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Leafly Holdings, 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 revenue to $8,353,000 from $10,583,000 in the same quarter the previous year. This decrease is attributed to a reduction in retail and brand revenues.
Cost of sales for the quarter was $904,000, representing 11% of sales, compared to 11% in the same quarter of the previous year. The cost ratio remained stable due to increased efficiency.
The company reported a gross profit of $7,449,000 for the quarter, compared to $9,420,000 in the previous year, with the decline attributed to reduced revenue.
Operating expenses decreased to $7,996,000 from $10,895,000, primarily due to reductions in sales, marketing, and general administrative expenses.
Net loss for the quarter was $1,139,000, down from $2,210,000 in the previous year. The reduction in net loss was primarily due to cost savings from restructuring and cost-cutting measures.
Cash used in operating activities was $316,000, while cash used in investing and financing activities was $1,078,000 and $335,000, respectively.
Leafly had cash, cash equivalents, and restricted cash of $13,815,000 as of September 30, 2024. The company acknowledges its dependence on raising additional capital or refinancing its debt to meet future obligations.
The filing also details the company's ongoing efforts to address its liquidity concerns, including restructuring plans and exploring strategic opportunities.
Leafly is currently not in compliance with Nasdaq's (NDAQ+0.39%) continued listing standards, and a hearing is scheduled for December 5, 2024, to appeal a delisting determination.
The company continues to focus on improving its revenue by hiring additional sales professionals and implementing improved selling strategies.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Leafly Holdings Inc. quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.