Kisses From Italy Inc. Reports 76.7% Revenue Decline and $199K Net Loss in Latest Filing

Kisses From Italy Inc. reported significant financial challenges in its latest 10-Q filing for the three and nine months ended September 30, 2024. The company generated revenues of $49,327 for the nine-month period, a substantial decline of 76.7% compared to $203,406 in the same period of the previous year. The decrease in revenue is attributed to the closure of its Kisses-Palm Sea Royal location in September 2023 and the subsequent closure of the Kisses From Italy 9th LLC store in June 2024. The cost of goods sold also decreased to $27,380 from $96,259, reflecting lower sales volumes.

The company reported a net loss of $199,155 for the nine months ended September 30, 2024, a significant improvement from the net loss of $4,554,473 reported for the same period in 2023. This reduction in losses is primarily due to a drastic decrease in operating expenses, which fell to $164,334 from $3,155,794 year-over-year. Notably, non-cash stock-based compensation expenses were eliminated in 2024, contributing to the overall reduction in operating costs.

Operationally, Kisses From Italy has undergone significant changes, including the closure of multiple restaurant locations and the dissolution of its subsidiary, The Ponte San’gwich Shoppe & Italian Deli, in February 2024. The company is currently evaluating market conditions and considering relocating its operations within South Florida to enhance operational efficiency and reduce costs. As of September 30, 2024, the company had cash and cash equivalents of $810, down from $24,842 at the end of 2023, indicating a critical liquidity position.

The company’s total liabilities increased to $979,922 as of September 30, 2024, compared to $934,000 at the end of the previous fiscal year. This increase is largely due to rising accounts payable and accrued liabilities. The stockholders' deficit also widened to $974,517 from $881,514, reflecting ongoing financial struggles. The company has indicated that it will require approximately $1,000,000 to support its business development plans, but there is no assurance that it will be able to secure the necessary financing.

Looking ahead, Kisses From Italy Inc. faces substantial uncertainty regarding its ability to continue as a going concern. The company has acknowledged the need for additional financing to sustain operations and has engaged in discussions with potential investors, although no agreements have been finalized. The management's outlook remains cautious, emphasizing the need for strategic adjustments to navigate the challenging market conditions and improve financial stability.