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QDM International Inc (QDMI+13.86%). 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 $1,020,672 from $1,163,726 in the same quarter the previous year. This decrease is attributed to a reduction in revenue from the company's top insurance partner.
Cost of sales for the quarter was $154,810, significantly lower than $713,636 in the same quarter of the previous year. The decrease is due to reduced referral fees following regulatory changes.
The company reported a gross profit of $865,862 for the quarter, compared to $450,090 in the previous year, with the increase attributed to lower cost of sales.
General and administrative expenses increased to $273,762 from $123,923, primarily due to hiring more employees and higher professional fees.
Net income for the quarter was $488,706, up from $268,612 in the previous year. The increase is due to improved gross profit.
Cash provided by operating activities was $1,049,090, while cash used in investing and financing activities was nil and $91,556, respectively.
QDM had cash and cash equivalents of $6,298,869 as of September 30, 2024. The company maintains compliance with Hong Kong insurance broker requirements regarding share capital and net assets.
The filing also details a securities subscription agreement with the CEO, resulting in the issuance of 6,000,000 Series B Shares in exchange for debt cancellation.
QDM does not anticipate any material legal or administrative proceedings affecting its business.
The company identified a material weakness in its internal controls over financial reporting due to a lack of segregation of duties and formal documentation.
QDM continues to focus on its insurance brokerage services in Hong Kong and Mainland China, while managing its financial and operational resources.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Qdm Intl Inc quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.