mos Health (COSM) - 2025 Q1 - Quarterly Report

Financial Performance - For the three months ended March 31, 2025, the company reported revenue of $13,712,528, a decrease from$14,584,473 in the same period of 2024, representing a decline of approximately 6%[254]. - The net loss for the three months ended March 31, 2025, was $818,097, an improvement from a net loss of$1,866,690 in the corresponding period in 2024, indicating a reduction of approximately 44%[254]. - Revenue for the three-month period ended March 31, 2025, decreased by approximately 5.98% compared to the same period in 2024, primarily due to unfavorable foreign exchange movements and a marginal decrease in sales from Cosmofarm SA[256]. - Gross profit for the three months ended March 31, 2025, was $2,049,799, representing an increase of 53.7$286,790, or approximately 9.05%, to $2,882,944 for the three-month period ended March 31, 2025, reflecting disciplined cost management[261]. - The Company reported a net loss of$818,097 for the period ended March 31, 2025, with positive working capital of $1,259,012 compared to a negative working capital of$296,193 as of December 31, 2024[273][268]. - Cash generated from financing activities increased to $560,862 for the three-month period ended March 31, 2025, compared to$206,942 during the same period in 2024, driven by lower debt repayments and new financing arrangements[271]. - The foreign currency translation adjustment improved to a gain of $1,031,268 for the three-month period ended March 31, 2025, compared to a loss of$599,276 in the prior year[265]. Strategic Acquisitions and Growth - The acquisition of Bikas is expected to increase annual revenue by more than $10 million and enhance gross margins due to economies of scale[251]. - The company completed the acquisition of Cloudscreen for a total purchase price of$637,080, which includes 280,000 shares of common stock and cash to be settled in 2024[252]. - The company signed a definitive agreement to acquire ZipDoctor Inc. for a total sum of 150,000, enhancing its telemedicine capabilities[248]. - The company has made several strategic acquisitions to enhance its manufacturing, marketing, and R&D capabilities, strengthening its core product technology infrastructure[285]. Product Development and Innovation - The company has created and developed proprietary branded nutraceutical products, with over 160 product codes, aiming for high growth opportunities in the nutraceutical market[232]. - Innovation efforts include accelerating R&D on IP-driven products like CCX0722 for obesity and CCDL24 for gastrointestinal disorders, alongside the acquisition of the AI-driven drug repurposing platform "Cloudscreen®"[293]. - The proprietary biocide C-Sept Pro 2% combines 76% Isopropyl Alcohol and 2% chlorhexidine digluconate, while C-Scrub Wash 4% CHG is approved by the WHO for human use[294]. - The company’s portfolio includes Melatonin Spray® for insomnia, Otikon™ ear drops for ear pain, and Bio-bebe® organic infant care products[295][296][297]. Market Expansion and Distribution - The company anticipates receiving orders of more than 500,000 units in the first year and in excess of 3,000,000 units over the next five years for its Sky Premium Life products in the UAE[246]. - The company has established a distribution network exceeding 1,500 pharmacies in Greece, supported by upgraded robotic systems for efficient operations[231]. - The company aims to expand its sales distribution networks in new regions such as the UAE and Eastern Europe while strengthening market share in core markets[293]. - The Company plans to expand its brand name products and evaluate acquisition targets to enhance distribution, including a significant exclusive distribution agreement in the UAE[277]. Financial Outlook and Concerns - The Company anticipates using cash from debt or equity financing to conduct business in the upcoming year, with substantial doubt existing about its ability to continue as a going concern[272][278]. - The company intends to allocate funds for working capital, R&D, and marketing, although actual expenditures may differ due to industry uncertainties[288]. - As of March 31, 2025, there were no off-balance sheet arrangements reported[300]. - The company has net operating loss carry-forwards applicable to future taxable income in the United States, with income tax liabilities in the UK and Greece[311]. Operational Efficiency - Cost of Goods Sold (COGS) decreased by 1,588,118 or approximately 11.99%, amounting to $11,662,729 for the three-month period ended March 31, 2025, due to a shift towards higher-margin product lines[257]. - Management's strategy includes enhancing manufacturing capacities and building a multinational network of wholesalers, distributors, and pharmacies to support growth[281]. - The company continues to execute its "Growth Strategy" focusing on high-margin segments and proprietary brands such as Sky Premium Life®, Mediterranation®, and C-Sept® / C-Scrub® with launches in new geographical regions[283].