Zeo ScientifiX Reports Mixed Financial Results for Nine Months Ended July 31, 2024

Zeo ScientifiX, Inc. (formerly Organicell Regenerative Medicine, Inc.) reported its financial results for the nine months ended July 31, 2024, revealing a mixed performance in revenue and profitability compared to the previous fiscal period. The company generated revenues of $3,376,000, marking a 7.7% increase from $3,136,000 in the same period of 2023. This growth was primarily driven by a $208,000 increase from the recently launched Patient Pure X™ (PPX™) service platform and an 8.6% rise in unit sales of high concentration biologic products, despite a decrease in average sales prices.

For the three months ended July 31, 2024, revenues decreased by 10.6% to $1,091,000 from $1,221,000 in the prior year. This decline was attributed to an 18.3% reduction in average sales prices for high concentration biologic products, although it was partially offset by a significant increase in revenues from the PPX™ service platform.

The cost of revenues for the nine months increased to $619,000 from $375,000, reflecting a 65.1% rise, largely due to costs associated with the PPX™ service platform and increased unit sales. Gross profit for the nine months was $2,757,000, slightly down from $2,761,000 in 2023, with gross margins decreasing from 88.1% to 81.7%.

The company reported a net loss of $3,451,000 for the nine months, a significant improvement from the $5,896,000 loss in the same period of 2023. The loss per share also improved, decreasing from $(0.84) to $(0.55). For the three months ended July 31, 2024, the net loss was $1,012,000, down from $1,618,000 in the prior year.

General and administrative expenses decreased to $6,651,000 for the nine months, down from $8,297,000, primarily due to reduced research and development costs and other operational efficiencies. The company also reported other income of $558,000, compared to none in the previous year, attributed to various settlements and write-offs.

As of July 31, 2024, the company had total assets of $2,221,000, down from $2,782,000 at the end of October 2023. Cash reserves decreased to $1,105,000 from $1,756,000, while total current liabilities were reduced to $3,634,000 from $4,010,000. The stockholders’ deficit increased to $(1,422,000) from $(1,241,000).

Strategically, the company has been focusing on expanding its product offerings and exploring new markets, including a potential entry into the skincare industry. However, management has expressed concerns regarding the company's ability to continue as a going concern, citing substantial doubt about its capacity to generate sufficient revenues to cover operating costs in the near future.