mos Health (COSM) - 2022 Q3 - Quarterly Report

Revenue Performance - Revenue for Q3 2022 was $12,016,098, a decrease of 11.62% compared to $13,595,418 in Q3 2021[280] - Revenue for the nine months ended September 30, 2022, was $38,296,402, down 4.41% from $40,061,419 in the same period of 2021[280] Gross Profit Analysis - Gross profit for Q3 2022 was $1,783,897 (23.9%), compared to $2,345,570 (17.3%) in Q3 2021, reflecting a decrease of 23.95%[283] - Gross profit for the nine months ended September 30, 2022, was $5,521,701 (14.4%), an increase of 2.56% from $5,383,748 (13.4%) in the same period of 2021[283] Cost of Goods Sold - Cost of goods sold for Q3 2022 was $10,232,201, a decrease of 9.05% from $11,249,848 in Q3 2021[281] - Cost of goods sold for the nine months ended September 30, 2022, was $32,774,701, down 5.49% from $34,677,671 in the same period of 2021[281] Operating Loss - The Company reported a net operating loss of $344,112 for Q3 2022, a decrease of 62.37% compared to a loss of $914,551 in Q3 2021[284] - For the nine months ended September 30, 2022, the net operating loss was $176,224, a significant decrease of 95.62% from $4,022,120 in the same period of 2021[285] Foreign Currency Loss - The Company experienced an unrealized foreign currency loss of $1,029,141 for Q3 2022, compared to a loss of $214,216 in Q3 2021[288] Working Capital - As of September 30, 2022, the Company had working capital of $1,945,076, down from $10,950,492 as of December 31, 2021[289] Cash Flow from Operating Activities - The net cash used in operating activities was $4,552,332 for the nine months ended September 30, 2022, compared to $5,549,269 in the same period of 2021[290] Financing Activities - The Company reported net cash provided by financing activities of $4,477,843 for the nine months ended September 30, 2022, down from $6,475,402 in 2021[292] Future Plans and Expansion - The company aims to enhance its pharmaceutical and over-the-counter product lines through acquisitions and licensing opportunities[259] - The company has expanded its distribution network to over 40,000 pharmacies in Europe and 1,500 pharmacies in Greece[260] - The company launched its proprietary nutraceutical products "Sky Premium Life®" in 2018 and "Mediterranation®" in 2022, with over 80 product codes[264] - The company entered into a binding letter of intent to acquire a pharmaceutical company for €1,700,000 in cash and 433,334 shares of common stock[274] - The Company plans to expand its nutraceutical portfolio to 150 SKUs by the end of 2022, including advanced formulations and clinical studies[295] - The Company aims for geographic expansion in the EU, Asia, USA, and Canada through exclusive distributors and acquisitions of nutraceutical companies[295] - The Company intends to enhance its product offerings by acquiring generics, biosimilars, and OTC licenses while focusing on strategic R&D[296] Risks and Financial Outlook - The Company anticipates using available cash and financing to support business operations in the upcoming year, with potential risks of losing quotation qualifications if requirements are not met[293]