Fri, Jun 14, 8:18 PM (85 days ago)
Digerati Technologies, Inc. reported a net loss of $5,332,000 for Q3 FY2024, a significant increase from the $2,653,000 loss in Q3 FY2023. The company’s revenue from cloud software and services decreased by 5% to $7,430,000, attributed to a reduction in the customer base. Operating expenses slightly decreased by 3% to $8,601,000 due to lower SG&A expenses. However, losses on derivative instruments and extinguishment of debt, totaling $1,283,000, significantly impacted the financials. Interest expense also decreased by 21% to $2,920,000. The company’s cash position was relatively stable, with $969,000 in cash and equivalents. The company is actively seeking additional funding and has entered into several amendments to its credit agreements to manage liquidity. Management plans to leverage recent acquisitions and improve marketing strategies to enhance revenue growth. The company faces substantial doubt about its ability to continue as a going concern due to significant accumulated deficits and working capital deficits.