Cryomass Technologies, Inc. reported its financial results for the three and nine months ended September 30, 2024, showing notable changes in revenue, expenses, and overall financial health compared to the previous fiscal period.

For the three months ended September 30, 2024, Cryomass generated revenues of $5,000, a significant increase from $0 in the same period of 2023. The gross profit also reflected this growth, matching the revenue figure. However, total operating expenses decreased to $870,859, down 37% from $1,373,304 in the prior year. This reduction was attributed to lower personnel costs, which fell by 52% due to executive pay cuts and the termination of an employee, as well as decreased general and administrative expenses and legal fees.

The company reported a loss from operations of $(865,859) for the third quarter of 2024, an improvement of 37% compared to the loss of $(1,373,304) in the same quarter of 2023. The net loss before taxes for the quarter was $(1,101,933), a 24% decrease from $(1,453,866) in the previous year. The net loss for the quarter was also $(1,101,933), compared to $(1,453,866) in Q3 2023.

For the nine months ended September 30, 2024, total revenues reached $24,189, compared to $0 for the same period in 2023. Operating expenses for this period were $3,038,395, a substantial decrease of 67% from $9,179,576 in the previous year. The net loss for the nine months was $(5,276,129), down 44% from $(9,414,198) in 2023.

As of September 30, 2024, Cryomass reported total current assets of $296,255, up from $152,522 at the end of 2023. However, total current liabilities surged to $7,243,076 from $2,493,962, resulting in a working deficit of $(6,946,821). The company had cash and cash equivalents of $183,439, a significant increase from $49,224 at the end of 2023.

Strategically, Cryomass Technologies continues to focus on its patented cryogenic technology for refining cannabis and hemp. The company has faced challenges, including the termination of its agreement with RubberRock Inc. due to non-compliance, which has impacted its revenue generation. The company has also expressed substantial doubt about its ability to continue as a going concern without additional financing or revenue generation, estimating a need for approximately $3.6 million for overhead costs and up to $2.7 million for capital expenditures over the next twelve months.

Overall, while Cryomass Technologies has made strides in reducing losses and expenses, it continues to navigate significant financial challenges and operational hurdles.