Jacksam Corporation, operating under the name Convectium, reported significant financial challenges in its latest 10-Q filing for the period ending September 30, 2024. The company, which specializes in vaporizer cartridge filling and capping technology, experienced a notable decline in revenue. For the three months ended September 30, 2024, total sales were $151,432, a decrease from $190,747 in the same period of 2023. For the nine-month period, revenue fell to $583,077 from $1,221,782 year-over-year. This decline was attributed primarily to a drop in non-machine sales, which accounted for $145,432 in Q3 2024 compared to $577,077 in Q3 2023.
The cost of sales for the three months ended September 30, 2024, was $159,540, up from $92,610 in the prior year, leading to a gross loss of $8,108, contrasting sharply with a gross profit of $98,137 in Q3 2023. For the nine-month period, the cost of sales decreased to $440,000 from $745,511, but the gross profit also fell to $143,077 from $476,271.
Operating expenses for the third quarter were reduced to $75,993 from $111,839, yet the company still reported a loss from operations of $84,101, compared to a loss of $13,702 in the same quarter of 2023. The net loss for Q3 2024 was $167,633, a stark contrast to a net income of $1,050,657 in Q3 2023. For the nine-month period, the net loss increased to $659,201 from $539,260.
The company’s financial position has deteriorated significantly, with total current assets dropping to $20,020 as of September 30, 2024, from $232,661 at the end of 2023. Cash reserves plummeted to $1,737 from $145,521. Current liabilities increased to $5,800,026 from $5,114,840, contributing to a total stockholders’ deficit of $(6,192,778) compared to $(5,267,658) at the end of 2023.
Strategically, Jacksam has not reported any significant acquisitions or layoffs but has indicated a need for additional financing to sustain operations over the next 12 months. The company has also recognized a material weakness in internal control over financial reporting. As of September 30, 2024, Jacksam had 93,718,876 shares of common stock outstanding, with a par value of $0.001 per share.
About Jacksam Corp
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