Two Hands Corporation reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing significant changes in revenue, profitability, and strategic direction compared to the previous fiscal period.

For the three months ended September 30, 2024, the company generated sales of $179.5 million, a decrease of 16% from $212.5 million in the same period of 2023. The gross profit also fell sharply to $26.0 million, down 53% from $55.3 million year-over-year. The decline in sales was primarily attributed to the cessation of the gocart.city online delivery service, which reported no revenue in Q3 2024 compared to $15.5 million in Q3 2023. The remaining revenue came from Grocery Originals and Cuore Food Services, which saw a 9% decrease in sales.

Operating expenses for the third quarter decreased slightly to $300.7 million from $307.2 million, mainly due to lower salaries and benefits. The company reported a loss from operations of $(274.6) million, compared to $(252.0) million in the prior year. The net loss attributed to Two Hands Corporation for Q3 2024 was $(333.1) million, a significant improvement from a net loss of $(565.8) million in Q3 2023.

For the nine months ended September 30, 2024, total sales were $569.3 million, down 3% from $585.2 million in the same period of 2023. However, gross profit increased by 4% to $86.0 million, compared to $82.9 million in the previous year. The net loss for the nine-month period was $(1.6) million, slightly higher than the $(1.6) million loss reported in 2023.

The company’s total assets decreased to $167.4 million as of September 30, 2024, from $194.6 million at the end of 2023, while total liabilities increased to $3.3 billion from $2.9 billion. This resulted in a stockholders' deficit of $(3.3) million, worsening from $(2.8) million at the end of the previous fiscal year.

Strategically, Two Hands Corporation has shifted its focus exclusively to the grocery market since July 2021, operating through Cuore Food Services after selling the assets of gocart.city on May 1, 2023. The company continues to rely on financing from its CEO and other sources to support operations, with cash balances declining to $11.9 million as of September 30, 2024, from $24.4 million at the end of 2023.

The company has also faced challenges with its internal controls, identifying material weaknesses that management plans to address contingent on securing additional financing.