SIGNIFICANT ACCOUNTING POLICIES, BASIS OF PRESENTATION AND OTHER BROAD DISCLOSURES (Policies) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Significant Accounting Policies | Significant Accounting Policies
There have been no material changes to our significant accounting policies and effect of recent accounting pronouncements to the Company’s consolidated financial statements from our Annual Report on Form 10-K for the year ended December 31, 2024.
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| Basis of Presentation | Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and applicable rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2024.
The condensed consolidated balance sheet as of December 31, 2024 included herein was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by GAAP.
The condensed consolidated financial statements include the accounts of Unicoin Inc. and its subsidiaries where we have controlling financial interests, and any variable interest entities for which we are deemed to be the primary beneficiary. All intercompany balances and transactions have been eliminated.
The accompanying condensed consolidated financial statements reflect all normal recurring adjustments that are necessary to present fairly the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year ending December 31, 2025.
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| Cash in Excess of FDIC Insured Amounts | Cash in Excess of FDIC Insured Amounts
As of March 31, 2025 and December 31, 2024, the Company had $2,340 thousand and $2,059 thousand of cash in excess of the FDIC insured amount, respectively. The bank at which the Company had deposits that exceed FDIC limits is not in receivership or under the control of the FDIC. The Company has not experienced any losses in such accounts.
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| Concentrations of Revenues and Accounts Receivable | Concentrations of Revenues and Accounts Receivable
The following table summarizes the Company’s revenues from customers that contributed to at least 10% of total revenues:
The contract with Customer B, one of our largest clients, expired on March 31, 2025 and it does not appear we will be able to renew it. Revenues from Customer B for the three months ended March 31, 2025 and 2024 amounted to $568 thousand and $782 thousand, respectively. Accounts receivable from Customer B as of March 31, 2025 and December 31, 2024 amounted to $577 thousand $392 thousand, respectively. The gross margin associated with this client is approximately 5%.
The following table summarizes the Company’s accounts receivable from customers that contributed to at least 10% of total accounts receivable, net:
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| ITSQuest’s Accounts Receivable Financing Arrangement With a Financial Institution (“Factor”) | ITSQuest’s Accounts Receivable Financing Arrangement With a Financial Institution (“Factor”)
As of March 31, 2025 and December 31, 2024, the Company recorded an asset and liability of $1 thousand and $84 thousand, respectively, towards the Factor which is included in other current liabilities on the Company’s condensed consolidated balance sheets. The cost of factoring is included as a component of general and administrative expenses in the accompanying condensed consolidated statements of operations and comprehensive loss. During the three months ended March 31, 2025 and 2024, the Company incurred $0 and $18 thousand in factoring fee expense, respectively.
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| Digital Assets and USDC | Digital Assets and USDC
During the three months ended March 31, 2025 and 2024, the Company identified a gain of digital assets and USDC amounting to $55 thousand and $44 thousand, respectively.
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| Advertising Expenses | Advertising Expenses
During the three months ended March 31, 2025 and 2024, the Company incurred advertising expenses of $245 thousand and $936 thousand, respectively, of which $3 thousand and $193 thousand were paid for by exchanging unicoin rights with such fair value.
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| Depreciation and Amortization Expense | Depreciation and Amortization Expense
The Company’s depreciation and amortization expense consisted of the following:
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