Core Insights - Aeries Technology has established an Independent Strategic Advisory Board to enhance its growth, innovation, and long-term client success [1][4] - The Advisory Board aims to align with client needs, advance strategic priorities, and identify new commercial opportunities [2][4] Group 1: Advisory Board Composition and Purpose - Ramesh Venkataraman, a seasoned private-equity investor and former McKinsey partner, will chair the Advisory Board [3] - The Board is designed to incorporate the "voice of the customer" into strategic discussions and leverage industry expertise [2][4] - The Advisory Board will support Aeries in navigating a complex landscape, enhancing execution capabilities [4] Group 2: Company Background - Aeries Technology is a global leader in AI-enabled value creation and business transformation for private-equity portfolio companies [5] - The company has been recognized for its commitment to workforce development, earning the Great Place to Work Certification for two consecutive years [5]

Core Insights - Aeries Technology, Inc. reported a revenue of $70.2 million for FY 2025, with North America revenue increasing by 15% year-over-year to $65.5 million, representing 93.3% of total revenue [5][6] - The company achieved a Core Adjusted EBITDA of $7.4 million, surpassing its previous guidance of $6–7 million [5][6] - Aeries reaffirmed its outlook for FY 2026, expecting revenue between $74 million and $80 million and Adjusted EBITDA between $6 million and $8 million [5][6] Financial Performance - The company reported an Adjusted EBITDA of $(4.7) million and an operating loss of $(28.8) million, with a net loss of $(21.6) million, primarily due to one-time expenses not expected to recur in 2026 [5][6] - A significant portion of the loss, $12.0 million, was attributed to non-core business activities, while $12.7 million was related to stock-based compensation from a one-time issuance [5][6] - Year-end liquidity stood at $2.8 million in cash, with $1.1 million in long-term debt [5] Strategic Developments - The company has shifted its focus to core Global Capability Centers (GCCs) for private equity-backed companies in North America, fully winding down its legacy operations in the Middle East [5][6] - Aeries launched an AI-Centric GCC Framework, integrating intelligent automation and generative AI agents, and has already scaled a 300-plus-member GCC for a healthcare client [5][6] - New engagements have been signed with a global cybersecurity provider and a sustainability-focused SaaS leader to establish multi-country GCCs in India and Mexico [5][6] Management Commentary - CEO Ajay Khare emphasized that FY 2025 was pivotal for Aeries, highlighting the intentional strategy to focus on core business and streamline operations [6] - CFO Daniel Webb noted strong traction with new clients and a leaner cost structure, indicating that 2026 is on track to be the company's best year yet [6]

Financial Data and Key Metrics Changes - For fiscal year 2025, the company reported total revenue of $70.2 million, a slight decline from $72.5 million in fiscal year 2024, primarily due to the exit from the Middle East business [12] - Core adjusted EBITDA reached $7.4 million, an increase of 365% from $1.6 million in the previous year, exceeding guidance of $6 million to $7 million [4][15] - The company ended the year with $2.8 million in cash and $1.1 million in long-term debt, providing flexibility for ongoing initiatives [15] Business Line Data and Key Metrics Changes - North America revenue grew 15% year over year from $57 million to $65.5 million, highlighting strong momentum in core markets [7][12] - The company has shifted focus to private equity-backed companies and exited lower-value, non-core geographies, which has strengthened its business model [5][6] Market Data and Key Metrics Changes - North America now represents over 93.3% of the company's revenue base, indicating a significant concentration in this market [6] - The company is seeing increased adoption of large-scale digital transformation initiatives among clients, reflecting a growing demand for its services [6][17] Company Strategy and Development Direction - The company has made intentional decisions to sharpen its strategy by focusing on core business areas and exiting non-core markets [5] - A new AI-centered global capability center framework has been launched, integrating intelligent automation and data-driven decision systems [10][11] - The company plans to continue hiring key personnel with relationships in the private equity industry to expand its pipeline and network [6][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in fiscal year 2026, projecting revenue between $74 million and $80 million and adjusted EBITDA between $6 million and $8 million [16][17] - The company is experiencing strong traction with clients, with existing clients deepening their partnerships and an expanding private equity network [17][18] Other Important Information - The restructuring process is complete, and stock-based compensation is expected to be significantly lower moving forward [13][15] - Fiscal year 2025 will be the last year to report core adjusted EBITDA as a separate metric, transitioning to adjusted EBITDA and GAAP measures [15] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session.

