Bright Mountain Media Files Q3 2024 10-Q

TL;DR

**BMTM Q3 10-Q filed. Financials and ops update.**

AI Summary

Bright Mountain Media, Inc. filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and operational updates for the third quarter. Specific financial figures and operational metrics are presented within the report.

Why It Matters

This filing provides investors with a crucial update on Bright Mountain Media's financial health and strategic direction for the third quarter of 2024.

Risk Assessment

Risk Level: medium — The company's financial performance and operational details in this 10-Q could indicate potential risks or opportunities for investors.

Key Numbers

• Q3 — Quarter (Reporting period)

Key Players & Entities

• Bright Mountain Media, Inc. (company) — Filer of the 10-Q
• 20240930 (date) — Period of report
• 20241112 (date) — Filing date
• Boca Raton, FL (location) — Company headquarters

FAQ

Filing Documents

• bmtm-20240930.htm (10-Q) — 3269KB
• bmtm-ex31_1.htm (EX-31.1) — 14KB
• bmtm-ex31_2.htm (EX-31.2) — 14KB
• bmtm-ex32_1.htm (EX-32.1) — 8KB
• bmtm-ex32_2.htm (EX-32.2) — 8KB
• img220542671_0.jpg (GRAPHIC) — 10KB
• 0000950170-24-125527.txt ( ) — 14160KB
• bmtm-20240930.xsd (EX-101.SCH) — 1646KB
• bmtm-20240930_htm.xml (XML) — 3043KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Item 1. Unaudited Consolidated Financial Statements: Consolidated Balance Sheets as of September 30, 2024 (unaudited) and December 31, 2023 5 Unaudited Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended September 30, 2024 and 2023 6 Unaudited Consolidated Statements of Changes in Shareholders' Deficit for the nine months ended September 30, 2024 and 2023 7 Unaudited Consolidated Statements of Cash Flows for the nine months ended September 30, 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 32 Item 3. Quantitative and Qualitative Disclosure About Market Risk 46 Item 4.

Controls and Procedures

Controls and Procedures 46

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 48 Item 1A.

Risk Factors

Risk Factors 48 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 48 Item 3. Default Upon Securities 48 Item 4. Mine Safety Disclosures 48 Item 5. Other Information 48 Item 6. Exhibits 49

Signatures

Signatures 50 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: 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; our ability to revise and improve the business plan of our legacy businesses to meet the needs of a broader range of customers; 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 prote

– FIN ANCIAL INFORMATION

PART I – FIN ANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements BRIGHT MOUNTAIN MEDIA, INC. CONSOLIDATE D BALANCE SHEETS (in thousands, except share and per share figures) September 30, 2024 December 31, 2023* (unaudited) Assets Current assets: Cash and cash equivalents $ 2,486 $ 4,001 Accounts receivable, net 12,401 14,679 Prepaid expenses and other current assets 898 1,057 Total current assets 15,785 19,737 Property and equipment, net 102 199 Intangible assets, net 13,878 15,234 Goodwill 7,785 7,785 Operating lease right-of-use assets 271 306 Other long-term assets 159 156 Total assets $ 37,980 $ 43,417 Liabilities and Shareholders' Deficit Current liabilities: Accounts payable and accrued expenses $ 16,898 $ 17,497 Other current liabilities 2,793 3,025 Interest payable - 10 % convertible promissory notes - related party - 39 Interest payable - Centre Lane senior secured credit facility - related party 165 - Deferred revenue 4,768 4,569 Note payable - 10 % convertible promissory notes, net of discount - related party - 80 Note payable - Centre Lane senior secured credit facility - related party (current) 4,122 5,592 Total current liabilities 28,746 30,802 Other long-term liabilities 208 325 Note payable - Centre Lane senior secured credit facility - related party (long-term) 68,414 58,674 Finance lease liabilities 26 42 Operating lease liabilities 207 239 Total liabilities 97,601 90,082 Shareholders' deficit: Convertible preferred stock, par value $ 0.01 , 20,000,000 shares authorized, no shares issued or outstanding at September 30, 2024 and December 31, 2023, respectively - - Common stock, par value $ 0.01 , 324,000,000 shares authorized, 172,462,836 and 172,103,134 issued, and 171,112,661 and 171,277,959 outstanding at September 30, 2024 and December 31, 2023, respectively 1,725 1,721 Treasury stock at cost, 1,35

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 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 and nine months ended September 30, 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 fin

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 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 September 30, 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 $ 2.1 million a