Thu, Nov 14, 10:04 PM (121 days ago)
Yerbaé Brands Corp. (YERB) reported significant declines in financial performance for the three and nine months ended September 30, 2024. Revenues fell 45% to $1.6 million in Q3 2024 and 54% to $4.6 million year-to-date, largely due to the non-renewal of its agreement with Sam’s Club and a challenging consumer packaged goods market. Gross profit also decreased substantially, reflecting a 58% reduction in cost of sales to $0.6 million for Q3. The company reported a net loss of $1.5 million for Q3 and $7 million year-to-date, with an accumulated deficit increasing to $41.5 million. General and administrative expenses were cut by 50% in Q3 to $1.8 million, with marketing expenses down 83%. Cash flow remains a concern, with a working capital deficit of $5.1 million as of September 30, 2024. Management indicates that additional financing is necessary to sustain operations. The company is focusing on improving distribution and optimizing its product offerings to enhance profitability amid ongoing market uncertainties.