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PCS Edventures.com Inc. (PCSV+1.24%) 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 $2,267,338 from $3,767,326 in the same quarter the previous year. The decrease is attributed to reduced sales from two significant customers, Air Force JROTC and Iowa Scale-Up.
Cost of sales for the quarter was $912,651, representing 40.3% of revenue, compared to 31.6% in the same quarter of the previous year. This increase in cost ratio is due to a less favorable product mix.
The company reported a gross profit of $1,354,687 for the quarter, down from $2,578,500 in the previous year, with the decline attributed to lower revenue and higher cost of sales.
Salaries and wages decreased to $485,734 from $513,676, primarily due to lower bonus payouts in line with reduced revenue.
General and administrative expenses increased to $356,154 from $294,807, largely due to higher state income tax estimates.
Net income for the quarter was $431,229, down from $1,811,590 in the previous year. The decrease is attributed to lower revenue and higher operating expenses.
Cash provided by operating activities was $2,852,232, while cash used in investing and financing activities was $32,982 and $143,813, respectively.
PCS Edventures had a working capital of $6,506,076 as of September 30, 2024. The company anticipates sustaining operations over the next twelve months with its current cash and expected revenue.
The filing also details the company's focus on developing STEM education products and highlights its strategy to solicit larger customers.
The company identified a weakness in its internal controls over financial reporting due to inadequate control and expertise over preparation of preliminary financial statements.
PCS Edventures continues to market its STEM and STEAM products to educational and recreational entities, with a focus on out-of-school programs.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the PCS Edventures.com Inc. quarterly 10-Q report dated November 15, 2024. To report an error, please email earnings@qz.com.