Wytec International, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a substantial decline in revenue, with total revenues for the three months amounting to $88,034, a decrease of 56% from $201,826 in the same period of 2023. For the nine months ended September 30, 2024, revenues totaled $128,146, down 48% from $245,046 in the prior year. This decline is primarily attributed to reduced sales from in-building cellular systems, which accounted for 95% of revenue during the nine-month period.

Despite the drop in revenue, Wytec's selling, general, and administrative expenses increased significantly. For the three months ended September 30, 2024, these expenses rose to $546,622, up 10% from $496,147 in the previous year. Over the nine-month period, expenses surged by 103% to $2,301,202 compared to $1,135,131 in 2023. This increase in expenses contributed to a larger operating loss of $(645,191) for the third quarter, compared to $(434,553) in the same quarter of the previous year. The net loss for the three months ended September 30, 2024, was $(663,872), compared to $(499,935) in 2023.

The company's financial position has deteriorated, with total current assets dropping to $142,611 as of September 30, 2024, from $595,063 at the end of 2023. Total assets also fell to $850,008, while total liabilities increased to $2,199,456, up from $2,097,393. The accumulated deficit widened to $(33,724,898) from $(31,109,214) at the end of the previous fiscal year, and total stockholders' deficit increased to $(1,349,448).

In terms of strategic developments, Wytec is focusing on the commercialization of a multichannel transmission product that integrates in-building cellular, private LTE, and gunshot detection services, expected to launch in Q3 2024. The company has also engaged Trabus Technologies for software development and signed a development agreement with Lemko Corporation for manufacturing enhancements to its LPN-16 technology.

The company has raised funds through convertible promissory notes, generating $275,000 in the nine months ended September 30, 2024, compared to $1,410,000 in the same period of 2023. Cash at the end of the reporting period was $101,452, a significant decrease from $564,760 at the end of 2023, raising concerns about its ability to continue as a going concern. Wytec estimates it will need $3,400,000 in capital over the next twelve months to sustain operations.