Nocera, Inc. Reports Significant Decline in Net Sales and Net Loss in Q3 2024, Despite Gross Profit Increase

Nocera, Inc. reported significant financial changes in its 10-Q filing for the quarter ending September 30, 2024. The company experienced a substantial decline in net sales, reporting $1.36 million for the three months ended September 30, 2024, compared to $7.28 million for the same period in 2023. For the nine months ended September 30, 2024, net sales totaled $13.02 million, down from $16.45 million in the prior year. This revenue decrease is attributed to declines in the Nocera fish trading and Meixin catering businesses, which generated $0.2 million and $0.14 million in Q3 2024, respectively, compared to $7.9 million and $4.8 million for the same period in 2023.

Despite the drop in sales, Nocera reported a gross profit of $34,131 for Q3 2024, down from $51,369 in Q3 2023, while gross profit for the nine-month period increased slightly to $163,879 from $157,260 year-over-year. The company recorded a net loss of $(298,382) for Q3 2024, compared to $(272,778) in Q3 2023. However, the net loss for the nine months ended September 30, 2024, improved to $(1,161,554) from $(1,607,279) in the previous year, primarily due to reduced general and administrative expenses.

Nocera's total assets increased to $7.06 million as of September 30, 2024, from $5.03 million at the end of 2023, while total liabilities rose to $2.42 million from $1.77 million. Stockholders' equity also improved, reaching $4.59 million compared to $3.18 million at the end of the previous fiscal year.

The company has been active in strategic acquisitions, including a 100% controlling interest in Zhejiang Xinca Mutual Entertainment Culture Media Co., Ltd. and Hangzhou SY Culture Media Co. Ltd. in early 2024, through the exchange of restricted common stock. Nocera aims to expand its operations in Taiwan and explore opportunities in North and South America, particularly in the aquaculture sector.

Cash and cash equivalents decreased significantly to $372,270 as of September 30, 2024, from $1.23 million at the end of 2023. The company reported net cash used in operating activities of $(909,563) for the nine months ended September 30, 2024, an improvement from $(1,052,084) in the same period of 2023. Additionally, Nocera reported net cash provided by investing activities of $211,801 for the nine months ended September 30, 2024, contrasting with $(1,057,870) in the previous year.

Nocera's management has identified material weaknesses in its disclosure controls and procedures, including insufficient documentation of internal control policies and inadequate monitoring of financial reporting processes. The company plans to address these weaknesses in the latter half of 2024 through various initiatives, including enhancing IT systems and providing employee training on accounting policies.