IZEA Worldwide, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>IZEA Worldwide, Inc. has filed its 2023 annual report (10-K) detailing its financial performance and business operations.</b>

AI Summary

IZEA Worldwide, Inc. (IZEA) filed a Annual Report (10-K) with the SEC on April 1, 2024. IZEA Worldwide, Inc. filed its 2023 Form 10-K on April 1, 2024. The filing covers the fiscal year ending December 31, 2023. The company is incorporated in Nevada (NV) and operates in the Services-Advertising sector (SIC 7310). IZEA's principal business address is 1317 Edgewater Dr #1880, Orlando, FL 32804. The report details financial information and business operations for the fiscal year 2023.

Why It Matters

For investors and stakeholders tracking IZEA Worldwide, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of IZEA's financial health, operational strategies, and risk factors for the fiscal year 2023, crucial for investors and stakeholders to assess the company's current standing and future prospects. The detailed financial statements and disclosures within the 10-K are essential for understanding IZEA's revenue streams, profitability, and balance sheet strength, enabling informed investment decisions.

Risk Assessment

Risk Level: medium — IZEA Worldwide, Inc. shows moderate risk based on this filing. The company's financial performance and ability to generate revenue are subject to customer concentration risk, as indicated by the mention of 'CustomerOne' and 'ThreeCustomers' in relation to accounts receivable and sales revenue.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess IZEA's revenue sustainability and operational risks.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-04-01 — Filing Date (Date of submission)
• 7310 — SIC Code (Services-Advertising)

Key Players & Entities

• IZEA Worldwide, Inc. (company) — Filer name
• IZEA (company) — Former company name
• IZEA Holdings, Inc. (company) — Former company name
• Rapid Holdings Inc. (company) — Former company name
• Orlando, FL (company) — Business address city and state
• CustomerOne (company) — Customer mentioned in risk context
• ThreeCustomers (company) — Customer group mentioned in risk context

FAQ

Risk Factors

• Customer Concentration Risk [medium — financial]: The company's revenue and accounts receivable are subject to concentration with a limited number of customers, which could adversely affect financial results if these customers reduce their business.

Industry Context

IZEA operates in the advertising services industry, specifically focusing on influencer marketing and content creation platforms.

Regulatory Implications

The filing is a standard 10-K annual report required by the Securities and Exchange Commission (SEC) for publicly traded companies in the United States.

What Investors Should Do

1. Review IZEA's detailed financial statements for the fiscal year 2023.
2. Analyze the risk factors section, particularly concerning customer concentration.
3. Assess the company's operational strategies and market position as described in the business overview.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-04-01: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial analysis of the 2023 10-K filing; comparison to prior filings would require access to those documents.

Key Financial Figures

• $0.0001 — ich registered Common Stock, par value $0.0001 per share IZEA The Nasdaq Capital Marke
• $2.42 — ice of the registrant's common stock of $2.42 per share on such date. All executive o
• $9 — Our software offerings start as low as $9 per month, while certain Managed Servic

Filing Documents

• izea-20231231.htm (10-K) — 1874KB
• exhibit1011-employmentagre.htm (EX-10.11) — 145KB
• exhibit1012employmentagree.htm (EX-10.12) — 160KB
• exhibit1013employmentagree.htm (EX-10.13) — 160KB
• exhibit211subsidiaries2023.htm (EX-21.1) — 2KB
• exhibit232gtconsent20231231.htm (EX-23.2) — 2KB
• exhibit31120231231.htm (EX-31.1) — 11KB
• exhibit31220231231.htm (EX-31.2) — 11KB
• exhibit32120231231.htm (EX-32.1) — 5KB
• exhibit32220231231.htm (EX-32.2) — 5KB
• exhibit971clawback20231231.htm (EX-97.1) — 34KB
• 0001495231-24-000046.txt (&nbsp;) — 10104KB
• izea-20231231.xsd (EX-101.SCH) — 70KB
• izea-20231231_cal.xml (EX-101.CAL) — 96KB
• izea-20231231_def.xml (EX-101.DEF) — 384KB
• izea-20231231_lab.xml (EX-101.LAB) — 724KB
• izea-20231231_pre.xml (EX-101.PRE) — 621KB
• izea-20231231_htm.xml (XML) — 1214KB

