Sentinel Holdings Reports 47.8% Revenue Decline and $8.4 Million Net Loss for Fiscal Year 2024

Sentinel Holdings Ltd., formerly known as James Maritime Holdings Inc., reported a significant decline in financial performance for the fiscal year ending December 31, 2024. The company generated revenues of $4.6 million, a decrease of 47.8% from $8.8 million in 2023. This decline was primarily attributed to the loss of key customers, which also contributed to a drop in gross profit margins from 31% to 9%. The cost of revenues decreased to $4.2 million, down from $6.1 million in the previous year, resulting in a gross profit of $413,460 compared to $2.8 million in 2023. Operating expenses surged by 77.8% to $7.9 million, leading to a net loss available to common stockholders of $8.4 million, a substantial increase from a loss of $2.5 million in the prior year.

Strategically, Sentinel Holdings has been focusing on growth through acquisitions, particularly in the private security and personal protective equipment sectors. The company has made significant organizational changes, including the acquisition of United Security Specialists Inc. (USS) and Gladiator Solutions Inc. in recent years. However, Gladiator's operations have been limited due to ongoing litigation, which has affected its ability to generate revenue. The company plans to relaunch Gladiator's product line once the litigation is resolved. As of December 31, 2024, Sentinel Holdings had 168 employees, with 152 full-time and 16 part-time staff.

Operationally, the company has faced challenges, including a significant reliance on a limited number of customers, which accounted for 87.2% of total revenues in 2024. The company has recognized the need to diversify its customer base to mitigate risks associated with customer concentration. Additionally, the company has been actively pursuing new markets and enhancing its service offerings, including the integration of smartphone-based security applications to improve service delivery.

Looking ahead, Sentinel Holdings anticipates the need for additional capital to fund its operations and growth initiatives. The company reported a working capital deficit of $4.4 million and an accumulated deficit of $22.3 million as of December 31, 2024. Management has outlined plans to expand into new markets, secure additional financing, and explore strategic collaborations to enhance its business model. However, the company acknowledges substantial doubt about its ability to continue as a going concern without raising additional funds.