icct_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission file number: 001-41309

iCoreConnect Inc.

(Exact Name of Registrant as Specified in Its Charter)

Delaware

86-2462502

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

529 E. Crown Point Road, Suite 250, Ocoee, FL 34761

(Address of principal executive offices) (Zip Code)

(888) 810-7706

(Registrant’s Telephone Number, Including Area Code)

__________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbols(s)	Name of each exchange on which registered
Common stock, par value $0.0001 per share	ICCT	The NASDAQ Stock Market LLC

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 (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit 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 November 18, 2024 there were 24,323,510 shares of the registrant’s common stock outstanding.

iCoreConnect Inc.

FORM 10-Q QUARTERLY REPORT

FOR THE QUARTER ENDED SEPTEMBER 30, 2024

Table of Contents

Part I Financial Information

Item 1	Financial Statements (Unaudited)

	Condensed Consolidated Balance Sheets as of September 30, 2024 (Unaudited) and December 31, 2023	3

	Condensed Consolidated Statements of Operations for the Three Months and Nine Months ended September 30, 2024 and 2023 (Unaudited)	4

	Condensed Consolidated Statements of Changes in Stockholders’ Equity (Deficit) for the Three Months and Nine Months ended September 30, 2024 (Unaudited)	5

	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023 (Unaudited)	6

	Notes to Condensed Consolidated Financial Statements	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	37

Item 3.	Quantitative and Qualitative Disclosures About Market Risks	46

Item 4.	Controls and Procedures	46

Part II Other Information

Item 1.	Legal Proceedings	47

Item 1A.	Risk Factors	47

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	48

Item 3.	Defaults Upon Senior Securities	48

Item 4.	Mine Safety Disclosures	48

Item 5.	Other Information	48

Item 6.	Exhibits	49

Signatures		50

Table of Contents

iCoreConnect Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

	As of
	September 30,		December 31,
	2024		2023
ASSETS	(unaudited)
Cash	$	212,346	$	1,219,358
Accounts receivable, net		798,329		563,905
Prepaid expenses and other current assets		441,200		1,725,062
Total current assets		1,451,875		3,508,325

Property and equipment, net		179,140		202,421
Right of use lease asset - operating		934,160		1,122,412
Software development costs, net		1,536,484		903,412
Acquired technology, net		6,079,918		-
Customer relationships, net		2,178,837		2,980,412
Forward purchase agreement		375,279		5,484,556
Goodwill		1,484,966		1,484,966
Total long-term assets		12,768,784		12,178,179

TOTAL ASSETS	$	14,220,659	$	15,686,504

LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued expenses	$	5,094,793	$	3,243,338
Operating lease liability, current portion		345,496		241,945
Notes payable, current portion		6,953,285		4,720,454
Related party notes payable, current portion		561,337		550,975
Deferred revenue		167,816		119,598
Total current liabilities		13,122,727		8,876,310

Long-term debt, net of current maturities		3,138,093		1,420,137
Long-term related party debt, net of current maturities		323,735
Operating lease liability, net of current portion		656,739		945,889
Total long-term liabilities		4,118,567		2,366,026

TOTAL LIABILITIES		17,241,294		11,242,336

STOCKHOLDERS’ EQUITY

Preferred Stock par value $0.0001; 40,000,000 shares authorized; Issued and Outstanding: 4,480,845 as of September 30, 2024 and 3,755,209 as of December 31, 2023		448		376
Common Stock par value $0.0001; 250,000,000 shares authorized; Issued and Outstanding: 11,836,277 as of September 30, 2024 and 10,068,477 as of December 31, 2023		1,184		1,007
Additional paid-in-capital		135,191,201		119,481,543
Accumulated deficit

SEC Form 10-Q filed by iCoreConnect Inc.