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Value Exchange International, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing details financial statements for the quarter, showing net revenues of $4,387,174, compared to $2,960,825 in the same quarter of 2023, marking an increase of 48.2%. This rise was primarily due to increased revenue from systems maintenance and sales of hardware.
Cost of services for the quarter was $3,795,514, representing 86.5% of net revenues, up from 78.6% in the same quarter of the previous year. The increase in cost ratio is attributed to higher contracting fees to suppliers.
The company reported a gross profit of $591,660 for the quarter, compared to $634,746 in the previous year, with the decline attributed to increased costs.
General and administrative expenses increased to $1,164,668 from $886,442, primarily due to higher audit fees and staff costs.
Net loss for the quarter was $521,660, up from $326,955 in the previous year. The loss was primarily due to increased operating expenses.
Cash used in operating activities was $514,405, while cash used in investing and financing activities was $45,833 and $88,417, respectively.
Value Exchange International had cash and cash equivalents of $325,761 as of September 30, 2024. The company acknowledges its need for additional cash resources to meet future obligations.
The filing also details various financial agreements, including a convertible loan agreement with Hapi Metaverse, Inc. and a loan agreement with American Pacific Bancorp, Inc.
The company identified a material weakness in its internal controls over financial reporting due to ineffective disclosure controls and procedures.
Value Exchange International continues to focus on expanding its IT Business services in the Asia Pacific region, with a recent acquisition in Malaysia.
The filing notes that the company faces significant risks related to its ability to generate sufficient capital to continue as a going concern.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Value Exchange International Inc quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.