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DevvStream Corp. (DEVS-0.17%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a net loss of $1,011,733 for the three months ended September 30, 2024, compared to a net loss of $1,770,907 for the same period in the previous year.
Operating costs for the quarter were reported at $1,372,525, with additional losses from a provision for income taxes amounting to $40,918. The company also noted a change in the fair value of warrant liabilities, resulting in a gain of $227,000.
As of September 30, 2024, DevvStream Corp. reported total assets of $19,514,931, with cash held in a trust account totaling $19,307,014. Total liabilities were reported at $13,684,295.
The company highlighted the completion of its business combination with DevvStream Holdings Inc. on November 6, 2024, which involved several pre-closing transactions, including the issuance of new shares and adjustments to warrant terms.
DevvStream Corp. faced challenges related to compliance with Nasdaq listing rules and received notices regarding potential delisting due to not completing a business combination within the required timeframe.
The filing also discusses the impact of the Inflation Reduction Act of 2022, which imposes a 1% excise tax on certain stock repurchases. The company is evaluating its options regarding this obligation.
Management identified material weaknesses in internal controls over financial reporting, specifically around account reconciliations and the withdrawal of funds from the trust account. Plans to address these weaknesses are underway.
DevvStream Corp. continues to operate as an emerging growth company, taking advantage of certain exemptions from reporting requirements applicable to other public companies.
The filing includes various legal agreements and amendments related to the business combination, including a strategic consulting agreement and new convertible notes issued to the company's sponsor and partners.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the DevvStream Corp. quarterly 10-Q report dated January 23, 2025. To report an error, please email earnings@qz.com.