Financial Data and Key Metrics Changes - For fiscal year 2025, the company reported total revenue of $70.2 million, a decrease from $72.5 million in fiscal year 2024, primarily due to the exit from the Middle East business [11] - Core adjusted EBITDA reached $7.4 million, an increase of 365% from $1.6 million in the previous year, exceeding guidance [14] - The company ended the year with $2.8 million in cash and $1.1 million in long-term debt, providing flexibility for ongoing initiatives [14] Business Line Data and Key Metrics Changes - North America revenue grew 15% year over year from $57 million to $65.5 million, highlighting strong momentum in core markets [11][7] - The company has shifted focus to private equity-backed companies, enhancing its global capability center (GCC) model, which is now a preferred method for scalable capabilities in technology and operations [6][7] Market Data and Key Metrics Changes - North America now represents over 93.3% of the company's revenue base, indicating a significant concentration in this market [6] - The company is experiencing high client retention and increased adoption of large-scale digital transformation initiatives [6] Company Strategy and Development Direction - The company has exited lower-value, non-core geographies, specifically the Middle East consulting market, and has completed associated write-offs [5] - A new AI-centered GCC framework has been launched, integrating intelligent automation and data-driven decision systems to enhance client capabilities [9][10] - The company plans to continue hiring key personnel with relationships in the private equity industry to expand its pipeline and network [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in fiscal year 2026, projecting revenue between $74 million and $80 million and adjusted EBITDA between $6 million and $8 million [15][16] - The company is seeing strong traction with clients, with existing clients deepening partnerships and an expanding private equity network [16] - The cost structure is now lean, and AI-led transformation is gaining pace, indicating a positive outlook for future performance [17] Other Important Information - The restructuring process is complete, and stock-based compensation is expected to be significantly lower moving forward [12] - Fiscal year 2025 will be the last year to report core adjusted EBITDA as a separate metric, transitioning to adjusted EBITDA and GAAP measures [14] Q&A Session Summary - No specific questions or answers were provided in the content, indicating that the call concluded without a Q&A segment [19]

Core Viewpoint - Aeries Technology, Inc. reported a significant increase in Core Adjusted EBITDA and a 15% year-over-year revenue growth in North America, despite an overall decline in total revenues for fiscal year 2025 [1][3][4]. Financial Performance - Revenues for fiscal year 2025 were $70.2 million, a decrease of 3.2% from $72.5 million in fiscal year 2024 [4][14]. - The company reported a net loss of $21.6 million for fiscal year 2025, compared to a net income of $17.3 million in fiscal year 2024 [4][14]. - Adjusted EBITDA for fiscal year 2025 was $(4.7) million, down from $9.2 million in fiscal year 2024 [5][18]. - Core Adjusted EBITDA for fiscal year 2025 was $7.4 million, a 365% increase from $1.6 million in fiscal year 2024 [5][18]. Strategic Focus - The company has exited non-core geographies, including the Middle East, and has realigned its focus on the North American market [3][10]. - Aeries aims to generate the majority of its revenue from its core business, which includes Global Capability Center (GCC) services for private equity-backed companies in North America [10][11]. Future Outlook - Aeries has reiterated its guidance for fiscal year 2026, projecting revenues between $74 million and $80 million and Adjusted EBITDA between $6 million and $8 million [8][6].

