DatChat, Inc. reported its financial results for the first quarter of 2025, revealing a net revenue of $83, a decrease from $131 in the same period last year. The company continues to face significant operating losses, with a net loss of $1,619,110 for the quarter, compared to a loss of $1,561,807 in Q1 2024. This translates to a net loss attributable to common shareholders of $1,473,196, or $(0.36) per share, compared to $(0.41) per share in the prior year. The slight increase in net loss reflects ongoing challenges in revenue generation and operational efficiency.
Operating expenses for the quarter totaled $1,660,529, a marginal decrease from $1,663,550 in the previous year. The primary components of operating expenses included compensation and related expenses, which rose to $967,280 from $897,664, largely due to an increase in executive bonuses and stock-based compensation. Conversely, research and development expenses plummeted to $6,000 from $233,918, as the company ceased development on its Metaverse software project. General and administrative expenses also decreased significantly, reflecting cost-cutting measures.
In terms of strategic developments, DatChat has made notable changes to its organizational structure and product offerings. The company has expanded its portfolio to include the Myseum platform, a secure digital content management solution, and has shifted its focus for its subsidiary, RPM Interactive, towards AI-driven gaming and podcasting technologies. This strategic pivot follows the acquisition of RPM Interactive in October 2024, which has been a significant factor in the company's operational realignment.
As of March 31, 2025, DatChat reported cash and cash equivalents of $1,265,478 and short-term investments of $5,785,219, indicating a solid liquidity position. The company generated net cash from financing activities of $4,379,500 during the quarter, primarily from the sale of common stock. This influx of capital is expected to support ongoing operational needs and strategic initiatives. However, the company anticipates continued operating losses as it implements its growth strategy, which includes expanding its product offerings and enhancing market presence.
Looking ahead, DatChat's management remains focused on leveraging its existing resources to navigate the challenges of the current market environment. The company believes that its current cash reserves and working capital will be sufficient to meet operational needs for the next twelve months. However, it acknowledges the necessity of ongoing investment in research and development, marketing, and personnel to drive future growth and improve financial performance.
About DatChat, Inc.
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