Cosmos Health Inc. (Nasdaq: COSM), headquartered in Thessaloniki, Greece, reported its financial results for the nine months ended September 30, 2024, showing a revenue increase of 7.1% to $40.2 million compared to $37.5 million in the same period of 2023. However, the company experienced a net loss of $6.6 million, up from a loss of $4.8 million in the prior year. The net loss for the third quarter of 2024 was $2.2 million, a decrease from $3.4 million in Q3 2023.

The cost of goods sold for the nine months increased by 7.2% to $36.9 million, leading to a gross profit of $3.3 million, which is a 6.1% increase from $3.1 million in 2023. General and administrative costs decreased significantly to $4.6 million from $6.7 million, while salaries and wages rose by 22.9% to $4 million, attributed to the full consolidation of Cana Laboratories. Depreciation and amortization expenses surged by 95.8% to $937,000 due to new facilities and licenses acquired.

Cosmos Health has been active in acquisitions, completing several strategic purchases, including Cloudscreen, an AI-powered platform for drug repurposing, for $637,080 in January 2024. The company also acquired Cana Laboratories Holdings in June 2023, enhancing its pharmaceutical production capabilities. The acquisition of Bikas in June 2023 is expected to increase annual revenue by over $10 million.

As of September 30, 2024, the company reported total stockholders' equity of $35 million, with an accumulated deficit of $104.5 million. Working capital was positive at $11 million, although it decreased from $12.3 million at the end of 2023. The company had net cash used in operations of $3.9 million for the nine months, a significant reduction from $16.6 million in the previous year.

Cosmos Health's strategic focus includes expanding its nutraceutical and pharmaceutical product lines, with plans to enhance distribution networks globally. The company aims to grow through acquisitions and organic growth, targeting markets in Europe, Asia, and North America. However, management has expressed substantial doubt about the company's ability to continue as a going concern over the next twelve months, highlighting the need for additional capital and strategic initiatives to stabilize operations.

The company is also facing compliance issues with Nasdaq, having received a non-compliance letter for failing to maintain a minimum bid price of $1.00 per share. Cosmos Health plans to implement a reverse stock split if compliance is not regained within the stipulated period.