Core Insights - Cosmos Health Inc. has announced the completion of upgrades to its subsidiary Cana Laboratories' manufacturing capabilities and secured a five-year contract with Pharmex S.A. for the production of 300,000 bottles of the antiseptic drug AMBITASOL annually, totaling 1,500,000 units over the contract duration [1][3]. Company Overview - Cosmos Health Inc. is a diversified, vertically integrated global healthcare group that owns proprietary pharmaceutical and nutraceutical brands and operates a telehealth platform [4]. - The company completed the acquisition of Cana Laboratories in July 2023 and has since invested in upgrading its Athens facility, which is licensed under European Good Manufacturing Practices (GMP) and certified by the European Medicines Agency (EMA) [3]. Manufacturing and Growth Strategy - Cana Laboratories is ramping up revenue generation from manufacturing its own products and those of third parties, with capabilities to produce a wide range of pharmaceuticals including tablets, capsules, syrups, and antiseptics [3]. - The contract with Pharmex is part of Cosmos Health's strategy to scale its high-margin contract manufacturing business and aims to secure additional agreements to expand its client base and strengthen cash flows [4]. Market Position and Distribution - Cosmos Health distributes a broad line of pharmaceuticals and parapharmaceuticals, including branded generics and OTC medications, through subsidiaries in Greece and the UK [4]. - The company is expanding its global distribution platform throughout Europe, Asia, and North America, with offices and distribution centers in Greece and the UK [4].

Core Insights - Cosmos Health Inc. has launched its Sky Premium Life food supplements brand in Albania in partnership with Pharma Cell, a leading consumer health and medical supplement company [1][4] - The initial annual order secured by Cosmos Health is valued at $300,000, with expectations for further collaboration growth with Pharma Cell [2] Company Overview - Cosmos Health Inc. is a diversified, vertically integrated global healthcare group, incorporated in 2009 in Nevada, owning proprietary pharmaceutical and nutraceutical brands [4] - The company manufactures pharmaceuticals, food supplements, cosmetics, biocides, and medical devices under European Good Manufacturing Practices (GMP) and is certified by the European Medicines Agency (EMA) [4] - Cosmos Health has established R&D partnerships targeting major health disorders and focuses on the development of novel patented nutraceuticals and innovative OTC products [4] Partner Company Profile - Pharma Cell, based in Tirana, specializes in the import and export of high-quality food supplements and was founded in 2021 by CEO Elvis Punmira [3] - The company has rapidly expanded its presence in Albania, serving a growing network of pharmacies and healthcare professionals [3]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point for fast-moving stocks, which can lead to investments with limited upside or potential downside [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify suitable candidates [3] Group 2: Cosmos Health Inc. (COSM) Analysis - Cosmos Health Inc. (COSM) has shown a four-week price change of 16.9%, indicating strong recent price momentum and growing investor interest [4] - COSM has gained 0.2% over the past 12 weeks and has a high beta of 5.57, suggesting it moves 457% more than the market in either direction [5] - The stock has a Momentum Score of A, indicating a favorable time to invest based on momentum [6] Group 3: Earnings and Valuation - COSM has received a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [7] - The stock is currently trading at a Price-to-Sales ratio of 0.32, suggesting it is undervalued at 32 cents for each dollar of sales, providing significant room for growth [7] Group 4: Additional Investment Opportunities - Besides COSM, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]

Acquisitions and Partnerships - The company reported a total acquisition cost of €800,000 and 46,377 shares of common stock for the acquisition of Cana Laboratories, completed on June 30, 2023[223]. - The acquisition of Bikas is expected to increase annual revenue by more than $10 million and enhance gross margins due to economies of scale[226]. - The acquisition of Cloudscreen, a cutting-edge AI platform, was completed for a total price of $637,080, enhancing the company's capabilities in drug repurposing[227]. - The company has established exclusive distribution agreements in multiple regions, including a significant partnership for the UAE market[219]. - The Company is committed to pursuing acquisitions and joint ventures to enhance its