Better For You Wellness Reports 224% Revenue Growth, Reduced Net Losses in Q2 2024

Better For You Wellness, Inc. reported significant financial developments in its 10-Q filing for the second quarter of 2024, reflecting substantial growth in revenue and a reduction in net losses compared to the previous fiscal period.

For the second quarter of 2024, the company achieved revenue of $5.8 million, marking a 224% increase from $1.8 million in Q2 2023. Over the six months ending August 31, 2024, total revenue reached $11.5 million, a 216% increase from $3.7 million during the same period in 2023. This growth in revenue is indicative of the company's expanding market presence and successful product lines.

Despite the increase in revenue, Better For You Wellness, Inc. reported a net loss of $(303,146) for Q2 2024, an improvement from a net loss of $(486,194) in Q2 2023. For the six-month period, the net loss was $(572,287), down from $(1,234,078) in the prior year. This reduction in losses can be attributed to a significant decrease in operating expenses, which fell to $199,503 in Q2 2024 from $462,112 in Q2 2023. For the six months ended August 31, 2024, operating expenses totaled $425,477, down from $1.2 million in the same period of 2023.

The company’s cash and cash equivalents increased slightly to $2,999 as of August 31, 2024, compared to $1,716 as of February 28, 2024. Accounts receivable also rose to $8,262 from $2,634 in the same timeframe, indicating improved collection efforts or increased sales.

Total current assets increased to $81,286 as of August 31, 2024, up from $69,552 in February 2024. However, total liabilities also rose significantly to $2.76 million from $2.22 million, driven by increases in accounts payable and accrued expenses, which reached $803,395, up from $601,487. Convertible notes payable also increased to $850,914 from $766,419.

The accumulated deficit grew to $(9.1 million) as of August 31, 2024, compared to $(8.5 million) in February 2024, while total stockholders' deficit increased to $(2.57 million) from $(1.99 million).

Cash used in operating activities for the six months ended August 31, 2024, was $(176,829), a slight improvement from $(204,064) in the previous year. Net cash provided by financing activities was $178,602, down from $193,500 in 2023.

Overall, Better For You Wellness, Inc. demonstrated strong revenue growth and improved operational efficiency, despite ongoing challenges reflected in its net losses and increasing liabilities.