LEAFBUYER TECHNOLOGIES, INC.

LEAFBUYER TECHNOLOGIES, INC. - 2025 Annual Investment Review

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Business Performance

• Sales Up, Costs Up More: Revenue grew 15.5% to $6.47M (2025) from $5.6M (2024) – a strong sign of demand.
• Customers Locking In: Deferred revenue (money collected upfront for future services) skyrocketed 14x to $15,616 (2025) vs $1,111 (2024), showing clients are committing to longer-term deals.
• Cash Flow Win: Operations generated $855k in cash (2025) vs burning $131k (2024) – a critical turnaround.
• Losses Widen: Gross profit rose 38% to $2.82M, but operating costs jumped 25%. Net loss grew to -$1.1M (2025) from -$0.7M (2024). Losing $0.03 per share vs $0.02 last year.

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Financial Health

• Debt Drags On:
  • $504k owed on a low-interest COVID loan (3.75%), with tiny payments until 2050.
  • High-Interest Ghosts: $464k in old loans (7-10% rates) from 2018-2019 – 5 years overdue. Lenders could demand full repayment anytime.
• Cash Cushion Thin: Only $160k in reserves. While operations now generate cash, they still rely on outside financing.
• Big Investors = Big Risk: Anson Funds and Hudson Bay Capital own 15% of shares (14.9M+). If they sell, it could tank the stock price.

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Risks to Your Investment

• Debt Time Bombs: Paying 7-10% interest on old loans eats cash needed to fix losses.
• Default Danger: The company can’t afford to repay those overdue loans if lenders call them in.
• Dilution Threat: Old warrants let investors buy 1M+ shares at $0.15 (below today’s price). If exercised, your ownership stake gets watered down.
• Stuck in the Minor Leagues: Negative equity and growing losses make it hard to uplist to major exchanges. Their "small company" status lets them hide some debt risks.

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Leadership & Strategy

• Same Team at the Helm: CEO Kurt Rossner, CFO Mark Breen, and CTO Michael Goerner remain in charge.
• The company didn’t provide details about new strategies or cost-cutting plans in their annual report.

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Vs. Competitors

• Growth ≠ Profit: Their 15% sales growth beats many peers, but losses are growing faster than revenue.
• Tiny Fish: $6.47M annual revenue is a fraction of industry leaders (some make that in 2 weeks).
• Risky Financing: Relies on complex stock/warrant deals (like a 2019 raise at a 20% discount) – a red flag that big investors see them as high-risk.

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The Bottom Line for Investors

✅ Reasons to Consider:

• Strong sales growth and customer commitment (14x deferred revenue jump).
• Cash flow turnaround shows better day-to-day management.

🚩 Major Red Flags:

• Losses are accelerating despite higher sales.
• Debt overdue for 5+ years could trigger a crisis.
• Risk of shareholder dilution or a stock price crash if big investors sell.

💡 Our Take: Leafbuyer is growing but burning money to do it. The debt overhang and lack of transparency about their path to profitability make this a high-risk, speculative investment. Only suitable for investors comfortable with significant volatility and potential dilution.

Note: The company provided limited details about long-term plans and cost controls, which reduces visibility into their future performance.