Fri, Jun 13, 7:47 PM (36 days ago)
**Concrete Leveling Systems, Inc. (CLEV) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Flat at $175K for Q1 2025, up to $483K for the nine months ended April 30, 2025, compared to $450K in the same period last year. - **Gross Margin:** Increased slightly to $120K in Q1 2025 from $116K in Q1 2024. - **Net Loss:** Increased to $11.7M in Q1 2025 from $10.6M in Q1 2024, primarily due to higher legal and professional fees. - **Cash Flow:** Net cash used in operating activities was $43.9M for the nine months ended April 30, 2025, compared to $38.3M in the same period last year. - **Liquidity:** Cash on hand was $743K as of April 30, 2025, down from $887K as of July 31, 2024. The company anticipates needing additional financing to meet operating requirements. **Profit Margins and Earnings:** - **Operating Expenses:** Increased to $9.3M in Q1 2025 from $8.1M in Q1 2024, primarily due to higher professional fees. - **Interest Expense:** Slightly decreased to $2.5M in Q1 2025 from $2.6M in Q1 2024. **Trends and Uncertainties:** - **Revenue Trends:** Revenue was flat in Q1 but increased for the nine months due to higher parts sales. - **Operating Expenses:** Increased due to higher accounting and auditing fees. - **Going Concern:** The company's auditors raised substantial doubt about its ability to continue as a going concern due to its current financial position. - **Future Operations:** The company plans to expand into the gaming and hospitality business, which it hopes will generate increased revenue. **Future Operations Impact:** - **Financing Needs:** The company may need to raise additional funds through the sale of debt or equity securities if revenue is insufficient to meet cash requirements. - **Internal Controls:** The company has identified material weaknesses in its internal control over financial reporting and plans to implement changes to address these issues. **Conclusion:** Concrete Leveling Systems, Inc. faces significant financial challenges, including increasing operating losses and doubts about its ability to continue as a going concern. The company is exploring new business opportunities in the gaming and hospitality sector to drive revenue growth and is working to address material weaknesses in its internal controls. However, it may need to secure additional financing to meet its operating requirements.