SCHAUMBURG, IL, March 31, 2025 (GLOBE NEWSWIRE) -- Giftify, Inc. (NASDAQ: GIFT) (the "Company"), the owner and operator of CardCash.com and Restaurant.com, and a leader in the incentives and rewards industry, today announced financial and operational results for the fourth quarter and year ended December 31, 2024.
Q4 2024 Financial Highlights:
- Q4 2024 net sales increased to $24.18 million, a 4.18% increase, as compared to Q3 2024 net sales of $23.21 million.
- Q4 2024 gross profit improved $645,785, or 21.59%, to $3.64 million, as compared to Q4 2023 gross profit of $2.99 million.
- Q4 2024 gross margin improved to 15.04%, as compared to Q3 2024 gross margin of 12.88%.
- Deployed Enterprise Artificial Intelligence (AI) solutions driving operational excellence and innovation.
- Full year 2024 net sales increased to $88.93 million, a 2.05% increase, as compared to full year 2023 net sales of $87.15 million.
- Full year 2024 gross profit improved $2.64 million, or 25.10%, to $13.14 million, as compared to full year 2023 gross profit of $10.51 million.
- Full year 2024 gross margin improved to 14.78%, as compared to full year 2023 gross margin of 12.06%.
- Full year 2024 modified EBITDA was a negative $2.84 million, as compared to full year 2023 modified EBITDA of a negative $729,187.
- Cash and cash equivalents balance of $3.57 million at December 31, 2024.
- Successful Nasdaq Listing and Integration of CardCash.com Acquisition Demonstrate Strategic Progress
- Focus on Quality Gift Card Brands and Optimized Pricing Drives Operational Improvements
- Acquisition of CardCash.com: Completed on December 29, 2023, significantly enhancing Giftify's market profile and brand focus.
- Gift Card Sales: Facilitated the purchase and sale of gift cards from over 1,100 retailers including Target, Home Depot, Starbucks, and TJ Maxx as well as discounted certificates for 10,000 restaurants and discount dining passes for 170,000 restaurants and retailers nationwide
- Nasdaq Listing: Successfully listed on the Nasdaq Capital Market on August 6, 2024
- Corporate Rebranding: Changed company name from RDE, Inc. to Giftify, Inc. with ticker symbol GIFT, effective October 28, 2024
- Expanded Leadership Team: Appointed Steve Handy as Chief Financial Officer in August 2024
Ketan Thakker, President and CEO of Giftify, Inc., stated, "2024 was a transformative year for our company as we fully integrated CardCash.com, which we acquired at the end of 2023, successfully listed on Nasdaq, and rebranded to Giftify to better reflect our expanded business model. We're pleased with the operational improvements we've achieved, particularly the significant increase in gross profit year-over-year. This highlights the success of our strategy to focus on improving profitability by assessing the quality of purchased gift card brands and optimizing our pricing structure."
"As we look ahead to 2025, our focus remains on growing both our CardCash.com and Restaurant.com platforms, brand awareness, expanding our retail partnerships, and improving our financial position. We believe our dual business model positions us well for growth in the expanding U.S. gift card market, which is projected to reach $400 billion by 2026."
About Giftify, Inc.
Giftify, Inc. is a pioneer in the incentive and rewards industry with a focus on retail, dining & entertainment experiences, as the owner and operator of leading digital platforms, CardCash.com and Restaurant.com. CardCash.com is a leading secondary gift card exchange platform, allowing consumers and retailers to realize value by buying and selling gift cards at various scales. Its Restaurant.com is the nation's largest restaurant-focused digital deals brand. Restaurant.com and our Corporate Incentives division connect digital consumers, businesses and communities offering thousands of dining, retail and entertainment deals options nationwide at over 184,000 restaurants and retailers. Restaurant.com prides itself on offering the best deal, every meal. Our gift cards and restaurant certificates allow customers to save at thousands of restaurants across the country with just a few clicks.
For more information, visit: www.giftifyinc.com and www.cardcash.com and https://www.restaurant.com.
Modified EBITDA
In addition to our GAAP results, we present Modified EBITDA as a supplemental measure of our performance. However, Modified EBITDA is not a recognized measurement under GAAP and should not be considered as an alternative to net income, income from operations or any other performance measure derived in accordance with GAAP, or as an alternative to cash flow from operating activities as a measure of liquidity. We define Modified EBITDA as net income (loss), plus interest expense, depreciation and amortization, stock-based compensation, and fair value of common stock issued for services.
Management considers our core operating performance to be that which our managers can affect in any particular period through their management of the resources that affect our underlying revenue and profit generating operations during that period. Non-GAAP adjustments to our results prepared in accordance with GAAP are itemized below. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating Modified EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Modified EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.
Forward-Looking Statements
Press Releases may include forward-looking statements. In particular, the words "believe,” "may,” "could,” "should,” "expect,” "anticipate,” "estimate,” "project," "propose," "plan," "intend," and similar conditional words and expressions are intended to identify forward-looking statements. Any statements made in this news release about an action, event or development, are forward-looking statements. Such statements are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company. Accordingly, you should not place undue reliance on these forward-looking statements. Although the company believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that its forward-looking statements will prove to be correct. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from those projected. The forward-looking statements in this press release are made as of the date hereof. The company takes no obligation to update or correct its own forward-looking statements, except as required by law or those prepared by third parties that are not paid by the company. Statements in this press release that are not historical fact may be deemed forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although Giftify, Inc. believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, Giftify, Inc. is unable to give any assurance that its expectations will be attained. Factors that could cause actual results to differ materially from expectations include the company's ability identify a suitable business model for the corporation.