Risk Factors

Item 1A. Risk Factors 9

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 21

Cybersecurity

Item 1C. Cybersecurity 21

Properties

Item 2. Properties 22

Legal Proceedings

Item 3. Legal Proceedings 22

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 23 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 24

Selected Financial Data

Item 6. Selected Financial Data 24

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

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 24

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 35

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data Report of Independent Registered Public Accounting Firm 37 Consolidated Balance Sheets as of December 31, 2023 and 2022 39 Consolidated Statements of Operations for the years ended December 31, 2023 and 2022 38 Consolidated Statements of Comprehensive Loss for the years ended December 31, 2023 and 2022 41 Consolidated Statements of Stockholders' Equity for the years ended December 31, 2023 and 2022 42 Consolidated Statements of Cash Flows for the years ended December 31, 2023 and 2022 43 Notes to the Consolidated Financial Statements 45

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 67

Controls and Procedures

Item 9A. Controls and Procedures 67

Other Information

Item 9B. Other Information 68

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 68 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 69

Executive Compensation

Item 11. Executive Compensation 73

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 82

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 82

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 83 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 84

Form 10-K Summary

Item 16. Form 10-K Summary 86

Signatures

Signatures 87 i Table of Contents Cautionary Note Regarding Forward-Looking Information This Annual Report on Form 10-K (this "Annual Report") contains "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact contained in this report, including those contained in Management's Discussion and Analysis of Financial Condition and Results of Operations and the notes to our consolidated financial statements, particularly those that utilize terminology such as "may," "will," "would," "can," "could," "continue," "design," "should," "expects," "aims," "anticipates," "estimates," "believes," "thinks," "intends," "likely," "projects," "plans," "pursue," "strategy," "future," "forecasts," "goal," "hopes," or the negative of these words or other words or expressions of similar meaning, are forward-looking statements. Such statements are based on currently available operating, financial and competitive information, and are subject to inherent risks, uncertainties, and changes in circumstances that are difficult to predict and many of which are outside of our control. Future events and our actual results and financial condition may differ materially from those reflected in these forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause these differences include, but are not limited to, the following: adverse economic or market conditions that may harm our business; including supply-chain issues, labor distribution, business closures, and inflationary pressures; a few of our customers accounting for a significant portion of our gross billings and accounts receivable, and the loss of, or reduced purchases from, these or other customers having a material adverse effect on our operating results; any erroneous or inaccurate estimates or judgments

– BUSINESS

ITEM 1 – BUSINESS Our Mission Our mission is to Champion the Creators, enabling individuals from various backgrounds—from college students and stay-at-home parents to celebrities and professional journalists—to monetize their digital content, creativity, and influence. We compensate creators for their unique contributions, such as producing and distributing various forms of content (e.g., text, videos, photos, status updates, illustrations) on behalf of marketers across different websites, blogs, and social media channels. Corporate Information IZEA Worldwide, Inc. (together with its wholly-owned subsidiaries, "we," "us," "our," "IZEA," or the "Company") is a Nevada corporation that was founded in February 2006 under the name PayPerPost, Inc. and became a public company in May 2011. In January 2015, IZEA purchased all of the outstanding shares of capital stock of Ebyline, Inc. ("Ebyline"). In March 2016, we formed IZEA Canada, Inc., a wholly-owned subsidiary incorporated in Ontario, Canada, to provide sales and support for IZEA's Canadian customers. In July 2016, we purchased all the outstanding shares of capital stock of ZenContent, Inc. ("ZenContent") and, in July 2018, a subsidiary of the Company merged with TapInfluence, Inc. ("TapInfluence"). ZenContent, Ebyline, and TapInfluence were merged into IZEA in December 2017, December 2019, and December 2020, respectively. In December 2023, IZEA purchased all the outstanding shares of capital stock in Hoozu Holdings LTD ("Hoozu") and acquired certain assets and liabilities of Zuberance, Inc., a pioneering advocate marketing solution platform. Our Company is based in Orlando, Florida, but operates as a virtual-first company, with all of our employees working remotely since March 16, 2020. Industry Background and Trends When IZEA first launched PayPerPost in 2006, the concept of a brand paying bloggers to create sponsored content on their blogs was new and highly controversial among marketers and content creators

View Full Filing

View this 10-K filing on SEC EDGAR