KAYS earnings analysis
What we found in KAYS's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Kaya Holdings reported Q3 revenue of $5,408 (Q3 2024: $3,000) with gross profit of $5,370, but posted a large net loss of $8,591,465 for the quarter (Q3 2024: $2,495,327). Cash declined to $26,087 (Dec 31, 2024: $39,668) and the company discloses a working capital deficiency of $2,422,383 and substantial doubt about its ability to continue as a going concern. Management continues to pursue equity/debt financings and strategic transactions; the filing shows material non‑cash equity and debt restructurings during the period (e.g., $25,476,253 debt conversion to additional paid‑in capital).
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Quarterly revenue increased
- Net sales for the three months ended September 30, 2025 were $5,408 versus $3,000 in the three months ended September 30, 2024, an increase of $2,408.
- Strong reported gross margin this quarter
- Three‑month gross profit was $5,370 on sales of $5,408 (gross margin ≈ 99.3%), up from gross profit $2,728 on $3,000 (≈ 90.9%) in Q3 2024.
- Large non‑cash recapitalization to equity
- Debt conversion and related non‑cash transactions increased Additional Paid‑in Capital by $25,476,253 (derivative derecognition and debt conversions are shown as non‑cash transactions).
- Liabilities materially reduced vs prior audited balance
- Total liabilities fell to $2,919,815 at September 30, 2025 from $17,344,501 at December 31, 2024, driven in part by reductions in convertible notes and derivative balances.
- Financing cash inflow during period
- Proceeds from convertible notes provided $420,000 of cash in the nine months ended September 30, 2025 (shown in financing activities).
- Derivative liabilities reduced
- Reported derivative liabilities were $503,792 at September 30, 2025 versus $2,497,275 at December 31, 2024.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Very large quarterly and year‑to‑date losses
- Net loss for the three months ended September 30, 2025 was $8,591,465 (three months ended September 30, 2024: $2,495,327); nine‑month net loss was $12,774,232 (nine months 2024: $3,243,797).
- Substantial going concern / working capital deficiency
- The company reports a working capital deficiency of $2,422,383 and states these matters 'raise substantial doubt about the Company’s ability to continue as a going concern.'
- Operating losses far exceed revenues
- Operating loss for the three months ended September 30, 2025 was $269,010 while revenue was $5,408, producing an operating loss many times revenue (operating loss $269,010 vs sales $5,408).
- Operating cash use
- Net cash used in operating activities for the nine months ended September 30, 2025 was $459,666 (reported as 'Net cash used in operating activities').
- Cash balance declined
- Cash and equivalents declined to $26,087 at September 30, 2025 from $39,668 at December 31, 2024 (a decrease of $13,581).
- Massive share dilution during 2025
- Shares issued increased from 41,572,835 at December 31, 2024 to 686,441,673 issued as of September 30, 2025 (common stock par amounts show 686,441,673 shares issued vs 41,572,835 previously).
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.06
- Gross margin
- 99.3%
- Operating margin
- -4977.0%
What they said about what is next.
The MD&A does not provide numeric forward guidance. Management states plans to pursue 'the sale of additional equity and debt securities,' 'alliances and/or partnerships,' and other transactions to meet liquidity needs and acknowledges there are 'no assurances' these will succeed; outlook deferred to future financing/transactions.
The filing reads worse than the one before it.
What came before.
- 10-Q · August 27, 2025
- Kaya Holdings reported Q2 net sales of $10,097 and GAAP basic EPS of $(0.06). Revenue resumed from zero a year ago (Q2 2024: $0) and produced $3,362 of gross profit (33.3% gross margin), but the quarter showed a $2.6M…
- 10-Q · May 21, 2025
- Kaya Holdings reported first-quarter 2025 revenue of $7,052 (vs $0 in Q1 2024) and gross profit of $2,082, but operating loss widened to $309,538 and net loss attributable to Kaya was $1,636,770 (vs $1,084,992 in Q1…
- 10-K · April 29, 2025
- Kaya Holdings (KAYS) is positioning itself as a vertically integrated wellness operator focused on psychedelic treatment clinics and cannabis, operating The Sacred Mushroom psilocybin treatment center and pursuing EU…
- 10-Q · August 15, 2024
- Kaya Holdings reported Q2 net sales of $0 (Q2 2023: $55,116) and GAAP basic EPS of $0.02 for the three months ended June 30, 2024. The quarter swung to net income $357,210 (three months) largely driven by a positive…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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