Wed, Jun 11, 7:45 PM (10 days ago)
**Smart for Life, Inc. (SMFL) Quarterly Financial Health Summary** **Ticker:** SMFL **Quarter Ended:** September 30, 2024 **Revenue:** - Total revenue decreased by 49.37% to $2.63 million for the nine months ended September 30, 2024, from $5.19 million for the same period in 2023. - Nutraceutical business (products) revenue decreased by 45.57% to $2.63 million. - Digital marketing business (advertising) revenue decreased by 99.97% to $115. **Profit Margins:** - Gross profit decreased by 25.42% to $1.13 million. - Operating loss increased by 161.18% to $4.23 million. - Net loss increased by 35.07% to $8.34 million. **Cash Flow:** - Net cash used in operating activities was $516,784 for the nine months ended September 30, 2024, compared to $5,952,710 for the same period in 2023. - Net cash provided by financing activities was $403,069, compared to $5,897,604. **Earnings Changes:** - The company reported a net loss of $3.24 million for the three months ended September 30, 2024, compared to a net loss of $4.34 million for the same period in 2023. - The company reported a net loss of $8.34 million for the nine months ended September 30, 2024, compared to a net loss of $12.85 million for the same period in 2023. **Quarterly Performance Discussion:** - The company's cash constraints and inability to pay for raw materials significantly impacted revenue. - The company is dependent on raising additional capital through the placement of common and preferred stock as well as debt financing. - The company has a working capital deficiency of $8.2 million at September 30, 2024, raising substantial doubt about its ability to continue as a going concern. **Trends and Uncertainties:** - The company's financial condition is uncertain, with a working capital deficiency and substantial doubt about its ability to continue as a going concern. - The company is implementing a buy-and-build strategy with serial accretive acquisitions to drive growth and earnings. **Future Operations Impact:** - The company's future operations will depend on its ability to raise additional capital and successfully implement its acquisition strategy. - The company's ability to pay for raw materials and maintain its operations is uncertain.