Tue, Sep 10, 3:22 PM (102 days ago)
For the quarter ending July 31, 2024, Connexa Sports Technologies Inc. reported a significant decline in net sales, dropping 77% to approximately $704,899 from $3,120,231 in the prior year, primarily due to inventory shortages. Gross profit also decreased by 70% to $272,121, reflecting a gross margin of 41%. Operating expenses surged by 28% to $3,527,316, driven by increased general and administrative costs, leading to an operating loss of $3,255,195, a 76% increase from the previous year. The net loss for the quarter was $4,220,745, compared to $846,765 in the same period last year. Cash flow from operations showed a negative $72,646, while financing activities generated $1,614,958, primarily from warrant exercises. As of July 31, 2024, cash and equivalents stood at $1,711,283, up from $229,705 at the end of April 2024. The company faces ongoing uncertainties, including significant accumulated deficits and the need for additional financing to sustain operations. The acquisition of YYEM, pending regulatory approval, is expected to alter the company's operational landscape significantly. Overall, the results indicate a challenging financial environment with substantial risks ahead, including compliance with Nasdaq listing requirements.