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Yerbaé Brands Corp. (YERBF+6.47%) 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 revenues to $1,631,615 from $2,986,734 in the same quarter the previous year. The decrease is attributed to the non-renewal of its agreement with Sam's Club (WMT-0.34%) and challenging market conditions.
Cost of sales for the quarter was $599,845, representing 37% of sales, compared to 47% in the same quarter of the previous year. This decrease in cost ratio is due to reduced sales volume.
The company reported a gross profit of $1,031,770 for the quarter, compared to $1,569,131 in the previous year, with the decline attributed to reduced sales.
General and administrative expenses decreased to $1,792,423 from $3,589,314, primarily due to reductions in share-based compensation and professional fees.
Sales, advertising, and marketing expenses decreased to $311,915 from $1,886,414, reflecting a strategic focus on optimizing product availability and reducing less-effective programs.
Net loss for the quarter was $1,479,494, down from $4,141,353 in the previous year. The company attributes this to reduced expenses across various categories.
Cash used in operating activities was $3,598,634, while cash provided by financing activities was $2,890,409.
Yerbaé had a working capital deficit of $5,095,669 as of September 30, 2024. The company acknowledges its need for additional funding to continue operations.
The filing also details various financial agreements, including loans with MaximCash Solutions and related parties.
Yerbaé does not anticipate cash dividend payments to common stockholders in the near future.
The company continues to focus on expanding its distribution footprint and optimizing its customer base, despite challenging market conditions.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Yerbae Brands Corp. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.