NYIAX Reports 41% Revenue Decline to $81,544 in Q1 2024, Appoints New CEO

NYIAX, Inc. reported a net revenue of $81,544 for the first quarter of 2024, a decrease of 41% from $138,037 in the same period of 2023. The company attributed this decline primarily to a reduction in its business development headcount, which has significantly impacted its ability to generate new revenue relationships. The average compensation per media contract also fell to $595 from $812 year-over-year, reflecting lower commission rates and total contract values. The total number of media contracts completed decreased to 137 from 170, further contributing to the revenue drop.

The company's operating expenses for the quarter were $1,226,219, down 56% from $2,795,618 in the prior year. This reduction was largely due to decreased technology and development costs, which fell to $245,069 from $398,851, and a significant drop in selling, general, and administrative expenses, which decreased to $991,502 from $1,547,831. Notably, the company recorded a forfeiture of deferred compensation amounting to $308,082, which was classified as a contra-expense. Despite these reductions, NYIAX reported a net loss of $1,375,794, an improvement from the loss of $2,987,985 in the first quarter of 2023.

In terms of strategic developments, NYIAX appointed Teresa Gallo as the new Chief Executive Officer on January 19, 2024, eliminating the interim CEO position. This leadership change is expected to guide the company in implementing its long-term strategic plan for its digital advertising exchange platform. The company has also been active in raising capital, closing approximately $1.3 million in its 2024A Convertible Note Payable offering, which is part of its efforts to meet immediate capital requirements.

Operationally, NYIAX's total current assets increased to approximately $579,099 as of March 31, 2024, compared to $322,602 at the end of 2023, primarily due to a rise in cash holdings. However, total current liabilities also increased to approximately $8.6 million, leading to a significant shareholders' equity deficit of $4,498,462. The company continues to face challenges in maintaining liquidity, as it believes it does not have sufficient cash to meet its working capital needs for at least the next twelve months without additional financing.

Looking ahead, NYIAX's management has expressed concerns about its ability to continue as a going concern, emphasizing the need for substantial capital to support its operations and growth plans. The company is focused on building its sales infrastructure and attracting media buyers and sellers to its platform, but it acknowledges that achieving profitability will require significant scale and continued investment in sales and marketing efforts. The outlook remains cautious as the company navigates its financial challenges and seeks to stabilize its operations.