In This Story
Connexa Sports Technologies Inc. (YYAI+7.05%) has submitted its 10-Q filing for the quarterly period ended January 31, 2025.
The filing reports the company's recent acquisition of a 70% stake in Yuanyu Enterprise Management Co., Limited (YYEM) for a total of $56 million. This acquisition was completed on November 21, 2024, and has been accounted for as a reverse merger.
For the nine-month period ended January 31, 2025, Connexa reported net revenue of $9,818,181, a significant increase from $1,442,308 in the same period the previous year. This increase is attributed to royalty income from new licensees.
Cost of revenue for the nine-month period was $2,232,693, compared to $432,692 the previous year, primarily due to increased amortization costs of new intellectual property or technology rights.
The company reported a gross profit of $7,585,488 for the nine-month period, up from $1,009,616 in the previous year, driven by higher royalty income.
General and administrative expenses increased to $2,286,207 from $6,087, reflecting increased personnel costs and expenses related to the transition to a Nasdaq-listed company.
Net income for the nine-month period was $4,048,515, compared to $837,947 in the previous year. Net income attributable to controlling interest was $3,480,898, up from $837,947.
Connexa reported cash and cash equivalents of $83,710 as of January 31, 2025, compared to $39,351 as of April 30, 2024.
The company highlighted risks related to its dependence on third-party licensing agreements for revenue, potential regulatory changes in Hong Kong, and the integration of AI technologies into its operations.
Connexa's management noted the need for additional financing to support future growth and development plans, acknowledging the potential challenges in securing such financing on favorable terms.
The filing also mentions the recent change in independent auditors, with Bush & Associates CPA replacing Olayinka Oyebola & Co. due to charges against the latter by the SEC.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Connexa Sports Technologies Inc. quarterly 10-Q report dated March 24, 2025. To report an error, please email earnings@qz.com.