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Nano Magic Inc (NMGX-0.34%). 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 revenues to $640,271 from $658,159 in the same quarter the previous year. The decrease is attributed to lower sales through Amazon (AMZN+2.09%).
Cost of sales for the quarter was $616,120, representing 96% of sales, compared to 87% in the same quarter of the previous year. This increase in cost ratio is due to higher labor costs.
The company reported a gross profit of $24,151 for the quarter, compared to $82,479 in the previous year, with the decline attributed to lower revenue and increased labor costs.
Operating expenses increased to $1,475,790 from $745,627, primarily due to stock option grants and higher professional fees.
Net loss for the quarter was $1,409,093, up from $699,675 in the previous year. The increase in net loss is due to higher operating expenses.
Cash used by operating activities was $1,634,053, while cash provided by investing and financing activities was $383,036 and $762,243, respectively.
Nano Magic had a working capital deficit of $889,966 as of September 30, 2024. The company acknowledges its dependence on positive operating results and potential financing to meet future obligations.
The filing also details various financial agreements, including convertible notes and finance leases.
Nano Magic continues to focus on expanding its direct-to-consumer sales through e-commerce and growing sales to big box retailers.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Nano Magic Inc quarterly 10-Q report dated November 19, 2024. To report an error, please email earnings@qz.com.