Freeze Tag, Inc. Reports Revenue Decline and Net Loss Improvement for Six Months Ended June 30, 2025

Freeze Tag, Inc. reported a decline in financial performance for the six months ended June 30, 2025, with revenues totaling $844,237, down from $981,522 during the same period in 2024. The company experienced a net loss of $138,877, a significant improvement compared to the net loss of $316,466 reported in the prior year. The decrease in revenue was attributed to reduced demand for certain product types, although management anticipates growth in its Munzee and Eventzee applications moving forward.

In terms of operational metrics, Freeze Tag's total current assets decreased to $82,630 as of June 30, 2025, from $255,129 at the end of 2024. The company's cash reserves also fell sharply to $40,654, down from $216,590. Current liabilities were reported at $1,031,037, leading to a working capital deficit of $948,407. The total stockholders' deficit increased to $806,894, reflecting ongoing financial challenges.

Strategically, Freeze Tag has made significant changes, including the closure of its subsidiary, Space Coast Geo Store, LLC, which was fully shut down by April 30, 2025. This decision was part of a broader effort to streamline operations and reduce costs. The company has also focused on enhancing its product offerings and leveraging its technology for marketing and branding purposes, particularly through its Eventzee platform, which allows businesses to create immersive brand experiences.

The company reported a decrease in selling, general, and administrative expenses, which fell to $767,087 for the first half of 2025, down from $1,058,894 in the previous year. This reduction was primarily due to lower travel costs, decreased employee salaries from headcount reductions, and reduced contractor expenses. Despite these cost-cutting measures, Freeze Tag's operational cash flow remains a concern, as it used $65,709 in cash from operations during the first half of 2025, although this was an improvement from the $254,366 used in the same period of 2024.

Looking ahead, management is focused on implementing further cost reductions and increasing revenue from updated product lines. However, the company is also exploring alternative financing options to support its business plan, given the substantial doubt raised about its ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if the company is unable to continue its operations.