Bright Mountain Media, Inc. Files 10-Q for Q1 2024

TL;DR

<b>Bright Mountain Media, Inc. filed its Q1 2024 10-Q report, detailing financial information and corporate history.</b>

AI Summary

Bright Mountain Media, Inc. (BMTM) filed a Quarterly Report (10-Q) with the SEC on May 14, 2024. Filing is a 10-Q for the period ending March 31, 2024. Company address is 6400 Congress Ave., Suite 2050, Boca Raton, FL 33487. Business phone number is 561-998-2440. Former company names include Bright Mountain Acquisition Corp. and Bright Mountain Holdings, Inc./FL. Filing includes data related to CentreLane Senior Secured Credit Facility and Ten Percentage Convertible Promissory Notes.

Why It Matters

For investors and stakeholders tracking Bright Mountain Media, Inc., this filing contains several important signals. This filing provides the latest quarterly financial snapshot for investors and analysts to assess the company's performance. Information on debt facilities and promissory notes offers insight into the company's capital structure and financing strategies.

Risk Assessment

Risk Level: low — Bright Mountain Media, Inc. shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain significant new operational or financial disclosures that would indicate a change in risk profile.

Analyst Insight

Monitor future filings for revenue and profitability trends, as well as any updates on debt obligations.

Key Numbers

• 2024-03-31 — Report Period End Date (Conformed Period of Report)
• 2024-05-14 — Filing Date (Filed as of Date)
• 2024-01-01 — Quarter Start Date (Q1 2024 period)
• 2023-03-31 — Prior Year Q1 End Date (Comparison period)

Key Players & Entities

• Bright Mountain Media, Inc. (company) — Filer name
• 0001568385 (company) — Central Index Key
• 7371 (company) — Standard Industrial Classification
• 272977890 (company) — IRS Number
• FL (company) — State of Incorporation
• Bright Mountain Acquisition Corp. (company) — Former company name
• Bright Mountain Holdings, Inc./FL (company) — Former company name
• CentreLane Senior Secured Credit Facility (company) — Debt facility mentioned

FAQ

Industry Context

Bright Mountain Media operates within the computer programming services industry.

Regulatory Implications

The filing is a standard 10-Q, adhering to SEC regulations for quarterly financial reporting under the Securities Exchange Act of 1934.

What Investors Should Do

1. Review the full 10-Q document for detailed financial statements and management's discussion.
2. Analyze any footnotes or disclosures related to debt and equity instruments.
3. Compare Q1 2024 results with prior periods to identify performance trends.

Key Dates

• 2024-03-31: Quarter End Date — End of the reporting period for the 10-Q filing.
• 2024-05-14: Filing Date — Date the 10-Q was officially filed with the SEC.

Year-Over-Year Comparison

This filing is a 10-Q for Q1 2024, providing updated financial information compared to previous filings.

Key Financial Figures

• $250,000 — exceeded the federally insured limit of $250,000 for interest and non-interest-bearing a

Filing Documents

• bmtm-20240331.htm (10-Q) — 1276KB
• bmtm-2024x331x10qxexx311.htm (EX-31.1) — 10KB
• bmtm-2024x331x10qxexx312.htm (EX-31.2) — 10KB
• bmtm-2024x331x10qxexx321.htm (EX-32.1) — 5KB
• bmtm-2024x331x10qxexx322.htm (EX-32.2) — 5KB
• bmtm-20240331_g1.jpg (GRAPHIC) — 7KB
• 0001628280-24-023277.txt (&nbsp;) — 8253KB
• bmtm-20240331.xsd (EX-101.SCH) — 66KB
• bmtm-20240331_cal.xml (EX-101.CAL) — 72KB
• bmtm-20240331_def.xml (EX-101.DEF) — 342KB
• bmtm-20240331_lab.xml (EX-101.LAB) — 628KB
• bmtm-20240331_pre.xml (EX-101.PRE) — 513KB
• bmtm-20240331_htm.xml (XML) — 1227KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Item 1. Unaudited Consolidated Financial Statements: Consolidated Balance Sheets as of March 31, 2024 (unaudited) and December 31, 2023 5 Unaudited Consolidated Statements of Operations and Comprehensive loss for the Three Months Ended March 31, 2024 and 2023 6 Unaudited Consolidated Statements of Changes in Shareholders' Deficit for the Three Months Ended March 31, 2024 and 2023 7 Unaudited Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023 8

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9 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 33 Item 3. Quantitative and Qualitative Disclosure About Market Risk 43 Item 4.

