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Avenir Wellness Solutions, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports a decrease in revenue to $192,000 for the three months ended September 30, 2024, from $1,011,000 in the same period the previous year. This decline is attributed to reduced unit sales across product lines, including Seratopical Revolution and Nutri-Strip products.
Cost of goods sold for the quarter was $35,000, representing 18.2% of net sales, compared to 27.5% in the same quarter of the previous year. The decrease in cost of goods sold is primarily due to lower unit sales.
Operating expenses decreased to $660,000 from $2,287,000 in the prior year, with reductions in marketing and advertising, salaries and wages, and professional services.
The company reported a net operating loss of $503,000 for the quarter, compared to a loss of $1,572,000 in the previous year.
A change in the fair value of convertible promissory notes resulted in a loss of $19,000 for the quarter, compared to a loss of $648,000 in the previous year.
Net loss for the quarter was $541,000, down from $2,224,000 in the previous year. Basic and diluted loss per share was $0.01, compared to $0.03 in the previous year.
Cash used in operating activities was $1,021,000 for the nine months ended September 30, 2024. Cash provided by investing activities was $974,000, primarily from the repayment of a note receivable.
Working capital deficit increased to $13,058,000 as of September 30, 2024, from $10,537,000 as of December 31, 2023.
The company continues to face challenges related to supply chain disruptions, inflation, and geopolitical conditions that may impact future operations.
Avenir Wellness Solutions is addressing material weaknesses in internal controls over financial reporting identified during the period, including errors in earnings per share calculations and segregation of duties.
The company does not anticipate cash dividend payments to common stockholders in the near future.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Avenir Wellness Solutions Inc quarterly 10-Q report dated November 19, 2024. To report an error, please email earnings@qz.com.