izea-20210331

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 ended March 31, 2021


☐			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.)


501 N. Orlando Avenue, Suite 313, PMB 247 Winter Park, FL						32789
(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

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 ☒ No ☐

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 and post such files). Yes ☒ No ☐

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

☐

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. ☐

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

As of May 10, 2021, there were 61,726,599 shares of our common stock outstanding.

Table of Contents

Quarterly Report on Form 10-Q for the period ended March 31, 2021

Table of Contents


			Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Unaudited Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020			1
Unaudited Consolidated Statements of Operations and Comprehensive Loss for the three months ended March 31, 2021 and 2020			2
Unaudited Consolidated Statements of Stockholders’ Equity for the three months ended March 31, 2021 and 2020			3
Unaudited Consolidated Statements of Cash Flows for the three months ended March 31, 2021 and 2020			4
Notes to the Unaudited Consolidated Financial Statements			5
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			24
Item 3. Quantitative and Qualitative Disclosures About Market Risk			33
Item 4. Controls and Procedures			34

PART II. OTHER INFORMATION
Item 1. Legal Proceedings			35
Item 1A. Risk Factors			35
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			35
Item 3. Defaults Upon Senior Securities			36
Item 4. Mine Safety Disclosures			36
Item 5. Other Information			36
Item 6. Exhibits			37

Signatures			38

Table of Contents

PART I

ITEM 1 – FINANCIAL STATEMENTS

IZEA Worldwide, Inc.

Unaudited Consolidated Balance Sheets


	March 31, 2021		December 31, 2020
Assets
Current assets:
Cash and cash equivalents	$	65,465,588	$	33,045,225
Accounts receivable, net	4,071,940		5,207,205
Prepaid expenses	380,407		199,294
Other current assets	48,340		74,467
Total current assets	69,966,275		38,526,191

Property and equipment, net	219,563		230,918
Goodwill	4,016,722		4,016,722
Intangible assets, net	288,889		505,556
Software development costs, net	1,356,308		1,472,684
Total assets	$	75,847,757	$	44,752,071

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	1,675,520	$	1,880,144
Accrued expenses	1,680,722		1,924,973
Contract liabilities	7,222,120		7,180,264
Current portion of notes payable	1,797,976		1,477,139
Total current liabilities	12,376,338		12,462,520

Finance obligation, less current portion	34,292		43,808
Notes payable, less current portion	138,900		459,383
Total liabilities	12,549,530		12,965,711

Commitments and Contingencies (Note 7)	—		—

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; 59,123,449 and 50,050,167, respectively, issued and outstanding	5,912		5,005
Additional paid-in capital	135,919,529		102,416,131
Accumulated deficit	(72,627,214)		(70,634,776)
Total stockholders’ equity	63,298,227		31,786,360
Total liabilities and stockholders’ equity	$	75,847,757	$	44,752,071

See accompanying notes to the consolidated financial statements.

Table of Contents

IZEA Worldwide, Inc.

Unaudited Consolidated Statements of Operations and Comprehensive Loss


	Three Months Ended March 31,
		2021		2020
Revenue		$	5,375,632	$	4,763,668

Costs and expenses:
Cost of revenue (exclusive of amortization)		2,404,752		2,140,517
Sales and marketing		2,078,323		1,523,143
General and administrative		2,535,147		2,417,838
Impairment of goodwill		—		4,300,000
Depreciation and amortization		365,529		501,269
Total costs and expenses		7,383,751		10,882,767

Loss from operations		(2,008,119)		(6,119,099)

Other income (expense):
Interest expense		(13,793)		(6,618)
Other income (expense), net		29,474		(37,744)
Total other income (expense), net		15,681		(44,362)

Net loss		$	(1,992,438)	$	(6,163,461)

Weighted average common shares outstanding – basic and diluted		56,334,219		34,681,198
Basic and diluted loss per common share		$	(0.04)	$	(0.18)

See accompanying notes to the unaudited consolidated financial statements.

Table of Contents

IZEA Worldwide, Inc.

Unaudited Consolidated Statements of Stockholders’ Equity

Three Months Ended March 31, 2020 and 2021


	Common Stock			Additional Paid-In		Accumulated		Total Stockholders’
	Shares	Amount		Capital		Deficit		Equity
Balance, December 31, 2019	34,634,172	$	3,464	$	74,099,328	$	(60,384,769)	$	13,718,023
Sale of securities	—	—		—		—		—
Stock purchase plan issuances	—	—		—		—		—
Stock issued for payment of services	97,655	10		31,240		—		31,250
Stock issuance costs	—	—		(2,326)		—		(2,326)
Stock-based compensation	41,224	3

SEC Form 10-Q filed by IZEA Worldwide, Inc.