AmpliTech Group, Inc. reported significant financial challenges in its latest 10-Q filing for the nine months ended September 30, 2024. The company experienced a notable decline in revenue, with total revenues falling to $7.7 million from $11.6 million in the same period of 2023, representing a decrease of approximately 33.85%. This decline was attributed to reduced sales in its Manufacturing and Engineering segment, which dropped by 43.5%, while the Distribution segment saw a smaller decrease of 27.3%.

Gross profit also suffered, decreasing to $3.3 million from $5.3 million year-over-year, with the gross profit margin declining from 45.5% to 42.9%. The company reported a loss from operations of $4.1 million, nearly doubling from a loss of $2.1 million in the prior year. The net loss for the nine-month period was $7.4 million, a substantial increase from $1.9 million in 2023, largely due to a $3.2 million impairment loss related to digital assets following a cyber phishing scam.

AmpliTech's cash and cash equivalents significantly decreased to $1.1 million as of September 30, 2024, down from $6.7 million at the end of 2023. Total current assets also fell to $12.6 million from $17.1 million, while total liabilities increased to $7.2 million from $4.7 million, resulting in an accumulated deficit that grew to $17.2 million.

The company has been actively managing its expenses, with Selling, General and Administrative expenses rising slightly to $6.1 million, while Research and Development expenses decreased to $1.3 million. The company reported a net cash used in operating activities of $4.1 million, compared to $1.8 million in the previous year.

Strategically, AmpliTech has been focusing on expanding its capabilities, particularly in the 5G and telecommunications sectors. The company opened a new facility in Texas and formed its AGTGSS division to enhance its offerings in 5G radio systems. Additionally, it raised approximately $1 million through a recent stock offering to support its growth initiatives.

Despite these efforts, AmpliTech anticipates continued operating losses and negative cash flows into early 2025, although it expects to mitigate some losses through revenue from new products developed earlier in 2024. The company is actively seeking additional capital to support its growth objectives.