One World Products, Inc. reported a net loss of $3.94 million for the fiscal year ending December 31, 2024, a slight improvement from the $3.95 million loss recorded in the previous year. The company's revenues decreased by 36% to $4,863, down from $7,589 in 2023, primarily due to a shift in focus from cannabis seed sales to the sale of CBD products. The cost of goods sold also saw a significant reduction, dropping to $948 from $173,122, reflecting the transition in product lines. The gross profit margin improved to approximately 81% in 2024, compared to a negative margin in the prior year.
The company underwent significant operational changes during the reporting period, including the liquidation of its Colombian subsidiary, One World Pharma S.A.S. (OWP SAS), which filed for protection under Colombian insolvency laws in December 2023. This decision was made after the subsidiary accumulated approximately $1.2 million in financial obligations. The liquidation process, initiated on October 1, 2024, is expected to last about one year, during which the company will focus on resolving litigation and liquidating assets, including its farm in Popayán.
In terms of strategic developments, One World Products launched a CBD-based product called Pro-11 in the United States in March 2024. The company has also engaged in research and development for industrial hemp solutions targeting the automotive market, collaborating with industry partners to create hemp-based molded containers for automotive parts. Despite these initiatives, the company reported no revenue-generating operations from its Colombian subsidiary, which has been deconsolidated from its financial statements.
As of December 31, 2024, One World Products had current assets of $68,300, primarily in cash and inventory, against current liabilities of $3.17 million, resulting in a working capital deficit of $3.1 million. The company had two full-time employees and is actively seeking additional financing to support its operations and growth initiatives. The management has expressed concerns about the company's ability to continue as a going concern without raising additional capital, given its ongoing losses and negative working capital.
Looking ahead, One World Products aims to stabilize its operations and achieve profitability through its new product lines and strategic partnerships. However, the company acknowledges the risks associated with market conditions, regulatory compliance, and competition in the cannabis and hemp industries. The management's ability to secure additional funding and successfully implement its business strategies will be critical to the company's future performance.
About One World Products, Inc.
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