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Rubicon Technologies, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports total revenue of $182.5 million for the quarter, an increase from $168.5 million in the same quarter the previous year. Service revenue rose to $169.3 million from $156.4 million, while recyclable commodity revenue increased to $13.2 million from $12.1 million.
Cost of revenue for the quarter was $173.7 million, up from $156.5 million in the previous year. The increase was driven by higher costs associated with service and recyclable commodities.
The company reported a loss from continuing operations of $8.7 million, an improvement from a loss of $29.8 million in the prior year. The improvement was attributed to changes in fair value of derivatives and reduced interest expenses.
A gain of $59.7 million was recorded from the sale of the SaaS business during the nine months ended September 30, 2024.
General and administrative expenses decreased significantly to $6.7 million from $13.6 million, reflecting cost reduction measures.
Product development costs were reduced to $5.3 million from $7.6 million, reflecting decreased workforce-related expenses.
Net income for the quarter was a loss of $8.5 million, compared to a loss of $30.2 million in the previous year. The decrease in net loss was primarily due to the gain on sale of the SaaS business.
Cash and cash equivalents were $1.3 million as of September 30, 2024, with net cash used in operating activities totaling $53.3 million for the nine months ended September 30, 2024.
The company has expressed substantial doubt about its ability to continue as a going concern, citing insufficient cash on hand or available liquidity to meet projected needs for the next 12 months.
The filing also notes the company's efforts to explore refinancing options and implement cost reduction measures to improve cash flow and liquidity.
Rubicon Technologies completed the sale of its SaaS business and entered into a Securities Purchase Agreement with MBI Holdings, LP, issuing 20,000 shares of Series A Convertible Perpetual Preferred Stock for $20 million.
The company is currently exploring refinancing options and has not secured firm commitments for additional funding. Failure to obtain sufficient additional funding could impact the company's ability to meet its obligations and continue operations.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Rubicon Technologies Inc. Class A quarterly 10-Q report dated November 22, 2024. To report an error, please email earnings@qz.com.