ESG Inc. reported significant financial developments in its 10-Q filing for the period ending September 30, 2024. The company, which focuses on food production and distribution, experienced a notable increase in revenue, with total revenues for the three months reaching $2.2 million, up from $518,192 in the same period of 2023. For the nine months, revenues rose to $7.1 million from $6.0 million year-over-year. However, gross profit for the three months was $508,570, a slight increase from $416,333 in 2023, while gross profit for the nine months decreased to $850,123 from $1.5 million, indicating challenges in maintaining profitability.

Operating income for the third quarter improved to $122,041, compared to a loss of $17,722 in the prior year. However, for the nine-month period, the company reported an operating loss of $262,096, a significant decline from an operating income of $127,150 in 2023. The consolidated net income for the third quarter was a loss of $3,521, contrasting with a net income of $74,483 in the same quarter of 2023. For the nine months, the net loss widened to $684,686 from $26,804 in the previous year.

Total current assets increased to $3.7 million from $2.2 million at the end of 2023, driven by a rise in accounts receivable and advances to suppliers, which surged from $79,221 to $210,526 and from $166,010 to $1.2 million, respectively. Total liabilities also rose, from $13.5 million to $15.0 million, contributing to an accumulated deficit that grew from $1.2 million to $1.7 million.

Strategically, ESG Inc. has been active in expanding its operations, including a share exchange agreement with Funan Allied United Farmer Products Co., Ltd., which resulted in ESG owning 74.52% of AUFP. The company is focusing on increasing production capacity to enhance revenue and reduce costs, amidst a challenging market environment.

Research and development expenses decreased slightly, while general and administrative expenses also saw a reduction. However, selling expenses increased significantly, reflecting the company's efforts to boost market presence. The company reported a negative working capital of $9.96 million as of September 30, 2024, raising concerns about its ability to continue as a going concern.

Overall, ESG Inc. is navigating a complex financial landscape, marked by both growth in revenue and ongoing challenges in profitability and operational efficiency.