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GIFTIFY, INC. AND SUBSIDIARIES (FKA RDE, INC.)
CONSOLIDATED BALANCE SHEETS
| Successor | ||||||||
| December 31, 2024 | December 31, 2023 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents (includes restricted cash of $1,258,826 at December 31, 2024 and 2023) | $ | 3,574,876 | $ | 4,099,737 | ||||
| Accounts receivable | 891,666 | 1,681,165 | ||||||
| Inventories | 4,116,180 | 4,152,273 | ||||||
| Prepaid expenses and other current assets | 63,210 | 177,119 | ||||||
| Total current assets | 8,645,932 | 10,110,294 | ||||||
| Property and equipment, net | 1,089,984 | 2,563,312 | ||||||
| Operating lease right of use asset, net | 1,406,242 | 315,183 | ||||||
| Deposits | 65,556 | 65,556 | ||||||
| Intangible assets, net | 4,268,332 | 6,700,000 | ||||||
| Goodwill | 20,007,670 | 20,007,669 | ||||||
| Total assets | $ | 35,483,716 | $ | 39,762,014 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,966,616 | $ | 2,218,285 | ||||
| Accrued expenses | 1,768,607 | 1,175,934 | ||||||
| Customer deposits | 95,000 | - | ||||||
| Deferred revenue | 77,051 | 336,996 | ||||||
| Secured revolving line of credit | 3,805,080 | 6,737,385 | ||||||
| Convertible promissory notes | 43,137 | 40,137 | ||||||
| Secured note payable - related party, net of debt discount of $4,000 and $0, at December 31, 2024 and 2023, respectively | 2,060,274 | - | ||||||
| Notes payable, current portion | 1,717,632 | 836,509 | ||||||
| Acquisition obligation | - | 500,000 | ||||||
| Operating lease liability, current portion | 316,612 | 134,475 | ||||||
| Total current liabilities | 11,850,009 | 11,979,721 | ||||||
| Notes payable, net of current portion | 615,000 | 1,458,270 | ||||||
| Deferred income taxes | 1,123,000 | 1,800,000 | ||||||
| Operating lease liability, net of current portion | 1,133,371 | 202,829 | ||||||
| Total liabilities | 14,721,380 | 15,440,820 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity: | ||||||||
| Preferred stock, $0.001 par value, 10,000,000 shares authorized; | - | - | ||||||
| Common stock, $0.001 par value, 750,000,000 shares authorized; 27,021,423 and 24,119,967 shares issued and outstanding at December 31, 2024 and 2023, respectively | 27,015 | 24,114 | ||||||
| Additional paid-in-capital | 108,679,065 | 93,376,244 | ||||||
| Common stock issuable, 350,843 and 383,343 shares, respectively | 350,843 | 383,343 | ||||||
| Accumulated deficit | (88,294,587 | ) | (69,462,507 | ) | ||||
| Total stockholders' equity | 20,762,336 | 24,321,194 | ||||||
| Total liabilities and stockholders' equity | $ | 35,483,716 | $ | 39,762,014 | ||||
GIFTIFY, INC. AND SUBSDIARIES (FKA RDE, INC.)
CONSOLIDATED STATEMENTS OF OPERATIONS
| Successor | Predecessor | |||||||||||
| Year Ended December 31, 2024 | December 30, 2023 to December 31, 2023 | January 1, 2023 to
December 29, 2023 | ||||||||||
| Net Sales | $ | 88,934,036 | $ | 484,860 | $ | 86,661,944 | ||||||
| Cost of sales | 75,789,255 | 418,350 | 76,220,645 | |||||||||
| Gross profit | 13,144,781 | 66,510 | 10,441,299 | |||||||||
| Operating Expenses | ||||||||||||
| Selling, general and administrative expenses | 27,615,865 | 5,086,510 | 11,152,428 | |||||||||
| Amortization of capitalized software costs | 1,472,974 | - | 1,080,537 | |||||||||
| Amortization of intangible assets | 2,431,668 | - | 300,000 | |||||||||
| Impairment of property and equipment | - | - | 738,740 | |||||||||
| Impairment of intangibles | - | - | 250,000 | |||||||||
| Total operating expenses | 31,520,507 | 5,086,510 | 13,521,705 | |||||||||
| Loss from operations | (18,375,726 | ) | (5,020,000 | ) | (3,080,406 | ) | ||||||
| Other income (expense): | ||||||||||||
| Interest expense | (1,002,354 | ) | - | (2,890,466 | ) | |||||||
| Financing costs | (131,000 | ) | - | - | ||||||||
| Gain on forgiveness of debt | - | - | 5,876,000 | |||||||||
| Total other income (expense), net | (1,133,354 | ) | - | 2,985,534 | ||||||||
| Net loss before income taxes | (19,509,080 | ) | (5,020,000 | ) | (94,872 | ) | ||||||
| Income tax (expense) benefit | 677,000 | - | (29,673 | ) | ||||||||
| Net loss | $ | (18,832,080 | ) | $ | (5,020,000 | ) | $ | (124,545 | ) | |||
| Net loss per share - basic and diluted | $ | (0.73 | ) | $ | (0.21 | ) | $ | (0.01 | ) | |||
| Weighted average common shares outstanding - basic and diluted | 25,745,113 | 24,119,967 | 15,927,387 | |||||||||
GIFTIFY, INC. AND SUBSDIARIES (FKA RDE, INC.)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
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