Why did ELAB's Q1 2024 costs balloon?

Elevai Labs' (ELAB) Q1 2024 costs ballooned due to several strategic initiatives and operational changes that significantly impacted its financials: 1. **E-commerce Portal Launch**: The company launched an E-commerce portal to support rapid growth and streamline distribution operations. This strategic move likely incurred initial setup costs, including infrastructure development and marketing expenses, which temporarily inflated costs. 2. **New Product Launches**: ELAB plans to launch new skincare products, which involves research and development (R&D) expenses, manufacturing costs, and marketing campaigns. These activities typically lead to increased expenses before generating revenue. 3. **Scaling Production**: With the ability to quickly launch new products, ELAB is scaling up production to meet demand. This expansion likely necessitated investments in manufacturing capacity, logistics, and supply chain management, contributing to higher costs. 4. **Physician Collaboration**: ELAB aims to integrate physicians in its sales process, offering professional-grade products through the E-commerce portal. This collaboration model might involve commissions or other incentives, affecting cost structures. In summary, ELAB's Q1 2024 cost ballooning is a result of strategic investments and operational changes to support business growth and expansion into new markets. These costs are likely to be offset by future revenue gains as the company scales its operations and new products are introduced.