Kindcard, Inc. Reports 11.5% Revenue Growth in Q3 FY 2024, Faces Increased Net Loss

Kindcard, Inc. reported its financial results for the third quarter of fiscal year 2024, revealing a total revenue of $139.4 million for the three months ending October 31, 2024, compared to $125.4 million for the same period in 2023, marking an increase of 11.5%. For the nine-month period, revenue decreased to $306.2 million from $381.4 million in the prior year, reflecting a decline of 19.7%. The company reported a gross profit of $114.1 million for the quarter, up from $95.3 million year-over-year, while the nine-month gross profit fell to $240.6 million from $313.7 million.

The company experienced a net loss of $7.6 million for the third quarter, a significant improvement from a loss of $48.7 million in the same quarter of the previous year. However, the nine-month net loss increased to $181.2 million from $100.8 million in the prior year. The increase in losses for the nine-month period was attributed to higher operating expenses, which rose to $419.5 million from $411.3 million, primarily due to increased general and administrative costs.

In terms of operational developments, Kindcard, Inc. maintained a consistent employee headcount of 98.2 million shares of common stock issued and outstanding as of October 31, 2024. The company continues to focus on its strategic initiatives, including the development of its proprietary mobile wallet technology, "Pay with Deb," which aims to capture market share in the mobile wallet segment. The company has also indicated plans for geographic expansion and increased product adoption rates, although specific metrics were not disclosed in the filing.

The financial statements indicate that Kindcard, Inc. is facing challenges related to its working capital, with a deficit of $882,234 as of October 31, 2024. The company has acknowledged the need for additional funding to meet ongoing obligations and to support anticipated operating losses. Management has expressed intentions to pursue private placements and advances from related parties to secure necessary capital. The outlook remains cautious, with substantial doubt raised regarding the company's ability to continue as a going concern over the next year without raising additional funds.