UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM
6-K
REPORT
OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934
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For the month of
|
August 2023 |
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Commission File Number: |
333-120120-01 |
KIDOZ
inc.
(Translation
of registrant’s name into English)
Suite
220, 1685 West 4th Avenue
Vancouver,
BC, V6J 1L8
Canada
(Address
of principal executive office)
Indicate
by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
Indicate
by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information
to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes ☐ No ☒
If
“Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):
Exhibits:
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
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|
|
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KIDOZ INC. |
| |
(Registrant) |
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|
|
| Date
: August 23, 2023 |
By: |
/s/
J. M. Williams |
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|
J. M. WILLIAMS, |
| |
|
CEO |
Exhibit
99.1
KIDOZ
Inc.
220
- 1685 West 4th Avenue
Vancouver
BC V6J 1L8
Canada
Ph:
+1 888-374-2163
Fax:
+1 604-694-0301
Kidoz
Inc. Record Revenue of US$2,814,239 Continues in Q2 2023
Vancouver,
B.C. Canada, August 23, 2023 – Kidoz Inc. (TSXV:KIDZ) (the “Company”), mobile AdTech developer and owner of the market
leading Kidoz Contextual Ad Network (www.kidoz.net); and the Kidoz Publisher SDK, announced today its unaudited condensed interim financial
results for the quarter ended June 30, 2023. All amounts are presented in United States dollars and are in accordance with United States
Generally Accepted Accounting Principles.
Recent
Kidoz Inc. Q2 2023 highlights include:
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● |
Total
Revenue of $2,814,239, an increase of 12% compared to Q2 2022 Total Revenue of $2,518,137 and an increase of 68% compared to Q1 2023
Total Revenue of $1,673,685 |
| |
● |
Direct
AdTech revenue of $2,495,469 an increase of 2% compared to Q2 2022 Direct AdTech Revenue of $2,458,351 and an increase of 62% compared
to Q1 2023 Direct AdTech Revenue of $1,538,046. |
| |
● |
Programmatic
Ad Tech Revenue of $254,776, an increase of 723% compared to Q2 2022 Programmatic Revenue of $30,972 and an increase of 274% compared
to Q1 2023 Programmatic Revenue of $68,070. |
| |
● |
Sales
and Marketing expenditure of $306,561, an increase of 22% from $251,788 in Q2 2022 and a decrease of 6% compared to Q1 2023 Sales
and Marketing expenditures $327,522. |
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● |
Non-Capitalized
R&D expenditures of $755,397, an increase of 17% from $644,054 in Q2 2022 and an increase of 1% compared to Q1 2023 Non-Capitalized
R&D expenditures of $744,333. |
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● |
Q2
2023 Gross Profit of $1,239,580, an increase of 28% compared to Q2 2022 Gross Profit of $971,965 and an increase of 85% compared
to Q1 2023 Gross Profit of $669,969. |
| |
● |
Q2
2023 Net Loss of ($509,424) a 29% reduction from a Net Loss of ($721,677) in Q2 2022 and a 52% reduction from a Q1 2023 loss of ($1,066,612). |
| |
● |
Q2
2023 Adjusted EBITDA loss of ($214,770) a reduction of 46% from a Q2 2022 Adjusted EBITDA loss of ($397,378) and a 73% reduction
from a Q1 2023 Adjusted EBITDA loss of ($796,915). |
| |
● |
Cash
of $1,380,740 and working capital of $3,099,985 as at June 30, 2023. |
| |
● |
Cash
used in operations in Q2 2023 of ($912,510) compared to cash used in operations in Q2 2022 of ($337,428). |
“Q2
2023 was another quarter of record revenue for Kidoz,” stated Jason Williams Kidoz CEO. “Through continued investments in
technology and operations, two pillars of the business showed marked improvement and helped to propel the Company to new heights. First,
our investment in the software development of our programmatic technologies helped us to secure and deliver more than $250,000 in programmatic
ad campaigns representing 274% growth over the first quarter of 2023. Second, through investments in data analytics and operational processes
we were able to significantly improve our operating margins to 44% in the second quarter of 2023 from 39% in the second quarter of 2022.
Kidoz management’s decision to increase investments to ensure our technology and operation surpass the competition was correct
and our growth was secured.
During
the second quarter, the Company also saw an increase in the growth of Prado campaigns as the teens and adults segments of our business
continues to grow along with the kids. However, one of the most exciting milestones achieved during the quarter was the launch of a successful
“AAA” Game-Ad in collaboration with McDonald’s and Disney. Designed to engage users into playing the gamified ad, the
interactive unit was the most successful of all ads produced by the Kidoz Game-Ad team. With more than 35% of impressions engaging with
the Game Ad for more than 1 minute on average, McDonald’s and Disney were able to generate significant interest in Disney’s
Elementals movie release. Kidoz and Prado are developing a number of new opportunities with leading brands interested in custom AAA Game-Ads
from the Company’s in-house studio.
After
six months of operations in 2023, Kidoz is perfectly positioned to achieve records for the remaining two quarters and the full year.
