Adamas One Corp. reported significant financial challenges in its 10-Q filing for the period ending June 30, 2024. The company experienced a substantial decline in revenue, with net revenues for the three months ending June 30, 2024, totaling $179.8 thousand, down from $290.9 thousand in the same period of the previous year. For the nine months ended June 30, 2024, revenues were $411.0 thousand, a sharp decrease from $1.1 million in the prior year. This decline in revenue was accompanied by a gross loss of $50.7 thousand for the nine-month period, compared to a gross profit of $733.2 thousand in the previous year.
The company's operating losses also showed improvement, with a loss from operations of $1.9 million for the three months ended June 30, 2024, compared to a loss of $4.5 million in the same quarter of 2023. For the nine-month period, the loss from operations was $7.5 million, down from $16.1 million in the prior year. The net loss for the three months ended June 30, 2024, was $2.2 million, a reduction from $4.5 million in the same period of 2023. The nine-month net loss was $10.1 million, compared to $18.5 million in the previous year.
As of June 30, 2024, Adamas One reported total assets of $11.4 million, a decrease from $12.9 million as of September 30, 2023. Current liabilities surged to $12.7 million, up from $8.3 million, contributing to a stockholders' equity deficit of $1.7 million, compared to a positive equity of $3.1 million in the prior period. Cash reserves also declined to $16.1 thousand from $26.1 thousand.
Strategically, the company has established Adamas Technologies, focusing on lab-grown diamond solutions for the technology sector, and formed a Board of Advisors to guide its initiatives. Additionally, on July 1, 2024, Adamas One signed a letter of intent to acquire 100% of the assets of Akhan Semiconductor, Inc. for $750,000, expected to close by October 30, 2024. The company continues to face substantial doubt regarding its ability to continue as a going concern, necessitating additional financing to support ongoing operations and implement its business plan.
Overall, while Adamas One has made strides in reducing operational losses, the significant drop in revenue and the increase in liabilities highlight ongoing financial difficulties.
About Adamas One Corp.
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