Mitesco Reports Significant Revenue Growth, Net Income Turnaround in Latest Quarter

Mitesco, Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company, which transitioned from operating medical clinics to focusing on data center services and technology investments, recorded revenues of $23,500 for the three months ended September 30, 2024, a notable increase from $0 in the same period of 2023. For the nine months ended September 30, 2024, total revenues reached $29,500, again up from $0 in the prior year, primarily attributed to its newly formed subsidiary, Centcore, LLC.

Total operating expenses for the three months ended September 30, 2024, were $239,742, a substantial rise from $41,876 in the previous year, reflecting the costs associated with establishing new business units. However, total operating expenses for the nine months decreased to $721,095 from $2,362,056, largely due to the winding down of clinic operations.

The company reported a net loss from operations of $(216,242) for the three months ended September 30, 2024, compared to a loss of $(41,876) in the same period of 2023. For the nine months, the net loss was $(691,595), down from $(2,362,056) in the prior year. Notably, Mitesco achieved net income from continuing operations of $2,077,028 for the three months ended September 30, 2024, a significant turnaround from a loss of $(1,176,021) in the same quarter of 2023. For the nine months, net income from continuing operations was $1,711,107, compared to a loss of $(11,635,313) in the previous year.

The company’s financial position improved markedly, with cash and cash equivalents increasing to $31,822 as of September 30, 2024, from $2,838 at the end of 2023. Total current liabilities decreased to $12.1 million from $14.1 million during the same period. Mitesco's total stockholders' deficit also improved, reducing from $(14,131,757) to $(11,999,292).

Strategically, Mitesco closed all clinic operations in late 2022 due to profitability issues and has since formed two wholly owned subsidiaries: Centcore, LLC, focusing on data center services, and Vero Technology Ventures, LLC, aimed at technology investments. The company established an advisory board in early 2024 to guide its new ventures, comprising experts in data center services and cybersecurity.

Mitesco's ongoing financial challenges include substantial debt obligations and a need for capital to sustain operations, as indicated by the substantial doubt regarding its ability to continue as a going concern. The company is actively working on plans to restructure its obligations and raise additional capital.