Tue, Nov 19, 8:29 PM (90 days ago)
For the quarter ending September 30, 2024, Nano Magic Inc. (NMGX) reported a revenue decline of 3% year-over-year, totaling $640,271, with a significant 71% drop in gross profit to $24,151. This decline is attributed to decreased sales through Amazon and increased labor costs. Operating expenses surged by 98% to $1,475,790, primarily driven by higher salaries and professional fees, resulting in an operating loss of $1,451,639, up 119% from the prior year. Net loss for Q3 2024 was $1,409,093, compared to $699,675 in Q3 2023, while the nine-month net loss rose to $2,979,965 from $2,003,577. Cash flow from operations worsened, with $1,634,053 used in 2024 against $1,057,794 in 2023. The company reported a working capital deficit of $889,966, down from $454,969 at year-end 2023, indicating liquidity challenges. Despite some cash inflow from financing activities, the overall financial health appears strained, with management expressing concerns about future operations and the ability to sustain business continuity.