China Pharma Holdings, Inc. reported significant financial challenges in its 10-Q filing for the nine months ended September 30, 2024. The company experienced a decline in revenue, with total revenue for the three months ending September 30, 2024, at $1.1 million, down from $1.8 million in the same period of 2023. For the nine-month period, revenue decreased to $3.4 million from $4.9 million year-over-year. This decline is attributed to increased competition and certain products failing to pass consistency evaluations.
The company's gross loss for the three months ended September 30, 2024, was $0.52 million, compared to a gross loss of $0.23 million in the same period of 2023. For the nine months, the gross loss escalated to $1.8 million from $0.2 million in the prior year, reflecting a gross loss margin that increased from 4.2% to 53.8%. The operational losses also widened, with a loss from operations of $1.1 million for Q3 2024, compared to $0.7 million in Q3 2023, and a nine-month operational loss of $3.4 million, up from $1.6 million.
As of September 30, 2024, the company reported total assets of $13.5 million, down from $16.5 million at the end of 2023. Current assets also decreased significantly to $3.7 million from $6.0 million, while total stockholders' equity fell to $6.5 million from $7.5 million. The accumulated deficit increased to $42.8 million from $39.3 million.
Cash and cash equivalents were reported at $0.7 million, a decrease from $1.4 million at the end of 2023. The company’s cash flow from operating activities showed a net usage of $0.7 million, slightly higher than the $0.68 million used in the same period last year.
Strategically, China Pharma has been focusing on enhancing its sales model and improving the collection of accounts receivable. The company is also exploring strategic alternatives to expedite the launch of nutrition products. Additionally, it has entered into technology transfer agreements to acquire patents for pharmaceutical compositions, which may provide future revenue streams.
The company’s financial position raises concerns about its ability to continue as a going concern, given the ongoing operating losses and current liabilities exceeding current assets. The management has acknowledged these challenges and is actively seeking solutions to stabilize the business.
About CHINA PHARMA HOLDINGS, INC.
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