Revenue Performance: Cuentas Inc. reported revenue of $639,000, which is down 52.53% quarter-over-quarter (QoQ), marking a staggering year-over-year (YoY) increase of 898.44%. This dramatic fluctuation suggests severe volatility in customer demand and market conditions.
Profitability Analysis: The gross profit margin was negative at -10.8%, indicative of higher costs relative to revenue. Operating expenses of $774,000 significantly outpaced revenues, leading to an operating loss of $843,000. The net income loss of $445,000 reflects a worsening financial picture, worsened by an operating income ratio of -1.32, highlighting operational inefficiencies.
Balance Sheet Health: Cash at the end of the period was $28,000, reduced from $205,000 at the beginning, showcasing tight liquidity. The current ratio stands dismally at 0.132, indicating significant short-term liquidity risks.
Cash Flow Movement: The net cash flow from operations reported was -$310,000, reflecting ongoing operational challenges and expenditure outpacing inflows. This negative operating cash flow, combined with significant debt obligations, raises caution about the company's financial strategies moving forward.