Thu, Nov 14, 7:45 PM (22 days ago)
Quarta-Rad, Inc. (QURT) reported significant financial challenges in its quarterly results for the period ending September 30, 2024. Revenues plummeted by 80.76% year-over-year to $69,783, primarily due to a decline in sales of its RD1503 model and reduced contributions from its subsidiary, Sellavir. Correspondingly, the company’s net loss increased to $156,604 from $31,162, reflecting a 536.14% rise in losses attributed to diminished sales and realized investment losses. Cash flow from operating activities was negative at $87,864, contrasting with a positive cash flow of $124,717 for the same period last year. The company's total assets decreased from $683,314 to $621,519, with cash reserves falling from $72,625 to $50,281. Operating expenses rose by 15.27% to $217,237, mainly due to increased contractor costs at Sellavir. Management is exploring a potential spin-off of operations and aims to pivot towards AI-driven solutions in the call center sector to stabilize revenue streams. However, uncertainties regarding market acceptance of new products and ongoing operational losses raise concerns about the company's future viability.