 1,042,349 )

Balance, September 30, 2023

$ ( 19,910,064 )

Balance, March 31, 2025

$ ( 21,687,690 )

Series A Redeemable

Series A Redeemable Convertible

Preferred Stock

Nine-months ended September 30, 2023:

Stockholders’

Accumulated Deficit

Balance, December 31, 2023

1 unchanged sentence

$ ( 859,881 )

Balance, September 30, 2023

Balance, March 31, 2024

$ ( 19,889,018 )

$ ( 888,057 )

The accompanying notes are an integral part of these consolidated condensed financial statements.

The accompanying notes are an integral part of these consolidated condensed interim financial statements.

QUOTEMEDIA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine-months ended September 30,

Three-months ended March 31,

OPERATING ACTIVITIES:

Net (loss) income

$ ( 499,811 )

2 unchanged sentences

Allowance for doubtful accounts

Stock-based compensation expense – common stock warrants

Stock-based compensation expense – preferred stock warrants

Changes in assets and liabilities:

8 unchanged sentences

Capitalized application software

( 2,591,750 )

( 2,387,774 )

Net cash used in investing activities

( 2,626,124 )

( 2,459,023 )

Net (decrease) increase in cash

Net decrease in cash

Cash and equivalents, beginning of period

Cash and equivalents, end of period

The accompanying notes are an integral part of these consolidated condensed financial statements.

The accompanying notes are an integral part of these consolidated condensed interim financial statements.

QUOTEMEDIA, INC.

5 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, management evaluated subsequent events after the balance sheet date of September 30, 2024 through the filing of this report.

In connection with the preparation of the condensed consolidated financial statements, management evaluated subsequent events after the balance sheet date of March 31, 2025 through the filing of this report.

These consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto for the fiscal year ended December 31, 2024 contained in the Form 10-K filed with the Securities and Exchange Commission dated April 15, 2025.

6 unchanged sentences

The Company specializes in the collection, aggregation, and delivery of both delayed and real-time financial data content via the Internet.

The Company develops and license software components that deliver dynamic content to banks, brokerage firms, financial institutions, mutual fund companies, online information and financial portals, media outlets, public companies, and corporate intranets.

The Company develops and licenses software components that deliver dynamic content to banks, brokerage firms, financial institutions, mutual fund companies, online information and financial portals, media outlets, public companies, and corporate intranets.

b) Basis of consolidation

10 unchanged sentences

The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of the Company’s customers to make required payments.

The Company believes that the historical loss information it has compiled is a reasonable base on which to determine expected credit losses for trade receivables held at September 30, 2024, because the composition of the trade receivables at that date is consistent with that used in developing the historical credit-loss percentages (i.e., the similar risk characteristics of its customers and its credit practices have not changed significantly over time).

The allowance for doubtful accounts was $ 525,000 and $ 225,000 as of September 30, 2024 and December 31, 2023, respectively.

Bad debt expenses were $ 182,171 and $ 155,980 for the three-months ended September 30, 2024 and 2023, respectively.

Bad debt expenses were $ 323,150 and $ 117,739 for the nine-months ended September 30, 2024 and 2023, respectively.

The Company believes that the historical loss information it has compiled is a reasonable base on which to determine expected credit losses for trade receivables held at March 31, 2025, because the composition of the trade receivables at that date is consistent with that used in developing the historical credit-loss percentages (i.e., the similar risk characteristics of its customers and its credit practices have not changed significantly over time).

The allowance for doubtful accounts was $ 330,000 as of March 31, 2025 and December 31, 2024, respectively.

Bad debt expenses were $ 9,312 and $ 13,329 for the three-months ended March 31, 2025 and 2024, respectively.

The Company generates substantially all of its revenue from subscriptions for access to its software products and related support.

7 unchanged sentences

Portfolio Management and Real-Time Quote Systems

Corporate Quotestream (Business-to-Business)

Corporate Quotestream TM (Business-to-Business)

Web-delivered, embedded applications providing real-time, streaming market quotes and research information targeted to both professionals and non-professional users.

26 unchanged sentences

In November 2024, the FASB issued ASU No.

2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures (“ASU 2023-07”).

This standard improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.

ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted.

The amendments in ASU 2023-07 will be applied retrospectively to all prior periods presented in the consolidated financial statements.

2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40).

The ASU requires disclosure, in the notes to financial statements, of specified information about certain costs and expenses, including purchases of inventory, employee compensation, depreciation, and intangible asset amortization included in each relevant expense caption.

Additionally, the amendment requires a qualitative description of the amounts remaining in the relevant expense captions that are not separately disaggregated quantitatively, and to disclose the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses.

For public business entities, the new guidance is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted.

