Adamas One (US:JEWL)2023-12-29 22:30Financial Performance - For the three months ended June 30, 2023, net sales were $290,938, a decrease of 53% compared to $617,075 for the same period in 2022[87]. - Gross margin for the three months ended June 30, 2023, was $73,094, with a gross profit margin on diamond sales of 25%, down from 65% in the same period of 2022[90]. - The net loss for the three months ended June 30, 2023, was $4.5 million, compared to a net loss of $1.7 million for the same period in 2022[100]. Operating Expenses - Total operating expenses for the three months ended June 30, 2023, were approximately $4.5 million, significantly higher than $1.5 million in the prior year[96]. - The company anticipates that operating expenses will continue to rise as it scales operations and builds out manufacturing facilities[97]. Cash Flow - As of June 30, 2023, cash and cash equivalents were $0.7 million, an increase of $0.6 million from September 30, 2022[101]. - For the nine months ended June 30, 2023, net cash used in operating activities totaled approximately $6.1 million, primarily due to a net loss of approximately $18.5 million[101]. - During the nine months ended June 30, 2023, net cash provided by financing activities was approximately $8.1 million, primarily from the IPO proceeds[104]. Future Outlook - Research and development expenses are expected to increase as the company continues to invest in enhancing existing processes and developing new products[92]. - The company has raised substantial doubt about its ability to continue as a going concern without additional capital to support its strategic plan[106].