Tapinator : June 30 2022 and 2021 Interim Financial Statements - Amended

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

Quarterly Financial Statements (Unaudited):

Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021

F-2

Consolidated Statements of Operations For The Three and Six Months Ended June 30, 2022 and 2021

F-3

Consolidated Statement of Stockholders' Equity For The Three and Six Months Ended June 30, 2022 and 2021

F-4

Consolidated Statements of Cash Flows For The Six Months Ended June 30, 2022 and 2021

F-5

Notes to Consolidated Financial Statements

F-6

(UNAUDITED)

June 30,

December 31,

Assets

2022

2021

Current assets:

Cash

$

625,063

$

1,175,181

Accounts receivable

325,513

477,121

Prepaid expenses

400,204

447,942

Total current assets

1,350,780

2,100,244

Property and equipment, net

50,020

57,279

Right-to-use asset

377,358

415,408

Software development costs, net

504,430

425,530

Investments in digital assets, net

1,269,653

778,818

Investments in digital currency

45,429

26,563

Security deposits

29,244

51,943

Total assets

$

3,626,914

$

3,855,785

Liabilities and stockholders' equity

Current liabilities:

Accounts payable and accrued expenses

$

296,071

$

1,125,881

Due to director

10,000

10,000

Due to related parties

30,104

47,906

Deferred revenue

1,202,132

1,287,335

Share settlement liability

40,000

90,000

Lease liability - short term

77,887

68,350

Total current liabilities

1,656,194

2,629,472

Long term liabilities:

Lease liability - long term

322,063

361,845

Total long-term liabilities

322,063

361,845

Total liabilities

1,978,257

2,991,317

Stockholders' Equity:

Preferred stock, $0.001 par value, 1,532,500 shares authorized

with any series of designation; no shares issued at June 30, 2022

and December 31, 2021

-

-

Common stock, $0.001 par value; 25,000,000 shares authorized;

2,824,814 and 2,824,810 shares issued and outstanding at June 30,

2022 and December 31, 2021, respectively

2,825

2,825

Additional paid-in capital

14,233,381

14,182,416

Treasury stock at cost, 21,875 shares at June 30, 2022 and

December 31, 2021

(91,875)

(91,875)

Accumulated deficit

(12,495,674)

(13,228,898)

Total stockholders' equity

1,648,657

864,468

Total liabilities and stockholders' equity

$

3,626,914

$

3,855,785

Three Months Ended June 30,

Six Months Ended June 30,

2022

2021

2022

2021

Revenue

$

1,395,549

$

1,420,437

$

3,077,031

$

2,636,342

Operating expenses:

Cost of revenue excluding depreciation and

amortization

421,406

451,167

885,653

838,117

Research and development

47,238

84,662

123,262

173,811

Marketing and public relations

238,418

143,072

397,157

325,338

General and administrative

432,619

387,364

962,365

765,357

Amortization of software development costs

79,525

89,771

155,175

167,854

Depreciation and amortization of other

assets

3,630

1,013

7,260

1,765

Total expenses

1,222,836

1,157,049

2,530,872

2,272,242

Operating income

172,713

263,388

546,159

364,100

Other income (expense)

Gain on sale of digital assets, net

195,734

1,441

488,816

1,441

Loss on impairment of digital assets

(452,846)

-

(452,846)

-

Gain on extinguishment of debt

-

-

-

109,231

Share settlement expense

-

(93,555)

-

(93,555)

Gain on digital asset dividends & airdrops

7,794

-

145,682

-

Gain on sale of investments

-

-

5,091

-

Interest expense, net

-

(629)

322

(2,251)

Total other income (expense)

(249,318)

(92,743)

187,065

14,866

Income (loss) before income taxes

(76,605)

170,645

733,224

378,966

Income tax benefit

-

45,348

-

74,480

Net income (loss)

$

(76,605)

$

215,993

$

733,224

$

453,446

Net income (loss) per share:

Net income (loss) per common share - basic

$

(0.03)

$

0.08

$

0.26

$

0.16

Net income (loss) per common share -

diluted

$

(0.03)

$

0.07

$

0.26

$

0.16

Weighted average common shares

outstanding - basic

2,824,814

2,815,680

2,824,814

2,781,575

Weighted average common shares

outstanding - diluted

2,824,814

2,898,420

2,859,765

2,847,980

Series A

Additional

Common Stock

Preferred Stock

Paid-In-

Accumulated

Treasury

Balances at December 31, 2020

Shares

Amount

Shares

Amount

Capital

Deficit

Stock

Total

2,755,025

$

2,755

-

$

-

$

14,019,226

$

(13,894,478

)

$

(91,875)

$

35,628

Stock based compensation

-

-

-

-

20,285

-

-

20,285

Exercise of warrants

39,985

40

-

-

(8)

-

-

32

Net income/(loss)

-

-

-

-

-

237,453

-

237,453

Balances at March 31, 2021

(unaudited)

2,795,010

$

2,795

-

$

-

$

14,039,503

$ (13,657,025)

$

(91,875)

$

293,398

Stock based compensation

-

-

-

-

20,285

-

-

20,285

Share settlement

5,500

6

-

-

93,549

-

-

93,555

Repurchase of shares

(938)

(1)

-

-

(13,749)

-

-

(13,750)

Net income/(loss)

-

-

-

-

-

215,993

215,993

Balances at June 30, 2021

(unaudited)

2,799,572

$

2,800

-

$

-

$

14,139,588

$

(13,441,032)

$

(91,875)

$609,481

Series A

Additional

Common Stock

Preferred Stock

Paid-In-

Accumulated

Treasury

Balances at December 31, 2021

Shares

Amount

Shares

Amount

Capital

Deficit

Stock

Total

2,824,810

$

2,825

-

$

-

$

14,182,416

$ (13,228,898)

$

(91,875)

$

864,468

Stock based compensation

-

-

-

-

27,765

-

-

27,765

Stock dividend rounding

4

-

-

-

-

-

-

-

Net income/(loss)

-

-

-

-

-

809,829

-

809,829

Balances at March 31, 2022

(unaudited)

2,824,814

$

2,825

-

$

-

$

14,210,181

$(12,419,069)

$

(91,875)

$

1,702,062

Stock based compensation

-

-

-

-

23,200

-

-

23,200

Net income/(loss)

-

-

-

-

-

(76,605)

-

(76,605)

Balances at June 30, 2022

(unaudited)

2,824,814

$

2,825

-

$

-

$

14,233,381

$ (12,495,674)

$ (91,875)

$1,648,657