NYIAX Reports 6% Revenue Decline in Q2 2024, Appoints New CEO

NYIAX, Inc. reported its financial results for the second quarter of 2024, revealing a net revenue of $83,310, a decrease of 6% from $88,978 in the same period last year. For the first half of 2024, the company generated $164,854 in revenue, down 27% from $227,015 in the first half of 2023. The decline in revenue is attributed to a reduced business development headcount and lower average compensation per media contract, which fell from $546 to $517. The company completed 161 media contracts in the second quarter of 2024, compared to 163 in the same quarter of 2023.

The company's operating expenses for the second quarter decreased significantly to $1,154,698 from $1,872,540 in the prior year, primarily due to reductions in technology and development costs, which dropped from $288,811 to $79,977. Selling, general, and administrative expenses also saw a decline, falling from $1,583,324 to $822,203. Despite these reductions, NYIAX reported a net loss of $1,359,586 for the quarter, an improvement from a loss of $2,291,283 in the same quarter of 2023. The loss per share for the second quarter was $0.09, compared to $0.17 in the previous year.

In terms of strategic developments, NYIAX appointed Teresa Gallo as the new Chief Executive Officer on January 19, 2024, marking a significant organizational change aimed at revitalizing the company's strategic direction. The company also reported a forfeiture of deferred compensation amounting to $353,295, which reflects a cost-saving measure in light of its ongoing financial challenges. Additionally, NYIAX has been actively involved in raising capital through convertible note offerings, securing approximately $1.3 million from the 2024A Convertible Note Payable offering.

Operationally, NYIAX's total current assets increased to $705,644 as of June 30, 2024, up from $322,602 at the end of 2023, largely due to a rise in cash reserves, which reached $595,151. However, total current liabilities also rose to $9,022,527, leading to a shareholders' equity deficit of $5,406,910. The company continues to face liquidity challenges, with management indicating that it does not have sufficient cash to meet its working capital needs for 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 new equity or loan support to sustain operations. The company is focused on reducing cash burn and has indicated that it may need to curtail certain operational aspects or limit expansion activities. The outlook remains cautious as NYIAX navigates its financial difficulties while attempting to stabilize and grow its business in the competitive digital advertising landscape.