Mastermind, Inc. reported significant declines in revenue and profitability for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Revenues for the third quarter were $267,345, a decrease of 78% from $1,208,758 in the prior year. For the nine-month period, revenues fell to $1,878,272, down 49% from $3,665,053. The company attributed this decline to delays in a significant client's initiative due to reorganization and project completion timing.

Gross profit for the third quarter was $44,478, representing 17% of revenues, compared to $761,915 (63% of revenues) in the same quarter of 2023. For the nine months, gross profit decreased to $1,077,362 (57% of revenues) from $2,259,791 (62% of revenues). The drop in gross profit was linked to lower revenues and higher direct expenses associated with customer projects.

Operating expenses for the third quarter decreased to $352,948 from $600,392, a reduction of 41.2%. Despite this decrease, the company reported a loss from operations of $308,470, compared to an income of $161,523 in the same quarter of 2023. For the nine months, the loss from operations was $177,739, a significant decline from an income of $525,934 in the prior year.

Net income for the third quarter was a loss of $223,678, compared to a profit of $129,597 in the same period of 2023. For the nine months, the net loss was $117,490, down from a net income of $402,959 in the previous year. The company also reported cash and cash equivalents of $510,541 as of September 30, 2024, a decrease of 55.1% from $1,137,010 at the end of 2023.

Mastermind, Inc. has a backlog of approximately $2.2 million in client work orders as of September 30, 2024. The company has also undergone a change in its fiscal year end, moving from September 30 to December 31, effective January 1, 2024.

In terms of legal matters, Mastermind successfully had a lawsuit dismissed in March 2024, which involved allegations of breach of contract related to a reverse merger transaction. The company is not currently involved in any other legal proceedings that could materially affect its financial position.

As of September 30, 2024, Mastermind, Inc. had total assets of $2,820,711 and total liabilities of $357,844, resulting in stockholders' equity of $2,462,867.