Freeze Tag, Inc. Reports Improved Net Loss of $116,426 in Q1 2025

Freeze Tag, Inc. reported a net loss of $116,426 for the first quarter of 2025, a significant improvement compared to a net loss of $218,098 during the same period in 2024. The company's revenues decreased to $395,039, down from $468,946 year-over-year, primarily due to reduced demand for certain product types. Operating costs also saw a decline, with total operating expenses falling to $500,421 from $676,078 in the previous year, driven by lower selling, general, and administrative expenses, which decreased by $169,770 to $400,043.

The company's balance sheet as of March 31, 2025, showed total assets of $450,678, a decrease from $594,277 at the end of 2024. Current liabilities were reported at $1,094,591, leading to a working capital deficit of $960,045 and a total stockholders' deficit of $793,913. Cash reserves also declined, with cash at the end of the quarter amounting to $95,038, down from $216,590 at the end of 2024. The decrease in cash was attributed to net cash used in operations of $121,552 during the quarter.

In terms of strategic developments, Freeze Tag has been focusing on its core gaming products, including the Munzee and Eventzee apps, while discontinuing its subsidiary, Space Coast Geo Store, LLC, which was fully shut down by April 30, 2025. The company is exploring options to enhance its business model, including potential acquisitions or partnerships, to improve its financial position. Management is also evaluating alternative financing sources to support ongoing operations, given the significant increase in costs associated with being a public company.

Operationally, Freeze Tag's user engagement metrics remain a focal point, with the company leveraging data analytics to optimize gaming experiences. The company continues to operate under a single reporting segment, focusing on mobile location-based games. As of March 31, 2025, Freeze Tag had 75,056,123 shares of common stock outstanding, with no changes in stock activity reported during the quarter.

Looking ahead, management remains cautiously optimistic about future revenue growth, particularly from updated product lines. However, the company acknowledges the challenges posed by its current financial situation and the need for effective cost management and revenue generation strategies to ensure sustainability. The financial statements have been prepared on a going concern basis, indicating that the company's ability to continue operations is contingent upon successfully executing its business plans.