Los Angeles, California--(Newsfile Corp. - January 3, 2023) - SRAX, Inc. (NASDAQ: SRAX), a financial technology company that unlocks data and insights for publicly traded companies through Sequire, its SaaS platform, is providing Q1 2022 financial results.

SRAX reports year-over-year revenue growth of 53% and $0.13 fully diluted EPS for the quarter ended March 31, 2022.

SRAX Graph 1

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First Quarter 2022 Financial and Operational Highlights

• Revenue - GAAP revenue of $7.5M vs $4.9M or a 53% increase year-over-year.
• Non-GAAP revenue - excluding marketability and liquidity discounts of $10.6 M vs $4.9M or a 116% increase year-over-year.
• Net Income - $3.7M vs a loss of ($4.3M) year-over-year
• Earnings per shares (EPS) - $0.14 and $0.13 per basic and diluted share respectively vs (.57) year-over-year.
• Cash and marketable securities - $29.2m, an increase of $12.2m vs. prior quarter end.
• Sequire contract bookings - $15.2 million gross contract value.

Recent Business Highlights

• Launched the Sequirecommunity.com site that allows issuers to engage and communicate with their shareholders.
• Successfully launched over 20 virtual conferences in 2022
• Definitive dates planned to bring fillings current prior to the NASDAQ extension deadline.

About SRAX

SRAX (NASDAQ: SRAX) is a financial technology company that unlocks data and insights for publicly traded companies. Through its premier investor intelligence and communications platform, Sequire, companies can track their investors' behaviors and trends and use those insights to engage current and potential investors across marketing channels. For more information on SRAX, visit srax.com and mysequire.com.

Cautionary Statement Regarding Forward-Looking Information:

This news release contains "forward-looking statements'' made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to future, not past, events and may often be identified by words such as "expect," "anticipate," "intend," "plan," "believe," "seek" or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Specific risks and uncertainties that could cause our actual results to differ materially from those expressed in our forward-looking statements include risks inherent in our business, and our need for future capital. Actual results may differ materially from the results anticipated in these forward-looking statements. Additional information on potential factors that could affect our results and other risks and uncertainties are detailed from time to time in SRAX's periodic reports filed with the Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year ended December 31, 2021, its Quarterly Reports on Form 10-Q as well as and in other reports filed with the SEC. We do not assume any obligation to update any forward-looking statements.

Non-GAAP Financial Measures

To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States (GAAP), we use the following non-GAAP financial measures: revenue excluding contract valuation adjustments, and adjusted earnings before interest income taxes depreciation and amortization.. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In addition, these measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures.

We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating our business.

We exclude the following items from our non-GAAP financial measures:

Fair valuation effect on revenue. We adjusted revenue for the three months ended March 31, 2022 by excluding marketability and liquidity discounts, which we believe is a useful metric that facilitates comparison to our historical performance.

Interest and financing costs, realized and unrealized gains and loss on marketable securities and designated assets, non-cash equity based compensation, income tax expense and benefit. We remove the benefit or expenses from gains or losses associated with our marketable securities in our calculation of adjusted EBITDA because we believe that these items are historically volatile and a result of the core operations of our Sequire business. We also remove non cash charges such as depreciation and amortization and income taxes. We believe that this methodology can provide useful supplemental information to help investors better understand underlying trends in our business. Free cash flow is not intended to represent our residual cash flow available for discretionary expenditures.

For more information on our non-GAAP financial measures and a reconciliation of GAAP to non-GAAP measures, please see the "Reconciliation of GAAP to Non-GAAP Results" table in this press release.

Contact
Investor relations
Investors@srax.com

SRAX Inc.
Condensed Consolidated Balance Sheets

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SRAX Inc.
Condensed Consolidated Statement of Operations (Unaudited)

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SRAX Inc.
Condensed Consolidated Statement of Cash Flows (Unaudited)

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SRAX Inc.
Condensed Consolidated Statement of Changes in Shareholders' Equity (Unaudited)

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SRAX Inc.
Reconciliation of GAAP to non-GAAP information (Unaudited)

ADJUSTED EBITDA

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NET REVENUES, EXCLUDING FAIR VALUE DISCOUNTS

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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/150174