Adamas One Corp. reported significant financial changes in its 10-Q filing for the period ending March 31, 2024. The company experienced a substantial decline in revenue, with net sales for the three months ending March 31, 2024, totaling $11,468, a decrease from $113,931 in the same period of the previous year. For the six months ended March 31, 2024, net sales were $231,272, down from $840,056 in the prior year. This decline in revenue is attributed to reduced diamond sales, which resulted in a gross loss of $(2,242) for the three months and $(69,208) for the six months, compared to gross profits of $68,779 and $660,058, respectively, in the previous year.

Operating expenses also decreased, totaling $3.7 million for the three months ended March 31, 2024, down from $5.5 million in the same period of 2023. The loss from operations narrowed to $(3.7 million) for the three months, compared to $(4.9 million) in the prior year. The net loss for the three months remained relatively stable at $(4.9 million), compared to $(4.9 million) in the same period of 2023. However, for the six months, the net loss improved to $(7.9 million) from $(13.9 million) in the previous year.

As of March 31, 2024, the company reported total assets of $12.6 million, a decrease from $12.9 million as of September 30, 2023. Total current liabilities surged to $11.8 million from $8.3 million, contributing to a total liabilities increase to $13.1 million from $9.8 million. Consequently, stockholders' equity shifted to a deficit of $(506,000) from a positive equity of $3.1 million as of September 30, 2023.

Cash and cash equivalents increased to $64,123 as of March 31, 2024, from $26,088 at the end of September 2023. The company utilized approximately $1.9 million in operating activities during the six months, a reduction from $4.1 million in the same period of 2023. Financing activities provided approximately $1.9 million, down from $6.4 million in the previous year.

Strategically, Adamas One Corp. continues to focus on its core business of lab-grown diamonds, having acquired assets from Scio Diamond Technology Corporation in 2019. The company has also entered into various promissory notes to support its financing needs, reflecting ongoing efforts to manage cash flow amidst challenging market conditions.