Why did INNO HOLDINGS' revenue drop sharply in Q3 2024?

Inno Holdings Inc. (NASDAQ: INHD) experienced a significant decline in revenue in Q3 2024, which can be attributed to a combination of factors: 1. **Challenging Financial Period**: The company faced a challenging financial period, as reflected in its second-quarter earnings for the fiscal year ending March 31, 2025. The net loss attributable to Inno Holdings stood at $3,620,497, a dramatic rise from $1,060,457 recorded in the previous year's Q2. This indicates that the company was struggling financially, which likely impacted its revenue. 2. **Soaring Losses and High Operating Costs**: The increase in operating expenses was notable, totaling $1,410,805, which represents a 410% increase compared to $276,427 in Q2 of 2024. This surge in costs, coupled with significant investment losses, highlights serious challenges that Inno Holdings faced during the quarter. These increased costs would have eaten into the company's revenue, leading to a drop in revenue. 3. **Electronics Products Trading Business**: The company reported revenue from the electronics products trading business, which was a new line of products for the company. However, the cost of goods sold (COGS) for this business was high, reaching $436,600. This suggests that while the company was generating revenue from this new venture, the costs associated with it were likely higher than the revenue generated, leading to a negative impact on overall revenue. In conclusion, Inno Holdings' revenue drop in Q3 2024 was likely a result of a combination of high operational costs, significant investment losses, and the costs associated with a new business venture, which outweighed the revenue generated from that venture.