[Part I](index=6&type=section&id=PART%20I) This section details the company's business operations, corporate history, key risk factors, cybersecurity measures, and property locations [Business Overview](index=6&type=section&id=Item%201.%20Business) Aeries Technology provides professional and technology consulting, specializing in Global Capability Centers for private equity and middle-market firms, leveraging AI for efficiency and growth - The company's core business is providing professional and technology consulting services, specializing in the design, set-up, and management of Global Capability Centers (GCCs) for private equity portfolio companies and middle-market companies[22](index=22&type=chunk) - Aeries' GCC model aims to deliver significant cost savings (targeting a minimum of **40%**, with some clients achieving over **60%**) by leveraging cost-effective geographies, AI, and process improvements[22](index=22&type=chunk)[39](index=39&type=chunk) - Key growth strategies include expanding within the private equity ecosystem, cross-selling additional solutions like AI and RPA to existing customers, and accelerating growth into the mid-market enterprise segment[40](index=40&type=chunk) - As of March 31, 2025, the company had over **30 clients**. Revenue is concentrated, with the top five clients accounting for **57% of revenue** in FY2025. Two individual clients contributed **21%** and **12% of revenue**, respectively[56](index=56&type=chunk) - The company completed a business combination with Worldwide Webb Acquisition Corp. (WWAC) on November 6, 2023, which was accounted for as a reverse recapitalization, with AARK being the accounting acquirer[82](index=82&type=chunk)[84](index=84&type=chunk) [Services and Solutions](index=10&type=section&id=Services%20and%20Solutions%20We%20Offer) Aeries offers modular Global Capability Center services, including setup, optimization, and advisory, across various business functions with AI integration - Aeries offers modular GCC services, including **end-to-end setup and operation**, **optimization modules** for existing centers, and **full-lifecycle advisory and consulting** support[43](index=43&type=chunk)[44](index=44&type=chunk)[46](index=46&type=chunk)[48](index=48&type=chunk) - The company provides expertise in core business functions such as Technology, Finance & Accounting, IT Infrastructure, and Cybersecurity, aiming for a **50%+ cost advantage** over onshore teams[49](index=49&type=chunk)[50](index=50&type=chunk)[54](index=54&type=chunk) - Aeries embeds AI-powered transformation services within its GCC models, offering **AI strategy**, **intelligent automation (RPA, IDP)**, **predictive analytics**, and **process optimization** to accelerate clients' digital maturity[51](index=51&type=chunk)[52](index=52&type=chunk)[55](index=55&type=chunk) [Corporate History and Business Combination](index=17&type=section&id=Corporate%20History%2C%20the%20Business%20Combination%2C%20and%20the%20Exchange%20of%20Shares) The company completed a reverse recapitalization with WWAC in November 2023, leading to a significant increase in Aeries' economic interest in AARK and establishing a dual-class share structure - On November 6, 2023, the company consummated a business combination with WWAC, which was accounted for as a reverse recapitalization. Post-combination, Aeries owned **38.24%** of the economic interests of AARK[82](index=82&type=chunk)[84](index=84&type=chunk) - Exchange Agreements allow holders of AARK and ATG shares to exchange them for Class A ordinary shares or cash, subject to certain conditions. On April 5, 2024, Mr. Raman Kumar exchanged **9,500 AARK shares for 21,337,000 Class A shares**, increasing Aeries' economic interest in AARK from **38.24% to 96.91%**[86](index=86&type=chunk)[87](index=87&type=chunk)[88](index=88&type=chunk) - The company has a dual-class share structure. A Class V share, held by a business associate of Mr. Kumar, has special voting rights (**51% of total votes**) in the event of extraordinary events like a hostile takeover attempt, effectively making Aeries a **"controlled company"**[83](index=83&type=chunk)[212](index=212&type=chunk)[213](index=213&type=chunk) - The company is classified as an **"emerging growth company"** and a **"smaller reporting company,"** allowing it to take advantage of reduced disclosure obligations[91](index=91&type=chunk)[94](index=94&type=chunk) [Risk Factors](index=20&type=section&id=Item%201A.