PishPosh, Inc. reported significant financial changes in its 10-Q filing for the nine months ended September 30, 2024. Total current assets decreased to $4.04 million from $5.06 million at the end of 2023, while total assets fell from $5.17 million to $4.06 million. Current liabilities increased from $9.05 million to $10.54 million, contributing to a rise in total liabilities from $9.05 million to $11.23 million. The company’s accumulated deficit grew to $(23.07 million) from $(17.02 million), and total stockholders’ deficit increased from $(3.89 million) to $(7.16 million).

Net revenues for the third quarter of 2024 were $2.52 million, down from $3.97 million in the same period of 2023, marking a decrease of $1.44 million. For the nine months, revenues fell to $8.29 million from $12.97 million. Gross profit for the third quarter also declined to $0.69 million from $1.22 million, while gross profit for the nine months decreased to $2.48 million from $4.20 million. The loss from operations for the third quarter was $(0.78 million), slightly improved from $(0.80 million) in 2023, but the net loss increased to $(1.36 million) from $(0.59 million). For the nine months, the net loss was $(6.05 million), down from $(9.47 million) in the prior year.

The decrease in revenue was attributed to a delayed public offering, which affected inventory acquisition and marketing efforts for new product launches. Operating expenses for the third quarter were reduced to $1.47 million from $2.02 million, reflecting cost-cutting measures, particularly in sales and marketing, which dropped to $0.70 million from $1.20 million.

PishPosh has been primarily financed through loans and proceeds from the sale of preferred and common stock. The company is actively seeking to raise capital via an equity offering, having filed an amended Form S-1 on August 30, 2024. The company reported negative cash flows from operations, raising concerns about its ability to continue as a going concern.

As of September 30, 2024, PishPosh had $40,735 in cash, a significant decrease from $368,242 at the end of 2023. The company’s debt situation includes outstanding loans from Altbanq Lending LLC, with an outstanding balance of $1.67 million as of the reporting date. Interest expenses have increased due to new loans and merchant advances, impacting overall profitability.

The company also identified material weaknesses in its internal controls, prompting plans to enhance staffing in the finance department and hire external consultants to address these issues.