Limitless X Holdings Reports 42% Revenue Decline and Significant Net Loss in Latest Quarter

Limitless X Holdings Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending September 30, 2024. The company generated net revenue of $607,161 for the three months ended September 30, 2024, a decrease of 42% compared to $1,047,271 in the same period of the previous year. For the nine months ended September 30, 2024, total revenue was $3,024,112, down 78.2% from $13,893,798 in the prior year. The decline in revenue is attributed to a shift in marketing strategies and a change in performance marketers, which adversely affected product sales.

Despite the drop in revenue, Limitless X Holdings managed to reduce its cost of sales significantly. The cost of sales for the three months ended September 30, 2024, was $154,287, representing 25.4% of sales, compared to $669,539, or 63.9% of sales, in the same quarter of 2023. For the nine-month period, the cost of sales decreased to $797,565, or 26.4% of sales, from $7,179,430, or 51.6% of sales, in the previous year. This reduction in costs resulted in a gross profit of $452,874 for the third quarter of 2024, up from $377,732 in the same quarter of 2023.

Operating expenses also saw a notable decline, falling to $954,951 for the three months ended September 30, 2024, from $1,631,895 in the prior year, primarily due to reduced advertising, marketing, and payroll expenses. The company reported a net loss of $726,585 for the third quarter of 2024, a significant improvement from the loss of $1,705,172 in the same period of 2023. For the nine months ended September 30, 2024, the net loss was $2,451,987, compared to a loss of $14,434,536 in the previous year.

In terms of operational metrics, Limitless X Holdings reported a decrease in employee headcount, which contributed to lower payroll expenses. The company also noted a strategic shift in its marketing approach, moving away from reliance on performance marketers and celebrity endorsements. As of September 30, 2024, the company had total assets of $115,800, a significant decline from $307,740 at the end of 2023, primarily due to reduced cash and accounts receivable.

Looking ahead, Limitless X Holdings indicated that it needs to raise additional capital to support its operations and business model. The company has not faced liquidity issues in settling payables but acknowledges the risks associated with renewing loans and the competitive landscape in which it operates. The management is committed to enhancing its financial reporting and internal controls, recognizing the need for additional personnel to improve oversight and reduce the risk of material misstatements in financial statements.