%20Risk%20Factors) The company faces substantial going concern risk due to recurring losses and a working capital deficit, compounded by significant customer loss, high client concentration, and material weaknesses in internal controls - **Going Concern Risk:** The company has identified conditions that raise substantial doubt about its ability to continue as a going concern. This is due to a net loss of **$21.6 million** in FY2025, a working capital deficit of **$11.1 million**, and obligations under Forward Purchase Agreements (FPAs)[104](index=104&type=chunk) - **Loss of Significant Customer:** A significant customer provided a non-renewal notice, expected to result in an annual revenue loss of approximately **$11.5 million**. While a one-time buyout payment of **~$3.0 million** is expected, this may not offset the long-term impact[106](index=106&type=chunk)[142](index=142&type=chunk) - **Material Weaknesses in Internal Control:** The company identified material weaknesses in its internal control over financial reporting, related to improper segregation of duties, inadequate processes for recording transactions, and poor information/communication policies. This led to a restatement of prior financial statements[218](index=218&type=chunk)[219](index=219&type=chunk) - **Client Concentration:** The business is dependent on key clients, with the top five accounting for **57% of revenue** in FY2025. The loss of any key client could materially harm the business[141](index=141&type=chunk) - **Receivables Risk:** The company faces challenges in collecting accounts receivable, particularly in the Middle East and Asia Pacific. In FY2025, it wrote off **$9.5 million** in receivables and recorded an allowance for doubtful accounts of **$3.6 million**[132](index=132&type=chunk)[134](index=134&type=chunk) - **Controlled Company Status:** Due to the voting power of the Class V shareholder, Aeries is a **"controlled company"** under Nasdaq rules, exempting it from certain corporate governance requirements, such as having a majority of independent directors[212](index=212&type=chunk) [Cybersecurity](index=49&type=section&id=Item%201C.%20Cybersecurity) Aeries manages cybersecurity risk through a dedicated committee, regular assessments, and Board oversight, maintaining ISO 27001:2022 and SOC 2 Type 2 certifications - The company's risk management program is governed by a cybersecurity committee of senior executives and an Enterprise Risk Management lead, utilizing third-party consultants and maintaining cyber insurance[241](index=241&type=chunk) - The Board of Directors oversees cybersecurity risk, receiving at least one annual report from the cybersecurity committee on risks, threats, and program status[244](index=244&type=chunk) - The company is **ISO 27001:2022 certified** and compliant with **SOC 2 Type 2 certification**, indicating adherence to recognized cybersecurity frameworks[74](index=74&type=chunk) [Properties](index=50&type=section&id=Item%202.%20Properties) The company maintains its corporate office in Mumbai, with global delivery centers across India and Mexico, alongside a Singapore headquarters and U.S. sales offices Global Delivery Centers | Location | Centers | | :--- | :--- | | Hyderabad | 2 | | Bengaluru | 4 | | Mumbai | 3 | | Pune | 1 | | Mexico (Guadalajara) | 3 | [Part II](index=52&type=section&id=PART%20II) This section covers the company's common equity market, management's financial analysis, auditor changes, and internal control effectiveness [Market for Common Equity and Related Matters](index=52&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Shareholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Aeries' Class A shares and warrants trade on Nasdaq, with no anticipated cash dividends, and the report details various unregistered share issuances related to the Business Combination - Class A ordinary shares and warrants are traded on Nasdaq under the symbols **"AERT"** and **"AERTW,"** respectively[254](index=254&type=chunk) - The company has never declared or paid cash dividends and does not intend to in the foreseeable future, retaining earnings for business development and growth[256](index=256&type=chunk) - In connection with the Business Combination, the company issued **5,638,530 Class A shares** to Innovo Consultancy DMCC (controlled by Mr. Kumar) and **2,677,227 shares** to non-redeeming shareholders[259](index=259&type=chunk)[260](index=260&type=chunk) - On April 5, 2024, Mr. Kumar exchanged **9,500 AARK ordinary shares for 21,337,000 Class A ordinary shares** under the Exchange Agreement[264](index=264&type=chunk) [Management's Discussion and Analysis (MD&A)](index=54&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A highlights a **3% revenue decrease** and a **$21.6 million net loss** in FY2025, driven by increased SG&A, with management expressing substantial doubt about going concern due to liquidity issues Fiscal Year 2025 vs 2024 Financial Performance (in thousands) | Metric | FY 2025 | FY 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Revenues, net | $70,198 | $72,509 | (3)% | | Gross Profit | $16,720 | $21,641 | (23)% | | (Loss) / income from operations | $(28,770) | $2,987 | (1,063)% | | Net (loss) / income | $(21,595) | $17,256 | (225)% | | Net (loss) / income attributable to shareholders | $(19,714) | $15,657 | (226)% | - **Going Concern Warning:** Management has identified conditions raising substantial doubt about the company's ability to continue as a going concern. Key factors include a net loss