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].
mos Health (COSM) - 2023 Q4 - Annual Report