Kidoz Inc. Files 20-F Report for Fiscal Year Ended December 31, 2023

AI Summary

KIDOZ INC. (KDOZF) filed a Foreign Annual Report (20-F) with the SEC on April 25, 2024. Kidoz Inc. filed its annual 20-F report for the fiscal year ending December 31, 2023. The company was formerly known as Shoal Games Ltd. and Bingo.com Ltd. The filing covers the period from January 1, 2023, to December 31, 2023. Key segments mentioned include Programmatic, Content, and Advertising. The report includes financial data for the fiscal years 2021, 2022, and 2023.

Why It Matters

For investors and stakeholders tracking KIDOZ INC., this filing contains several important signals. This 20-F filing provides a comprehensive overview of Kidoz Inc.'s financial performance and business operations for the fiscal year 2023, crucial for investors assessing the company's current status. The report's historical financial data and segment information offer insights into the company's growth trajectory and operational focus within the advertising and content sectors.

Risk Assessment

Risk Level: — KIDOZ INC. shows moderate risk based on this filing. The filing is a standard annual report (20-F), which typically contains a broad range of information but does not inherently signal significant positive or negative developments beyond routine disclosures.

Analyst Insight

Review the detailed financial statements and risk factors within the 20-F filing to understand Kidoz Inc.'s performance and potential challenges.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-04-25 — Filing Date (Date of submission)

Key Players & Entities

• KIDOZ INC. (company) — Filer name
• SHOAL GAMES LTD. (company) — Former company name
• BINGO.COM LTD. (company) — Former company name
• 2023-12-31 (date) — Fiscal year end
• 2024-04-25 (date) — Filing date

FAQ

Industry Context

Kidoz Inc. operates within the digital advertising and content distribution industry, focusing on programmatic advertising solutions.

Regulatory Implications

As a foreign private issuer, Kidoz Inc. files an annual report on Form 20-F with the SEC, which is a comprehensive disclosure document.

What Investors Should Do

1. Analyze the financial statements within the 20-F for revenue trends and profitability.
2. Review the business overview section for strategic initiatives and market positioning.
3. Examine any disclosed risk factors to understand potential challenges and mitigation strategies.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 20-F filing.
• 2024-04-25: Filing Date — Date Kidoz Inc. submitted its 20-F report.

Year-Over-Year Comparison

This is the initial 20-F filing for Kidoz Inc. for the fiscal year 2023, following its transition from previous corporate structures.

Filing Documents

• form20-f.htm (20-F) — 1625KB
• ex8.htm (EX-8) — 10KB
• ex12-1.htm (EX-12.1) — 17KB
• ex12-2.htm (EX-12.2) — 16KB
• ex13-1.htm (EX-13.1) — 7KB
• ex13-2.htm (EX-13.2) — 7KB
• form20-f_001.jpg (GRAPHIC) — 29KB
• form20-f_002.jpg (GRAPHIC) — 50KB
• 0001493152-24-015991.txt ( ) — 7518KB
• kdozf-20231231.xsd (EX-101.SCH) — 56KB
• kdozf-20231231_cal.xml (EX-101.CAL) — 73KB
• kdozf-20231231_def.xml (EX-101.DEF) — 237KB
• kdozf-20231231_lab.xml (EX-101.LAB) — 415KB
• kdozf-20231231_pre.xml (EX-101.PRE) — 330KB
• form20-f_htm.xml (XML) — 1153KB

Item 18

Item 17 Item 18 If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No TABLE OF CONTENTS Introduction 1

Forward-Looking Statements

Forward-Looking Statements 1 Summary of Risk Factors 2 PART I 3 ITEM 1. Identity of Directors, Senior Management and Advisers 3 ITEM 2. Offer Statistics and Expected Timetable 3 ITEM 3. Key Information 3 ITEM 4. Information on the Company 9 ITEM 4A. Unresolved Staff Comments 12 ITEM 5. Operating and Financial Review and Prospects 12 ITEM 6. Directors, Senior Management and Employees 22 ITEM 7. Major Shareholders and Related Party Transactions 27 ITEM 8. Financial Information 29 ITEM 9. The Offer and Listing 30 ITEM 10. Additional Information 30 ITEM 11.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 34 ITEM 12.

Description of Securities Other than Equity Securities

Description of Securities Other than Equity Securities 35 PART II 36 ITEM 13. Defaults, Dividend Arrearages and Delinquencies 36 ITEM 14. Material Modifications to the Rights of Security Holders and Use of Proceeds 36 ITEM 15.

Controls and Procedures

Controls and Procedures 36 ITEM 16A. Audit Committee Financial Expert 37 ITEM 16B. Code of Ethics 37 ITEM 16C. Principal Accountant Fees and Services 37 ITEM 16D. Exemptions from the Listing Standards for Audit Committees 37 ITEM 16E. Purchases of Equity Securities by the Company and Affiliated Purchasers 37 ITEM 16F. Change in Registrant's Certifying Accountants 38 ITEM 16G. Corporate Governance 38 ITEM 16H. Mine Safety Disclosure 39 ITEM 16I. Disclosure regarding Foreign Jurisdictions that Prevent Inspections 39 ITEM 16J. Insider Trading Policies 39 ITEM 16K. Cybersecurity 39 PART III 40 ITEM 17.

