Mon, Sep 16, 6:36 PM (95 days ago)
Better For You Wellness, Inc. (BFYW) reported a notable increase in revenue to $5,689,000 for Q1 2024, up 208% from $1,850,000 in Q1 2023, primarily driven by sales of coffee products. However, the cost of goods sold surged 471% to $5,319,000, leading to a gross profit decrease to $370,000. Operating expenses fell significantly to $255,974 due to reduced stock-based compensation, resulting in a net loss of $269,141, a 64% improvement from the prior year’s loss of $747,885. Cash flow from operating activities was negative at $155,629, but financing activities provided $155,939. As of May 31, 2024, cash reserves increased slightly to $2,026,000, while working capital deficit widened to $2,334,024. Total liabilities rose sharply to $2,479,966, contributing to a stockholders' deficit of $2,262,348. The company continues to face uncertainties, including reliance on related party financing and challenges in achieving profitability. Management aims to raise $4 million to support growth initiatives, particularly in expanding its coffee product line and improving marketing strategies. Future operations hinge on successfully implementing these plans amidst ongoing financial challenges.