JRSIS Health Care Corporation reported significant financial developments in its 10-Q filing for the quarter ending June 30, 2024. The company experienced a notable increase in revenue, with total revenue for the three months reaching $597,396, a 77% increase from $337,395 in the same period of 2023. For the six months ended June 30, 2024, revenue totaled $1,097,816, up 35% from $814,389 in the prior year. This growth was primarily driven by a substantial rise in service revenue, which surged to $450,666 from $78,497 year-over-year, while revenue from goods sold decreased.

Gross profit for the three months ended June 30, 2024, was $186,112, representing a gross margin of 31%, compared to 12% in the same period last year. However, operating expenses also increased significantly, totaling $304,830 for the quarter, an 83% rise from $166,894 in 2023. This led to a loss from operations of $(118,718) for the quarter, slightly improved from $(127,283) in the previous year. The net loss for the three months was $(119,755), a marginal decrease from $(123,957) in 2023.

For the six-month period, the net loss escalated to $(289,703), compared to $(70,822) in the same period of 2023, reflecting a 309% increase in losses. The accumulated deficit as of June 30, 2024, stood at $(3,690,689), up from $(3,442,898) at the end of 2023.

The company’s cash position improved significantly, with cash on hand increasing to $445,902 from $118,114 at the end of 2023. However, cash outflows from operations were $(473,795) for the six months, contrasting with a cash inflow of $510,997 in the same period last year. The working capital deficit also improved to $286,118 from $458,552 year-over-year.

Strategically, JRSIS completed a reverse acquisition of Yongzhou Jumi Intelligent Technology Co., Ltd. on November 30, 2023, acquiring an 85.53% variable interest. This acquisition marks a shift in the company’s business focus towards smart medical technology. The company has also established management agreements with Yongzhou JIT, which are expected to enhance operational capabilities.

Overall, while JRSIS Health Care Corporation has shown growth in revenue and improved cash reserves, it continues to face challenges with increasing losses and operational expenses.