Kaya Holdings Reports Significant Revenue and Profit Declines in Q3 and Nine Months of Fiscal 2024

Kaya Holdings, Inc. reported significant declines in revenue and profitability for the third quarter and the first nine months of fiscal 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, net sales were $3,000, a sharp decrease from $59,011 in the prior year. Similarly, for the nine months ended September 30, 2024, revenues fell to $31,009 from $162,372 in 2023. Gross profit mirrored this trend, dropping to $2,728 for the third quarter and $17,331 for the nine months, compared to $36,923 and $103,970, respectively, in the previous year.

The company's operating expenses surged dramatically, totaling $1,143,124 for the third quarter and $1,855,549 for the nine months, compared to $313,053 and $1,029,291 in the same periods of 2023. This increase was primarily attributed to the opening of a new psilocybin treatment center, which led to higher professional fees and selling, general, and administrative expenses. Consequently, Kaya Holdings reported an operating loss of $(1,140,396) for the third quarter and $(1,838,218) for the nine months, compared to losses of $(276,130) and $(925,321) in the prior year.

Net income from continuing operations before income taxes reflected a substantial loss of $(2,495,327) for the third quarter and $(3,240,978) for the nine months, contrasting sharply with net income of $2,101,012 and $1,435,628 in 2023. The overall net loss for the third quarter was $(2,495,327), compared to a net income of $2,095,742 in the same quarter of 2023. For the nine-month period, the net loss was $(3,139,691), down from a net income of $1,368,016 in the previous year.

Kaya Holdings has been actively pursuing strategic developments, including the establishment of its psilocybin treatment center, The Sacred Mushroom™, which received operational approval in April 2024 and commenced operations in August 2024. The company also reported a working capital deficiency of $8,982,011 as of September 30, 2024, and is relying on raising capital through equity and debt securities to address this shortfall.

The company’s cash position improved slightly, with an ending balance of $64,794 as of September 30, 2024, compared to $60,268 a year earlier. However, the increase in cash was modest, reflecting ongoing operational challenges. The company continues to navigate a complex regulatory environment while expanding its footprint in both the cannabis and emerging psychedelic treatment markets.