Specificity, Inc. Reports $1.07M Net Loss for Fiscal Year 2023, Revenue Declines to $1.1M

Specificity, Inc., a digital marketing firm based in Lakewood Ranch, Florida, reported a net loss of $1,069,636 for the fiscal year ending December 31, 2023, a significant decrease from the $3,779,494 loss recorded in 2022. The company's revenue for the year was $1.1 million, down from $1.2 million in the previous year. This decline in revenue was attributed to the timing of marketing campaigns, where revenue was collected in advance but the campaigns were not completed until the following year. The cost of revenues also decreased to $548,278 from $765,888, reflecting reduced spending on market data acquisition for client campaigns.

In terms of operational changes, Specificity, Inc. underwent a strategic restructuring, reducing its operating expenses from $4.1 million in 2022 to $1.3 million in 2023. This reduction was primarily due to downsizing its sales team and administrative staff, as the company shifted to a more streamlined approach to sales. Additionally, the firm experienced an increase in other expenses, which rose to $295,326 from $52,344, largely due to higher interest expenses related to convertible debt and a non-recurring impairment charge associated with the discontinuation of its investor center software solution.

As of December 31, 2023, Specificity, Inc. had approximately eight full-time employees and reported a net working capital deficit of $920,369, compared to a deficit of $354,411 in 2022. The company has focused its marketing efforts on medium-sized clients with revenues between $5 million and $25 million, which typically spend an average of $5,100 per month on digital marketing services. Specificity aims to expand its client base in the Tampa and New England markets, leveraging its technology solutions to provide targeted marketing services.

Looking ahead, Specificity, Inc. plans to raise additional capital to support its operations and growth initiatives. The company has entered into a 24-month Strata Purchase Agreement with a private investor, allowing for the purchase of up to $5 million in registered common stock. However, the firm acknowledges the uncertainty surrounding its ability to generate sufficient revenue and secure additional financing, which is critical for its long-term viability. The management has indicated that the focus for 2025 will be on achieving sequential revenue growth and enhancing its digital marketing capabilities to meet client demands.