Freeze Tag's Revenue Plunges 15.4%, Cash Halves Amid Going Concern Warning

TL;DR

**FRZT is bleeding cash and shrinking; steer clear unless you're betting on a miracle turnaround.**

AI Summary

Freeze Tag, Inc. (FRZT) reported a significant decline in revenue and an increased net loss for the nine months ended September 30, 2025. Revenues decreased by 15.4% to $1,278,743 from $1,514,159 in the prior year period. The net loss for the nine months widened to $163,431, compared to a net loss of $354,461 in the same period of 2024, representing a 53.9% improvement in net loss, though still a loss. The company's cash position significantly deteriorated, with cash decreasing by 50% from $216,590 at December 31, 2024, to $108,201 at September 30, 2025. Total assets declined by 31.6% from $594,277 to $406,268, while total liabilities decreased by 4.1% to $1,228,142. A key business change was the complete shutdown of its Space Coast Geo Store, LLC subsidiary by April 30, 2025. The company continues to operate with a substantial stockholders' deficit of $(821,874) as of September 30, 2025, and faces a going concern uncertainty, indicating significant financial risk.

Why It Matters

Freeze Tag's continued revenue decline and substantial net losses, coupled with a significant reduction in cash and a going concern warning, signal severe financial distress for investors. The shutdown of Space Coast Geo Store, LLC indicates a contraction in business operations, potentially impacting future growth prospects and employee stability. In a competitive mobile gaming market, FRZT's inability to generate consistent profits or positive cash flow makes it highly vulnerable to larger, better-capitalized competitors. This financial instability could lead to further dilution for existing shareholders or even bankruptcy, making it a high-risk investment.

Risk Assessment

Risk Level: high — The company explicitly states a 'GOING CONCERN UNCERTAINTY' in Note 3, indicating substantial doubt about its ability to continue operations. Cash decreased by 50% from $216,590 to $108,201 in nine months, and the stockholders' deficit worsened to $(821,874) from $(686,853) at December 31, 2024, demonstrating severe financial instability.

Analyst Insight

Investors should avoid FRZT given the explicit going concern warning, declining revenues, and worsening stockholders' deficit. The company's inability to generate positive cash flow from operations and its shrinking asset base suggest a high probability of further financial deterioration or potential delisting. Consider liquidating any existing positions.

Financial Highlights

debt To Equity

N/A

revenue

$1,278,743

operating Margin

N/A

total Assets

$406,268

total Debt

$1,228,142

net Income

$(163,431)

eps

$0.00

gross Margin

N/A

cash Position

$108,201

revenue Growth

-15.4%

Key Numbers

• $1,278,743 — Revenues for nine months ended Sept 30, 2025 (Decreased by 15.4% from $1,514,159 in 2024)
• $(163,431) — Net loss for nine months ended Sept 30, 2025 (Improved by 53.9% from $(354,461) in 2024, but still a loss)
• $108,201 — Cash at Sept 30, 2025 (Decreased by 50% from $216,590 at Dec 31, 2024)
• $(821,874) — Total stockholders' deficit at Sept 30, 2025 (Worsened from $(686,853) at Dec 31, 2024)
• $406,268 — Total assets at Sept 30, 2025 (Decreased by 31.6% from $594,277 at Dec 31, 2024)
• $1,228,142 — Total liabilities at Sept 30, 2025 (Decreased by 4.1% from $1,281,130 at Dec 31, 2024)
• 75,056,123 — Common shares outstanding (As of November 17, 2025)
• $0.00 — Income per common share – basic and diluted (For the nine months ended Sept 30, 2025 and 2024)

Key Players & Entities

• Freeze Tag, Inc. (company) — Registrant
• Space Coast Geo Store, LLC (company) — Wholly-owned subsidiary being shut down
• SEC (regulator) — Securities and Exchange Commission
• Bloomberg (company) — Publisher of this analysis
• FASB (regulator) — Financial Accounting Standards Board
• Delaware (company) — State of incorporation
• Tustin, California (company) — Principal executive offices location

FAQ

Risk Factors

• Deteriorating Cash Position and Going Concern Uncertainty [high — financial]: The company's cash decreased by 50% to $108,201 as of September 30, 2025, from $216,590 at December 31, 2024. This, coupled with a substantial stockholders' deficit of $(821,874), raises significant going concern uncertainties, indicating a high risk of financial distress.
• Revenue Decline and Subsidiary Shutdown [medium — operational]: Revenues for the nine months ended September 30, 2025, fell by 15.4% to $1,278,743. The complete shutdown of its Space Coast Geo Store, LLC subsidiary by April 30, 2025, likely contributed to this revenue decline and suggests operational challenges.
• Increasing Net Loss Despite Revenue Drop [medium — financial]: Despite a 15.4% decrease in revenue, the net loss for the nine months ended September 30, 2025, widened to $(163,431) from $(354,461) in the prior year period, representing a 53.9% improvement in net loss, but still a significant loss. This indicates potential issues with cost management or profitability of remaining operations.
• Declining Asset Base [medium — financial]: Total assets have decreased by 31.6% from $594,277 at December 31, 2024, to $406,268 at September 30, 2025. This decline is primarily driven by a reduction in capitalized software and current assets, signaling a shrinking operational footprint.
• Substantial Stockholders' Deficit [high — financial]: The company continues to operate with a significant stockholders' deficit of $(821,874) as of September 30, 2025, which has worsened from $(686,853) at December 31, 2024. This indicates that liabilities exceed assets, a precarious financial position.

