Mon, Aug 19, 7:51 PM (148 days ago)
For the quarter ending March 31, 2024, Cosmos Health Inc. reported revenues of $14,584,473, an 18.1% increase from $12,349,777 in the same period the previous year. Despite this revenue growth, the company incurred a net loss of $1,866,690 compared to a loss of $459,863 in Q1 2023, largely due to a prior year's gain on debt extinguishment. Cost of goods sold rose by 16.3% to $13,250,847, reflecting higher sales volume but lower profit margins from wholesale operations. Operating expenses decreased to $3,169,734 from $3,608,249, driven by reduced general and administrative costs, though salaries and depreciation increased due to acquisitions. The company’s cash position deteriorated significantly, with cash and equivalents dropping to $865,099 from $3,833,195, and net cash used in operations was $3,412,103. Management expressed concerns about the company's ability to continue as a going concern, citing substantial doubt regarding its capacity to meet obligations without additional financing. Future strategies include expanding product lines, acquisitions, and enhancing distribution networks, particularly in Europe and Asia.