Accredited Solutions Reports Net Income of $4.27 Million in Q3 2024, Revenue Increases 46.5%

Accredited Solutions, Inc. reported significant financial changes in its latest 10-Q filing for the third quarter of 2024, revealing a net income of $4.27 million compared to a net loss of $250,971 in the same period last year. The company generated $241,136 in revenue for the three months ended September 30, 2024, marking a 46.5% increase from $164,515 in the prior year. However, for the nine months ended September 30, 2024, total revenue decreased to $452,837 from $543,116 in 2023, attributed to management's focus on restructuring operations and enhancing sales processes.

The company's cost of sales also increased, totaling $189,824 for the third quarter of 2024, up from $121,616 in 2023. This resulted in a gross profit of $51,312, compared to $42,899 in the previous year. Operating expenses surged to $426,497 in the latest quarter, a significant rise from $77,195 in the same quarter of 2023, primarily due to increased advertising, marketing, and consulting expenses. For the nine-month period, operating expenses rose to $549,384 from $210,719 in the prior year.

In terms of operational developments, Accredited Solutions has shifted its focus back to its Diamond Creek Water business following the rescission of its merger with Petro X Solutions, which was finalized on June 1, 2023. The company is now treating PXS as a discontinued operation. The filing indicates that the company is actively working on revamping its sales force and marketing strategies to drive future growth. As of September 30, 2024, the company reported a working capital deficit of $1.23 million and cash and cash equivalents of $12,106.

The company has also seen a notable change in its financial structure, with a significant increase in derivative liabilities, which contributed to the other income of $4.65 million for the third quarter of 2024, compared to a loss of $216,675 in the same quarter of 2023. This change was primarily due to a favorable adjustment in the fair value of derivative liabilities. The company’s weighted average number of common shares outstanding increased to approximately 1.97 billion, reflecting ongoing conversions of debt into equity.

Looking ahead, Accredited Solutions faces challenges in maintaining liquidity and funding its operations, as indicated by its cash used in operations of $244,813 for the nine months ended September 30, 2024. The company plans to raise capital through debt and equity markets to support its operational needs. However, management has expressed uncertainty regarding its ability to secure sufficient funding, which raises substantial doubt about the company's ability to continue as a going concern over the next year.