Thu, May 15, 9:12 PM (36 days ago)
**Sentinel Holdings Ltd (SNTL) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $846,416 (down 53.5% from $1,952,553 in Q1 2024). - **Net Loss:** $618,163 (compared to a net income of $1,352,480 in Q1 2024). - **Gross Profit Margin:** 4.2% (down from 34.3% in Q1 2024). - **Operating Loss:** $540,672 (compared to an operating income of $469,369 in Q1 2024). - **Cash Flow:** Net cash used in operations was $198,470. **Profit Margins:** - **Gross Profit Margin:** Significantly decreased to 4.2% from 34.3% in Q1 2024. - **Operating Margin:** Negative 63.9% compared to a positive 24% in Q1 2024. **Cash Flow:** - **Operating Cash Flow:** Negative $198,470 (compared to positive $875,867 in Q1 2024). - **Investing Cash Flow:** Negative $8,500 (no comparable figure for Q1 2024). - **Financing Cash Flow:** Negative $15,232 (compared to negative $630,549 in Q1 2024). **Earnings Changes:** - **Net Loss:** Increased by $1,970,643 from a net income of $1,352,480 in Q1 2024. - **Earnings per Share (EPS):** Negative $0.07 (compared to positive $0.15 in Q1 2024). **Quarterly Performance Discussion:** - **Revenue Decline:** Due to the loss of a material customer. - **Cost of Goods Sold:** Decreased by $470,993 due to reduced employee compensation and loss of a material customer. - **General and Administrative Expenses:** Increased by $374,897 (186%) due to higher compensation and professional fees. - **Other Income (Expense):** Decreased by $960,602 primarily due to the absence of PPP loan forgiveness income. **Trends and Uncertainties:** - **Liquidity Concerns:** The company has a working capital deficit of $5,034,997 and relies on related parties for debt-based funding. - **Future Operations Impact:** The company plans to expand into new markets, obtain additional financing, and pursue strategic acquisitions. **Future Outlook:** - **Growth Strategy:** Focus on acquisitions in the private security, personal protective equipment, and defense industries. - **Industry Background:** The U.S. national security budget continues to grow, presenting opportunities for consolidation in the defense and security sectors. - **Risks:** The company faces significant risks, including the need to raise additional capital and the uncertainty surrounding the relaunch of the Gladiator brand due to ongoing litigation.