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Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

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<ul><li>Gaia reported 4Q22 revenues of $19.6 million versus $20.8 million in 4Q21, and 2022 revenues of $82.0 million versus $79.6 million in 2021.</li><li>Given the small Yoga International acquisition in December 2021, this implies some revenue contraction in the core business for 2022.</li><li>Despite the top-line challenge, net income was slightly positive for the year after adjusting for one-time legal fees and the anticipated SEC settlement accrual, which confirms the resilience of Gaia’s financial model.</li></ul>

Gaia reported 4Q22 revenues of $19.6 million versus $20.8 million in 4Q21, and 2022 revenues of $82.0 million versus $79.6 million in 2021.Given the small Yoga International acquisition in December 2021, this implies some revenue contraction in the core business for 2022.Despite the top-line challenge, net income was slightly positive for the year after adjusting for one-time legal fees and the anticipated SEC settlement accrual, which confirms the resilience of Gaia’s financial model.

Company Appears to Be Back in Growth Mode in 2023 After a Challenging 2022