of **$21.6 million**, a working capital deficit of **$11.1 million**, liabilities from Forward Purchase Agreements (FPAs), a **$9.5 million** write-off of receivables, and the non-renewal of a significant customer contract expected to cause an **$11.5 million** annual revenue loss[311](index=311&type=chunk)[314](index=314&type=chunk) - SG&A expenses increased by **144% to $45.5 million**, primarily due to an **$11.1 million** increase in stock-based compensation, **$9.1 million** in bad debts, a **$1.7 million** impairment loss, and a **$1.2 million** increase in provisions for expected credit loss[303](index=303&type=chunk) Adjusted EBITDA Reconciliation (in thousands) | | Year Ended March 31, | | :--- | :--- | :--- | | | **2025** | **2024** | | **Net (loss) / income** | **$(21,595)** | **$17,256** | | Adjustments | | | | Stock-based compensation | 12,746 | 1,626 | | Business Combination and M&A costs | 6,993 | 3,067 | | Change in fair value of derivative liabilities | (5,323) | (16,167) | | Other adjustments (Depreciation, Interest, etc.) | 3,348 | 3,458 | | **Adjusted EBITDA** | **$(4,652)** | **$9,192** | | **Adjusted EBITDA margin** | **(6.6)%** | **12.7%** | [Changes in and Disagreements with Accountants](index=67&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) Aeries dismissed KNAV CPA LLP and appointed Manohar Chowdhry & Associates due to disagreements over audit scope expansion for revenue recognition and noted material weaknesses - The company dismissed its auditor, KNAV CPA LLP, on August 11, 2024, and appointed Manohar Chowdhry & Associates[350](index=350&type=chunk)[356](index=356&type=chunk) - A disagreement occurred with KNAV over the need to expand audit procedures for revenue recognition in the Middle East and APAC region, which the company felt required more accessible auditing resources located in India[353](index=353&type=chunk) - A previously disclosed material weakness in internal control over financial reporting was noted as a **"reportable event"** under SEC regulations[355](index=355&type=chunk) [Controls and Procedures](index=68&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls were ineffective as of March 31, 2025, due to material weaknesses in internal control over financial reporting, prompting a remediation plan - Management concluded that disclosure controls and procedures were **not effective** as of March 31, 2025[359](index=359&type=chunk) - Material weaknesses were identified in internal control over financial reporting, including: **improper segregation of duties**, **inadequate processes for timely recording of transactions**, and **inadequate design of communication policies and monitoring activities**[365](index=365&type=chunk) - These weaknesses led to a **restatement of previously issued financial statements** to correct misreporting of EPS and share counts[364](index=364&type=chunk) - A remediation plan is in process, focusing on improving financial statement review processes and communication with service providers, but its success is not guaranteed[367](index=367&type=chunk)[368](index=368&type=chunk)[369](index=369&type=chunk) [Part III](index=70&type=section&id=PART%20III) This section outlines the company's corporate governance structure, executive compensation, security ownership, and related party transactions [Directors, Executive Officers and Corporate Governance](index=70&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) This section details the Board and executive team, noting Aeries' "controlled company" status under Nasdaq rules, and outlines the three standing Board committees - Key leadership includes **Venu Raman Kumar as Chairman** of the Board and **Bhisham (Ajay) Khare as Chief Executive Officer**[375](index=375&type=chunk) - The company is a **"controlled company"** under Nasdaq rules, exempting it from the requirement to have a majority of independent directors on its board[412](index=412&type=chunk) - The Board has three committees: **Audit, Compensation, and Nominating & Corporate Governance**. The Audit Committee consists of three independent directors, each qualifying as an **"audit committee financial expert"**[413](index=413&type=chunk)[415](index=415&type=chunk) [Executive Compensation](index=78&type=section&id=Item%2011.