distribution network and product offerings[259]. Revenue and Financial Performance - The Company reported revenue of $12,411,048 for the three months ended September 30, 2024, a decrease of 3.22% compared to $12,823,797 in the same period of 2023, while for the nine months, revenue increased by 7.10% to $40,202,238 from $37,537,003[228]. - The net loss for the three months ended September 30, 2024, was $2,182,534, an improvement from a net loss of $3,415,077 in the same period of 2023, while the nine-month net loss increased to $6,639,935 from $4,790,597[228]. - Cost of goods sold for the three months ended September 30, 2024, was $11,204,186, a decrease of 3.49% from $11,609,039 in 2023, while for the nine months, it increased by 7.19% to $36,894,502 from $34,418,334[230]. - Gross profit for the three months ended September 30, 2024, was $1,206,862, a slight decrease of 0.65% from $1,214,758 in 2023, while for the nine months, gross profit increased by 6.06% to $3,307,736 from $3,118,669[232]. - Operating expenses for the three months ended September 30, 2024, decreased by 18.56% to $2,239,864 from $3,017,301 in 2023, primarily due to lower general and administrative costs[233]. - The Company had working capital of $11,027,653 as of September 30, 2024, down from $12,285,310 as of December 31, 2023[240]. - Net cash used in operating activities for the nine months ended September 30, 2024, was $3,883,215, a significant decrease from $16,587,726 in 2023[241]. - The Company recorded a foreign currency translation adjustment gain of $747,879 for the three months ended September 30, 2024, compared to a loss of $890,645 in the same period of 2023[239]. - Management expressed substantial doubt about the Company's ability to continue as a going concern for the next twelve months due to ongoing losses and accumulated deficit of $104,479,692[245]. Product Development and Market Expansion - The company has developed over 105 product codes in its proprietary nutraceutical line, which includes brands like "Sky Premium Life®" and "Mediterranation®"[209]. - The Company plans to expand its product portfolio to 150 SKUs by the end of 2023, including basic line formulas and advanced formulations[251]. - The Company is positioned to enter the global baby food market, valued at $102.90 billion annually, with its Bio-Bebe brand[264]. - The Company is expanding its antiseptic brand C-Sept with the launch of C-Scrub Wash, targeting the $29 billion global antiseptic market[264]. - The Company aims to enhance its distribution network through exclusive distributors, wholesalers, and e-commerce platforms in the EU, Asia, USA, and Canada[251]. - The Company is expanding its branded pharmaceuticals globally, particularly in the EU and UK, and enhancing exclusive distribution rights[252]. - The Company plans to invest in expanding production capacity and global facilities to boost sales and engage in contract manufacturing[259]. Operational Efficiency and Supply Chain - The company operates a distribution network exceeding 1,500 pharmacies in Greece and has established a high-end distribution center utilizing robotic systems[208]. - The company achieved a 0% error selection rate in its distribution processes, enhancing order fulfillment efficiency[207]. - The company has a robust supply chain with stable pharmaceutical supply from DocPharma, enhancing its expansion capabilities[206]. - The company maintains merchandise inventories valued at the lower of cost or market using the weighted-average cost method[278]. - The company records valuation reserves annually for merchandise damage, defective returns, slow-moving items, and obsolescence, estimating a reduction in value[278]. Internal Controls and Governance - The company plans to complete remediation of material weaknesses in internal controls by December 31, 2024[281]. - The company is updating its organizational chart to improve role allocation and share responsibilities among personnel[282]. - The company is developing multiple levels of review based on job responsibilities to enhance oversight in financial reporting[284]. - The audit committee is responsible for overseeing financial reporting and accounting processes, with independent directors serving on the committee[286]. - The audit committee meets at least four times a year and maintains direct communication with independent auditors[288]. - There have been no changes in internal control over financial reporting that materially affect the company[285]. - The company is assessing a new financial reporting application to improve IT General Controls[284]. - The company is not required to provide risk factor disclosures due to its status as a Smaller Reporting Company[289].

