QHSLab, Inc. reported significant financial improvements in its latest 10-Q filing for the three and nine months ended September 30, 2024. The company achieved revenues of $544,285 for the third quarter, marking a 62% increase from $336,407 in the same period of 2023. For the nine months, total revenue reached $1,505,945, a 38% rise from $1,093,974 year-over-year. This growth was primarily driven by a 143% increase in revenue from the Integrated Service Program, which totaled $449,203, and a 21% increase in sales of Allergy Diagnostic Kits, amounting to $648,175.

Gross profit for the third quarter was $365,133, up from $189,510 in 2023, resulting in a gross margin of 67.1%, compared to 56.3% in the prior year. For the nine-month period, gross profit was $945,736, with a gross margin increase from 55.2% to 62.8%. The company reported net operating income of $89,090 for the third quarter, a turnaround from a loss of $(35,233) in the same quarter of 2023. Net income for the third quarter was $49,765, compared to a net loss of $(82,443) in the prior year. For the nine months, net income was $28,350, a significant improvement from a net loss of $(381,725) in 2023.

QHSLab's cash and cash equivalents increased to $95,945 as of September 30, 2024, up from $51,582 at the end of 2023. Accounts receivable also rose significantly to $198,221 from $71,382, reflecting improved revenue collection. Total current assets surged to $349,274, compared to $156,132 at the end of 2023.

Despite these positive developments, the company remains highly leveraged, with total liabilities of $2,099,910 as of September 30, 2024, up from $2,057,049 at the end of 2023. The total stockholders’ deficit improved to $(335,267) from $(375,617) over the same period. The company is currently in default on several obligations, including the Original Issue Discount Notes and the Acquisition Note, which may impact its future financial stability.

Research and development expenses increased to $79,500 for the third quarter, up from $45,419 in 2023, indicating ongoing investment in product development. General and administrative expenses for the third quarter rose to $55,699, while sales and marketing expenses increased slightly to $122,816.

Overall, QHSLab, Inc. has shown a positive trajectory in revenue and profitability, although it faces challenges related to its debt obligations and operational cash flow management.