How did KDLY's revenue cost drop drastically in Q4 2024?

Kindly MD (KDLY) experienced a significant decrease in its Cost of Goods Sold (COGS) in Q4 2024, which dropped to $5333. 1. **Revenue by Business Analysis**: KDLY's revenue was primarily driven by Patient Care Services, contributing $2.62 million. Product and Service Affiliate Agreements accounted for additional revenues of $71609 and $32110, respectively. The remaining $570936 was attributed to Patient Care Services. |code|Ticker|Name|Date|Business Composition|Revenue By Business|market_code| |---|---|---|---|---|---|---| |KDLY|KDLY.O|Kindly MD|20240101-2024|Service Affiliate Agreements|32110|186| |KDLY|KDLY.O|Kindly MD|20240101-2024|Service Affiliate Agreements|22432|186| |KDLY|KDLY.O|Kindly MD|20240101-2024|Product|73318|186| |KDLY|KDLY.O|Kindly MD|20240101-2024|Product|43186|186| 2. **Financial Performance Context**: Considering the overall financial performance, KDLY reported Q4 2024 earnings of -$1.0M, a decrease of 1.2% from the previous quarter. For the trailing 12 months ending Sep 30, 2024, KDLY's earnings totaled -$2.9M, with no year-over-year growth. This indicates that while the company has been generating some revenue, it has not been sufficient to cover its costs, leading to a negative earnings trend. 3. **Market Conditions**: The fourth quarter of 2024 was marked by volatility in the U.S. stock market, with a strong performance in November, driven by a post-election rally. However, this positive momentum did not directly translate to KDLY's financial performance, as evidenced by its negative earnings and the drop in COGS. In conclusion, KDLY's significant drop in COGS in Q4 2024 can be attributed to a combination of factors, including a decrease in Patient Care Services revenue and challenging market conditions. The company's negative earnings for the period further suggests that it faced considerable challenges in generating sufficient revenue to cover its costs.