Wed, May 15, 10:33 AM (253 days ago)
ESG Inc. reported a net loss of $785,488 for Q1 2024, a significant increase from the $182,448 loss in Q1 2023. Revenues rose by 31.52% to $2,378,281, driven by fresh mushrooms and compost sales. However, the cost of goods sold increased by 68.49% to $2,468,914, resulting in a negative gross profit of $90,633. Operating expenses, including R&D and general administrative costs, remained relatively stable. Interest expenses were consistent year-over-year. The company’s cash position improved to $833,089 from $342,342 at year-end 2023, primarily due to increased short-term loans. However, the working capital deficit remains high at $10,025,265, raising concerns about ESG's ability to continue as a going concern. Management is seeking long-term financing and equity investments to improve capital structure. ESG's expansion plans include increasing compost production capacity, which is expected to enhance revenue. There have been no significant changes in internal controls over financial reporting. Legal proceedings are ongoing but are not expected to have a material adverse effect.