Wed, Jul 17, 9:24 PM (52 days ago)
Brownie’s Marine Group, Inc. reported a slight revenue decrease of 1.9% to $1.61 million for Q1 2024 compared to Q1 2023. The decline was mainly due to reduced sales in Legacy SSA Products and High Pressure Gas Systems, partially offset by increased sales in Ultra-Portable Tankless Dive Systems and Redundant Air Tank Systems. Cost of revenues rose to 74.7% of net revenues, up from 63.5%, driven by higher direct labor costs, impacting profit margins. Gross profit margin improved to 36.5% from 25.3% due to better performance in SSI’s product line, despite a margin decline in BTL. Operating expenses increased by 24.3%, with SG&A rising 23.9% due to higher payroll and stock compensation costs. Research and development expenses surged by 538.6% reflecting new product development efforts. The company reported a net loss of $335,716 for the quarter, slightly higher than the previous year's loss of $327,922, and interest expenses increased by 31.3%. Cash decreased to $238,754, with net cash used in operating activities at $484,351, driven by the net loss and changes in working capital. Despite a working capital surplus of $1,028, continued losses raise substantial doubt about the company’s ability to continue as a going concern. Management plans to address material weaknesses in internal controls and improve financial reporting processes.