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Aterian Inc. (ATER-7.94%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing details Aterian's business operations, which focus on selling consumer products through online retail channels, including Amazon, Walmart, and Target. The company's primary brands include Squatty Potty, HomeLabs, Mueller Living, PurSteam, Healing Solutions, and Photo Paper Direct.
For the fiscal year 2024, Aterian reported net revenue of $99.1 million, a decrease from $142.6 million in 2023. This decline was attributed to a reduction in product offerings and competitive pricing pressures.
The company reported a gross profit of $61.5 million, with a gross profit margin of 62.1%, an increase from 49.3% in 2023. This improvement was primarily due to a reduction in the liquidation of excess inventory.
Operating expenses for the year totaled $73.3 million, a decrease from $146.5 million in 2023. This reduction was largely due to the absence of impairment losses on intangibles, which were significant in the previous year.
Aterian reported a net loss of $11.9 million for 2024, an improvement from the $74.6 million loss in 2023. The company attributes this improvement to cost reductions and a strategic focus on profitable products.
The filing also highlights Aterian's restructuring efforts, which included workforce reductions and a focus on reducing operating costs. The company completed two restructuring programs over the last two years.
Aterian's liquidity position includes a cash balance of $18.0 million as of December 31, 2024. The company also amended its credit facility with MidCap Financial Trust, extending the term to December 2026 and reducing the minimum liquidity covenant.
The report notes that Aterian no longer qualifies as an Emerging Growth Company as of December 31, 2024, due to the expiration of the five-year eligibility period under the JOBS Act.
Aterian's management has expressed substantial doubt about the company's ability to continue as a going concern due to recurring losses and negative cash flows. The company plans to closely monitor its operating forecast and pursue additional sources of capital.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Aterian Inc. annual 10-K report dated March 25, 2025. To report an error, please email earnings@qz.com.