An entity may apply the amendments prospectively for reporting periods after the effective date or retrospectively to any or all prior periods presented in the financial statements.

The Company does not expect that the adoption of ASU 2023-09 will have a significant impact on the Company’s consolidated financial statements.

7 unchanged sentences

The amendments in ASU 2023-09 will be applied prospectively in the consolidated financial statements.

The Company does not expect that the adoption of ASU 2023-09 will have a significant impact on the Company’s consolidated financial statements.

The Company does not expect that the adoption of ASU 2023-09 will have a significant impact on the Company’s consolidated financial statements other than the additional disclosures.

Other accounting standards that have been issued by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption.

2 unchanged sentences

Revenue by type of service consists of the following:

Three-months ended

September 30,

Nine-months ended

September 30,

Three-months ended March 31,

Portfolio Management Systems

4 unchanged sentences

Deferred Revenue

Changes in deferred revenue were as follows for the periods ending September 30,

Changes in deferred revenue were as follows for the three-month periods ended March 31,

Beginning balance at Jan 1,

Revenue recognized in the current period from the amounts in the beginning balance

( 1,374,128 )

New deferrals, net of amounts recognized in the current period

4 unchanged sentences

Total deferred revenue

For contracts greater than one year in duration, revenue allocated to remaining performance obligations, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods, was $ 5.6 million as of March 31, 2025.

We expect to recognize approximately 58 % of our total remaining performance obligation revenue over the next 12 months and the remainder thereafter.

Practical Expedients

As permitted under ASU 2014-09 (and related ASUs), unsatisfied performance obligations are not disclosed, as the original expected duration of substantially of the Company’s contracts is one year or less.

The Company applies a practical expedient and does not disclose the value of the remaining performance obligations for contracts that are less than one year in duration.

QUOTEMEDIA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

RELATED PARTIES

2 unchanged sentences

Shworan, CEO of Quotemedia Ltd., is a control person of 410734 B.C.

There were no amounts due to 410734 B.C.

at September 30, 2024 and December 31, 2023.

At March 31, 2025 $ 32,946 was due to 410734 B.C.

and at December 31, 2024 $ 13,367 was due to 410734 B.C.

The Company pays a monthly marketing service fee of $ 3,000 to Bravenet Web Services, Inc.

(“Bravenet”).

At September 30, 2024 and December 31, 2023, there was $ 19,425 and $ 12,500 due to Bravenet related to this agreement, respectively.

At March 31, 2025 and December 31, 2024, there was $ 37,484 and $ 28,483 due to Bravenet related to this agreement, respectively.

Also, on February 25, 2025, Bravenet advanced the Company $ 69,000 .

There are no fixed repayment terms and no interest charged on the advance.

Shworan is a control person of Bravenet.

At September 30, 2024 and December 31, 2023, there were $ 185,816 and $ 68,988 in unreimbursed expenses owed to Keith Randall, CEO of Quotemedia, Inc., respectively.

At March 31, 2025 and December 31, 2024, there were $ 210,885 and $ 185,002 in unreimbursed expenses owed to Keith Randall, CEO of Quotemedia, Inc., respectively.

Amounts due to related parties are included in accounts payable and accrued liabilities.

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

QUOTEMEDIA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The Company has operating leases for corporate offices.

10 unchanged sentences

Supplemental balance sheet information related to leases was as follows:

September 30,

Operating Leases

3 unchanged sentences

Total operating lease liability

September 30,

Weighted Average Remaining Lease Term

2 unchanged sentences

Operating leases

QUOTEMEDIA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Maturities of lease liabilities were as follows:

2024 (excluding the nine-months ended September 30, 2024)

Year ending December 31,

2025 (excluding the three-months ended March 31, 2025)

Total lease payments

Less imputed interest

The components of lease expense for the three and nine-months ended September 30, 2024 and 2023 were as follows:

Three-months ended

September 30,

Nine-months ended

September 30,

The components of lease expense for the three-months ended March 31, 2025 and 2024 were as follows:

Three-months ended March 31,

Operating lease costs:

2 unchanged sentences

Total operating lease costs

QUOTEMEDIA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Supplemental cash flow information for the nine-months ended September 30, 2024 and 2023 related to leases was as follows:

Supplemental cash flow information for the three-months ended March 31, 2025 and 2024 related to leases was as follows:

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

Operating cash flows from operating leases

There was no additional right of use assets obtained in exchange for lease obligations for the nine-months ended September 30, 2024 and 2023.

There were no additional right of use assets obtained in exchange for lease obligations for the three-months ended March 31, 2025 and 2024.

REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT

2 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 September 30, 2024 and December 31, 2023, 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, 2024 and 2023.

