Paltalk, Inc. Files Q2 2024 10-Q Report

TL;DR

Paltalk filed its Q2 10-Q. Check financials.

AI Summary

Paltalk, Inc. filed its 10-Q for the quarterly period ended June 30, 2024. The company, formerly known as PeerStream, Inc., Snap Interactive, Inc., and eTwine Holdings, Inc., is incorporated in Delaware and headquartered in Jericho, NY. The filing details its financial performance and operational status for the specified quarter.

Why It Matters

This filing provides investors with the latest financial and operational details of Paltalk, Inc., crucial for understanding the company's performance and future prospects.

Risk Assessment

Risk Level: medium — As a 10-Q filing, it contains detailed financial information that could reveal significant positive or negative trends impacting the company's stock.

Key Players & Entities

• PALTALK, INC. (company) — Registrant
• PeerStream, Inc. (company) — Former Company Name
• Snap Interactive, Inc (company) — Former Company Name
• eTwine Holdings, Inc (company) — Former Company Name
• June 30, 2024 (date) — Quarterly Period End Date
• August 13, 2024 (date) — Filing Date
• 001-38717 (other) — Commission File Number
• 20-3191847 (other) — IRS Employer Identification No.
• 30 Jericho Executive Plaza Suite 400E Jericho , NY 11753 (address) — Business Address

FAQ

Key Financial Figures

• $0.001 — ange on which registered Common Stock, $0.001 par value PALT The Nasdaq Capital Marke
• $5 — ts users. Users may purchase credits in $5, $10 or $20 increments that can be rede
• $10 — sers. Users may purchase credits in $5, $10 or $20 increments that can be redeemed
• $20 — sers may purchase credits in $5, $10 or $20 increments that can be redeemed for a h

Filing Documents

• ea0210006-10q_paltalk.htm (10-Q) — 603KB
• ea021000601ex31-1_paltalk.htm (EX-31.1) — 10KB
• ea021000601ex31-2_paltalk.htm (EX-31.2) — 10KB
• ea021000601ex32-1_paltalk.htm (EX-32.1) — 5KB
• 0001213900-24-068283.txt ( ) — 3478KB
• palt-20240630.xsd (EX-101.SCH) — 29KB
• palt-20240630_cal.xml (EX-101.CAL) — 28KB
• palt-20240630_def.xml (EX-101.DEF) — 163KB
• palt-20240630_lab.xml (EX-101.LAB) — 284KB
• palt-20240630_pre.xml (EX-101.PRE) — 160KB
• ea0210006-10q_paltalk_htm.xml (XML) — 300KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 1 ITEM 1.

Financial Statements

Financial Statements 1 Condensed Consolidated Balance Sheets as of June 30, 2024 (Unaudited) and December 31, 2023 1 Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2024 and 2023 (Unaudited) 2 Condensed Consolidated Statements of Changes in Stockholders' Equity for the Three and Six Months Ended June 30, 2024 and 2023 (Unaudited) 3 Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2024 and 2023 (Unaudited) 4 Notes to Condensed Consolidated Financial Statements (Unaudited) 5 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 15 ITEM 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 26 ITEM 4.

Controls and Procedures

Controls and Procedures 26

OTHER INFORMATION

PART II. OTHER INFORMATION 27 ITEM 1.

Legal Proceedings

Legal Proceedings 27 ITEM 1A.

Risk Factors

Risk Factors 27 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 31 ITEM 3. Defaults Upon Senior Securities 31 ITEM 4. Mine Safety Disclosures 31 ITEM 5. Other Information 31 ITEM 6. Exhibits 32 Paltalk, our logo and other trademarks or service marks appearing in this report are the property of Paltalk, Inc. Trade names, trademarks and service marks of other companies appearing in this report are the property of their respective owners. Solely for convenience, the trademarks, service marks and trade names included in this report are without the , or other applicable symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights or the rights of the applicable licensors to these trademarks, service marks and trade names. Unless the context otherwise indicates, references to "Paltalk," "we," "our," "us" and the "Company" refer to Paltalk, Inc. and its subsidiaries on a consolidated basis. i

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Certain statements contained in this Quarterly Report on Form 10-Q constitute "forward-looking statements" as defined in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), that are based on current expectations, estimates, forecasts and assumptions and are subject to risks and uncertainties. Words such as "anticipate," "assume," "began," "believe," "budget," "continue," "could," "estimate," "expect," "forecast," "goal," "intend," "may," "plan," "potential," "predict," "project," "seek," "should," "target," "would" and variations of such words and similar expressions are intended to identify such forward-looking statements. All forward-looking uncertainties and assumptions relating to factors that could cause actual results to differ materially from those anticipated in such statements, including, without limitation, the following: our ability to consummate the Mergers (as defined herein), including our ability to complete the Divestiture Transaction (as defined herein) that is a condition thereto, and realize the anticipated benefits and synergies expected from the Mergers once consummated; our ability to effectively market and generate revenue from our applications; our ability to generate and maintain active users and to effectively monetize our user base; our ability to update our applications to respond to rapid technological changes; the intense competition in the industry in which our business operates and our ability to effectively compete with existing competitors and new market entrants; our ability to consummate favorable acquisitions and effectively integrate any companies or properties that we acquire; the impact of any economic recession and the overall inflationary environment

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS PALTALK, INC. CONDENSED CONSOLIDATED BALANCE SHEETS June 30, December 31, 2024 2023 Assets (unaudited) Current assets: Cash and cash equivalents $ 12,796,004 $ 13,568,049 Accounts receivable, net of allowances of $ 26,559 as of June 30, 2024 and $ 23,326 as of December 31, 2023, respectively 92,758 92,704 Employee retention tax credit receivable, net 114,212 114,212 Prepaid expense and other current assets 721,572 990,634 Total current assets 13,724,546 14,765,599 Operating lease right-of-use assets 116,388 77,005 Goodwill 6,326,250 6,326,250 Intangible assets, net 2,293,311 2,704,477 Other assets 13,937 13,937 Total assets $ 22,474,432 $ 23,887,268 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 812,164 $ 792,053 Accrued expenses and other current liabilities 312,511 226,120 Operating lease liabilities, current portion 82,334 77,005 Deferred subscription revenue 1,891,047 2,043,362 Total current liabilities 3,098,056 3,138,540 Operating lease liabilities, non-current portion 34,054 - Deferred tax liability 542,532 614,041 Total liabilities 3,674,642 3,752,581 Commitments and contingencies (Note 9) Stockholders' equity: Common stock, $ 0.001 par value, 25,000,000 shares authorized, 9,864,120 shares issued and 9,222,157 shares outstanding as of June 30, 2024 and December 31, 2023, respectively 9,864 9,864 Treasury stock, 641,963 shares repurchased as of June 30, 2024 and December 31, 2023, respectively ( 1,199,337 ) ( 1,199,337 ) Additional paid-in capital 36,300,289 36,208,728 Accumulated deficit ( 16,311,026 ) ( 14,884,568 ) Total stockholders' equity 18,799,790 20,134,687 Total liabilities and stockholders' equity $ 22,474,432 $ 23,887,268 The accompanying notes are an integral part of these condensed consolidated financial statements. 1 PALTALK, INC. CONDENSED CONSOLIDATED STATEMENTS

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View this 10-Q filing on SEC EDGAR