Kaspien Holdings Inc (NASDAQ:KSPN),  a leading e-commerce marketplace growth platform, stock plunges 27.18% (As on December 14, 11:57:48 AM UTC-4, Source: Google Finance) after the company in the third quarter of FY 22 has reported 9.4% fall in the adjusted revenue to $29.1 million in the third quarter of FY 22, primarily attributable to declines in Fulfillment by Amazon United States (“FBAUS”). Gross merchandise value (“GMV”) for the three months ended October 29, 2022 was $63.9 million as compared to $63.5 million for the three months ended October 30, 2021. Retail GMV decreased 7.8% to $30.4 million compared to $33.0 million in the comparable year-ago period. Subscription GMV increased 9.8% to $33.5 million, or 52.4% of total GMV, compared to $30.5 million, or 47.6% of total GMV, in the comparable year-ago period. Gross profit decreased 17.9% to $6.6 million or 22.6% of net revenue from $8.0 million or 24.9% of net revenue in the comparable year-ago period. The decrease in gross profit was primarily attributable to a reduction in net revenue for FBAUS, and a decrease in merchandise margin. Gross margin for the quarter improved to 22.6% from 19.8% in the second quarter and general and administrative expenses decreased $0.4 million from the prior year third quarter. Net loss was $3.6 million, or $0.92 per diluted share, compared to a net loss of $0.9 million, or $0.36 per diluted share, in the comparable year-ago period.

Moreover, loss from operations was $2.7 million, compared to a loss from operations of $2.0 million in the comparable year-ago period. The increase in operating loss resulted from the decline in net revenue and a reduction in merchandise margin. Adjusted EBITDA loss (a non-GAAP metric reconciled below) was $2.3 million, compared to an adjusted EBITDA loss of $1.4 million in the comparable year-ago period. As of October 29, 2022, the Company had $0.8 million in cash, compared to $1.2 million as of January 30, 2021 and $1.8 million as of October 30, 2021. Cash used in operations during the thirteen weeks ended October 29, 2022 was $6.3 million, compared to $5.1 million in the comparable year-ago period. Inventory at quarter end was $37.4 million, compared to $30.0 million as of October 30, 2021. As of October 29, 2022, the Company had borrowings under its credit facility of $9.5 million and had $5.2 million available for borrowing.