Giftify, Inc. Reports Fourth Quarter and Full Year 2024 Financial Results

/EIN News/ -- 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 Financial Highlights:

• 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

Strategic Developments:

• 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
  

Management Commentary:

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.

Investors Contacts:
IR@giftifyinc.com

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

		Successor								Predecessor
		Year Ended December 31, 2024				December 30, 2023 to December 31, 2023				January 1, 2023 to December 29, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss		$	(18,832,080	)		$	(5,020,000	)		$	(124,545	)
Adjustments to reconcile net loss to net cash used in operating activities
Fair value of vested stock options			8,031,289				-				1,942
Fair value of vested restricted common stock			1,431,848
Fair value of common stock issued for employment agreements			1,250,000				5,000,000				-
Fair value of common stock issued for services			771,500				-				-
Loss on settlement of vendor balance			135,415				-				-
Fair value of common stock issued for financing costs			131,000				-				-
Change in inventory reserve balance			(61,000	)			-				-
Amortization of capitalized software costs			1,472,974				-				1,290,190
Amortization of intangible assets			2,431,668				-				300,000
Amortization of debt discount			18,000				-				-
Impairment of intangible assets and property and equipment			-				-				988,740
Accrued interest			131,398				-				2,100,610
Gain on forgiveness of debt			-				-				(5,876,000	)
Changes in operating assets and liabilities:
Accounts receivable			789,499				-				(74,340	)
Inventories			97,093				-				816,853
Prepaid expenses			113,909				-				(38,328	)
Change in right of use asset			304,481				-				191,953
Accounts payable			(236,732	)			-				84,611
Accrued expenses			592,673				20,000				(39,515	)
Customer deposits			95,000				-				-
Deferred revenue			(259,945	)			-				27,991
Deferred taxes			(677,000	)			-				-
Operating lease liability			(282,861	)			-				(191,953	)
Net cash used in operating activities		$	(2,551,870	)		$	-			$	(541,791	)
CASH FLOWS FROM INVESTING ACTIVITIES
Cash, net, received from acquisition			-				2,038,472				-
Capital expenditures			-				-				(900,000	)
Net cash provided by (used in) investing activities		$	-			$	2,038,472			$	(900,000	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from line of credit			104,752,474				-				104,752,474
Repayment of line of credit			(107,684,779	)			-				(103,540,098
Proceeds from note payable – related party			1,978,000				-				-
Repayment of acquisition obligation			(500,000	)			-				-
Repayment of notes payable			(26,271	)			-				-
Proceeds from sale of common stock under stock purchase agreement			200,000				-				-
Proceeds from public sale of common stock under at-the-market sale agreement			286,063
Proceeds from private sale of common stock			3,021,522
Advance on purchase consideration from Giftify			-				-				250,000
Net cash provided by financing activities		$	2,027,009			$	-			$	1,462,376
Net increase (decrease) in cash and cash equivalents			(524,861	)			2,038,472				20,585
Cash and cash equivalents beginning of period			4,099,737				2,061,265				2,040,680
Cash and cash equivalents end of period		$	3,574,876			$	4,099,737			$	2,061,265
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest paid		$	841,260			$	-			$	-
Taxes paid		$	-			$	-			$	29,673
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Present value of operating lease right of use asset and lease liability		$	1,395,541			$				$	-
Fair value of common stock issued for settlement of vendor balance		$	150,000			$	-			$	-
Issuance of common stock issued for common stock issuable		$	32,500			$	-			$	-
Fair value of Giftify common stock received		$	-			$	-			$	22,962,739
Gain on forgiveness of notes payable		$	-			$	-			$	5,462,739
Settlement of notes payable and accrued interest		$	-			$	-			$	28,873,696
Termination of Series B convertible preferred stock		$	-			$	-			$	4,084,353

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.

Set forth below is a reconciliation of net loss to Modified EBITDA for the year ended December 31, 2024 and 2023 (unaudited):

		Successor								Predecessor
		Year Ended December 31, 2024				December 30, 2023 to December 31, 2023				January 1, 2023 to December 29, 2023
Net Loss		$	(18,832,080	)		$	(5,020,000	)		$	(124,545	)
Modified EBITDA adjustments:
Income taxes			(677,000	)							29,673
Interest expense			1,002,354				-				2,890,466
Financing costs			131,000				-				-
Gain on forgiveness of debt			-				-				(5,876,000	)
Amortization of intangible assets			2,431,668				-				300,000
Amortization of capitalized software costs			1,472,974				-				1,080,537
Stock option and other noncash compensation			11,484,708				5,000,000				1,942
Fair value of stock issued on vendor settlement			150,000				-				-
Impairment of intangible assets and property and equipment			-				-				988,740
Total Modified EBITDA adjustments			15,995,704				5,000,000				(584,642	)
Mofified EBITDA		$	(2,836,376	)		$	(20,000	)		$	(709,187	)

We present Modified EBITDA because we believe it assists investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. In addition, we use Modified EBITDA in developing our internal budgets, forecasts and strategic plan; in analyzing the effectiveness of our business strategies in evaluating potential acquisitions; making compensation decisions; and in communications with our board of directors concerning our financial performance. Modified EBITDA has limitations as an analytical tool, which includes, among others, the following:

	●	Modified EBITDA does not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments;
	●	Modified EBITDA does not reflect changes in, or cash requirements for, our working capital needs;
	●	Modified EBITDA does not reflect future interest expense, or the cash requirements necessary to service interest or principal payments, on our debts; and
	●	Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Modified EBITDA does not reflect any cash requirements for such replacements.