10-Q - SCIENTIFIC ENERGY, INC (0001276531) (Filer)

Thu, Nov 21, 3:59 PM (52 days ago)

Scientific Energy, Inc. (Ticker: SEI) reported significant growth in its financial performance for Q3 2024 compared to the same period in 2023. Revenue surged to $19,379,000 from $9,748,000, driven by contributions from its newly acquired subsidiary, Graphite Energy, Inc. The gross profit increased by 41% to $6,508,000, while operating expenses rose to $4,845,000, resulting in an operating profit of $1,663,000, up 123%. The net profit reached $1,647,000, reflecting a 125% increase year-over-year. For the nine months ending September 30, 2024, total revenue was $50,560,000, a 77% increase from $28,639,000 in 2023. The net profit for this period was $2,405,000, compared to $1,701,000 in the previous year. The company maintained a cash position of $6,796,000 and a working capital deficit of $3,584,000. Despite robust revenue growth, uncertainties persist regarding regulatory compliance, particularly concerning PCAOB inspections of its auditor in Hong Kong, which could impact trading under the Holding Foreign Companies Accountable Act. Future operations may hinge on securing additional capital to address liquidity challenges and support ongoing business expansion efforts.