At March 31, 2025 and December 31, 2024, 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-months ended March 31, 2025 and 2024.

Redemption Rights

5 unchanged sentences

In accordance with Accounting Standards Update (“ASU”) 480-10-S99, because a limited number of Series A redeemable convertible preferred stock could be redeemed at the holder’s option if the above criteria are met, it was classified as mezzanine equity and not permanent equity.

QUOTEMEDIA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

On April 26, 2024, the Certificate of Designation of the Series A Redeemable Convertible Preferred Stock was amended removing the above redemption right, at no cost to the Company, resulting in a change in the classification of Series A redeemable preferred stock from mezzanine equity to permanent equity.

2 unchanged sentences

b) Common stock

No shares of common stock were issued during the three and nine-months ended September 30, 2024 and 2023.

No shares of common stock were issued during the three-months ended March 31, 2025 and 2024.

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.

QUOTEMEDIA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Total stock-based compensation expense, related to all of the Company’s stock-based awards, recognized for the three and nine-months ended September 30, 2024 and 2023 was comprised as follows:

Three-months ended

September 30,

Nine-months ended

September 30,

Sales and marketing

Total stock-based compensation expense

There were no stock-based compensation expenses related to the Company’s stock-based awards for the three-months ended March 31, 2025 and 2024.

Common Stock Options and Warrants

The following table summarizes the Company’s common stock option and warrant activity for the nine-months ended September 30, 2024:

Average Grant

Date Exercise

Outstanding at December 31, 2023

Granted during the period

Forfeited during the period

Outstanding at September 30, 2024

The following table summarizes the weighted average remaining contractual life and exercise price of common stock options and warrants outstanding and exercisable at September 30, 2024:

At September 30, 2024, there was no unrecognized compensation cost related to non-vested options and warrants granted to purchase common stock.

Management calculates the fair value of stock options and warrants granted to purchase common stock under the provisions of FASB ASC 718 using the Black-Scholes valuation model with the following assumptions:

Three-months ended

September 30,

Nine-months ended

S eptember 30,

Expected dividend yield

Expected stock price volatility

Risk-free interest rate

Expected life of options (years)

Weighted average fair value of options and warrants granted

There were 25,772,803 fully vested common stock warrants and options outstanding at March 31, 2024 and December 31, 2023 at a weighted-average grant date exercise price of $ 0.06 .

No stock options or warrants to purchase common stock were granted or exercised during the three-months ended March 31, 2025 and 2024.

The following table summarizes the weighted average remaining contractual life and exercise price of common stock options and warrants outstanding and exercisable at March 31, 2025:

At March 31, 2025, there was no unrecognized compensation cost related to non-vested options and warrants granted to purchase common stock.

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 September 30, 2024, the aggregate intrinsic value of options and warrants outstanding and exercisable was $ 3,921,022 .

At March 31, 2025, the aggregate intrinsic value of options and warrants outstanding and exercisable was $ 2,890,110 .

The intrinsic value of stock options and warrants are calculated as the amount by which the market price of the Company’s common stock exceeds the exercise price of the option or warrant.

QUOTEMEDIA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Preferred Stock Warrants

8 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 September 30, 2024.

therefore, no compensation expense has been recognized as of March 31, 2025.

The probability is re-evaluated each reporting period.

As of September 30, 2024, there was $ 7,480,496 in unrecognized stock-based compensation expense related to these liquidity preferred stock warrants.

As of March 31, 2025, there was $ 7,480,496 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, management is also unable to determine the weighted-average period over which the unrecognized compensation cost will be recognized.

As of September 30, 2024, there were a total of 413,493 preferred stock warrants outstanding with a weighted average remaining contractual life of 23.3 years.

As of September 30, 2024, 31,250 preferred stock warrants were exercisable.

No preferred stock warrants were granted or exercised for the nine-months ended September 30, 2024 and 2023.

QUOTEMEDIA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

As of March 31, 2025, there were a total of 413,493 preferred stock warrants outstanding with a weighted average remaining contractual life of 22.8 years.

As of March 31, 2025, 31,250 preferred stock warrants were exercisable.

No preferred stock warrants were granted or exercised for the three-months ended March 31, 2025 and 2024.

Reclassification of Preferred Stock Warrant Liability resulting from Amendment to Redemption Rights

2 unchanged sentences

There was no impact on the consolidated statement of operations resulting from the amendment.

Fair Value Measurement of Compensation Preferred Stock Warrants

The Company adheres to ASC 820, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.

ASC 820 applies to reported balances that are required or permitted to be measured at fair value under existing accounting pronouncements;

accordingly, the standard does not require any new fair value measurements of reported balances.

ASC 820 emphasizes that fair value is a market-based measurement, not an entity-specific measurement.

Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability.

As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy).

Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company could access.

Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals.

Level 3 inputs are unobservable inputs for the asset or liability, which is typically based on an entity’s own assumptions, as there is little, if any, related market activity.

In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety.

The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

QUOTEMEDIA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The estimated fair value of the preferred stock warrant liability is determined using Level 3 inputs.

The preferred stock warrants were valued using a bond plus option framework reflecting the cash flow of the preferred stock warrants and used a probability weighted sum of the value in each potential year before expiration to estimate the fair value of the preferred stock warrants.

Volatility was based on public peer companies, adjusted for size and leverage.

Risk-free rate was selected based on term matched Treasury securities.

Bond repayment depends on the Company’s timely access to the required cash and as such, is discounted at the Company’s assumed borrowing rate.

This model was run based on the Management's expected term and probabilities of a liquidity event.

The key inputs for the framework were as follows:

Valuation Inputs

September 30,

December 31, 2023

Expected Time to Expiration (years)

Stock Price on Valuation Date

Peer Volatility

Cash Flow Discount Rate

The following table sets forth a summary of the changes in the fair value of the Level 3 preferred stock warrant liability for the three and nine-months ended September 30, 2024 and 2023:

Fair value as of December 31, 2023 and 2022, respectively

Change in fair value

Reclassification of preferred stock warrants on April 26, 2024

Fair value as of June 30, 2024 and 2023, respectively

Change in fair value

Fair value as of September 30, 2024 and 2024, respectively

The changes in fair value attributable to the preferred stock warrants are recorded as an adjustment to stock compensation expense and reported in sales and marketing expense on the three and nine-months ended September 30, 2024 and 2023 statements of operations.

EARNINGS (LOSS) PER SHARE

LOSS PER SHARE

Basic net income (loss) per share is computed by dividing net income (loss) 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 net income per share for the three and nine-months ended September 30, 2024 and 2023 are as follows:

Three-months ended

September 30,

Nine-months ended

September 30,

Net income (loss)

$ ( 440,941 )

The calculations for basic and diluted net income per share for the three-months ended March 31, 2025 and 2024 are as follows:

Three-months ended March 31,

$ ( 499,811 )

4 unchanged sentences

Weighted average common shares used to calculate diluted net income per share

Net income (loss) per share – basic

Net income (loss) per share – diluted

QUOTEMEDIA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The number of shares of potentially dilutive common stock related to options and warrants that were excluded from the calculation of dilutive shares since the inclusion of such shares would be anti-dilutive for the three and nine-months ended September 30, 2024 and 2023 are shown below:

Three-months ended

September 30,

Nine-months ended

September 30,

Net loss per share – basic

Net loss per share – diluted

The number of shares of potentially dilutive common stock related to options and warrants that were excluded from the calculation of dilutive shares since the inclusion of such shares would be anti-dilutive for the three-months ended March 31, 2025 and 2024 are shown below:

Three-months ended March 31,

Warrants to purchase redeemable convertible preferred stock

2 unchanged sentences

Total potential common shares excluded

QUOTEMEDIA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEGMENT REPORTING

The Company operates in one operating segment and one reportable segment, distributor of financial market data.

The Company specializes in the collection, aggregation, and delivery of both delayed and real-time financial data via the Internet.

The Company develops software components that deliver dynamic content to banks, brokerage firms, financial institutions, mutual fund companies, online information and financial portals, media outlets, public companies, and corporate intranets.

The Company derives revenue primarily in North America and manages the business activities on a consolidated basis.

The technology used in customer arrangements is based on a single software platform that is deployed to and implemented by customers in a similar manner.

The service term for the software arrangements is variable, with the median term being approximately one year.

The accounting policies of the financial market data segment are the same as those described in the summary of accounting policies.

The CODM assesses performance and decides how to allocate resources based on consolidated net loss that is also reported on the consolidated statements of operations as consolidated net loss.

The measure of segment assets is reported on the consolidated balance sheets as total consolidated assets.

The CODM also uses consolidated gross profit to evaluate income generated from segment assets (return on assets) in deciding whether to reinvest profits into the financial market data segment or into other parts of the entity, such as for acquisitions.

Consolidated gross profit is reported on the consolidated statements of operations as gross profit.

Consolidated net loss and gross profit are used to monitor budget versus actual results.

The monitoring of budgeted versus actual results is used in assessing performance of the segment and in establishing management’s compensation.

All expense categories on the consolidated statements of operations are significant and there are no other significant segment expenses that would require disclosure or are regularly provided to the CODM.

Assets provided to the CODM are consistent with those reported on the consolidated balance sheets with particular emphasis on the Company’s available liquidity, including its cash and cash equivalents.

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