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Electromedical Technologies, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in net sales to $42,526 from $323,613 in the same quarter the previous year. The decrease is attributed to a reduction in units sold as the company transitions to a new product.
Cost of sales for the quarter was $11,881, representing 28% of sales, compared to 22% in the same quarter of the previous year.
The company reported a gross profit of $30,645 for the quarter, compared to $251,176 in the previous year.
Selling, general, and administrative expenses decreased to $411,683 from $490,205, primarily due to reductions in payroll-related costs and other operating expenses.
Net loss for the quarter was $724,643, compared to $376,720 in the previous year.
Cash used in operating activities was $80,263, while cash provided by financing activities was $27,638.
Electromedical Technologies had a working capital deficit of $3,787,034 as of September 30, 2024. The company acknowledges its dependence on additional funding to meet future obligations.
The filing also details various financial agreements, including settlement agreements with lenders for convertible promissory notes.
The company identified material weaknesses in its internal controls over financial reporting, including the lack of an audit committee and sufficient segregation of duties.
Electromedical Technologies continues to focus on the development and marketing of its new product, the Wellness Pro Infinity, and has collected deposits totaling $764,125 for future shipments.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Electromedical Technologies Inc quarterly 10-Q report dated November 19, 2024. To report an error, please email earnings@qz.com.