mos Health (US:COSM)2025-11-14 21:32Financial Performance - For the three months ended September 30, 2025, the Company reported revenue of $17,110,425, a 37.8% increase year-over-year, and a net loss of $5,352,890, compared to a net loss of $2,182,534 in the same period of 2024 [326]. - For the nine months ended September 30, 2025, revenue totaled $45,568,655, up 13.4% from $40,202,238 in 2024, while the net loss increased to $8,999,055 from $6,639,935 [326]. - Cost of Goods Sold (COGS) for the three months ended September 30, 2025, was $14,507,807, an increase of 29.5% from $11,204,186 in 2024 [328]. - Gross profit for the three months ended September 30, 2025, was $2,602,618, representing an increase of 115.6% from $1,206,862 in 2024 [330]. - Total operating expenses for the three-month period ended September 30, 2025, were $4,421,333, up 28.3% from $3,446,726 in 2024 [332]. - The Company recognized foreign currency translation gains of $255,263 for Q3 2025, compared to gains of $747,879 in the prior year [338]. - The Company had an accumulated deficit of $123,021,330 and stockholders' equity of $23,134,884 as of September 30, 2025 [347]. - The company reported significant net loss and negative operating cash flows, raising substantial doubt about its ability to continue as a going concern within one year after the issuance of the consolidated financial statements [352]. Capital and Financing - The company expects to continue incurring significant operating losses and may need to reduce costs to sustain operations if additional capital is not secured [293]. - The company has access to additional capital resources through public and private equity offerings, but there is uncertainty regarding obtaining financing on acceptable terms [294]. - The primary source of cash inflows during the nine months ended September 30, 2025, was financing activities, generating net inflows of $9,357,403 [343]. - The company raised capital through the issuance of convertible notes and new third-party debt facilities, including a Securities Purchase Agreement for up to $300 million in senior secured convertible promissory notes, significantly improving liquidity [350]. - The company issued 3,992,541 shares of common stock under its At-the-Market sales program, generating gross proceeds of $4,376,622, enhancing its cash position and liquidity [351]. - The Company anticipates using cash from various sources to conduct its business in the upcoming year, highlighting reliance on external financing [346]. Business Operations and Strategy - The company operates a diversified healthcare group, focusing on proprietary pharmaceutical and nutraceutical brands, with significant growth opportunities through product additions and geographic expansion [300]. - The company launched its proprietary nutraceutical products "Sky Premium Life®" in 2018 and "Mediterranation®" in 2022, with over 160 product codes [306]. - The company signed an exclusive distribution agreement for its Sky Premium Life products in the UAE, anticipating orders of over 3,000,000 units over the next five years [318]. - The company acquired ZipDoctor Inc. for $150,000, enhancing its telemedicine platform capabilities [320]. - The company completed the acquisition of Cana Laboratories for €800,000 and 46,377 shares, enhancing its manufacturing capabilities within the EU [321]. - The acquisition of Bikas is expected to increase annual revenue by more than $10 million and improve gross margins due to economies of scale [324]. - The company plans to expand its portfolio of brand-name and private-label products, launch new distribution channels, and increase sales from exclusive agreements, such as the distribution of Sky Premium Life products in the UAE, which is expected to contribute to operating cash inflows in the near term [349]. - The company aims to enhance its manufacturing capacities and build a multinational network of wholesalers, distributors, and pharmacies while expanding its portfolio of innovative products [356]. - The company is focusing on high-margin segments and has shown strong performance in proprietary brands such as Sky Premium Life, Mediterranation, and C-Sept/C-Scrub, with launches into new geographical regions [360]. - The company is optimizing its production facilities and establishing a global footprint in the pharmaceutical fields of contract manufacturing organization (CMO) and contract development and manufacturing organization (CDMO) [360]. - The company intends to invest in R&D to deliver innovative products, including treatments for obesity, gastrointestinal disorders, and various cancers, as well as an AI-driven drug repurposing platform [360]. - The company’s product portfolio includes generics, OTC pharmaceutical products, innovative medicines, and nutraceuticals, optimizing product lifecycle across therapeutic areas [362]. - The company is committed to driving organic growth at attractive margins by improving execution, optimizing cash flow, and leveraging its strong market position [357]. Accounting and Financial Reporting - The Company has net operating loss carry-forwards applicable to future taxable income in the United States, but potential benefits have not been recognized due to uncertainty in utilization [384]. - The Company follows ASC 310 to estimate the allowance for doubtful accounts, reviewing each trade receivable for collectability and adjusting credit limits based on payment history [385]. - Merchandise inventories are valued at the lower of cost or market using the weighted-average cost method, with reserves for damaged and slow-moving items recorded annually [386]. - The Company accounts for its convertible promissory note at fair value, with changes recorded as non-operating loss in the consolidated statements of operations [388]. - The fair value of the convertible promissory note is estimated using a Monte Carlo simulation model, considering factors such as stock volatility and risk-free interest rates [389]. - Digital assets are recorded at cost and measured at fair value, with changes recognized in the consolidated statement of income as "Gain (loss) on digital assets" [390][391]. - As of September 30, 2025, the Company had 31,869,041 common shares issued and outstanding, with an additional 26,305,652 common shares issuable upon conversion of convertible notes and exercise of warrants [392].