Thu, Dec 5, 11:04 AM (39 days ago)
Accredited Solutions, Inc. (ASII) reported a significant turnaround in its financial performance for the quarter ending September 30, 2024. The company achieved net sales of $241,136, a notable increase from $164,515 in the same period last year, although total revenue declined year-to-date to $452,837 compared to $543,116 in 2023. Gross profit for the quarter rose to $51,312, reflecting improved operational efficiency despite a substantial increase in operating expenses to $426,497, primarily due to heightened marketing efforts. The company reported a net income of $4,272,002, a stark contrast to a loss of $250,971 in Q3 2023, largely driven by a favorable change in derivative liabilities. However, the company faces liquidity challenges, with cash used in operations reaching $244,813, and a working capital deficit of $1,227,987 at quarter-end. The ongoing reliance on convertible notes and related party advances raises concerns about future capital needs. Management's focus remains on revitalizing operations and expanding its Diamond Creek Water business, though uncertainties regarding adequate funding persist, casting doubt on the company's ability to continue as a going concern.