Executive Summary

SRAX did not issue a standard Q4 2022 earnings press release or hold a Q4 earnings call; available primary sources from late Q4 and early Q1 2023 focus on filings status, listing, and business updates rather than reported Q4 financials .
Management emphasized Sequire’s momentum and a pivot to increase cash-based contracts, targeting 50–60% cash revenue mix by year-end 2023, alongside cost reductions of roughly $250K per month in personnel expenses executed during 2H 2022 .
Liquidity and going concern remained central: operations depended heavily on monetizing marketable securities; Nasdaq granted continued listing subject to becoming current by Feb 28, 2023, a key near-term stock catalyst .
Context from the most recent filed quarter (Q1 2022): GAAP revenue $7.499M, non-GAAP revenue $10.628M, diluted EPS $0.13, adjusted EBITDA $(0.767)M; bookings for full-year 2022 were ~~$33M; portfolio “reset” rights grew materially (~~$14M) .

What Went Well and What Went Wrong

What Went Well

Portfolio “reset” provisions materially increased value and liquidity prospects in late 2022/early 2023; management quantified resets at ~$14M, with 144-day holding periods “tacking” back to original issuance, improving near-term saleability .
Sequire ecosystem expansion: launch of Sequire Community to formalize investor Q&A and verification; banks and issuers increasingly using SRAX’s virtual events platform; LD Micro events demonstrated strong attendance and cash flow attributes .
Cost actions: management cut non-revenue roles and highlighted savings of about $250K/month, with additional $200–300K/month following initial cuts, aiming to move EBITDA back positive as mix shifts to cash .

What Went Wrong

Reporting delays and listing risk dominated Q4 narrative; SRAX received multiple delinquency/delisting notices during 2H 2022 before securing an extension to regain compliance, creating uncertainty for investors .
Liquidity constraints and reliance on monetizing restricted securities drove operational complexity; management reiterated difficulty of timing Rule 144 releases and market impact of selling microcap positions .
Going concern and debt overhang persisted; convertible debentures extended to Dec 31, 2023 and a revolving credit facility tied repayments to securities sales, further linking liquidity to portfolio monetization .

Financial Results

Note: SRAX did not disclose Q4 2022 financials in primary filings or press releases. The latest filed quarter is Q1 2022 (filed Jan 3, 2023); Q3 2022 and Q4 2022 were not reported in these sources .

Metric	Q4 2021	Q3 2022	Q4 2022
Revenue ($USD Millions)	Not disclosed in filings/press materials	Not reported	Not reported
Diluted EPS ($)	Not disclosed	Not reported	Not reported
Adjusted EBITDA ($USD Millions)	$0.861 (positive)	Not reported	Not reported
Net Income ($USD Millions)	Not disclosed	Not reported	Not reported

Segment breakdown (Q4 2022): Not disclosed. Latest segment detail available is Q1 2022, showing Sequire platform revenue of $7.499M (with conference revenue $0 in the quarter) .
KPIs (context from latest available materials):

Deferred revenue: $16.722M as of Mar 31, 2022; amortizes over subsequent quarters .
Marketable securities: $28.824M as of Mar 31, 2022 .
2022 bookings: ~$33M .
Portfolio reset rights: ~$14M as of Jan 17, 2023 .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance/Commentary	Change
Revenue mix (% cash of total)	FY 2023 target	Predominantly stock in Q1 2022 (~85–86% stock)	Targeting 50–60% cash by YE 2023; shifting toward cash contracts	Raised cash mix target
Operating expenses (personnel)	2H 2022 into 2023	Elevated during growth phase	Cost reductions of ~$250K/month, with a further $200–300K/month savings thereafter	Lowered OpEx run-rate
Filings/Listing status	By Feb 28, 2023	Multiple delinquency notices in 2022	Nasdaq Panel granted continued listing subject to filing compliance by Feb 28, 2023	Conditional extension
Convertible debentures	Maturity	Prior maturity earlier; extensions applied	Extended to Dec 31, 2023; holders may extend further for additional principal	Extended maturity
Revolving credit facility	24-month term	N/A	Repayment tied to % of securities sale proceeds (10–20% over time); lender also receives 10% of net proceeds of customer securities sold during term	New facility, impacts cash flow

