NYIAX Reports 21% Revenue Decline and Increased Net Loss in Q3 2024

NYIAX, Inc. reported a significant decline in financial performance for the third quarter and the first nine months of 2024, as detailed in its latest 10-Q filing. For the three months ended September 30, 2024, the company generated net revenue of $77,245, a decrease of 21% from $97,820 in the same period of 2023. The nine-month revenue also fell to $242,100 from $324,835 year-over-year. The company recorded a net loss of $4.2 million for the third quarter, compared to a loss of $2.1 million in the prior year, and a total net loss of $6.9 million for the nine-month period, slightly improved from a loss of $7.4 million in 2023.

The financial results reflect a strategic shift and operational challenges faced by NYIAX. The company has undergone significant changes, including the appointment of Teresa Gallo as CEO in January 2024, who is tasked with implementing a long-term strategic plan for the digital advertising exchange platform. Additionally, NYIAX has made substantial cuts to its technology and development expenses, which decreased by 75% to $73,421 in Q3 2024, as the company suspended platform development and reduced staffing. Selling, general, and administrative expenses also saw a reduction of 14% to $1.1 million in the same quarter.

Operationally, NYIAX's customer engagement metrics have been affected, with the average compensation per media contract declining from $631 in Q3 2023 to $536 in Q3 2024. The total number of media contracts completed also decreased, indicating challenges in attracting and retaining media buyers and sellers. As of September 30, 2024, the company had total current assets of $388,037, primarily cash, while total current liabilities surged to approximately $9.7 million, raising concerns about liquidity and the ability to meet short-term obligations.

The company has acknowledged that it does not have sufficient cash to meet its working capital and capital requirements for at least the next twelve months. To address immediate capital needs, NYIAX has engaged in convertible note offerings, raising approximately $1.3 million from the 2024A Convertible Note Payable and $0.9 million from the 2024B offering. However, the company has expressed substantial doubt about its ability to continue as a going concern without additional financing or operational adjustments.

Looking ahead, NYIAX's management plans to focus on reducing cash burn and enhancing its sales infrastructure to drive revenue growth. The company recognizes that achieving profitability will require substantial scale and continued investment in sales and marketing efforts. The outlook remains cautious, with management emphasizing the need for effective capital raising strategies to support ongoing operations and future growth initiatives.