Fri, Aug 23, 7:27 PM (144 days ago)
Adamas One Corp. reported substantial financial challenges for the quarter ending December 31, 2023, with a net loss of $3.0 million, a significant improvement from a $9.0 million loss in the same quarter of 2022. Revenue decreased to $219.8K from $726.1K, reflecting a decline in diamond sales. The gross loss margin was 30.4%, contrasting sharply with an 81.1% gross profit margin in the prior year. Operating expenses decreased to $1.79 million, down from $7.33 million, primarily due to reduced salaries and administrative costs. Cash flow from operations showed a net outflow of $712.5K, an improvement from $1.7 million in the previous year. Total cash at quarter-end was $340.4K. The company remains heavily reliant on debt financing, with total liabilities increasing significantly to $11.81 million, primarily due to accrued interest and convertible notes. Future operations may be impacted by ongoing cash flow uncertainties, necessitating additional financing to sustain operations and fulfill business plans. The report indicates a going concern risk, highlighting the need for strategic financial management moving forward.