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Aeries Technology Inc. (AERT+0.55%) has submitted its Form 10-Q filing for the quarterly period ended December 31, 2024.
The filing reports a decrease in net revenue to $17.6 million from $18.9 million in the same quarter of the previous year, attributed to a decline in existing client engagements and the completion of consulting projects.
Cost of revenue increased to $13.6 million from $12.9 million, primarily due to higher employee compensation and benefits.
Gross profit margin decreased to 23% from 32%, reflecting increased costs and reduced revenue.
Operating expenses rose significantly to $9.2 million from $5.3 million, driven by provisions for expected credit losses and increased employee compensation.
The company reported a net income of $2.0 million, compared to a net loss of $16.3 million in the previous year, influenced by changes in the fair value of derivative liabilities.
Income tax benefit was $1.4 million, compared to an expense of $0.6 million in the prior year, due to deferred tax benefits on losses in certain subsidiaries.
Cash used in operating activities was $1.9 million, compared to cash provided by operating activities of $25,000 in the previous year.
The company had cash and cash equivalents of $2.4 million as of December 31, 2024, compared to $6.5 million in the previous year.
Aeries Technology faces substantial doubt about its ability to continue as a going concern, primarily due to obligations under forward purchase agreements and the termination of a significant customer contract.
The company is exploring options to improve liquidity, including raising additional funds and restructuring liabilities.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Aeries Technology Inc. quarterly 10-Q report dated February 14, 2025. To report an error, please email earnings@qz.com.