izea-20230331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period March 31, 2023


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________________ to _________________

Commission File No.: 001-37703

IZEA WORLDWIDE, INC.

(Exact name of registrant as specified in its charter)


Nevada						37-1530765
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


1317 Edgewater Dr., # 1880, Orlando, FL						32804
(Address of principal executive offices)						(Zip Code)

Registrant’s telephone number, including area code: (407) 674-6911

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol (s)

Name of each exchange on which registered

Common Stock, par value $0.0001 per share

IZEA

The Nasdaq Capital Market

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☐

Non-Accelerated Filer

☒

Smaller reporting company

☒

Emerging growth company

☐

Table of Contents

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

As of May 8, 2023, there were 62,654,477 shares of our common stock outstanding.

Table of Contents

Quarterly Report on Form 10-Q for the period ended March 31, 2023

Table of Contents


			Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements			1
Unaudited Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022			1
Unaudited Consolidated Statements of Operations for the three months ended March 31, 2023 and 2022			2
Unaudited Consolidated Statements of Comprehensive Loss for the three months ended March 31, 2023 and 2022			3
Unaudited Consolidated Statements of Stockholders’ Equity for the three months ended March 31, 2023 and 2022			4
Unaudited Consolidated Statement of Cash Flows for the three months ended March 31, 2023 and 2022			5
Notes to the Unaudited Consolidated Financial Statements			6
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operation			22
Item 3. Quantitative and Qualitative Disclosures About Market Risk			30
Item 4. Controls and Procedures			30

PART II. OTHER INFORMATION
Item1. Legal Proceedings			32
Item 1A. Risk Factors			32
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			22
Item 3. Defaults Upon Senior Securities			32
Item 4. Mine Safety Disclosures			32
Item 5. Other Information			32
Item 6. Exhibits			33

Signatures			34

Table of Contents

PART I - FINANCIAL INFORMATION

ITEM 1 - FINANCIAL STATEMENTS

IZEA Worldwide, Inc.

Unaudited Consolidated Balance Sheets


	March 31, 2023		December 31, 2022
Assets
Current assets:
Cash and cash equivalents	$	26,156,210	$	24,600,960
Accounts receivable, net	5,922,467		5,664,727
Prepaid expenses	2,918,684		3,927,453
Short term investments	17,418,187		16,106,758
Other current assets	22,050		66,441
Total current assets	52,437,598		50,366,339

Property and equipment, net of accumulated depreciation	258,151		156,774
Goodwill	4,016,722		4,016,722
Intangible assets, net	64,953		64,953
Software development costs, net	1,603,425		1,774,033
Long term investments	23,883,523		29,296,069
Total assets	$	82,264,372	$	85,674,890

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	2,468,032	$	1,968,322
Accrued expenses	2,008,160		2,130,702
Contract liabilities	9,854,780		11,247,746
Total current liabilities	14,330,972		15,346,770

Finance obligation, less current portion	107,959		62,173
Total liabilities	$	14,438,931	$	15,408,943

Commitments and Contingencies (Note 8)	—		—

Stockholders’ equity:
Preferred stock; $0.0001 par value; 10,000,000 shares authorized; no shares issued and outstanding	—		—
Common stock; $0.0001 par value; 200,000,000 shares authorized; 62,600,583 and 62,413,929, respectively, issued, and outstanding	6,260		6,241
Additional paid-in capital	149,383,201		149,143,567
Accumulated deficit	(80,909,405)		(78,103,066)
Accumulated other comprehensive income (loss)	(654,615)		(780,795)
Total stockholders’ equity	67,825,441		70,265,947
Total liabilities and stockholders’ equity	$	82,264,372	$	85,674,890

See accompanying notes to the consolidated financial statements.

Table of Contents

IZEA Worldwide, Inc.

Unaudited Consolidated Statements of Operations


	Three Months Ended March 31,
		2023		2022
Revenue		$	8,737,722	$	8,890,336

Costs and expenses:
Cost of revenue		5,960,162		5,179,724
Sales and marketing		2,404,551		2,520,343
General and administrative		3,403,608		3,502,435
Depreciation and amortization		346,262		138,829

SEC Form 10-Q filed by IZEA Worldwide Inc.