Controls and Procedures

Controls and Procedures 43

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 47 Item 1A.

Risk Factors

Risk Factors 47 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 47 Item 3. Default Upon Securities 47 Item 4. Mine Safety Disclosures 47 Item 5. Other Information 47 Item 6. Exhibits 48

Signatures

Signatures 49 2 Table of Contents CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION This report includes forward-looking statements that relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Words such as, but not limited to, "believe," "expect," "anticipate," "estimate," "intend," "plan," "targets," "likely," "aim," "will," "would," "could," and similar expressions or phrases identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and future events and financial trends that we believe may affect our financial condition, results of operation, business strategy and financial needs. Forward-looking statements include, but are not limited to, statements about risks associated with: our history of losses; our dependence upon sales of equity securities and borrowings under our credit facility to fund operating capital; our ability to refinance, extend or repay our substantial indebtedness owed to Centre Lane; our ability to detect advertising fraud; the continued appeal of internet advertising; our ability to manage and expand our relationships with publishers; our dependence on revenues from a limited number of customers; the impact of seasonal fluctuations on our revenues; completed and proposed acquisitions; acquisitions of new businesses and our ability to integrate those businesses into our operations; online security breaches; failure to effectively promote our brand and attract advertisers; our ability to predict the impact of COVID-19 and other future pandemics or outbreaks of disease; our ability to protect our content; our ability to protect our intellectual pr

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements BRIGHT MOUNTAIN MEDIA, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share figures) March 31, 2024 December 31, 2023* (unaudited) ASSETS Current Assets Cash and cash equivalents $ 4,921 $ 4,001 Accounts receivable, net 12,474 14,679 Prepaid expenses and other current assets 1,178 1,057 Total Current Assets 18,573 19,737 Property and equipment, net 161 199 Intangible assets, net 14,753 15,234 Goodwill 7,785 7,785 Operating lease right-of-use asset 290 306 Other assets, non-current 158 156 Total Assets $ 41,720 $ 43,417 LIABILITIES AND SHAREHOLDERS' DEFICIT Current Liabilities Accounts payable and accrued expenses $ 15,807 $ 17,497 Other current liabilities 3,026 3,025 Interest payable – 10 % Convertible Promissory Notes – related party 41 39 Interest payable – Centre Lane Senior Secured Credit Facility – related party 138 — Deferred revenue 6,268 4,569 Note payable – 10 % Convertible Promissory Notes, net of discount – related party 80 80 Note payable – Centre Lane Senior Secured Credit Facility – related party (current portion) 6,471 5,592 Total Current Liabilities 31,831 30,802 Other liabilities, non-current 286 325 Note payable – Centre Lane Senior Secured Credit Facility, net of discount – related party 60,648 58,674 Finance lease liability, non-current 37 42 Operating lease liability, non-current 234 239 Total liabilities 93,036 90,082 Shareholders' deficit Convertible preferred stock, par value $ 0.01 , 20,000,000 shares authorized, no shares issued or outstanding at March 31, 2024 and December 31, 2023 — — Common stock, par value $ 0.01 , 324,000,000 shares authorized, 172,382,586 and 172,103,134 issued and 171,032,411 and 171,277,959 outstanding at March 31, 2024 and December 31, 2023, respectively 1,724 1,721 Treasury stock, at cost; 1,350,175 and 825,175 shares at March 31, 2024 and December 31, 2023, respectively ( 220 ) ( 220 ) Additional paid-in capital 101

