What caused FEMY's earnings decline in 2024?

Femasys Inc. (FEMY) experienced a decline in earnings in 2024 primarily due to **increased operating expenses** and **higher costs associated with sales and marketing activities**. 1. **Operating Expenses Increase**: The company's research and development (R&D) expenses rose to $8,216,543, up from the previous year, due to increased compensation and development costs. This indicates a strategic investment in innovation, which, although beneficial in the long term, can strain short-term profitability. 2. **Sales and Marketing Expenses Rise**: Sales and marketing expenses increased to $4,030,150, attributed to the expansion of the commercial team and enhanced marketing efforts. While these efforts are crucial for expanding market share and generating revenue, the associated costs can negatively impact immediate earnings. 3. **Compensation and Professional Costs**: General and administrative expenses decreased slightly to $6,325,999, mainly due to reduced compensation and professional costs. This suggests that Femasys is managing its overheads more efficiently, but the overall trend of increased expenses remains. In summary, Femasys' earnings decline in 2024 is primarily a result of strategic investments in R&D and sales/marketing activities, which, while beneficial for long-term growth, put pressure on short-term profitability.