Financial Performance - Revenue for Q2 2024 was $13,206,717, representing a 6.82% increase from $12,363,429 in Q2 2023[174] - Revenue for the first half of 2024 was $27,791,190, an increase of 12.45% compared to $24,713,206 in the same period of 2023[174] - The net loss for Q2 2024 was $2,590,711, compared to a net loss of $981,530 in Q2 2023[174] - The net loss for the first half of 2024 was $4,457,401, up from a net loss of $1,441,393 in the same period of 2023[174] - The Company had a net loss of $4,457,401 for the six months ended June 30, 2024, with total revenue of $27,791,190[189] Revenue Drivers - The increase in revenue is attributed to the wholesale revenue stream and the contribution from the acquisition of Cana[174] - The company completed the acquisition of Cana for €800,000 and 46,377 shares of common stock valued at $800,000[170] - The acquisition of Bikas is projected to increase annual revenue by more than $10 million and enhance gross margins[172] - The company acquired Cloudscreen, an AI-powered platform for drug repurposing, for a total price of $637,080[173] Cost and Expenses - The Company reported a cost of goods sold of $12,349,469 for the three months ended June 30, 2024, an increase of 8.96% compared to $11,416,595 for the same period in 2023[175] - Gross profit decreased by 18.97% to $767,248 for the three months ended June 30, 2024, down from $946,834 in 2023, primarily due to decreased sales in high-margin revenue streams[177] - Operating expenses for the three months ended June 30, 2024, were $2,502,026, a decrease of 7.21% compared to $2,576,465 in 2023, with general and administrative costs decreasing by 30.48%[178] Working Capital and Investments - As of June 30, 2024, the Company had working capital of $8,593,711, down from $12,285,310 as of December 31, 2023[184] - The company intends to strengthen working capital and invest in R&D, sales, and marketing, although actual expenditures may differ from planned allocations due to industry uncertainties[206] - The Company raised $649,039 from the sale of 901,488 shares of common stock during the six months ended June 30, 2024[187] Strategic Initiatives - The Company plans to expand its product portfolio to 150 SKUs by the end of 2023, focusing on various customer needs and advanced formulations[193] - The Company intends to enhance its geographic expansion in the EU, Asia, USA, and Canada through exclusive distributors and acquisitions of nutraceutical companies[193] - Management plans to vertically integrate the supply chain distribution network and evaluate acquisition targets to expand distribution[191] - The company plans to actively pursue acquisitions to enhance its distribution network, focusing on discounted assets through business combinations or joint ventures[200] - The company aims to expand its R&D division to develop new patented pharmaceuticals and innovative nutraceutical products, fostering organic growth through enhanced marketing efforts[200] Market Opportunities - The pharmaceutical sector presents significant growth potential in the European market, contingent on aligning services, pricing, and quality with customer requirements[198] - The company is experiencing strong demand for its branded nutraceuticals, with positive feedback from major health events[202] - Sky Premium Life products are being sold in over 1,600 stores across 18 countries, generating approximately $1 billion in annual revenue for Holland & Barrett, a key retailer[203] - The company is launching Mediterranation, a premium food supplements brand, utilizing organic herbs and plant extracts from the Mediterranean region[204] - The global baby food market is valued at $102.90 billion, presenting an opportunity for the relaunch of the Bio-Bebe brand[205] - The global antiseptic and disinfectant market is worth $29 billion, with the company positioned to capitalize on this through the expansion of the C-Sept brand[205] Internal Controls and Governance - The company is addressing material weaknesses in its internal controls and plans to complete remediation by December 31, 2024[217] - The internal control structure currently lacks proper segregation of duties and multiple levels of review and oversight[218] - A new financial reporting application is being assessed to enhance IT General Controls and improve financial reporting efficiency[219] - The Audit Committee is responsible for overseeing the financial reporting