Wed, May 15, 12:28 PM (72 days ago)
GlobalTech Corporation's Form 10-Q for the quarter ended March 31, 2024, highlights several key financial metrics and trends. The company reported a net revenue increase to $3.70 million, up from $2.47 million in the same period of 2023, primarily driven by a $1.37 million increase in international termination services. However, broadband services revenue decreased by $0.13 million due to a decline in house passes. Direct operating costs rose to $3.58 million from $2.14 million, mainly due to higher interconnect costs. The company posted a net loss of $1.42 million, a significant improvement from the $4.38 million loss in the prior year. Adjusted EBITDA stood at -$0.35 million, compared to -$0.14 million in Q1 2023. The balance sheet shows a decrease in cash and cash equivalents to $457,096 from $908,097 at the end of 2023. Total assets slightly decreased to $55.90 million from $57.29 million, while total liabilities remained relatively stable at $45.13 million. The company is focusing on expanding its Fiber to the Home (FTTH) network, expecting to convert a significant portion of its existing customers to this higher-margin service. Future operations are expected to benefit from ongoing FTTH deployments and potential collaborations to expand broadband services. However, uncertainties remain due to legal proceedings and the need for additional capital to fund expansions. The company is exploring a private placement to raise between $5 million and $10 million by September 2024.