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C-Bond Systems, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, reporting a decrease in sales to $659,881 from $813,951 in the same quarter the previous year. The decrease is attributed to a reduction in window tint installation and services to school districts in Texas.
Cost of sales for the quarter was $381,773, representing 58% of sales, compared to 43% in the same quarter of the previous year. This increase in cost ratio is due to higher costs associated with raw materials and labor.
The company reported a gross profit of $278,108 for the quarter, compared to $467,340 in the previous year, with the decline attributed to decreased sales volume.
Operating expenses increased to $641,167 from $581,971, primarily due to higher compensation and related benefits.
Net loss for the quarter was $672,729, compared to a net loss of $164,068 in the previous year. After preferred dividends, net loss attributable to common shareholders was $647,213, compared to $206,208 in the previous year.
Cash used in operating activities was $1,136,520, while cash used in investing and financing activities was $42,157 and $463,889, respectively.
C-Bond had a working capital deficit of $1,786,279 as of September 30, 2024. The company acknowledges its dependence on raising additional capital to meet future obligations.
The filing also details various financial agreements, including promissory notes with 1800 Diagonal Lending and a security agreement with a private investor.
C-Bond does not anticipate cash dividend payments to common stockholders in the near future.
The company identified a material weakness in its internal controls over financial reporting due to a lack of multiple levels of management review on complex business, accounting, and financial reporting issues.
C-Bond continues to focus on marketing its security products, including C-Bond BRS and C-Bond Secure, to a broader customer base.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the C-Bond Systems Inc quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.