Kidoz historically reports 68% of yearly revenue in the second half of the year with 43% occurring in the fourth quarter alone. With
the Kidoz technical, operational, and commercial teams all perfectly aligned, management believes that the records set in 2022 will fall.”
CAUTION
REGARDING NON-GAAP FINANCIAL MEASURES
This
press release refers to “Adjusted EBITDA” which is a non-GAAP financial measure that does not have a standardized meaning
prescribed by GAAP. Adjusted EBITDA is not presented in accordance with, or as an alternative to, GAAP financial measures and may be
different from non-GAAP measures used by other companies. These non-GAAP measures should not be considered a substitute for, or superior
to, financial measures calculated in accordance with generally accepted accounting principles in the United States of America (“GAAP”).
We encourage investors to review the GAAP financial measures included in our annual Management Discussion and Analysis and our Form 20-F,
to aid in their analysis and understanding of our performance and in making comparisons.
We
use Adjusted EBITDA internally to evaluate our performance and make financial and operational decisions that are presented in a manner
that adjusts from their equivalent GAAP measures or that supplement the information provided by our GAAP measures. Adjusted EBITDA is
defined by us as EBITDA (net income (loss) plus depreciation expense, amortization expense, interest, stock-based compensation and impairment
of goodwill), further adjusted to exclude certain non-cash expenses and other adjustments. We use Adjusted EBITDA because we believe
it more clearly highlights business trends that may not otherwise be apparent when relying solely on GAAP financial measures, since Adjusted
EBITDA eliminates from our results specific financial items that have less bearing on our core operating performance.
Our
Adjusted EBITDA is reconciled as follows:
| | |
Six Months ended June 30, 2023 | | |
Six Months ended June 30, 2022 | | |
Three Months ended June 30, 2023 | | |
Three Months ended June 30, 2022 | |
| | |
| | |
| | |
| | |
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| Loss after tax | |
$ | (1,576,028 | ) | |
$ | (1,452,719 | ) | |
$ | (509,416 | ) | |
$ | (721,677 | ) |
| Less : | |
| | | |
| | | |
| | | |
| | |
| Depreciation and amortization | |
| 278,979 | | |
| 278,985 | | |
| 139,692 | | |
| 138,614 | |
| Income tax (recovery) expense | |
| - | | |
| (5 | ) | |
| - | | |
| (5 | ) |
| Interest and other income | |
| (12 | ) | |
| - | | |
| (7 | ) | |
| - | |
| Stock awareness program | |
| 37,106 | | |
| 36,725 | | |
| 18,614 | | |
| 16,992 | |
| Stock-based compensation | |
| 248,321 | | |
| 344,592 | | |
| 136,347 | | |
| 184,594 | |
| Gain on derivative liability – warrants | |
| (51 | ) | |
| (21,849 | ) | |
| - | | |
| (5,505 | ) |
| Adjusted EBITDA | |
$ | (1,011,685 | ) | |
$ | (814,271 | ) | |
$ | (214,770 | ) | |
$ | (386,987 | ) |
About
Kidoz Inc.
Kidoz
Inc. (TSXV:KIDZ) (www.kidoz.net) owns the leading COPPA & GDPR compliant contextual mobile advertising network that safely
reaches hundreds of millions of kids, teens, and families every month. Google certified, and Apple approved, Kidoz provides an essential
suite of advertising technology that unites brands, content publishers and families. Trusted by Disney, Hasbro, Lego and more, the Kidoz
Contextual Ad Network helps the world’s largest brands to safely reach and engage kids across thousands of mobile apps, websites
and video channels. The Kidoz network does not use location or PII data tracking commonly used in digital advertising. Instead, Kidoz
has developed advanced contextual targeting tools to enable brands to reach their ideal customers with complete brand safety. A focused
AdTech solution provider, the Kidoz SDK and Kidoz Programmatic network have become essential products in the digital advertising ecosystem.
The
Prado (www.prado.co) technology provides a leading mobile SSP (Supply-side Platform), DSP (Demand-side Platform) and Ad Exchange programmatically
to the entire Ad Tech universe. By activating high-performance programmatic campaigns across thousands of apps on their network, Prado
makes digital advertising more efficient and effective by simplifying the process across a connected technology platform.
The
Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Certain information
included in this press release (as well as information included in oral statements or other written statements made or to be made by
the company) contains statements that are forward-looking, such as statements relating to anticipated future success of the company.
Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the
future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf
of the company. For a description of additional risks and uncertainties, please refer to the company’s filings with the Securities
and Exchange Commission. Specifically, readers should read the Company’s Annual Report on Form 20-F, filed with the SEC and the
Annual Financial Statements and Management Discussion & Analysis filed on SEDAR on April 19, 2023, and the prospectus filed under
Rule 424(b) of the Securities Act on March 9, 2005 and the SB2 filed July 17, 2007, and the TSX Venture Exchange Listing Application
for Common Shares filed on June 29, 2015 on SEDAR, for a more thorough discussion of the Company’s financial position and results
of operations, together with a detailed discussion of the risk factors involved in an investment in Kidoz Inc.
For
more information contact:
Henry
Bromley
CFO
ir@kidoz.net
(888)
374-2163
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