Xcelerate (XCRT) H1 2024 earnings summary

Executive summary

• H1 2024 revenue was $1,577,720, generated by the ESN Group acquired in July 2023; no ESN revenue was recorded in H1 2023. ocument-source ocument-source

• Net loss attributable to Xcelerate, Inc. was $397,234; accumulated deficit reached $10,208,111 at June 30, 2024, and going-concern uncertainty remains. ocument-source ocument-source

• Business focus is healthcare technology and virtual health services, consumer skincare and beauty products, and potential licensing of medical equipment rights. ocument-source

Financial highlights

• H1 2024 revenue was $1,577,720 against cost of sales of $1,265,992, producing gross profit of $311,727. ocument-source

• Operating expenses were $812,314, including $78,294 of intangible amortization and $734,020 of general and administrative expense; operating loss was $500,587. ocument-source

• Consolidated net loss was $500,587 versus $1,802,853 in H1 2023; parent-attributable net loss was $397,234 versus $1,802,853. ocument-source

• G&A declined to $734,020 from reported $1,645,353; excluding H1 2023 stock-based compensation of $1,453,500, G&A increased from $191,853. ocument-source

Outlook and guidance

• Management estimates up to $5.0 million in additional funding is needed to implement the business plan, mainly for proposed Africa operations and ESN Group expansion. ocument-source

• A proposed firm-commitment offering through Craft Capital Corp. seeks up to $5 million; SEC effectiveness is pending, with no assurance of completion or acceptable future financing. ocument-source

• Management expects continuing operating expenses without corresponding revenues in the immediate future and plans to seek additional capital until operations become profitable. ocument-source ocument-source