Innovative MedTech, Inc. reported significant financial challenges in its 10-Q filing for the quarter ending September 30, 2024. The company experienced a decline in revenue, with total revenues of $428,384, down from $480,708 in the same quarter of 2023. This decrease was attributed to the closure of a corporate location and reduced participant numbers in its Adult Day Services segment. Revenue from participant fees was $252,571, while franchise fees contributed $175,813, compared to $321,490 and $159,218, respectively, in the prior year.
Operating expenses surged to $1,255,128, a 100.02% increase from $627,515 in the previous year, primarily due to higher consulting and legal fees. Consequently, the company reported a net loss of $883,531 for the quarter, a substantial increase from the net loss of $165,063 in Q3 2023. The loss from operations also widened to $(826,744) from $(146,807) year-over-year.
As of September 30, 2024, total assets rose to $1,278,836, up from $651,881 at the end of the previous quarter, while total current liabilities increased slightly to $4,267,697 from $4,108,306. The stockholders' deficit improved to $(5,025,702) from $(5,482,962) in the prior quarter, reflecting a reduction in accumulated deficit to $(40,419,011) from $(39,078,224).
The company’s cash and cash equivalents increased to $174,293 from $113,489 at the end of June 2024, although it remains insufficient to fund operations through June 30, 2025. Innovative MedTech plans to raise additional capital through equity offerings and debt obligations, but faces substantial doubt regarding its ability to continue as a going concern due to financing uncertainties.
Strategically, the company entered into distribution agreements for new products, including the Vein-Eye Carry medical device and an exclusive license for an Oral Thrush mouthwash treatment. However, it also faces legal challenges, including a lawsuit related to unpaid rent and a breach of contract claim from original shareholders of SarahCare, seeking $1,841,537 in damages.
Overall, Innovative MedTech's financial performance reflects ongoing operational difficulties, necessitating urgent capital raising efforts to sustain its business operations.
About INNOVATIVE MEDTECH, INC.
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