DatChat, Inc. reported its financial results for the nine months ended September 30, 2024, revealing significant changes in revenue, expenses, and overall financial position compared to the previous fiscal period. The company generated net revenues of $344,000, a decline from $501,000 in the same period of 2023. For the third quarter alone, revenues were minimal at $62, down from $175 year-over-year.

Operating expenses decreased substantially, totaling $4,169,050 for the nine months ended September 30, 2024, compared to $7,291,928 in the prior year, marking a reduction of 42.8%. This decline was driven by lower compensation and related expenses, which fell to $1,881,682 from $4,177,032, and a significant cut in marketing and advertising costs, which dropped from $379,410 to $101,734. The company reported a loss from operations of $4,168,706 for the nine months, down from $7,291,427 in 2023, indicating improved operational efficiency.

DatChat's net loss for the nine months ended September 30, 2024, was $3,949,373, a notable decrease from $7,051,024 in the same period of 2023. The net loss attributable to common shareholders was $3,392,860, translating to a loss per share of $1.15, compared to $3.40 in the previous year.

As of September 30, 2024, DatChat's total assets were reported at $4,816,258, down from $6,506,543 at the end of 2023. Current assets also decreased to $4,757,128 from $6,376,001. The company’s cash and cash equivalents fell to $632,497 from $953,362, while short-term investments decreased to $3,919,697 from $5,236,781.

In terms of strategic developments, DatChat completed several equity financing rounds, raising a total of $1,799,939 in January 2024 through the sale of common stock and pre-funded warrants. The company also acquired assets from Judaopta LLC for 8,000,000 restricted shares of Dragon Interact, Inc., increasing its ownership stake to 45.5%. Additionally, DatChat deconsolidated Metabizz, LLC and Metabizz SAS, which had previously been classified as Variable Interest Entities (VIEs), resulting in a recorded gain of $107.

The company continues to focus on its core business areas, including blockchain, cybersecurity, and social media, with ongoing development of its flagship product, DatChat Messenger, and new ventures like the Habytat metaverse. Despite the challenges, DatChat's strategic initiatives and cost management efforts have led to a reduction in losses and improved financial metrics compared to the previous fiscal year.