Basanite, Inc. reported significant financial changes in its 10-Q filing for the period ending September 30, 2024. The company, which specializes in the production and sale of construction materials, particularly its core product BasaFlex™, experienced a decline in total assets, which fell to $217.7 million from $554.7 million as of December 31, 2023. Current assets also decreased sharply from $95.5 million to $41.9 million, while cash reserves dwindled from $55.2 million to $2.3 million.

Revenue from product sales for the nine months ended September 30, 2024, was $209.2 million, down from $317.7 million in the same period of the previous year. However, revenue for the third quarter showed an increase to $62.8 million from $49.1 million year-over-year. The gross profit for the nine months decreased slightly to $143.6 million from $150.4 million, but the company reported a notable improvement in gross profit for the third quarter, achieving $31.7 million compared to a loss of $4.5 million in the prior year.

Total operating expenses significantly decreased to $508.2 million from $1.3 million in the previous year, reflecting cost-cutting measures, including a reduction in payroll and consulting fees. The net loss from operations for the nine months narrowed to $364.6 million from $1.2 million in the prior year, while the overall net loss for the nine months improved to $1.1 million from $1.6 million.

Basanite's financial condition remains precarious, with a working capital deficiency of $8.8 million and an accumulated deficit of $57.3 million. The company has expressed substantial doubt about its ability to continue as a going concern, primarily due to challenges in attracting new capital investment. To address its financial needs, Basanite plans to seek third-party financing, including potential private or public offerings.

Strategically, the company is preparing to restart manufacturing in 2025, although it acknowledges that order fulfillment may be limited due to capacity constraints. Additionally, Basanite has appointed Ali Manav as Acting CEO and has granted stock options to advisors and executives, contingent on achieving specific financial milestones.

The company is also facing compliance issues with OTC Markets Group regarding its listing standards, which must be resolved by October 28, 2024, to avoid delisting.