Financial Statements

Financial Statements 40 ITEM18.

Financial Statements

Financial Statements 40 ITEM 19. Exhibits 40

Signatures

Signatures 41 INTRODUCTION This annual report on Form 20-F for the year ended December 31, 2023, or this "annual report," should be read in conjunction with our consolidated financial statements and notes thereto included in this annual report. Unless the context otherwise requires, all references in this document to "the Company," "we," "us," and "our" refer to Kidoz Inc. and our subsidiaries. We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America ("US GAAP") applicable to annual financial information and with the rules and regulations of the United States Securities and Exchange Commission. As used in this annual report, Company means Kidoz Inc. ("Kidoz") and the Company's wholly-owned subsidiaries (collectively the "Company"). Information on the Company's website www.kidoz.net is not incorporated by reference into this annual report. FORWARD-LOOKING This Form 20-F Annual Report includes "forward-looking statements". A shareholder or prospective shareholder should bear this in mind when assessing the Company's business. All statements included in this annual report, other than statements of historical facts, including, without limitation, the statements located elsewhere herein regarding industry prospects and the Company's financial position, are forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. This report on Form 20-F contains certain forward-looking information and forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended (the "U.S. Securities Act"), Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and "forward-looking information" under Canadian securities laws (collectively referred to herein as "fo

IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS Not applicable to Form 20-F filed as annual report.

OFFER STATISTICS AND EXPECTED TIMETABLE

ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE Not applicable to Form 20-F filed as annual report.

KEY INFORMATION

ITEM 3. KEY INFORMATION A.

Selected Financial Data

Selected Financial Data The following table presents selected historical financial data which has been derived in part from our audited consolidated financial statements included elsewhere in this annual report and should be read together with and qualified in its entirety by reference to such audited consolidated financial statements. The following table should be read together with "Item 5—Operating and Financial Review and Prospects." Consolidated Balance Sheet Data: 2023 2022 2021 Cash $ 1,469,224 $ 2,363,530 $ 2,078,607 Total assets 11,807,080 14,387,083 13,925,531 Total liabilities 4,612,778 5,695,324 4,574,834 Total stockholders' equity 7,194,302 8,691,759 9,350,697 Working capital 3,220,646 4,147,176 4,536,852 Consolidated 2023 2022 2021 Revenue $ 13,326,824 $ 15,097,056 $ 12,484,639 Cost of sales 8,392,767 9,973,211 7,152,307 Gross (loss) profit 4,934,057 5,123,845 5,332,332 Operating expenses excluding interest and other income (expenses) (6,153,451 ) (5,897,412 ) (4,357,188 ) Amortization and expiration of right-of-use assets (29,748 ) (28,935 ) (40,851 ) Depreciation and amortization (558,740 ) (557,267 ) (565,540 ) Gain on derivative liability – warrants 51 23,314 60,207 Interest and other income 1,049 185 241 Income tax recovery / (expense) 25,978 150,489 (216,677 ) Provision for doubtful receivables (84,952 ) - - Stock awareness program (146,300 ) (161,332 ) (402,845 ) Net (loss) income $ (2,012,056 ) $ (1,347,113 ) $ (190,321 ) Basic and diluted net (loss) income per share from continuing operations $ (0.02 ) $ (0.01 ) $ (0.00 ) Weighted average common shares outstanding 131,305,254 131,481,983 131,340,989 Page 3 Consolidated Cash flow data: 2023 2022 2021 Net cash (used in) provided by operating activities $ (823,640 ) $ 433,745 $ 851,533 Net cash used in investing activit

Risk Factors

Risk Factors The Company's business is subject to numerous risks and uncertainties, including those described elsewhere in this MD&A, as well as general economic and market risks. The following discussion describes material risks and uncertainties that the Company has identified that may affect the Company's results of operations and financial condition. Risks Related to the Business Regulations - The Company operates in a highly regulated market with a Children's Online Privacy Protection Rule ("COPPA") & General Data Protection Regulation ("GDPR"). There is the risk that the regulations restrict the Company operations. The Company serves compliant contextual mobile advertising network that safely reaches hundreds of million kids, teens, and families every month. Reliant on Google and Apple - The Company is heavily reliant on Google and Apple, on whose platform the games where we advertise are hosted. The Company has been Google certified and has been approved by Apple. Expanding Company - the Company is a growing and expanding company. The Company's revenues may be materially affected by the decisions of its management and/or customers, and due to a variety of other factors, many of which may be beyond the Company's control. This may lead to expenses exceeding estimates or be incurred in the expectation of sales that do not occur or that occur later than expected. Management expects expenses to increase, especially hiring of additional staff to support its growth and expansion. Fluctuating results could cause unanticipated quarterly losses and cause the Company's performance to fall below the expectations of investors, which could adversely affect the price of the common shares. The following will cause fluctuating results: Changes in demand for Kidoz Platform Changes in the Company's customer base, additions, and losses of customers Changes in advertising budgets of our customers Changes in the availability of advertising inventory or in the cos

View Full Filing

View this 20-F filing on SEC EDGAR