and accounting processes, and it meets at least four times a year[223] - There have been no changes in internal control over financial reporting that materially affect the Company[220] - The Audit Committee maintains direct communication with independent auditors and is authorized to investigate any matters brought to its attention[222] - The Company is updating its organizational chart to better allocate roles and responsibilities among personnel[218] - Management reviews bank reconciliations and discrepancies between the general ledger and bank statements to ensure timely reporting[219] - The Audit Committee includes three independent directors and is chaired by Dr. Anastasios Aslidis[221] - The Company plans to enhance its IT risk management and control design to address existing weaknesses[217]

Acquisitions and Partnerships - The company reported a successful acquisition of Cana Laboratories for €800,000 and 46,377 shares, enhancing its production capabilities in pharmaceuticals and nutraceuticals[169]. - The acquisition of Bikas is expected to increase annual revenue by over $10 million and improve gross margins due to economies of scale[171]. - The company completed the acquisition of Cloudscreen for $637,080, which specializes in drug repurposing using AI technology[172]. - The company has established a research and development agreement with Doc Pharma for the development of 250 nutritional supplements, with 105 product codes added to its portfolio[173]. - The company has entered into exclusive distribution agreements in multiple markets, including a significant partnership in the UAE for its nutraceutical products[164]. Financial Performance - The Company reported revenue of $14,584,473 for the three months ended March 31, 2024, representing an 18.10% increase from $12,349,777 in the same period of 2023[175]. - The net loss for the three months ended March 31, 2024, was $1,866,690, compared to a net loss of $459,863 for the same period in 2023, reflecting an increase in net loss of $1,406,827[175]. - Cost of goods sold increased to $13,250,847 for the three months ended March 31, 2024, up 16.31% from $11,392,700 in 2023[176]. - Gross profit rose to $1,333,626 for the three months ended March 31, 2024, a 39.34% increase from $957,077 in the same period of 2023[177]. - The Company had working capital of $10,730,747 as of March 31, 2024, down from $12,285,310 as of December 31, 2023[183]. - Cash and cash equivalents decreased to $865,099 as of March 31, 2024, compared to $3,833,195 as of December 31, 2023[183]. Product Development and Market Expansion - The company has launched proprietary nutraceutical products "Sky Premium Life®" and "Mediterranation®", with over 105 product codes developed as of December 31, 2023[161]. - The company plans to expand its product portfolio to 150 SKUs by the end of 2023, focusing on various customer needs and advanced formulations[191]. - The Company intends to enhance its geographic expansion in the EU, Asia, USA, and Canada through exclusive distributors and acquisitions of nutraceutical companies[191]. - The Company aims to increase exports of branded pharmaceuticals, focusing on higher profit margin categories such as OTC and VMS[193]. - Strong demand for branded nutraceuticals has been noted, with positive feedback from major health events[200]. - Sky Premium Life products are being sold in over 1,600 stores across 18 countries, generating approximately $1 billion in annual revenue[201]. - The Company is launching Mediterranation, a premium food supplements brand, utilizing organic herbs and plant extracts[202]. - The global baby food market is valued at $102.90 billion, presenting an opportunity for the relaunch of the Bio-Bebe brand[203]. - The antiseptic market is valued at $29 billion, with plans to expand the C-Sept brand through the launch of C-Scrub Wash 4% CHG Biocide[203]. - The Company is investing in expanding production capacity and enhancing its global distribution network to boost sales[199]. Internal Controls and Governance - The company is addressing internal control weaknesses and plans to complete remediation by December 31, 2024[215]. - The company plans to complete the remediation of all material weaknesses in internal controls by December 31, 2024[215]. - The company is in the process of updating its organizational chart to improve the segregation of duties among personnel[215]. - The company lacks