Financial Performance - Total revenues for Q3 2024 were $14,407, a decrease of $4,658 or 24% from $19,065 in Q3 2023, primarily due to the conclusion of certain clinical activities [126]. - Net loss for Q3 2024 was $1,366,176, compared to a net loss of $998,010 in Q3 2023, reflecting an increase of $368,166 [125]. - Total revenues for the nine months ended September 30, 2024 were $35,492, a decrease of $26,115 or 42% from $61,607 in the same period of 2023 [135]. - The Company incurred losses for the nine months ended September 30, 2024, totaling $1,066,732 from the first debt reduction transaction and $111,928 from the second transaction [142][143]. Expenses - Cost of revenue increased by 9% to $21,332 in Q3 2024 from $19,558 in Q3 2023, driven by a change in revenue mix that increased partner fees [127]. - Sales and marketing expenses rose by 21% to $232,775 in Q3 2024 from $192,896 in Q3 2023, attributed to increased post-market clinical expenses related to the Clarity trial [128]. - General and administrative expenses increased by 12% to $860,461 in Q3 2024 from $770,534 in Q3 2023, due to higher investments in investor relations [130]. - Cost of revenue for the nine months ended September 30, 2024 increased by 14% to $64,102 from $56,312 in the same period of 2023, driven by a price increase related to hosting costs [136]. - Sales and marketing expenses for the nine months ended September 30, 2024 were $638,869, an increase of $60,900 or 11% from $577,969 in the same period of 2023 [138]. - General and administrative expenses for the nine months ended September 30, 2024 decreased by 5% to $2,402,408 from $2,524,308 in the same period of 2023 [140]. Cash Flow and Financing - Cash used in operating activities for the nine months ended September 30, 2024, was $4,348,748, compared to $2,913,165 for the same period in 2023 [159]. - As of September 30, 2024, the Company had cash of $1,322,098, which is expected to fund operations into December 2024 [157]. - The Company raised approximately $1.4 million from an equity line in January 2024 and $0.3 million in April 2024 [155]. - The Company completed a public offering of 5,175,000 units at a price of $0.58 per unit, generating gross proceeds of approximately $3.0 million [155][163]. - The Company issued 930 shares of Series B convertible preferred stock in exchange for $930,052 of principal and accrued interest on the notes [166]. - The Company has raised $1,000,000 in gross proceeds from a securities purchase agreement for convertible preferred stock and warrants financing [167]. - The Company anticipates needing additional funds to continue technology development and maintain liquidity [152][153]. Internal Controls and Compliance - The Company’s disclosure controls and procedures are currently not effective due to limited resources, impacting timely reporting of material information required for SEC filings [182]. - As of December 31, 2023, the internal control over financial reporting was deemed ineffective due to material weaknesses, including limited segregation of duties and inadequate accounting resources [184]. - The Company engaged an outside firm in Q3 2023 to enhance accounting support and segregation of duties, continuing efforts to improve internal controls through best practices [185]. - No material changes to internal control over financial reporting occurred during the quarter ended September 30, 2024, that would materially affect the internal controls [186]. Legal Proceedings - The Company is not currently involved in any material legal proceedings that could adversely affect its operations or financial position [188].
Aclarion(ACON) - 2024 Q3 - Quarterly Report