Industry Context

The interactive entertainment and location-based gaming industry is highly competitive and subject to rapid technological advancements. Companies in this sector often face challenges related to user acquisition, content development costs, and monetization strategies. The shutdown of a subsidiary like Space Coast Geo Store, LLC suggests potential difficulties in scaling or maintaining specific business lines within this dynamic market.

Regulatory Implications

As a publicly traded company, Freeze Tag, Inc. must adhere to SEC reporting requirements, including timely and accurate filings of 10-Q and 10-K. Failure to maintain adequate financial controls or address going concern issues could lead to increased scrutiny from regulators and potential delisting from exchanges.

What Investors Should Do

1. Monitor cash burn rate and future financing activities.
2. Analyze the reasons for revenue decline and operational restructuring.
3. Evaluate the company's ability to address going concern uncertainties.

Key Dates

• 2025-09-30: End of Nine Months Reporting Period — Key financial results for the period, including revenue, net loss, and cash position, are reported.
• 2025-04-30: Shutdown of Space Coast Geo Store, LLC — This operational change likely impacted revenue and operational costs, contributing to the financial performance reported for the period.
• 2025-03-31: Filing of Form 10-K for year ended December 31, 2024 — Provided the comparative financial data against which the current interim results are assessed.
• 2024-12-31: End of Fiscal Year 2024 — Balance sheet figures from this date serve as the comparative baseline for assets, liabilities, and cash position.

Glossary

Stockholders' Deficit

A situation where a company's total liabilities exceed its total assets, resulting in a negative equity value. (Freeze Tag, Inc. has a substantial stockholders' deficit of $(821,874), indicating a negative net worth and a high financial risk.)

Going Concern

An assumption that a company will continue to operate for the foreseeable future, without the intention or need for liquidation. (The company faces going concern uncertainties due to its deteriorating financial condition, raising doubts about its ability to continue as a going concern.)

Capitalized Software, net

Costs incurred in developing or acquiring software that are recorded as an asset on the balance sheet rather than expensed immediately. (This line item has decreased significantly, contributing to the overall decline in total assets.)

Accumulated Deficit

The cumulative net losses of a company that have not been offset by net income or other gains. (Freeze Tag, Inc. has a large accumulated deficit of $(10,234,805), reflecting its history of unprofitability.)

Year-Over-Year Comparison

Compared to the fiscal year ended December 31, 2024, Freeze Tag, Inc. has experienced a 15.4% decline in revenue for the nine months ended September 30, 2025, to $1,278,743. While the net loss has improved by 53.9% to $(163,431), it remains a significant loss. The company's cash position has been halved to $108,201, and total assets have fallen by 31.6% to $406,268, while total liabilities have seen a modest decrease of 4.1% to $1,228,142. A new risk factor is the going concern uncertainty, exacerbated by the substantial and worsening stockholders' deficit of $(821,874).

Key Financial Figures

• $0.00001 — were 75,056,123 shares of common stock, $0.00001 par value, issued and outstanding. FRE
• $731 — nstitution, 3.75% interest, payments of $731, due in 2050 150,000 150,000 Merch

Filing Documents

• frzt_10q.htm (10-Q) — 654KB
• frzt_ex311.htm (EX-31.1) — 10KB
• frzt_ex312.htm (EX-31.2) — 10KB
• frzt_ex321.htm (EX-32.1) — 4KB
• frzt_ex322.htm (EX-32.2) — 5KB
• 0001477932-25-008384.txt ( ) — 2878KB
• frzt-20250930.xsd (EX-101.SCH) — 26KB
• frzt-20250930_lab.xml (EX-101.LAB) — 177KB
• frzt-20250930_cal.xml (EX-101.CAL) — 32KB
• frzt-20250930_pre.xml (EX-101.PRE) — 149KB
• frzt-20250930_def.xml (EX-101.DEF) — 77KB
• frzt_10q_htm.xml (XML) — 343KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1. Condensed Consolidated Financial Statements 4 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 16 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 20 Item 4.

Controls and Procedures

Controls and Procedures 20

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 21 Item 1A.

Risk Factors

Risk Factors 21 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 21 Item 3. Defaults Upon Senior Securities 21 Item 4. Mine Safety Disclosures 21 Item 5. Other Information 21 Item 6. Exhibits 22 2 Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION The accompanying condensed, consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and in accordance with the instructions for Form 10-Q. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. In the opinion of management, the condensed, consolidated financial statements contain all material adjustments, consisting only of normal recurring adjustments necessary to present fairly the financial condition, results of operations, and cash flows of the Company for the interim periods presented. The results for the period ended September 30, 2025 are not necessarily indicative of the results of operations for the full year. These condensed, consolidated financial statements and related notes should be read in conjunction with the financial statements and notes thereto included in the Company's Form 10-K for the year ended December 31, 2024 filed with the Securities and Exchange Commission on March 31, 2025. 3 Table of Contents FREEZE TAG, INC. (A DELAWARE CORPORATION) CONDENSED CONSOLIDATED BALANCE SHEETS Sept 30, 2025 December 31, 2024 (Unaudited) ASSETS Current assets: Cash $ 108,201 $ 216,590 Accounts receivable 21,384 24,493 Prepaid expenses and other current assets 8,186 14,046 Total current assets 137,771 255,129 Property and equipment, net - - Capitalized software, net 268,497 337,545 Other assets - 1,603 Total assets $ 406,268 $ 594,277 LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities: Accounts payable $ 153,453 $ 142,169 Accrued expenses 451,304 488,322 Unearned royalties 7,543 7,543 Notes payable – related party, current portion 379,825 379,825 Notes payable, current portion 86,017 113,271 Total current liabilities 1,078,142 1,131,130 N

View Full Filing

View this 10-Q filing on SEC EDGAR