As of September 30, 2024, Quest Patent Research Corporation reported significant financial changes compared to the previous fiscal period. The company’s cash and cash equivalents decreased to $136,782 from $563,484 as of December 31, 2023. Accounts receivable also saw a decline, dropping to $908,250 from $3,015,295. Total current assets fell to $1,132,939, down from $3,606,900, while total assets decreased to $4,318,240 from $7,281,503. Despite a reduction in total liabilities to $12,017,951 from $13,517,151, the accumulated deficit increased to $(25,380,892) from $(23,911,021), and total stockholders' deficit rose to $(7,699,939) from $(6,235,876).

In terms of revenue, the company reported patent licensing fees of $900,000 for the three months ended September 30, 2024, a substantial increase from $250,000 for the same period in 2023. For the nine months ended September 30, 2024, licensing fees totaled $2,795,000, compared to $452,500 in the prior year. Gross profit for the three months was $248,482, a turnaround from a loss of $(77,759) in 2023, while gross profit for the nine months reached $1,093,074, compared to a loss of $(160,736) in the previous year.

However, the company reported a loss from operations of $(515,810) for the three months ended September 30, 2024, an improvement from $(676,055) in 2023. The net loss for the same period was $(591,319), down from $(833,286) in 2023. For the nine months, the net loss was $(1,469,871), compared to $(2,942,297) in the prior year.

The company’s cash flows used in operating activities improved to $(235,581) for the nine months ended September 30, 2024, from $(1,516,519) in 2023. However, cash flows used in financing activities were $(191,121), a stark contrast to $5,367,384 in the previous year. The net decrease in cash for the nine months was $(426,702), compared to an increase of $520,865 in 2023.

Strategically, the company has not reported any purchases of patents for the nine months ended September 30, 2024, contrasting with $(3,330,000) in the previous year. The company continues to rely on third-party funding for patent licensing and enforcement, which may affect its financial position. Additionally, the company is evaluating the impact of new accounting standards and has identified weaknesses in its internal controls over financial reporting, which it plans to address.