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS March 31, 2024 (Unaudited) NOTE 1 – DESCRIPTION OF BUSINESS AND DEVELOPMENTS Organization and Nature of Operations Bright Mountain Media, Inc. (together with its wholly-owned subsidiaries, the "Company," "Bright Mountain" or "we") has an end-to-end digital media and advertising services platform that efficiently connects brands with targeted consumer demographics. We focus on digital publishing, advertising technology, consumer insights, creative and media services. During the year ended December 31, 2023, the Company completed the acquisition of two business units of Big Village (Big Village Insights, Inc. and Big Village Agency LLC (together, referred to as the "Big Village Entities")), in an all-cash transaction funded by the Centre Lane Senior Secured Credit Facility (the "Big Village Acquisition"). Digital Publishing Our digital publishing division focuses on developing content that attracts an audience and monetizes that audience through advertising. The current portfolio of owned and operated websites is focused on moms, parenting, families, and more broadly, women. The portfolio consists of popular websites including Mom.com, Cafemom.com, LittleThings.com, and MamasLatinas.com. This demographic is highly sought after by brands and their advertising agencies. We use internal and external technologies to constantly improve the effectiveness and efficiency of the content we create. Our publishing division monetizes its audiences through both direct and programmatic advertising sales. Advertising Technology Our advertising technology division focuses on delivering targeted ads to audiences on owned and operated sites as well as third-party publishers in a cost-effective manner through the deployment of proprietary technologies. By developing our own proprietary technology stack, we are able to pass along efficiencies to both the demand and supply side of the ecosystem. Our goal is to enable and support

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS March 31, 2024 (Unaudited) The Company generates revenue through: the selling of advertisements placed on our owned and managed sites and on partner websites where we earn a share of the revenue, facilitating the seamless, real-time exchange of advertisements on a large scale, bridging networks of buyers (referred to as "DSPs") and networks of sellers (referred to as "SSPs"), serving advertisers through providing access to premium resources and leveraging data to optimize programmatic campaigns, where revenue is derived from the planning and execution of creative and media marketing campaigns, and providing primary and secondary research, competitive intelligence, and expert insights to address customers' strategic issues, where revenue is primarily derived from providing a single integrated service for such research. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation and Basis of Presentation The unaudited consolidated financial statements include the accounts of the Company and all its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited consolidated financial statements for the three months ended March 31, 2024, and 2023 have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") and in accordance with rules and regulations of the U.S. Securities and Exchange Commission ("SEC") regarding interim financial reporting. Accordingly, they do not include all the information and disclosures required by accounting principles generally accepted in the United States for complete consolidated financial statements. In the opinion of management, such unaudited consolidated financial statements include all adjustments (consisting of normal recurring accruals) necessary for the fair presentation of the consolidated financial position and the

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS March 31, 2024 (Unaudited) Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less, when acquired, to be cash equivalents. The Company maintains its cash with various commercial banks in the United States. and other foreign countries in which the Company operates. As of March 31, 2024 and December 31, 2023, the Company exceeded the federally insured limit of $250,000 for interest and non-interest-bearing accounts. The Company held a cash balance with a single financial institution in excess of the FDIC insured limit in the amount of $ 4.6 million as of March 31, 2024, and $ 3.7 million as of December 31, 2023. As of March 31, 2024 and December 31, 2023, the Company exceeded the insurance limit of $ 28 ,000 for one of its international bank accounts by $ 49,000 and $ 31 ,000, respectively. Any loss incurred or a lack of access to such funds could have a significant adverse effect on the Company's financial condition, results of operations, and cash flows. At March 31, 2024, and December 31, 2023, the Company had $ 4.9 million and $ 4.0 million, respectively, in cash and cash equivalents. Off-balance Sheet Arrangements There were no off-balance sheet arrangements as of March 31, 2024 and December 31, 2023. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make certain estimates, judgments and assumptions. We believe that the estimates, judgments and assumptions upon which we rely are reasonable based upon information available to us at the time that these estimates, judgments and assumptions are made. These estimates, judgments, and assumptions can affect the reported amounts of assets and liabilities as of the date of our consolidated financial statements as well as reported amounts of revenue and expenses during the periods presented. Our consolidated financial statements would be affected

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS March 31, 2024 (Unaudited) Concentrations of Credit Risk Financial instruments that potentially subject us to concentration of credit risk consist principally of cash and cash equivalents and accounts receivable. We place our cash and cash equivalents with high credit-quality financial institutions. Such deposits may be in excess of federally insured limits. In addition, the Company maintains various bank accounts in Thailand and Israel, with some level of insurance. We perform periodic evaluations of the relative credit standing of financial institutions. Any loss incurred or a lack of access to such funds could have a significant adverse impact on the Company's financial condition, results of operations, and cash flows. We perform credit evaluations of our customers' financial condition and require no collateral from our customers. We maintain an allowance for current expected credit losses based upon the expected collectability of accounts receivable balances. The Company generates revenue as follows: the selling of advertisements placed on our owned and managed sites and on partner websites where we earn a share of the revenue, facilitating the seamless, real-time exch