Ozop Energy Solutions, Inc. reported significant declines in revenue and profitability for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Revenue for the third quarter of 2024 was $74,286, a decrease from $172,559 in 2023. For the nine-month period, revenue fell to $1,267,980 from $4,205,083 in the prior year. The decline was primarily attributed to reduced sales from sourced and distributed products, which dropped to $51,104 in Q3 2024 from $155,009 in Q3 2023, and to $1,005,878 from $4,127,633 for the nine-month period.
Despite the revenue drop, the company reported a gross profit of $23,423 for Q3 2024, down from $46,121 in Q3 2023, but a notable improvement in gross profit for the nine months, rising to $278,025 from a loss of $49,947 in the same period last year. Total operating expenses also decreased significantly, from $2,637,795 in Q3 2023 to $963,460 in Q3 2024, and from $4,670,627 to $2,740,395 for the nine months.
The net loss from continuing operations for Q3 2024 was $(2,093,083), compared to $(326,420) in Q3 2023. However, the nine-month net loss improved to $(4,808,669) from $(6,281,346) in the previous year. The company also reported a loss from discontinued operations of $(2,093,083) for Q3 2024, slightly higher than $(321,058) in Q3 2023.
Ozop Energy Solutions has been actively managing its financial position, with a working capital deficit of $30,760,584 as of September 30, 2024, and an accumulated deficit of $223,479,149. The company is in default on $3,315,000 in debt instruments, raising concerns about its ability to continue as a going concern.
Strategically, the company has focused on its NeoVolt™ System, aimed at the electric vehicle market, and has signed agreements to enhance its product offerings, including a recent partnership with Leviton Manufacturing Co., Inc. for advanced lighting control systems. Additionally, the company has engaged in fundraising activities, raising $979,048 from the sale of common stock during the nine months ended September 30, 2024, compared to $500,537 in the same period of 2023.
The company continues to face challenges, including material weaknesses in internal controls over financial reporting, which management acknowledges could lead to misstatements in financial statements.
About OZOP ENERGY SOLUTIONS, INC.
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