Limitless X Holdings Inc. reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with total revenue dropping to $3.36 million, a decrease of 78.3% from $15.5 million in 2023. The company attributed this decline primarily to a strategic shift from affiliate marketing to in-house digital marketing, which resulted in fewer customer transactions. Despite the revenue drop, the cost of sales also decreased to $1.11 million, leading to a gross profit of $2.25 million, or 67% of total revenue, compared to 69.9% in the previous year.
Operating expenses for Limitless X Holdings decreased to $6.13 million from $17.17 million in 2023, reflecting a reduction in advertising and marketing costs, which fell by $7.95 million as the company transitioned to in-house marketing strategies. Other operating expenses, including professional fees and salaries, also saw reductions. However, the company still reported a net loss of $4.20 million for the year, an improvement from the $13.87 million loss in 2023, indicating a narrowing of losses despite the overall decline in revenue.
In terms of operational developments, Limitless X Holdings is expanding its business model beyond nutritional supplements into sectors such as film and television, regenerative skincare, fintech, and real estate. The company has established several subsidiaries, including Limitless Films, which has already advanced a $1 million bridge loan for film production, and XocelForte Therapeutics, focusing on regenerative skincare products. This diversification aims to leverage the growing health and wellness market, projected to reach $8.95 trillion by 2030.
As of December 31, 2024, Limitless X Holdings had an accumulated deficit of $38.8 million and only $53,549 in cash on hand, raising concerns about its ability to continue as a going concern. The company plans to address its liquidity needs through advances from related parties and potential equity financing, although there are no guarantees of success in these efforts. The management has acknowledged the need for additional capital to support ongoing operations and growth initiatives.
Looking ahead, Limitless X Holdings aims to enhance its market presence through a combination of direct-to-consumer sales and retail distribution, targeting international markets such as Canada and Latin America. The company projects an increase in customer lifetime value from $90 to $270 by 2026, driven by improved customer retention and product bundling strategies. However, the company faces significant risks, including reliance on its CEO for brand ownership and potential challenges in executing its ambitious expansion plans.
About Limitless X Holdings Inc.
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