Fri, Nov 8, 6:50 PM (101 days ago)
Mastermind, Inc. (ticker: MIND) reported significant declines in its financial performance for the third quarter and nine months ended September 30, 2024. Revenues plummeted 78% to $267,345 for Q3 and 49% to $1,878,272 year-to-date, primarily due to delays in major client initiatives and project completions. Gross profit also suffered, dropping to $44,478 (17% margin) in Q3 from $761,915 (63% margin) in the prior year, reflecting a higher proportion of direct expenses on projects. Operating expenses decreased 41% to $352,948 in Q3, driven by reductions in management consulting and professional fees, but the company still recorded a loss from operations of $308,470, contrasting sharply with a profit of $161,523 in Q3 2023. The net loss for the quarter reached $223,678, compared to a profit of $129,597 a year earlier. Cash and cash equivalents fell 55% to $510,541, with cash used in operating activities more than doubling to $626,469. The company maintains a backlog of approximately $2.2 million but faces uncertainties in future revenue generation due to client restructuring and market conditions. The effectiveness of internal controls was also noted as a concern due to limited personnel. Overall, Mastermind, Inc. is navigating significant operational challenges that could impact future growth and profitability.