appropriate IT General Controls (ITGCs) for financial reporting applications, which is being addressed through the assessment of a new financial reporting application[217]. - The audit committee is evaluating existing controls and procedures on a quarterly basis[218]. - The company has identified material weaknesses in its internal control structure, including a lack of multiple levels of review and oversight[215]. - The audit committee consists of three independent directors and is responsible for overseeing financial reporting and accounting processes[219]. - The company has a chief financial officer who acts as the management liaison officer to the audit committee[221]. Miscellaneous - Management has raised additional equity funds by selling 901,488 shares of common stock for gross proceeds of $649,039[185]. - The Company aims to expand its business operations internationally, focusing on disciplined strategic and financial evaluations to enhance shareholder value[195]. - The European pharmaceutical market presents significant growth potential, contingent on meeting customer service, price, and quality demands[196]. - The Company plans to pursue ongoing acquisitions to enhance its distribution network and expand its R&D division for new patented pharmaceuticals and nutraceutical products[199]. - No relevant financial data or performance metrics were provided in the documents[224]. - The documents primarily contain legal disclaimers and certification information from the CEO and CFO[225]. - There are no insights on user data, future outlook, or performance guidance mentioned in the content[226].

Financial Performance - Revenue for the year ended December 31, 2023, was $53,376,874, an increase from $50,347,652 in 2022, representing a growth of approximately 4.06%[176]. - The net loss for the year ended December 31, 2023, was $18,542,654, compared to a net loss of $13,830,371 for the year ended December 31, 2022, representing an increase in loss of approximately 34%[182]. - The company reported a significant increase in operating costs due to inflation, with EU annual inflation at 3.4% in 2023 compared to 9.33% in 2022[68]. - Cost of goods sold for 2023 was $49,027,305, compared to $44,390,695 in 2022, leading to a gross profit of $4,349,569, down from $5,956,957 in the previous year[176]. - The company reported an accumulated deficit of $91,644,233 as of December 31, 2023, compared to $66,232,813 in 2022, indicating a significant increase in losses[175]. Assets and Liabilities - Total current assets decreased to $36,607,780 in 2023 from $56,366,913 in 2022, indicating a decline of approximately 35.1%[174]. - Total liabilities increased to $29,971,783 in 2023 from $28,381,912 in 2022, reflecting an increase of about 5.6%[175]. - The company’s total assets decreased to $66,014,811 in 2023 from $68,038,621 in 2022, a reduction of about 2.98%[175]. - The total stockholders' equity as of December 31, 2023, was $36,043,028, compared to $39,284,295 at the end of 2022, indicating a decline of about 8%[181]. Cash Flow and Capital Management - The cash flows from operating activities showed a net loss of $18,542,654 for 2023, compared to $13,830,371 for 2022, highlighting a worsening cash flow situation[182]. - The net cash used in operating activities was $15,635,999, compared to $14,870,639 in the previous period, indicating an increase of approximately 5%[183]. - The total cash at the end of the year was $3,833,195, down from $20,749,683 at the beginning of the year, reflecting a decrease of approximately 81%[183]. - Management acknowledges substantial doubt about the Company's ability to continue as a going concern for the next 12 months[194]. Acquisitions and Investments - The acquisition of Cana Laboratories Holdings was completed for €800,000 ($873,600) in cash and 46,377 shares of common stock, resulting in a bargain purchase gain[165]. - The company completed the acquisition of Cana for a total consideration of $5,469,787, which included $873,600 in cash and $138,667 in common stock[189]. - The company acquired ZipDoctor for a total of $158,788, which was recorded as an intangible asset related to the technology platform acquired[187]. - The acquisition of Cloudscreen, an AI-powered platform, was completed for a total purchase price of $637,080, which will be settled in cash during 2024[186]. Stock and Equity Transactions - The total outstanding shares as of December 31, 2023, were 