Mon, Aug 19, 9:34 PM (148 days ago)
Bio Essence Corporation's 10-Q for Q2 2024 reveals significant financial challenges, including a net loss of $338,665 from continuing operations, a steep increase from $116,507 in Q2 2023. Revenue from continuing operations reached $41,695, a marked improvement from zero in the prior year, while costs of revenue totaled $12,508, yielding a gross profit of $29,187. However, general and administrative expenses surged to $346,029, primarily due to increased office rent and consulting fees. The company's accumulated deficit grew to $9,222,214, raising concerns about its ability to continue as a going concern. Total liabilities decreased to $3,837,734, down from $4,418,874, largely due to the disposal of non-profitable subsidiaries BEH and BEP. The company also reported cash and equivalents of $9,489, a notable improvement from a prior balance of zero. Cash flow from operating activities showed a reduced outflow of $156,340, compared to $476,730 in the previous year. The company plans to raise funds through potential equity offerings and loans to support operations. Future performance remains uncertain, hinging on improved sales and effective fundraising strategies.