World Scan Project, Inc. reported significant financial changes in its 10-Q filing for the quarter ending April 30, 2024. The company experienced a notable decline in total revenues, which amounted to $1.97 million, a sharp decrease from $15.52 million in the same period of the previous year. This decline was attributed to reduced sales across its product lines, impacting overall performance.
The gross profit for the quarter was reported at $1.42 million, down from $15.52 million year-over-year. Despite the drop in revenues, total operating expenses decreased significantly to $1.32 million from $8.09 million, reflecting the company's efforts to streamline operations and reduce costs. As a result, income from operations was $93,435, a decrease from $7.43 million in the prior year.
Net income for the quarter was $110,275, compared to $5.13 million in the same period last year. The company also reported a total comprehensive loss of $909,984, contrasting with a comprehensive income of $4.77 million in the previous year. This shift indicates challenges in maintaining profitability amid declining revenues.
On the balance sheet, total assets increased to $16.43 million as of April 30, 2024, up from $14.04 million at the end of October 2023. Current assets rose to $13.47 million, primarily due to a significant increase in advance payments and prepaid expenses, which reached $13.23 million, compared to $5.12 million previously. However, cash and cash equivalents saw a drastic decline, falling to $231,669 from $5.70 million.
Total liabilities decreased to $2.89 million from $5.32 million, with current liabilities also down to $2.37 million from $4.70 million. This reduction in liabilities contributed to an increase in total shareholders' equity, which rose to $13.54 million from $8.72 million.
Cash flows from operating activities for the six months ended April 30, 2024, were negative at $(197,986), a stark contrast to the positive cash flow of $7.15 million in the same period of the previous year. The net change in cash and cash equivalents was $(5.47 million), compared to $(3.45 million) in the prior year, indicating ongoing liquidity challenges.
Overall, World Scan Project, Inc. is navigating a period of financial adjustment, marked by declining revenues and profitability, while also managing its liabilities and operational costs.
About World Scan Project, Inc.
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