JNVR Janover Inc

Janover Inc. (Nasdaq: JNVR) (“Janover” or the “Company”), an AI-enabled platform for commercial real estate transactions, provided a business update, and announced its financial results for the second quarter ended June 30, 2024.

Q2 2024 Financial Highlights

• 7% sequential increase in revenue for Q2 2024 compared to Q1 2024;
• 20% of revenue from recurring and subscription revenue in Q2 2024;
• Groundbreaker Platform achieved profitability in Q2 2024, with over 200% quarterly increase in operating margin;
• Janover Insurance Group achieved profitability in its second month of operation, increasing total recurring revenue by more than 60% in May;
• $3.2 million in cash and cash equivalents as of June 30, 2024; and
• No debt on the balance sheet as of June 30, 2024.

Blake Janover, CEO of Janover, stated, “While achieving single digit sequential growth in the second quarter of 2024, we drove an impressive 20% of our total revenue from recurring, high-margin software-as-a-service (SaaS) subscriptions and Insurtech commissions. With the acquisition of Groundbreaker, the recent launch of our insurance business, and our other AI and software products for real estate professionals; we will continue to migrate from transactional to compounding recurring revenue. Our AI technology has continued to drive impressive value within our organization, and we think it has exciting applications as a subscription service as well. Ultimately, we are a platform providing capital, technology and insurance services to multifamily and commercial property owners and professionals and occupy a very unique space in the market. I can confidently say that I have never been more excited about our future and the value we can drive for our customers and shareholders.”

Financial Results

Revenue for the quarter ended June 30, 2024, was approximately $441,000 compared to approximately $602,000 for the quarter ended June 30, 2023. This decrease was primarily due to a reduction in closed loans compared to the same period in 2023. Revenue for the three months ended June 30, 2024, increased sequentially by approximately 7% compared to the three months ended March 31, 2024. Additionally, 20% of our total revenue consisted of recurring revenue. Sales and marketing expenses for the quarter ended June 30, 2024, were approximately $414,000, compared to approximately $315,000 for the quarter ended June 30, 2023. The majority of the increase can be attributed to an increase in compensation and benefits expense during the three months ended June 30, 2024, due to an increase in employees, compared to the same period in 2023. Net loss was approximately $805,000, or $0.07 basic and diluted loss per share, for the quarter ended June 30, 2024, compared to net loss of approximately $398,000, or $0.06 basic and diluted loss per share, for the quarter ended June 30, 2023.   Adjusted EBITDA loss was approximately $697,000, or $0.06 basic and diluted loss per share, for the quarter ended June 30, 2024, compared to adjusted EBITDA loss of approximately $143,000, or $0.03 basic and diluted loss per share, for the quarter ended June 30, 2023. Adjusted EBITDA and adjusted EBITDA per share are non-GAAP financial measures (defined below).

About Janover Inc.

Janover is an AI-enabled platform for commercial real estate transactions. The Company seeks to revolutionize the commercial real estate lending market by making it hyper-efficient, transparent, and accessible to all rather than the few. Through the Company’s online platform, it provides technology that connects commercial mortgage borrowers looking for capital to refinance, build, or purchase commercial property, including, but not limited to, apartment buildings, to commercial property lenders. Borrowers include, but are not limited to, owners, operators, and developers of commercial real estate including multifamily properties and most recently, a growing segment of small business owners, which Janover believes represents a significant growth opportunity. Lenders include small banks, credit unions, REITs, Fannie Mae® and Freddie Mac® multifamily lenders, FHA® multifamily lenders, debt funds, CMBS lenders, SBA lenders, and more. Additional information about the Company is available at: https://janover.co/.

To view the latest investor presentation, please visit https://ir.janover.co/.

Forward-Looking Statements

This release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “believe,” “project,” “estimate,” “expect,” strategy,” “future,” “likely,” “may,”, “should,” “will” and similar references to future periods. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) the effect of and uncertainties related the ongoing volatility in interest rates; (ii) our ability to achieve and maintain profitability in the future; (iii) the impact on our business of the regulatory environment and complexities with compliance related to such environment; (iv) our ability to respond to general economic conditions; (v) our ability to manage our growth effectively and our expectations regarding the development and expansion of our business; (vi) our ability to access sources of capital, including debt financing and other sources of capital to finance operations and growth and other risks and uncertainties more fully in the section captioned "Risk Factors" in the Company’s Offering Statement on Form 1-A related to the public offering (SEC File No. 024-12458) and other reports we file with the SEC. As a result of these matters, changes in facts, assumptions not being realized or other circumstances, the Company's actual results may differ materially from the expected results discussed in the forward-looking statements contained in this press release. Forward-looking statements contained in this announcement are made as of this date, and the Company undertakes no duty to update such information except as required under applicable law.

Contact:Crescendo Communications, LLCTel: 212-671-1020Email: jnvr@crescendo-ir.com

