Mon, Aug 19, 9:37 PM (148 days ago)
For Q2 2024, Nano Magic Inc. reported a decline in revenues to $616,623, down 13% from Q2 2023, and a 15% decrease for the first half of the year. This revenue drop is attributed to reduced purchasing from key customers and shifts in product mix. Cost of sales surged by 31% in Q2, leading to a gross loss of $45,960, a stark contrast to the previous year's profit of $202,138. Operating expenses decreased by 16% in Q2, yet the company still recorded a loss from operations of $788,032, an 18% increase from last year. The net loss for Q2 reached $824,665, up 27% year-over-year, with a six-month net loss of $1,570,872, a 20% increase. Cash flow from operations worsened, with net cash used rising to $992,505. As of June 30, 2024, the company faced a working capital deficit of $805,072, compared to $454,969 at the end of 2023. The liquidity outlook remains uncertain due to significant operational losses and reliance on external financing, highlighting the need for strategic adjustments to improve financial health moving forward.