Vestiage, Inc. (OTC: VEST) reported its financial results for the three and nine months ended September 30, 2024, revealing continued challenges in generating revenue and managing expenses. The company reported no revenues for both the three and nine months periods, consistent with the previous fiscal year.

For the three months ended September 30, 2024, Vestiage incurred a net loss of $9.967 million, slightly improved from a net loss of $10.132 million in the same period of 2023. Operating expenses for this quarter were $9.967 million, down from $10.132 million year-over-year. For the nine months ended September 30, 2024, the net loss was $36.851 million, compared to $46.323 million for the same period in 2023. Operating expenses for the nine-month period decreased to $36.851 million from $46.323 million in the prior year.

The company's total liabilities increased significantly to $94.546 million as of September 30, 2024, up from $57.695 million at the end of 2023. This rise was primarily attributed to an increase in accounts payable and accrued expenses, which surged from $853,000 to $14.305 million. Additionally, the amount due to related parties rose to $80.241 million from $56.842 million, reflecting ongoing reliance on related party financing.

Vestiage's accumulated loss as of September 30, 2024, stood at $(10.487 million), a slight increase from $(10.450 million) at the end of 2023. The total stockholders' deficit also widened to $(94.546 million) from $(57.695 million) over the same period.

The company has faced operational challenges, including a lack of cash, ending the reporting period with no cash on hand compared to $637,000 at the end of September 2023. The net cash used in operating activities for the nine months ended September 30, 2024, was $(23.399 million), a decrease from $(46.323 million) in the prior year.

Strategically, Vestiage executed a Share Exchange Agreement with Fun Fitness Corporation (FFC) in December 2022, acquiring 100% of FFC's stock. However, the company disposed of FFC on December 31, 2023, recognizing a gain of $7.748 million on the transaction. This disposal did not represent a strategic shift in operations.

Management has acknowledged significant internal control weaknesses, particularly in the segregation of duties, which could lead to material misstatements in financial reporting. Despite these challenges, the company continues to seek avenues for mitigating these weaknesses. As of the reporting date, Vestiage is not involved in any material legal proceedings and has not defaulted on any senior securities.