Aeries Technology Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in revenue to $16.9 million from $17.6 million in the same quarter the previous year. The decrease is attributed to the ramp-down in existing client engagements and the completion of certain consulting projects.
Cost of revenue for the quarter was $13.3 million, representing 79% of revenue, compared to 73% in the same quarter of the previous year. This increase in cost ratio is due to higher employee compensation and benefits.
The company reported a gross profit of $3.6 million for the quarter, compared to $4.8 million in the previous year, with the decline attributed to increased costs.
Selling, general, and administrative expenses increased to $7.7 million from $3.3 million, primarily due to a provision for expected credit loss on customer receivables and increased employee compensation.
The company recorded a net loss of $2.3 million for the quarter, compared to a net income of $927,000 in the previous year.
Cash provided by operating activities was $205,000, while cash used in investing and financing activities was $988,000 and $2.3 million, respectively.
Aeries had a working capital deficit of $9.8 million as of September 30, 2024. The company acknowledges its dependence on positive operating results and potential financing to meet future obligations.
The filing also details various financial agreements, including a revolving credit facility with Kotak Mahindra Bank and a vehicle loan from Mercedes-Benz Financial Services India Pvt. Ltd.
Aeries does not anticipate cash dividend payments to common stockholders in the near future.
The company identified a material weakness in its internal controls over financial reporting due to improper segregation of duties and inadequate processes for timely recording of significant events.
Aeries continues to focus on expanding its client base and diversifying service offerings to mitigate revenue loss from contract non-renewals.
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. Warrant quarterly 10-Q report dated November 19, 2024. To report an error, please email earnings@qz.com.