What caused EUDA's gross profit to drop sharply in Q2 2023?

EUDA's gross profit dropped sharply in Q2 2023 primarily due to a significant increase in the Cost of Goods Sold (COGS) relative to the Total Revenue for the period. The company reported a net income of -$6.1 million and total revenue of $1.11 million for Q2 2023, with the cost of goods sold amounting to $809,081.

The drop in gross profit can be attributed to several possible factors:

1. **Increase in COGS**: The most apparent reason is the rise in COGS, which indicates that the company's costs have outpaced its revenue, leading to a negative gross profit. This could be due to higher operational costs, increased expenses, or inefficiencies in the production or delivery process.
2. **Revenue Decline**: Alternatively, or in addition, the total revenue has decreased, which would naturally result in a lower gross profit. This could be due to a decline in sales, fewer customers, or a decrease in the average sale price.
3. **Market Conditions**: Broader market conditions, competitive pressures, or changes in consumer behavior could also contribute to a drop in gross profit. For instance, if EUDA faces increased competition or experiences a shift in demand for its products or services, this could lead to lower prices or higher costs that affect gross profit.

In summary, EUDA's gross profit drop in Q2 2023 is likely a result of a combination of higher costs and lower revenue, which warrants careful review of the company's operational efficiency and market positioning.