Freeze Tag, Inc. reported a net loss of $492,605 for the fiscal year ending December 31, 2024, a significant increase from the loss of $205,198 recorded in the previous year. The company's revenue decreased by 6.5% to $1,976,989, down from $2,115,547 in 2023. This decline in revenue was attributed to lower sales from its gaming products and the closure of its subsidiary, Space Coast Geo Store, LLC, which is expected to be fully shut down by April 30, 2025. The cost of sales rose to $605,716, primarily due to increased amortization of capitalized software and impairment losses related to the Painted Rocks App.
In terms of operational changes, Freeze Tag has focused on enhancing its flagship product, Munzee, and expanding its Eventzee platform. The company introduced several new features to the Munzee app, including gameplay enhancements and backend technology improvements, which are expected to drive user engagement. The company also reported a decrease in selling, general, and administrative expenses to $1,814,854, down from $1,844,861 in 2023, largely due to reduced payroll expenses.
As of December 31, 2024, Freeze Tag had a working capital deficit of $876,001 and total stockholders' deficit of $686,853. The company had current assets of $255,129, including cash of $216,590, while current liabilities totaled $1,131,130. The management is exploring various options to address its financial challenges, including potential loans, stock sales, or acquisitions of synergistic businesses. The company is also considering selling its current business if necessary.
The company’s employee count remains low, with only eight employees, supplemented by independent contractors. Despite the challenges, Freeze Tag aims to continue its strategy of developing free-to-play mobile games, leveraging data analytics to optimize user experience and revenue generation. The management expressed optimism about future growth through acquisitions and product development, although they acknowledged the risks associated with being a public company and the need for additional financing to sustain operations.
Looking ahead, Freeze Tag plans to focus on improving its cash flow management and exploring new revenue opportunities through its gaming platforms. The company is also committed to enhancing its internal controls and financial reporting processes, as it has identified weaknesses in its current systems. The management's ability to execute its plans effectively will be crucial for the company's future viability and growth.
About Freeze Tag, Inc.
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