Stemtech Corporation reported its financial results for the third quarter and nine months ended September 30, 2024, revealing a mixed performance compared to the previous fiscal period. For the three months ending September 30, 2024, net sales decreased to $1,031,630 from $1,298,322 in the same period of 2023, attributed to reduced inventory levels and a recent price increase. However, for the nine months ended September 30, 2024, net sales increased by 5% to $3,740,000, up from $3,559,789 in 2023, driven by general price increases.
The cost of goods sold (COGS) for the third quarter rose to $380,205, a 31% increase from $290,896 in the prior year, primarily due to rising manufacturing costs. Gross profit for the quarter fell to $651,425 from $1,007,426, while for the nine-month period, gross profit decreased slightly to $2,682,249 from $2,777,894. Operating expenses for the third quarter decreased to $1,367,895 from $1,586,417, and for the nine months, they fell to $5,101,839 from $5,575,492, reflecting cost-cutting measures.
Despite these reductions in operating expenses, the company reported an operating loss of $(716,470) for the third quarter, compared to $(578,991) in the same quarter of 2023. The net loss for the third quarter increased to $(1,171,405) from $(1,040,093) year-over-year. However, the net loss for the nine months decreased to $(3,376,121) from $(3,567,983) in the previous year.
As of September 30, 2024, Stemtech's current assets rose significantly to $778,586 from $400,710 at the end of 2023, with cash increasing to $260,344 from $114,166. Current liabilities also increased to $9,589,603 from $6,462,036, leading to a decline in total stockholders' equity to $(5,950,518) from $(2,778,765).
Strategically, Stemtech has focused on expanding its product offerings and enhancing its marketing strategies. The company has introduced new products, including the Cellect One® Rapid Renew Stem Cell Peptide Night Cream, and aims to increase its Independent Business Partners (IBPs) sales force by 30,000 over the next 12 to 24 months. The company continues to navigate challenges in the post-pandemic economy and supply chain issues while seeking additional capital through securities issuances to support its operations.
About Stemtech Corp
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