%20Executive%20Compensation) FY2025 executive compensation primarily comprised base salaries and substantial stock/option awards, with no cash bonuses, and new employment agreements outlining future terms FY2025 Summary Compensation Table (in thousands) | Name and Principal Position | Salary ($) | Stock/Option Awards ($) | All Other Comp. ($) | Total ($) | | :--- | :--- | :--- | :--- | :--- | | **Bhisham (Ajay) Khare** (CEO) | 389 | 3,460 | 257 | 4,105 | | **Sudhir Appukuttan Panikassery** (Former CEO) | 565 | 7,314 | 165 | 8,044 | | **Daniel S. Webb** (CFO & CIO) | 400 | 1,047 | 15 | 1,462 | | **Unnikrishnan (Unni) Balakrishnan Nambiar** (CTO) | 283 | 925 | - | 1,209 | - No annual cash incentive bonuses were paid to Named Executive Officers for fiscal year 2025[445](index=445&type=chunk) - In March 2025, the company entered into new employment agreements with its NEOs, establishing base salaries and severance provisions. Termination without **"cause"** or for **"good reason"** entitles the executive to **12 months of base salary** as severance[461](index=461&type=chunk)[464](index=464&type=chunk)[470](index=470&type=chunk) - Non-employee directors receive an annual cash fee of **$50,000**. The Chairman, Venu Raman Kumar, has a separate agreement for an annual fee, which was temporarily reduced[481](index=481&type=chunk)[482](index=482&type=chunk)[488](index=488&type=chunk) [Security Ownership](index=87&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Shareholder%20Matters) As of June 25, 2025, Chairman Venu Raman Kumar beneficially owns **58.2%** of Class A shares, with insiders collectively holding **79.2%**, reinforcing the company's controlled status via a dual-class share structure Beneficial Ownership of Class A Ordinary Shares (as of June 25, 2025) | Name of Beneficial Owner | Shares Beneficially Owned | Percentage of Class A | | :--- | :--- | :--- | | Venu Raman Kumar (Chairman) | 28,098,530 | 58.2% | | Sudhir Appukuttan Panikassery (Vice Chairman) | 5,151,005 | 10.9% | | Bhisham (Ajay) Khare (CEO) | 3,358,624 | 6.9% | | All executive officers and directors as a group (9 individuals) | 38,106,533 | 79.2% | - The company has a dual-class share structure. A single Class V ordinary share holds **51% of the voting power** in the event of a hostile change of control or matters related to the appointment/removal of directors[491](index=491&type=chunk) [Related Party Transactions](index=90&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) The company engages in extensive related party transactions with entities controlled by Chairman Venu Raman Kumar and his family, including intercompany loans and consulting services - The company has extensive related party transactions with entities controlled by Chairman Venu Raman Kumar and his family[501](index=501&type=chunk)[502](index=502&type=chunk) - In FY2025, the company provided management consulting services totaling **$2.86 million** to affiliated entities Aark II Pte Ltd and TSLC Pte Ltd[507](index=507&type=chunk) - The company has an outstanding loan from Mr. Vaibhav Rao (son of the Chairman) with a balance of **$0.81 million** as of March 31, 2025[506](index=506&type=chunk) - The company holds investments in preference shares of affiliated entities Aeries Financial Technologies and Aeries Technology Products and Strategies with a combined carrying value of **$1.83 million** as of March 31, 2025[510](index=510&type=chunk)[511](index=511&type=chunk) [Financial Statements and Supplementary Data](index=62&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the independent auditor's report, consolidated financial statements, and detailed notes providing critical financial context [Auditor's Report](index=100&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) The auditor's report affirms fair financial statement presentation but includes a critical 'Going Concern Uncertainty' paragraph due to operating losses and working capital deficiency - **Going Concern Uncertainty:** The auditor's report explicitly includes a paragraph stating that conditions such as operating losses, working capital deficiency, and negative cash flows **"raise substantial doubt about the Company's ability to continue as a going concern"**[538](index=538&type=chunk) [Consolidated Financial Statements](index=101&type=section&id=Consolidated%20Financial%20Statements) FY2025 consolidated financial statements reveal a deteriorating position with an **$11.1 million working capital deficit**, a **$21.6 million net loss**, and low cash reserves Consolidated Balance Sheet Highlights (in thousands) | | As of March 31, 2025 | As of March 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $2,764 | $2,084 | | Total current assets | $21,327 | $32,836 | | Total current liabilities | $32,420 | $38,125 | | **Working Capital (Deficit)** | **$(11,093)** | **$(5,289)** | | Total assets | $39,833 | $49,407 | | Total liabilities | $45,937 | $50,587 | | **Total shareholders' deficit** | **$(6,062)** | **$(1,914)** | Consolidated Cash Flow Highlights (in thousands) | | Year Ended March 31, 2025 | Year Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(1,009) | $(4,299) | | Net cash used in investing activities | $(858) | $(1,740) | | Net cash provided by financing activities | $2,432 | $7,056 | | **Cash at end of period** | **$2,764** | **$2,084** | [Notes to Consolidated Financial Statements](index=108&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes to financial statements detail going concern uncertainty, high customer concentration, the impact of a major contract non-renewal, and the valuation of significant liabilities like the FPA put option - **Note 2 (Going Concern):** Re-emphasizes the substantial doubt about