Therapeutic Solutions International, Inc. (TSOI) reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company experienced a decrease in net sales, reporting $19.7 million for the third quarter of 2024, down from $25.7 million in the same period of 2023. For the nine months ended September 30, 2024, net sales totaled $61.5 million, a decline from $75.2 million in the prior year. This decrease was attributed primarily to reduced sales from the company's product line.

Gross profit for the third quarter of 2024 was $15.3 million, compared to $18.7 million in the previous year. The cost of goods sold also decreased, amounting to $4.4 million for the third quarter of 2024, down from $7.1 million in 2023. However, total operating expenses surged to $1.97 million in Q3 2024, a substantial increase from $476,000 in Q3 2023, largely due to heightened consulting fees, which rose to $1.57 million from $20,150.

The company reported a net loss of $2.04 million for the third quarter of 2024, compared to a loss of $602,857 in the same quarter of 2023. For the nine-month period, the net loss was $3.26 million, up from $1.74 million in the prior year. The increase in losses was primarily driven by higher consulting and legal fees.

As of September 30, 2024, TSOI's total current assets rose significantly to $498.7 million from $85.9 million at the end of 2023, while total assets increased to $3.6 million from $3.3 million. Total liabilities decreased to $1.92 million from $2.01 million, resulting in total shareholders' equity rising to $1.24 million, up from $1.13 million at the end of 2023.

The company has faced challenges, including an accumulated deficit of approximately $22.3 million since inception and a working capital deficit of about $1.3 million. Management indicated that existing cash resources are insufficient to fund operations for the next twelve months, necessitating additional financing through equity offerings, debt financings, or collaborations.

Strategically, TSOI has been active in expanding its intellectual property portfolio, filing numerous patent applications related to its regenerative medicine and immunotherapy initiatives. The company has also established several subsidiaries to focus on specific therapeutic areas, including CTE and COPD treatments, and has initiated clinical trials for various applications of its stem cell technologies. However, the company acknowledged material weaknesses in its internal controls over financial reporting, which it is addressing.