Earnings Call Themes & Trends

Topic	Previous Mentions (Oct 24, 2022 Special Call)	Previous Mentions (Dec 31, 2022 Shareholder/Analyst Meeting)	Current Period (Jan 17, 2023 Special Update)	Trend
Filings and auditors	Transition to Marcum; valuation process (B. Riley) to reduce volatility	Marcum ratified; plan to file Q1 before market open first week of Jan; Q2/Q3 targeted by end Feb	Q1 2022 filed; Q2/Q3 targeted; may extend K filing to April 15	Progressing, still catching up
Portfolio resets and valuation	Resets ~$10.4M; fair value vs P×Q cautions; B. Riley valuation	Public valuation site (portfolio) launched; caution on GAAP vs P×Q	Resets ~$14M; 144 tacking improves saleability; liquidity starting to return	Resets increasing; improving liquidity
Revenue mix shift to cash	Emphasis on moving toward cash; elasticity and pricing adjustments for stock deals	Reinforced strategy; LD Micro strong cash attributes	Target 50–60% cash by YE 2023; mix started to shift in Q4	Shift underway
Cost actions	Initial cuts in non-revenue roles	N/A	~$250K/month savings plus $200–300K/month additional	Ongoing reductions
Liquidity and monetization	Mechanics of selling restricted/unrestricted shares; 10% daily volume rule	N/A	Improved movement of shares to brokerage; larger batches becoming unrestricted in Q1	Operational improvements

Management Commentary

“This $14 million worth of marketable securities is either… already in a position where we can start selling them or… further along in the process…the 144 tacking period…is…when we received those shares.”
“We made a concerted effort…to push more towards cash-based transactions…our goal is to get to at least 50% to 60% cash.”
“We cut a significant amount of expenses…we probably got ahead of ourselves…now we’re bringing that back down…getting a hold of those expenses.”
“Deferred revenue…represents the initial value of the consideration…fair value on the contract date…discounts…lack of marketability…will amortize off…over the next 4 quarters.”
“We sold an aggregate of Designated Assets…proceeds…payments before the event…LD Micro has a much better cash flow profile than our other businesses.”

Q&A Highlights

Estimate of breakeven EBITDA with reduced expenses around $6–6.5M quarterly revenue (framework, not formal guidance) .
Liquidity approach: accelerate brokerage conversions; sell up to ~10% daily volume; larger batches of unrestricted shares expected in Q1 2023 .
Portfolio concentration/liquidity: resets and reclassification shift distribution over Q2/Q3; over 100 positions across common, convertibles, warrants .
Bookings: FY 2022 ~$33M; shift to cash reduced average contract size but improved renewability .

Estimates Context

Wall Street consensus (S&P Global) for Q4 2022 revenue and EPS was unavailable within SPGI/CIQ mapping for SRAX during this review window; no reliable estimate series could be retrieved. Values retrieved from S&P Global were unavailable due to missing mapping.
Implication: No beat/miss analysis can be performed for Q4 2022. Future estimate tracking should be revisited once CIQ mapping is established and filings are current .

Key Takeaways for Investors

Near-term stock catalyst hinges on filing compliance by Feb 28, 2023 and evidence of cash contract mix rising; monitor subsequent 10-Q/K releases and any Nasdaq updates .
Liquidity outlook improving via ~$14M reset rights and operational enhancements in moving shares; still contingent on microcap market stability and Rule 144 timing .
Strategic pivot to cash and sustained cost actions should support margin recovery as Sequire recurring revenues scale; LD Micro’s pre-paid cash model provides helpful cash flow ballast .
Debt profile manageable near term after extensions, but repayments tied to securities sale proceeds keep cash generation linked to portfolio monetization—track portfolio updates and sale cadence .
Given absent Q4 2022 reported results, focus analysis on operational KPIs (bookings, deferred revenue movements, contract mix) and the company’s progress to normalized reporting cadence .

Appendix: Context from the Latest Filed Quarter (Q1 2022)

Metric	Q1 2021	Q1 2022
Revenue ($USD Millions)	$4.917	$7.499
Non-GAAP Revenue excl. fair value discounts ($USD Millions)	$4.917	$10.628
Net Income ($USD Millions)	$(11.090)	$3.728
Diluted EPS ($)	$(0.57)	$0.13
Adjusted EBITDA ($USD Millions)	$0.920	$(0.767)

Notes: Sequire platform revenue was $7.499M in Q1 2022; deferred revenue stood at $16.722M; marketable securities were $28.824M; unrealized gain on marketable securities was $6.366M .

SRAX, Inc. (SRAX)·Q4 2022 Earnings Summary