Nano Magic Inc. reported a decline in financial performance for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Net revenues for the third quarter of 2024 were $640,271, down from $658,159 in 2023. For the nine-month period, revenues decreased to $1,837,005 from $2,064,481 in the prior year.
Gross profit also saw a significant drop, with the third quarter of 2024 reporting $24,151 compared to $82,479 in 2023. For the nine months, gross profit fell to $46,933 from $359,367. This decline in revenue and gross profit contributed to a larger loss from operations, which amounted to $(1,451,639) for the third quarter of 2024, compared to $(663,148) in 2023. For the nine-month period, the loss from operations increased to $(2,974,546) from $(2,009,247).
The net loss for the third quarter of 2024 was $(1,409,093), up from $(699,675) in the same quarter of 2023. For the nine months, the net loss rose to $(2,979,965) from $(2,003,577). The company reported a substantial increase in total operating expenses, which reached $1,475,790 in the third quarter of 2024, compared to $745,627 in 2023. For the nine months, total operating expenses increased to $3,021,479 from $2,380,034.
As of September 30, 2024, total current assets decreased to $1,040,845 from $1,699,821 at the end of 2023. Total assets also fell from $3,515,104 to $2,294,906 during the same period. Current liabilities surged to $1,930,811, up from $1,244,852, contributing to an increase in total liabilities to $2,439,803 from $2,205,366. Consequently, total stockholders’ equity showed a significant decline, moving to $(144,897) from $1,309,738.
The company reported a working capital deficit of $(889,966) as of September 30, 2024, compared to a working capital of $454,969 at the end of 2023. Management expressed substantial doubt regarding the company's ability to continue as a going concern within one year from the issuance of these financial statements.
In terms of cash flow, net cash used by operating activities increased to $(1,634,053) for the nine months ended September 30, 2024, compared to $(1,057,794) in 2023. The company also reported proceeds from the sale of a subsidiary amounting to $100,000 during this period.
About Nano Magic Inc.
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