15,982,472, compared to 10,605,412 at the end of 2022, representing an increase of approximately 51%[181]. - The Company raised approximately $6 million from a private placement of 6,000 shares of Series A Convertible Preferred Stock and 80,000 warrants[252]. - The Company issued 185,000 shares of unvested common stock valued at $653,050 under its Equity Incentive Plan, with $323,957 recorded as stock-based compensation expense for the year[259]. - The Company repurchased 71,000 shares of its common stock for $100,452 during the year ended December 31, 2023, as part of a $3 million share repurchase program[256]. Expenses and Losses - Bad debt expense increased significantly to $11,850,788 in 2023 from $5,621,938 in 2022, indicating a rise of approximately 111%[182]. - Depreciation and amortization expense for 2023 was $590,691, a substantial increase from $103,194 in 2022[182]. - The Company recorded a provision of $591,547 related to unaudited tax years of its subsidiary SkyPharm SA[338]. - The Company incurred lease expenses of $364,968 and $210,463 for the years ended December 31, 2023 and 2022, respectively[336]. Regulatory and Legal Matters - The company is subject to foreign tax and intercompany pricing laws, which could adversely affect its financial condition if challenged by regulators[61]. - Cybersecurity risks pose a significant threat, with potential data breaches leading to legal and financial repercussions[66]. - SkyPharm faced a lawsuit from Solgar Inc. regarding product homogeneity, which was dismissed by the Thessaloniki court[340]. - Cana Laboratories Holding has two pending lawsuits against Euaggelismos Hospital for a total of €526,436 due to unpaid bills, with one court date set for December 11, 2024[344]. Strategic Focus and Future Plans - The Company plans to expand its product portfolio and evaluate acquisition targets to enhance distribution capabilities[193]. - The Company is strategically focusing on R&D of novel patented nutraceuticals and specialized root extracts, as well as proprietary complex generics and innovative OTC products[184]. - The Company has developed a global distribution platform and is currently expanding throughout Europe, Asia, and North America[184]. - The Company plans to acquire Pharmacy & More within fiscal year 2024, intending to offset the outstanding receivable balance of $1,142,402 with the purchase price[290].

Core Viewpoint - Cosmos Health has secured a distribution agreement with Pharmalink, which is expected to significantly boost its market presence in the UAE, particularly in affluent areas like Dubai and Abu Dhabi [6][10]. Group 1: Stock Performance - COSM stock has increased by 64.7% as of Friday morning, although it was down 50.4% year-to-date prior to this surge [2]. - The trading volume for COSM shares has seen a significant spike, with over 12.4 million units traded, far exceeding its daily average of approximately 180,000 shares [8]. Group 2: Distribution Agreement Details - The agreement designates Pharmalink as the exclusive distributor of Cosmos Health's Sky Premium Life products in the UAE [10]. - Cosmos Health has already received a purchase order for 130,000 units from Pharmalink and anticipates delivering over 500,000 units in the first year [10]. - The company projects receiving purchase orders exceeding 3 million units over the next five years as a result of this partnership [6].

The healthcare industry has experienced unprecedented growth in recent years due to the global pandemic. However, as COVID-19 began to ease, the immense growth of the healthcare industry is expected to slow down. Additionally, because many healthcare companies rely on trials that need FDA approval, predicting their individual healthcare company’s performance is difficult. These companies experience massive declines in share price when their trials fail. Combining relatively slowed growth with risk factors, ...

Table of Contents The Company had interest expense related to notes payable of $151,274 and $529,782 versus $517,660 and $1,772,750 and non-cash interest expense related to the amortization of debt discount of $0 and $0 versus $295,846 and $772,180 for the three and nine months ended September 30, 2023 and 2022, respectively. The decrease Finally, the Company has recorded a bargain purchase gain of $1,633,842 versus $0 for the nine months ended September 30, 2023 and 2022, respectively. The bargain purchase ...