CannaPharmaRX, Inc. (CPRX) reported significant developments in its financial performance for the three and nine months ended September 30, 2024, compared to the same periods in 2023. The company, which focuses on cannabis cultivation projects in Canada, generated revenue of $312,164 for the third quarter and $338,003 for the nine-month period, marking a substantial increase from $0 in the prior year, as it commenced product sales.

Operating expenses for the third quarter decreased to $141,788 from $667,497 in 2023, reflecting a reduction of $525,709. For the nine months, operating expenses fell to $841,136 from $2,280,713, a decrease of $1,439,577. This reduction was attributed to lower general and administrative expenses, payroll and consulting fees, and amortization and depreciation costs.

Despite the revenue growth, CannaPharmaRX reported a net loss of $188,421 for the third quarter, an improvement from a net loss of $564,368 in the same period last year. However, the net loss for the nine months increased to $6,164,948 from $3,856,525 in 2023, indicating ongoing challenges in achieving profitability.

The company’s cash position improved significantly, with cash increasing to $6,999 as of September 30, 2024, from $650 at the end of 2023. However, the working capital deficiency rose to $21,005,723, up from $16,968,059, highlighting liquidity concerns. Total liabilities increased to $28,265,927 from $23,898,863, driven by a rise in notes payable, which reached $6,845,740, up from $3,333,925.

Strategically, CannaPharmaRX has made notable moves, including the acquisition of 100 Class B units of LTB Management, LLC for $4,518,127 in November 2023. The company also entered into various supply agreements, including a strategic supply agreement with Cantek Holdings for 1,000 kgs of product annually and a distribution agreement with ICAN Green S.A. de C.V. for Latin America.

The company continues to face legal challenges, including lawsuits alleging breach of contract and seeking damages. Management has indicated an immediate need to raise capital to fund operations and continue as a going concern, emphasizing the importance of strategic partnerships and operational efficiency moving forward.