Revenue Highlights: Revenue for QQ1 2024 was reported at $1,854,099, up 81.05% year-over-year, indicating a robust recovery from previous quarters.
Profitability Ratios: Despite the increase in revenue, gross profit decreased by 36.18% year-over-year to $369,573, due to rising costs. The company reported an operating loss of $4,083,380, with an operating income margin of -2.20%.
Net Income Analysis: The net income loss of $33,863,147 illustrates the significant impact of high operational costs and interest expenses. This results in a net profit margin of -18.26%, raising concerns about long-term sustainability.
Cash Flow: Operating cash flow was negative at -$1,052,748, attributing much of this to increased working capital needs. The limited cash reserves at $219,530 could pose liquidity risks in upcoming quarters.
Business Health: The current ratio stands at a critically low 0.0392, indicating potential liquidity issues and inability to cover short-term liabilities.