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Wetouch Technology Inc (WETH-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 an increase in revenues to $11.5 million from $11.1 million in the same quarter the previous year. The increase is attributed to a rise in average selling prices and favorable exchange rate impacts.
Gross profit for the quarter was $4.4 million, down from $4.8 million in the previous year, with the decline attributed to increased costs of goods sold, including higher material and labor costs.
Operating expenses for the quarter increased to $953,332 from $492,046, primarily due to higher general and administrative expenses.
Net income for the quarter was $2.7 million, down from $2.9 million in the previous year. The decrease in net income is due to lower gross margin and higher operating expenses.
Cash used in operating activities was $745,037, while cash provided by financing activities was $8,023,580, primarily from the issuance of common stock.
Wetouch had a working capital of $116,564,577 as of September 30, 2024. The company continues to focus on expanding its product offerings and improving operational efficiencies.
The filing also details various legal proceedings and contingencies, including potential fines from the Chinese government for not completing required filings.
Wetouch identified material weaknesses in its internal controls over financial reporting, specifically in areas of segregation of duties and risk assessment procedures.
The company continues to invest in research and development, with expenses increasing to $43,859 for the quarter, reflecting a focus on new product development.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Wetouch Technology Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.