Tue, Aug 27, 9:46 PM (140 days ago)
Hammer Fiber Optics Holdings Corp. reported a mixed financial performance for the quarter ending April 30, 2024. Revenue slightly increased by 0.4% to $770,412 compared to $767,527 in the prior year, driven by growth in its Over-the-Top business segment. However, total operating expenses surged 35% to $1,059,174, primarily due to increased selling, general, and administrative expenses, leading to a net loss of $504,467, significantly higher than the $205,711 loss in Q2 2023. For the nine-month period, revenue rose 8.5% to $2,506,966, but total operating expenses also increased by 10.2%, resulting in a net loss of $581,664, an improvement over the previous year's loss of $628,936. Cash flow from operations was negative at $614,568, reflecting challenges in managing working capital. The company's liquidity remains a concern, with substantial doubt raised about its ability to continue as a going concern without additional financing. The firm is actively seeking capital through debt and equity to support ongoing operations. Additionally, the company is undergoing significant changes, including a potential asset sale to Viper Networks Inc. for shares, which could impact future cash flows and operations.