Ad-supported music startup SpiralFrog isn’t a public company, but it files financial data with the SEC per an agreement with investors. Its latest 10-QSB filing shows the company lost $3.4 million in Q3 on a revenue trickle of $20,400. The balance sheet reveals that the company has just $2.3 million in cash right now, and a total stockholder’s deficit of $6.2 million. Among its liabilities are $10.8 million in senior notes and $2.4 million in accrued minimum royalty payments. Obviously the company is in need of more cash, and the filing does say it plans to raise up to $25 million at some point in the next 12 months.
As for how the company plans to get some momentum: “Execute marketing campaign in the United States aimed at 13-34 year olds, through one or more of the following approaches: hire gorilla (sic) marketing firms for unconventional promotions; consumer targeted press releases; advertising on some of the youth community sites; or hiring ‘bloggers’ to attract attention to us on the internet.” You be the judge of this.