In This Story
Kaya Holdings (KAYS+11.75%), 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 $3,000 from $59,011 in the same quarter the previous year. The decrease is attributed to the closure of the Oregon cannabis operations as the company focuses on opening its psilocybin treatment center.
Cost of sales for the quarter was $272, representing a decrease from $22,088 in the same quarter of the previous year due to reduced sales activity.
The company reported an operating loss of $1,140,396 for the quarter, compared to a loss of $276,130 in the previous year, with the increase attributed to higher professional fees and general administrative expenses.
Professional fees increased significantly to $813,829 from $170,405, primarily due to consulting expenses related to the opening of the new psilocybin treatment center.
Net loss for the quarter was $2,495,327, compared to a net income of $2,095,742 in the previous year. The loss is largely due to changes in derivative liabilities and decreased revenues.
Cash provided by operating activities was negative $723,218, while cash provided by investing and financing activities was $1,884 and $757,500, respectively.
Kaya Holdings had a working capital deficit of $8,982,011 as of September 30, 2024. The company acknowledges its dependence on raising additional capital to meet future obligations.
The filing details various financing activities, including the issuance of convertible notes and related derivative liabilities.
Kaya Holdings continues to focus on its psilocybin treatment operations, having opened The Sacred Mushroom treatment center in Portland, Oregon.
The company is also pursuing opportunities in international cannabis markets, particularly in Greece, through its subsidiary Kaya Brands International, Inc.
The filing identifies material weaknesses in internal controls over financial reporting, specifically citing the lack of an audit committee and segregation of duties.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Kaya Holdings quarterly 10-Q report dated November 22, 2024. To report an error, please email earnings@qz.com.