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Nocera Inc. (NCRA-9.36%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing net sales of $1,363,101, a decrease from $7,283,281 in the same quarter the previous year. The decrease is attributed to a slow fish market in Taiwan and reduced revenues from the Meixin catering business.
Cost of sales for the quarter was $1,328,970, resulting in a gross profit of $34,131, compared to $51,369 in the previous year. The decrease in gross profit is primarily due to reduced sales from the fish trading business.
General and administrative expenses for the quarter were $335,202, up from $319,762 in the previous year, mainly due to increased consulting and salary expenses.
Other income was $2,180 for the quarter, compared to an expense of $4,385 in the previous year. The increase in other income is primarily due to interest revenue from bank deposits.
The company reported a net loss attributable to Nocera of $285,418 for the quarter, compared to a net loss of $264,059 in the previous year. The loss is attributed to decreased revenues and increased expenses.
Cash used in operating activities for the nine months ended September 30, 2024, was $909,563, reflecting a net loss of $1,161,554, depreciation of $112,096, and share-based compensation of $45,498.
Nocera had cash and cash equivalents of $372,270 as of September 30, 2024, with net current liabilities of $1,176,035 and stockholders' equity of $4,636,456.
The filing also details various business activities, including the acquisition of controlling interests in Zhejiang Xinca Mutual Entertainment Culture Media Co., Ltd. and Hangzhou SY Culture Media Co., Ltd. through variable interest entity agreements.
The company plans to expand its fish farming operations in Taiwan, the U.S., and Brazil and aims to enhance market penetration through the establishment of fish farms and diversification of revenue streams.
Nocera's management identified material weaknesses in its internal controls over financial reporting, including insufficient monitoring and review controls and inadequate segregation of duties. The company plans to remediate these weaknesses in the second half of 2024.
The report also mentions the resignation of the company's auditor, Centurion ZD CPA & Co., and the engagement of Enrome LLP as the new auditor as of October 16, 2024.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Nocera Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.