MetAlert, Inc. reported significant financial developments in its 10-Q filing for the third quarter of 2024, reflecting both challenges and strategic adjustments. For the three months ended September 30, 2024, the company generated total revenues of $52,028, a 39% decrease from $85,741 in the same period of 2023. The decline in revenue was primarily attributed to production delays of key products, including SmartSoles and the new GunAlert version 2, with deliveries expected in early October 2024. However, international subscription revenues increased by 62%, and SmartSole B2C sales rose by 59%, driven by a direct-to-consumer advertising campaign.

Total operating expenses for the third quarter decreased to $153,054 from $253,464 in the prior year, reflecting cost-cutting measures. The net loss for the quarter was $(197,832), a notable improvement from $(429,561) in Q3 2023. This reduction in net loss was attributed to lower revenues from transitioning out of direct-to-consumer PPE sales and efforts to market new Level 2 Security Products.

For the nine months ended September 30, 2024, total revenues were $144,509, down 30% from $207,272 in the same period of 2023. The decrease was linked to a strategic shift from direct-to-consumer PPE sales to a core B2B business model, alongside production delays. Despite the revenue drop, gross profit improved to $91,370, representing 63% of revenues, compared to $47,928 (23% of revenues) in 2023.

The company’s total assets decreased to $514,731 as of September 30, 2024, from $610,195 at the end of 2023, while total liabilities increased to $4,757,415 from $4,509,069. The total stockholders’ deficit widened to $(4,242,684) from $(3,898,874) at the end of 2023. Cash and cash equivalents also fell significantly to $29,308 from $68,440.

Strategically, MetAlert acquired Level 2 Security, LLC in September 2023, integrating it into a wholly owned subsidiary, Level 2 Security Products, Inc. The company continues to focus on expanding its product offerings and customer base, with a notable shift towards B2B sales, which constituted 63% of its customer base as of September 30, 2024, compared to 51% in the previous year.

Overall, while MetAlert faces ongoing financial challenges, it is actively pursuing growth through strategic acquisitions and product launches, aiming to stabilize and enhance its market position.