Freeze Tag, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing a decline in revenue and increased net losses compared to the previous fiscal period. For the three months ended September 30, 2024, revenues totaled $532,637, a slight decrease of $592 from $533,229 in the same quarter of 2023. For the nine months, revenues were $1,514,159, down $109,984 from $1,624,143 in the prior year. The primary reason cited for the revenue decline was a reduction in demand for certain product types.

Operating costs and expenses for the third quarter were $559,600, down from $570,689 in the same period last year. However, for the nine months ended September 30, 2024, total operating costs increased to $1,835,675 from $1,661,043 in 2023. The increase in costs was attributed to higher server and supporting software product expenses, despite a decrease in physical product costs.

The company reported a loss from operations of $(26,963) for the third quarter, an improvement from $(37,460) in the same quarter of 2023. However, the loss from operations for the nine months surged to $(321,516) compared to $(36,900) in the previous year. The net loss for the third quarter of 2024 was $(37,995), an improvement from $(48,568) in Q3 2023, while the net loss for the nine months reached $(354,461), significantly higher than $(71,207) for the same period in 2023.

As of September 30, 2024, the company reported total current assets of $178,229, a decrease from $423,768 at the end of 2023. Cash reserves also fell to $139,570 from $383,362. Current liabilities increased slightly to $1,045,035, resulting in a working capital deficit of $866,806 and a total stockholders’ deficit of $(558,283).

In terms of strategic developments, Freeze Tag, Inc. announced the shutdown of its wholly owned subsidiary, Space Coast Geo Store, LLC, effective October 31, 2024, with a complete shutdown expected by December 31, 2024. Additionally, the company secured a merchant loan from Shopify Capital for $160,000 on October 15, 2024, aimed at funding growth efforts related to its products.

Management is actively evaluating alternative financing sources to support its business plan, as the company continues to navigate challenging market conditions.