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Kidpik Corp. (PIK0.00%) has submitted its 10-Q filing for the quarterly period ended September 28, 2024.
The filing includes financial statements for the quarter, showing a decrease in revenue to $1,042,648 from $3,389,183 in the same quarter the previous year. The decrease is attributed to a reduction in new subscribers and the elimination of marketing expenditures.
Cost of goods sold for the quarter was $327,306, representing 31.4% of sales, compared to 38.9% in the same quarter of the previous year. This decrease in cost ratio is due to a write-down of inventory in the fourth quarter of 2023.
The company reported a gross profit of $715,342 for the quarter, compared to $2,071,499 in the previous year, with the decline attributed to reduced sales.
Selling, general, and administrative expenses decreased to $1,535,271 from $3,975,333, primarily due to reductions in marketing expenses and payroll costs.
Net loss for the quarter was $887,944, down from $1,925,951 in the previous year. The decrease in net loss is largely due to a decrease in operating expenses.
Cash used in operating activities was $1,617,473, while cash provided by financing activities was $1,426,163.
Kidpik had a working capital deficit of $2,843,992 as of September 28, 2024. The company acknowledges its dependence on obtaining new financing for its ongoing operations.
The filing also details various financial agreements, including a Securities Purchase Agreement with EF Hutton YA Fund, LP, involving convertible debentures.
Kidpik does not anticipate cash dividend payments to common stockholders in the near future.
The company identified a material weakness in its ability to meet the filing deadline for the Initial Registration Statement related to convertible debentures.
Kidpik continues to focus on managing its inventory levels and exploring strategic alternatives to support its operations.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Kidpik Corp. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.