Thumzup Media Reports 62.7% Revenue Decline and $2.155 Million Net Loss in Latest Filing

Thumzup Media Corporation reported significant financial challenges in its latest 10-Q filing for the quarter ending March 31, 2025. The company generated revenues of $151, a decrease of 62.7% from $405 in the same period last year. Operating expenses surged to $1.736 million, up from $328,352, marking a 428.7% increase. This rise in expenses was primarily driven by substantial increases in sales and marketing costs, which rose to $708,948 from $51,765, and general and administrative expenses, which increased to $917,474 from $221,926. As a result, the company reported a net loss attributable to common stockholders of $2.155 million, compared to a loss of $330,712 in the prior year, reflecting a 551.7% increase in losses.

The filing also highlighted strategic developments, including the company's ongoing focus on expanding its business footprint rather than immediate revenue generation. Thumzup has prioritized increasing its number of listed businesses, which it believes will eventually lead to higher revenue. The company has also engaged in significant investments in its digital asset strategy, acquiring approximately 19.1 bitcoins valued at $1.577 million as of March 31, 2025. However, the company recorded an impairment loss of $537,253 on these digital assets during the quarter, indicating volatility in the cryptocurrency market.

Operationally, Thumzup's cash position has deteriorated, with cash decreasing to $1.035 million from $4.681 million at the end of the previous fiscal year. The company utilized $1.262 million in cash for operating activities during the quarter, raising concerns about its liquidity and ability to continue as a going concern. The filing noted that the company’s accumulated deficit has grown to $11.847 million, up from $9.692 million at the end of 2024. The company has also initiated a share repurchase program, purchasing 79,377 shares for approximately $298,207, which it hopes will stabilize its stock price.

Looking ahead, Thumzup's management expressed concerns about its ability to raise additional capital, which is critical for its operations and growth strategy. The company has entered into a Master Loan Agreement with Coinbase, allowing it to borrow against its bitcoin holdings, but this also introduces additional risks related to market volatility. The management's outlook remains cautious, emphasizing the need for strategic capital management and the potential for further dilution of existing shareholders if additional equity financing is pursued. The company continues to navigate a challenging market environment while focusing on its long-term growth objectives.