Can B̅ Corp. reported significant financial challenges in its latest 10-Q filing for the period ending September 30, 2024. The company, which has shifted its focus to commercializing cannabis patents and managing receivables from its subsidiary Duramed, experienced a notable decline in revenue. Total revenues for the three months ended September 30, 2024, were $15,269, a decrease of $403,688 compared to $418,957 in the same period of 2023. For the nine months ended September 30, 2024, revenues fell to $656,652 from $1,778,855 in the prior year, reflecting a decrease of $1,122,203.
The cost of revenues also decreased, amounting to $415,816 for the third quarter of 2024, down from $1,235,647 in 2023. However, the gross profit remained negative, with a loss of $(400,547) for the quarter, slightly improved from $(816,690) in the previous year. For the nine-month period, the gross loss deepened to $(1,617,796) compared to $(915,794) in 2023.
Operating losses for the third quarter were $(2,832,960), an improvement from $(3,578,213) in the same quarter of 2023. However, the nine-month loss from operations increased to $(10,054,872) from $(6,834,727) year-over-year. The net loss for the third quarter of 2024 was $(3,262,612), compared to $(4,165,377) in 2023, while the nine-month net loss rose to $(11,452,404) from $(7,931,427).
As of September 30, 2024, the company reported cash and cash equivalents of $7,879, a significant decline from $34,006 at the end of 2023. The total accumulated deficit reached $(113,933,102), and the company reported negative working capital of $(10,049,951). The company is currently funding operations on a month-to-month basis through third-party loans.
Strategically, Can B̅ Corp. has ceased its hemp operations following an auction of assets in March 2024, which generated approximately $300,000. This decision has adversely affected Duramed's staffing and revenue. The company is now focused on protecting and commercializing cannabis patents, raising litigation funding, and restructuring its debt.
In terms of operational changes, the company has implemented a more stringent debt reconciliation process to address previous accounting errors that inflated notes payable. The company also faces substantial doubt regarding its ability to continue as a going concern due to ongoing financial losses and negative working capital.
About Can B Corp
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