Thu, Nov 14, 5:48 PM (126 days ago)
Value Exchange International, Inc. (VEII) reported significant changes in its financial health for the quarter ending September 30, 2024. Total revenue rose to $11,821,327, a 35.9% increase from $8,695,412 in the same period last year. The gross profit margin improved to 20.1%, up from 17.3% year-over-year, driven by higher service income, particularly in systems maintenance and hardware sales. However, the company still recorded a net loss of $480,640, a substantial reduction from the previous year's loss of $1,121,719, indicating operational improvements despite ongoing challenges. Operational expenses increased, particularly in general and administrative costs, which rose by 24.4%. Cash reserves dwindled to $325,761, with net cash used in operations decreasing significantly to $514,405. The company continues to rely on debt financing, with convertible loans totaling $604,221, raising concerns about liquidity and future capital requirements. Management has identified a need for strategic growth and operational efficiency to address financial uncertainties and enhance profitability. Overall, while revenue trends are positive, the company faces ongoing risks related to liquidity and operational costs.