C-Bond Systems, Inc. reported significant financial challenges in its 10-Q filing for the period ending September 30, 2024. The company, which specializes in materials development with a focus on glass and window film technologies, experienced a net loss of $1,226,346 for the nine months ended September 30, 2024, a stark contrast to a net income of $2,887,118 for the same period in 2023. This shift reflects a broader trend of declining profitability, with the company reporting a net loss of $672,729 for the third quarter of 2024, compared to a loss of $164,068 in the same quarter of the previous year.

Revenue figures showed mixed results. For the three months ended September 30, 2024, sales decreased by 18.9% to $659,881 from $813,951 in the prior year. However, for the nine-month period, revenue increased by 41.1% to $2,460,218, driven primarily by heightened sales of window tint installation services, particularly to Texas school districts following a mandate from the Texas Education Agency. The company also noted a decline in sales from its C-Bond nanoShield product line, which was sold in May 2023.

Cost of sales rose significantly, with a 58.4% increase for the nine months ended September 30, 2024, totaling $1,268,661. This increase in costs, coupled with a decrease in gross profit margin, contributed to the overall losses. Gross profit for the nine months was $1,191,557, up from $942,184 in the previous year, but the gross profit margin fell from 54.1% to 48.3%.

C-Bond's operational expenses also increased, with total operating expenses for the nine months rising by 11% to $2,388,496. Notably, compensation and related benefits surged by 32.2%, primarily due to stock-based compensation increases.

The company’s financial position deteriorated, with total current assets dropping to $586,645 as of September 30, 2024, down from $1,373,118 at the end of 2023. Cash reserves plummeted to $21,673 from $736,461, raising concerns about liquidity. C-Bond reported a working capital deficit of $1,786,279 and a total shareholders' deficit of $4,869,010.

Strategically, C-Bond has undergone significant changes, including the sale of its C-Bond nanoShield product line for $4 million in May 2023, which has impacted revenue streams. The company is actively seeking to raise capital through additional debt and equity financing to support its operations amid these financial challenges. Management has expressed substantial doubt about the company's ability to continue as a going concern over the next twelve months.