Mon, May 20, 9:14 PM (154 days ago)
Can B Corp.'s quarterly report for the period ending March 31, 2024, highlights significant financial challenges and operational changes. The company reported a net loss of $5.05 million, up from $1.74 million in the same quarter of 2023. Revenues fell sharply to $317K from $939K, while cost of revenues surged, leading to a gross loss. Operating expenses also increased due to asset sales. Cash and cash equivalents dropped to $26.6K, with negative working capital of $6.17 million, raising substantial doubt about the company's ability to continue as a going concern. The company faced legal and operational uncertainties, including an auction of its hemp division assets due to alleged defaults on notes and a forbearance agreement. This has led to reduced operations and staffing in its hemp and durable medical equipment segments. The focus has shifted to commercializing cannabis patents acquired by Nascent Pharma, LLC. Management has flagged the need for significant financing to address liquidity issues, with no current agreements for additional funding.