The report was filed on November 18, 2024
The filing includes financial statements for the quarter, showing a decrease in sales to $179,502 from $212,453 in the same quarter the previous year. The decrease is attributed to the sale of the gocart.city online delivery service.
Cost of goods sold for the quarter was $153,477, representing 86% of sales, compared to 74% in the same quarter of the previous year. This increase in cost ratio is due to the absence of revenue from expired grocery vouchers.
The company reported a gross profit of $26,025 for the quarter, compared to $55,262 in the previous year, with the decline attributed to reduced revenue.
Operating expenses decreased slightly to $300,665 from $307,223, primarily due to a reduction in salaries and benefits.
Net loss for the quarter was $333,117, down from $565,830 in the previous year. The reduction in net loss is primarily due to a lower loss on settlement of non-redeemable convertible notes.
Cash used in operating activities was $239,157 for the nine months ended September 30, 2024, compared to $372,464 in the previous year. The reduction in cash used is attributed to a decrease in net loss and adjustments for non-cash items.
Two Hands had a working capital deficiency of $2,535,074 as of September 30, 2024. The company acknowledges its dependence on additional capital to continue operations.
The filing also details various financial agreements, including a line of credit with The Cellular Connection Ltd., which had an outstanding balance of $851,908 as of September 30, 2024.
Two Hands does not anticipate cash dividend payments to common stockholders in the near future.
The company identified material weaknesses in its internal controls over financial reporting due to inadequate segregation of duties and insufficient written policies.
Two Hands continues to focus on its grocery business, Cuore Food Services, and plans to expand its reach and product line in the Canadian market.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Two Hands Corporation quarterly 10-Q report dated November 18, 2024. To report an error, please email [email protected].
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