TipMeFast, Inc. reported significant financial challenges in its 10-Q filing for the quarter ending September 30, 2024. The company, which operates a mobile application for cashless payments, has not generated any revenue since its inception and continues to incur substantial losses. For the three months ended September 30, 2024, TipMeFast recorded a net loss of $6.4 million, compared to a net loss of $3.8 million for the same period in 2023. Over the nine months ending September 30, 2024, the net loss increased to $22.2 million, up from $10.9 million in the prior year.

Total expenses for the third quarter of 2024 reached $6.4 million, a notable increase from $3.8 million in the same quarter of 2023. For the nine-month period, expenses rose to $22.2 million from $10.9 million, driven primarily by higher professional fees and general administrative costs. Specifically, professional fees accounted for $4.3 million in the third quarter of 2024, compared to $1.8 million in the same quarter of 2023.

As of September 30, 2024, TipMeFast's total liabilities amounted to $55.2 million, a significant increase from $33.1 million at the end of 2023. The accumulated deficit also widened to $141.3 million from $119.1 million. The company reported no cash on hand and indicated that it is in a development stage, relying heavily on additional investment capital to cover operating expenses. Cash used in operating activities for the nine months ended September 30, 2024, was $16.4 million, compared to $7.2 million in the same period of 2023.

In terms of strategic developments, TipMeFast signed an Exchange Agreement with Lucent, Inc. to acquire it as a wholly owned subsidiary in exchange for 10 million common shares, although the transaction had not closed as of November 14, 2024. The company continues to face liquidity challenges and anticipates monthly cash flow needs of $6,000 for the remainder of 2024. Management has indicated that it may need to sell common stock or enter into debt financing to meet its cash needs.

The company has maintained 5.6 million shares of common stock outstanding, with a total stockholders’ deficit increasing to $55.2 million as of September 30, 2024, from $40.3 million at the beginning of the period. The financial outlook remains uncertain as the company has not yet completed its app, which is expected to be operational in approximately six months, followed by a marketing campaign.