(Tables follow)
JANOVER INC.CONDENSED CONSOLIDATED BALANCE SHEETS(UNAUDITED)
		June 30,				December 31,
		2024				2023
ASSETS
Current assets:
Cash and cash equivalents		$	3,236,660			$	5,075,609
Accounts receivable			111,179				86,138
Prepaid expenses			71,610				130,430
Total current assets			3,419,449				5,292,177
Property and equipment, net			38,173				28,137
Intangible assets, net			556,433				675,957
Goodwill			606,666				606,666
Other assets			95,630				18,107
Right of use asset			38,269				62,781
Total assets		$	4,754,620			$	6,683,825
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses		$	187,039			$	539,136
Deferred revenue			86,617				83,228
Right of use liability, current portion			41,181				52,731
Total current liabilities			314,837				675,095
Contingent consideration			178,819				178,819
Right of use of liability			-				13,933
Total liabilities			493,656				867,847
Stockholders' equity:
Series A Preferred stock, $0.00001 par value, 100,000 shares authorized, 10,000 shares issued and outstanding as of both June 30, 2024 and December 31, 2023			-				-
Series B Preferred stock, $0.00001 par value, 1,000 shares authorized, 0 shares issued and outstanding as of both June 30, 2024 and December 31, 2023			-				-
Common stock, $0.00001 par value, 100,000,000 shares authorized, 11,064,576 and 11,046,981 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively			110				110
Additional paid-in capital			12,673,785				12,459,343
Accumulated deficit			(8,412,931	)			(6,643,475	)
Total stockholders' equity			4,260,964				5,815,978
Total liabilities and stockholders' equity		$	4,754,620			$	6,683,825

JANOVER INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(UNAUDITED)
		Three Months Ended June 30,								Six Months Ended June 30,
		2024				2023				2024				2023
Revenues		$	440,973			$	601,940			$	852,110			$	1,069,180
Cost of revenues			8,034				-				16,667				-
Gross profit			432,939				601,940				835,443				1,069,180
Operating expenses:
Sales and marketing			413,629				315,445				829,255				609,190
Research and development			154,006				90,419				327,390				195,619
General and administrative			667,375				442,490				1,426,136				784,805
Depreciation and amortization			49,680				-				122,665				-
Total operating expenses			1,284,690				848,354				2,705,446				1,589,614
Loss from operations			(851,751	)			(246,414	)			(1,870,003	)			(520,434	)
Other income (expense):
Change in fair value of future equity obligations			-				(165,536	)			-				(119,826	)
Interest income			43,853				12,833				94,932				19,528
Other income			2,493				1,266				5,615				2,695
Total other income (expense)			46,346				(151,437	)			100,547				(97,603	)
Net loss		$	(805,405	)		$	(397,851	)		$	(1,769,456	)		$	(618,037	)
Weighted average common shares outstanding - basic and diluted			11,064,576				7,064,008				11,063,215				7,064,008
Net loss per common share - basic and diluted		$	(0.07	)		$	(0.06	)		$	(0.16	)		$	(0.09	)

JANOVER INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(UNAUDITED)
		Six Months Ended
		June 30,
		2024				2023
Cash flows from operating activities:
Net loss		$	(1,769,456	)		$	(618,037	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			122,665				-
Stock-based compensation			213,210				203,032
Change in fair value of future equity obligations			-				119,826
Changes in operating assets and liabilities:
Accounts receivable			(25,041	)			(60,956	)
Prepaid expenses			58,820				-
Other assets			(77,523	)			-
Accounts payable and accrued expenses			(352,097	)			33,215
Deferred revenue			3,389				973
Right of use of liability, net			(972	)			-
Net cash used in operating activities			(1,827,005	)			(321,947	)
Cash flows from investing activities:
Purchase of property and equipment			(13,176	)			-
Net cash used in investing activities			(13,176	)			-
Cash flows from financing activities:
Exercise of stock options			1,232				-
Issuance of preferred stock			-				1,000,000
Deferred offering costs			-				(77,633	)
Net cash provided by financing activities			1,232				922,367
Net change in cash and cash equivalents			(1,838,949	)			600,420
Cash and cash equivalents at beginning of period			5,075,609				981,125
Cash and cash equivalents at end of period		$	3,236,660			$	1,581,545

RECONCILIATION OF NON-GAAP MEASURESJANOVER INC.(UNAUDITED)
		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2024				2023				2024				2023
Consolidated Reconciliation of GAAP Net Loss to Adjusted EBITDA:
Net loss		$	(805,405	)		$	(397,851	)		$	(1,769,456	)		$	(618,037	)
Add (subtract):
Stock-based compensation			105,055				103,876				213,210				203,032
Depreciation and amortization			49,680				-				122,665				-
Other income (expense)			46,346				(151,437	)			100,547				(97,603	)
Adjusted EBITDA		$	(697,016	)		$	(142,538	)		$	(1,534,128	)		$	(317,402	)

		Three Months EndedJune 30,								Six Months EndedJune 30,
		2024				2023				2024				2023
Consolidated Reconciliation of GAAP Net Loss per share to Adjusted EBITDA per share:
Net loss per share - basic and diluted		$	(0.07	)		$	(0.06	)		$	(0.16	)		$	(0.09	)
Add (subtract):
Stock-based compensation			0.01				0.01				0.02				0.03
Depreciation and amortization			-				-				0.01				-
Other income (expense)			-				(0.02	)			0.01				(0.01	)
Adjusted EBITDA per share		$	(0.06	)		$	(0.03	)		$	(0.13	)		$	(0.05	)

Non-GAAP Financial Measures

To provide investors and the market with additional information regarding our financial results, we have disclosed adjusted EBITDA and adjusted EBITDA per share, non-GAAP financial measures that we calculate as net loss excluding; stock-based compensation expense; depreciation and amortization; and other income. We have provided reconciliations of adjusted EBITDA to net loss and adjusted EBITDA per share to earnings per share, the most directly comparable GAAP financial measures.

We have included adjusted EBITDA and adjusted EBITDA per share, herein, because they are key measures used by our management and Board of Directors to evaluate our operating performance, generate future operating plans, and make strategic decisions regarding the allocation of capital. In particular, the exclusion of certain expenses in calculating adjusted EBITDA facilitates operating performance comparability across reporting periods by removing the effect of non-cash expenses. Accordingly, we believe that adjusted EBITDA and adjusted EBITDA per share provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and Board of Directors.