continuing as a going concern, citing the net loss, working capital deficit, FPA liabilities, and customer non-renewal. Management's mitigation plan includes raising funds, restructuring liabilities, and cost-cutting[579](index=579&type=chunk)[581](index=581&type=chunk) - **Note 10 (Revenue):** Customer concentration is high. For the year ended March 31, 2025, two customers accounted for **21% and 12% of total revenue**, respectively[601](index=601&type=chunk) - **Note 19 (Non-renewal of Customer Contract):** A significant customer contract non-renewal is expected to reduce annual revenues by approximately **$11.5 million**. The company will receive a one-time buyout payment of approximately **$3.0 million**[753](index=753&type=chunk)[754](index=754&type=chunk) - **Note 20 (Fair Value Measurements):** The Forward Purchase Agreement (FPA) put option liability was valued at **$5.0 million** as of March 31, 2025. This represents a significant potential cash or equity settlement obligation[757](index=757&type=chunk)[758](index=758&type=chunk)

Group 1 - Aeries Technology, Inc. has announced a Letter of Intent with Cority to establish AI-driven Global Capability Centers (GCCs) in India and Mexico to support Cority's innovation and efficiency goals [1][2] - The GCCs are aimed at accelerating Cority's market expansion and will initially focus on core business functions, with plans to expand capabilities as the company scales [2] - Aeries Technology's CEO emphasized the partnership's role in accelerating value creation and supporting strategic growth initiatives for Cority [2] Group 2 - Cority, founded in 1985 and headquartered in Toronto, provides environment, health, safety, quality, and sustainability solutions through its scalable software platform, CorityOne [3] - Cority's software solutions are designed to improve efficiencies, provide actionable insights, and enable data-driven decision-making for over 1,500 organizations worldwide [3] - Aeries Technology, founded in 2012, specializes in AI-enabled value creation and business transformation for private equity portfolio companies, and has received the Great Place to Work Certification for two consecutive years [4]

Core Insights - Aeries Technology successfully transitioned a high-performing Global Capability Center (GCC) in India to a leading U.S. healthcare fintech platform, reflecting operational excellence and long-term value creation for the client [1][3] - The GCC, launched during the pandemic, scaled to over 300 professionals and was designed to meet stringent HIPAA-compliant controls, becoming critical for service delivery and cost optimization [2][3] - The transition to a wholly owned subsidiary by the client highlights Aeries' ability to provide structural flexibility and support evolving growth strategies [3][4] Company Overview - Aeries Technology is a global leader in AI-enabled value creation and GCC delivery for private equity portfolio companies, with a focus on scalable, technology-driven execution since 2012 [5] - The company has received Great Place to Work Certification for two consecutive years, indicating a strong workplace culture [5] Leadership Perspective - The CEO of Aeries Technology emphasized the company's role in delivering scalable, future-ready operating platforms that foster innovation and strategic advantages for clients [4]

"GCCs are no longer just cost arbitrage engines—they are becoming AI-powered value creation hubs," said Unni Nambiar, CTO of Aeries Technology. "By embedding AI agents, automating repetitive functions, and enabling real-time insights, we're helping our clients unlock transformation velocity and sustainable margin expansion." The rollout follows successful deployment of Aeries' AI capabilities within a flagship healthcare portfolio company, where its Bangalore-based GCC scaled to over 300 employees within 15 ...

Core Insights - Aeries Technology has appointed Eli Mendoza as Chief Growth and Strategy Officer to enhance its private equity-focused expansion and drive AI-driven transformation [1][2][4] - Mendoza brings over 20 years of experience in private equity, M&A, and corporate strategy, which will strengthen Aeries' leadership and support its digital modernization efforts [2][3] - The company aims to leverage Mendoza's expertise to unlock EBITDA growth and deliver digital efficiency for private equity-backed companies, especially in a market with over $1.3 trillion in dry powder seeking deployment [4] Company Overview - Aeries Technology (NASDAQ: AERT) specializes in enabling value creation for private equity firms through enterprise transformation services and strategic operational support [5][6] - Founded in 2012, the company operates with over 1,400 professionals across delivery hubs in the U.S., India, and the Middle East [5] - Aeries combines automation platforms, domain expertise, and flexible engagement models to support business transformation and achieve measurable results for global private equity portfolios [6]