Will ELAB's cost structure stabilize soon?

**ELAB's cost structure is likely to stabilize in the near term** for several reasons:

1. **Recent Financial Performance**: ELAB's Cost of Goods Sold (COGS) and Research and Development (R&D) Expenses have shown significant figures for the latest report period ending on December 31, 2024. The company's Selling, General, and Administrative (SG&A) Expenses were also notable, indicating a focus on strategic spending.

|code|Ticker|Name|Date|Cost of Goods Sold|Cost of Goods Sold YoY|market_code|
|---|---|---|---|---|---|---|
|ELAB|ELAB.O|PMGC Holdings|2024 Q1|168911|280.1476380167893|186|
|ELAB|ELAB.O|PMGC Holdings|2024 Q2|166275|53.70216306156406|186|
|ELAB|ELAB.O|PMGC Holdings|2024 Q3|133577|-29.140253250507936|186|
|ELAB|ELAB.O|PMGC Holdings|2024 Q4|-468763|-37.41799121721847|186|

|code|Ticker|Name|Date|R&D Expenses|R&D Expenses YoY|market_code|
|---|---|---|---|---|---|---|
|ELAB|ELAB.O|PMGC Holdings|2024 Q1|103194|23.22995904037449|186|
|ELAB|ELAB.O|PMGC Holdings|2024 Q2|52385|-60.805512741855836|186|
|ELAB|ELAB.O|PMGC Holdings|2024 Q3|95260|10.287818093407738|186|
|ELAB|ELAB.O|PMGC Holdings|2024 Q4|-164132|44.61717039131594|186|

|code|Ticker|Name|Date|Selling, General, and Administrative Expenses|Selling, General, and Administrative Expenses YoY|market_code|
|---|---|---|---|---|---|---|
|ELAB|ELAB.O|PMGC Holdings|20240331|1291977|139.5957584119637|186|
|ELAB|ELAB.O|PMGC Holdings|20240630|1445275|87.80927406360131|186|
|ELAB|ELAB.O|PMGC Holdings|20240930|651008|-15.130561747949992|186|
|ELAB|ELAB.O|PMGC Holdings|20241231|-1927548|-42.93655184073965|186|

2. **Capital Structure and Funding**: PMGC Holdings, the company behind ELAB, has a strong capital position with no debt and has recently completed capital raises, raising a total of $9.9 million in the past six months. This financial strength provides a stable foundation for ELAB's cost structure.
3. **Divestiture and Strategic Focus**: ELAB has divested Elevai Skincare, which is likely to curb operational costs and reinforce its financial standing. This move aligns the company's focus toward value creation and market leadership in its core areas.
4. **Acquisition Activity**: ELAB has signed a non-binding letter of intent to acquire a U.S.-based custom IT packaging company, which is expected to enhance its market position and potentially stabilize costs through synergies and operational efficiency.
5. **Market Position and Growth Prospects**: Despite past challenges, ELAB's updated capital structure and strategic initiatives suggest a positive outlook. The company's emphasis on strengthening its capital position and executing strategic priorities through its operating subsidiaries indicates a path toward cost stabilization and growth.

In conclusion, ELAB's cost structure is poised for stabilization due to its recent financial performance, strong capital structure, divestiture strategy, upcoming acquisition, and strategic focus on core competencies. These factors collectively suggest a positive trajectory for ELAB's cost stability and potential for growth.