ZIVO BIOSCIENCE(ZIVO) - 2024 Q4 - Annual Report

Financial Performance - Total revenue for the year ended December 31, 2024, was $157,220, representing an increase of approximately $130,000 compared to $27,650 in 2023[200] - Cost of goods sold for 2024 was $108,268, an increase of about $92,000 from $16,040 in the previous year, primarily due to higher product volumes[203] - Gross margin for 2024 was approximately $49,000, up $37,000 from the prior year, with a gross margin percentage of 31%, down from 42% in 2023[204] - The company incurred a net loss of $13,384,836 for the year ended December 31, 2024, compared to a net loss of $7,777,184 in 2023[200] Expenses - General and administrative expenses rose to $10.3 million in 2024, an increase of about $4.4 million from $5.9 million in 2023, driven by higher labor and overhead costs[205] - Research and development expenses for 2024 totaled $3.1 million, compared to $1.4 million in 2023, reflecting increased internal costs and stock-related compensation[206] - The company expects significant increases in expenses as it develops and seeks to commercialize product candidates and pursue clinical trials[211] Cash Flow and Financing - As of December 31, 2024, the company had cash deposits of $1.5 million, which are insufficient to cover operating expenses for the next twelve months[210] - Cash used in operating activities for the year ended December 31, 2024, was $4.3 million, a decrease of approximately $1.5 million from the prior year[220] - For the twelve months ended December 31, 2024, the company generated $5.6 million in cash from financing activities, an increase from $4.3 million in 2023[222] - Operating activities resulted in a net cash outflow of $4,313,510 for 2024, an improvement from a net outflow of $5,799,893 in 2023[223] - The net increase in cash and cash equivalents for 2024 was $1,268,062, compared to a decrease of $1,524,883 in 2023[223] - The company estimates a cash requirement of approximately $5 million over the next 12 months to fund basic operations, excluding R&D initiatives[223] - If the company is unable to raise the required capital, it may have to curtail business operations, including R&D activities[224] - The company raised $5,602,269 through private placements in 2024, issuing 793,489 shares of common stock[215] - The company raised $4.3 million from accredited investors and $1.3 million from related parties through private placements in 2024[222] - The company sold registered common stock in a single transaction, generating proceeds of $3.6 million[222] Accounting and Reporting - The fair values of cash, prepaid, and other assets approximated their carrying values due to their short-term nature as of December 31, 2024[229] - The company adopted ASU 2023-07 for segment reporting improvements effective January 1, 2024, with no impact on reportable segments identified[235] - The company is assessing the impact of ASU 2023-09 on income tax disclosures, effective after December 15, 2024[236]