World Scan Project, Inc. [WDSP] has announced its financial results for the quarter ended July 31, 2023. The company reported a net loss of $3.7 million for the quarter, compared to a net income of $2.2 million in the same quarter last year. The company generated quarterly revenue of $26.2 million, reflecting a significant increase from the previous year's revenue of $13.1 million.
Despite the increase in revenue, the company experienced a decline in profitability during the quarter. The operating loss amounted to $17.1 million, compared to an operating loss of $1.4 million in the same quarter last year. This decline can be attributed to higher research and development expenses, which amounted to $18.4 million during the quarter. General and administrative expenses also increased to $3.7 million, compared to $1.2 million in the previous year.
The company's revenue growth was primarily driven by the strong performance of its core business segments. The cost of revenues increased to $20.9 million, reflecting higher production and distribution costs. However, the company managed to maintain a gross profit of $5 million.
Looking at the balance sheet, World Scan Project, Inc. showcased a healthy financial position with total assets amounting to $12.1 million. The company's total liabilities stood at $3.0 million, including both current and long-term liabilities. Shareholders' equity amounted to $9.1 million, indicating a strong financial stability.
On a per-share basis, World Scan Project, Inc. reported a basic and diluted loss per share of $1.02. The weighted average number of common shares outstanding was approximately 10.7 million for both basic and diluted earnings per share calculations.
Despite the challenges faced during the quarter, World Scan Project, Inc. remains optimistic about its future prospects. The company is focused on driving revenue growth through continued innovation and expansion in its core markets. Management is actively working on cost optimization measures to improve profitability and enhance shareholder value.
In conclusion, World Scan Project, Inc. reported a net loss of $3.7 million for the quarter ended July 31, 2023. Although the company experienced a decline in profitability, it achieved significant revenue growth. With a strong financial position and a positive outlook, World Scan Project, Inc. is well-positioned to navigate the challenges and continue its growth trajectory.