Financial Performance - For the three months ended September 30, 2024, the company generated revenues of $8,505,187, an increase of 3.95% from $8,181,948 in the same period in 2023, primarily due to growth in hauling revenue[204]. - Gross profit for the same period was $3,545,279, reflecting a 20.96% increase from $2,930,947 in 2023, driven by growth in hauling revenue and lower costs of metal revenues[205]. - Revenue for the nine months ended September 30, 2024, was $24,891,859, down from $26,641,644 in 2023, a decrease of $1,749,785, or 6.57%[213]. - Gross profit decreased to $9,093,395 for the nine months ended September 30, 2024, from $10,956,412 in 2023, a decline of $1,863,017, or 17.00%[215]. - Net loss available to common stockholders was $82,065,693 for the nine months ended September 30, 2024, compared to $29,443,909 for the same period in 2023, an increase of $52,621,784, or 178.72%[222]. Operating Expenses - Operating expenses decreased significantly by 51.38% to $7,981,875 in Q3 2024 from $16,416,504 in Q3 2023, primarily due to reduced consulting and legal expenses[206]. - Operating expenses decreased to $25,302,888 for the nine months ended September 30, 2024, from $28,467,422 in 2023, a reduction of $3,164,534, or 11.12%[216]. Other Income and Expenses - Other income (expense) showed a loss of $(361,070) in Q3 2024, a significant improvement from $(3,006,463) in Q3 2023, mainly due to reduced interest expenses[210]. - Other income increased significantly to $10,672,636 for the nine months ended September 30, 2024, compared to a loss of $(5,271,747) in 2023, a change of $15,944,383[220]. Cash Flow and Financial Position - Cash used in operating activities was $14,756,026 for the nine months ended September 30, 2024, compared to $2,587,000 in 2023[223]. - Net cash used in investing activities was $10,302,216 for the nine months ended September 30, 2024, compared to $1,577,768 in 2023[225]. - Net cash provided by financing activities was $38,711,738 for the nine months ended September 30, 2024, compared to cash used of $4,792,304 in 2023[226]. - As of September 30, 2024, the company had cash on hand of $15,199,655 and working capital of $6,766,724[227]. Compliance and Regulatory Matters - The Company received a Nasdaq Staff Deficiency Letter on September 13, 2024, indicating that its common stock bid price had closed below the minimum $1.00 per share requirement for continued listing for the last 30 consecutive business days[234]. - The Company has until March 12, 2025, to regain compliance with the minimum bid price requirement by closing at $1.00 or more for at least ten consecutive business days[235]. - If compliance is not regained by the deadline, the Company may be eligible for an additional 180-day compliance period, contingent on meeting other listing standards[237]. Internal Controls and Governance - As of September 30, 2024, the Company identified a material weakness in internal control over financial reporting due to inadequate review processes, which could lead to material misstatements[242]. - Management plans to enhance internal controls by hiring additional qualified personnel, but this is dependent on securing financing or generating significant revenue[243]. - The Company has begun hiring additional accounting personnel to improve segregation of duties and review processes during the most recent fiscal quarter[250]. - The Company’s disclosure controls and procedures were deemed ineffective as of September 30, 2024, due to identified control deficiencies[238]. - The Company does not expect its internal control over financial reporting to prevent or detect all errors and fraud, acknowledging inherent limitations[240]. Legal Matters - The Company is currently engaged in certain legal matters, with no material developments reported since September 30, 2024[251]. - Legal proceedings are detailed in Note 13 – Commitments and Contingencies of the Company's Condensed Consolidated Financial Statements[251].
Greenwave Technology Solutions(GWAV) - 2024 Q3 - Quarterly Report