One World Products Reports 386% Revenue Increase and Reduced Net Loss in Q1 2025

One World Products, Inc. reported its financial results for the first quarter of 2025, revealing a significant increase in revenue and a notable reduction in net loss compared to the same period in 2024. The company generated revenues of $1,371 for the three months ended March 31, 2025, a 386% increase from $282 in the prior year. This growth was attributed to sales of its CBD product, which has seen modest market adoption. However, the cost of goods sold also rose to $295, up from $49, reflecting the increased sales volume. The gross profit margin for the quarter was 78%, slightly down from 83% in the previous year.

Operating expenses for the quarter decreased significantly to $126,976, down from $777,518 in the same period last year. This reduction was primarily due to lower general and administrative expenses, which fell by 50% to $98,668, and a 95% decrease in professional fees to $28,308. The company reported an operating loss of $125,900, a substantial improvement from the $777,285 loss recorded in the first quarter of 2024. Total other expenses also decreased to $129,766 from $923,737, leading to a net loss of $255,666, or $0.00 per share, compared to a net loss of $1,701,022, or $0.02 per share, in the prior year.

In terms of operational developments, One World Products has faced challenges, including the deconsolidation of its foreign subsidiaries due to financial difficulties. The company’s Colombian subsidiary, OWP SAS, filed for protection under Colombian insolvency law in December 2023, which has impacted its financial standing. As of March 31, 2025, the company reported total assets of $24,663, a significant decrease from $68,300 at the end of 2024, while total liabilities increased to $5,463,159 from $5,255,181. The company’s accumulated deficit also widened to $31,120,364.

Looking ahead, One World Products faces substantial challenges regarding its liquidity and ability to continue as a going concern. As of the end of the first quarter, the company had only $361 in cash and negative working capital of $3,351,082. Management indicated that it may need to raise additional capital to sustain operations over the next twelve months. The company is actively seeking financing options and plans to conserve cash by reducing expenses further. The outlook remains uncertain, with management acknowledging the need for successful capital raising efforts to support its operational goals and growth strategies.