Financial Performance - For the six months ended September 30, 2024, the company incurred a net loss of $6,132 and used cash in operations of $7,734, with an accumulated deficit of $55,109 as of the same date [25]. - Total revenue for the three months ended September 30, 2024 was $3,833, a decrease from $5,888 in the same period of 2023, with ecommerce revenues contributing $1,155 and wholesale revenues $2,678 [31]. - Revenue from Europe (excluding the UK) accounted for 51% of total revenues in the three months ended September 30, 2024, while the US contributed 25% and the UK 18% [36]. - The company had one major customer accounting for approximately 15% or $580 of total revenue for the three months ended September 30, 2024, and two major customers accounting for 23% or $1,089 for the six months ended [41]. Assets and Liabilities - As of September 30, 2024, accounts receivable net of allowances was $2,458, compared to $1,035 as of March 31, 2024 [33]. - Total long-lived assets as of September 30, 2024 were $440 in the UK and $74 in Hong Kong, compared to $557 and $98 respectively as of March 31, 2024 [38]. - As of September 30, 2024, total cash and cash equivalents amounted to $2,550,000, a decrease from $7,910,000 as of March 31, 2024 [61]. - Total inventories as of September 30, 2024, were $5,331,000, up from $2,230,000 as of March 31, 2024, reflecting an increase in finished goods [63]. - The company had a trade finance facility limit of $2,700,000 as of September 30, 2024, with an outstanding balance of $906,000 [66]. - The company’s total property and equipment, net, was $413,000 as of September 30, 2024, down from $502,000 as of March 31, 2024 [65]. Financing and Capital - The company plans to alleviate going concern doubts by exploring short-term loans, long-term funding sources, and additional equity financing [27]. - The company’s restricted cash as of September 30, 2024, was $1,825,000, representing amounts pledged as collateral against the trade finance facility [61]. - The outstanding balance of the notes was $2,593 as of September 30, 2024, after paying $399 during the period [71]. - The company issued 280,241 shares of restricted common stock valued at $329 for services rendered, with $111 amortized during the period [71]. - The company has $3,026 million in capital commitments related to purchase orders for finished goods, with $888 million financed by HSBC letters of credit [91]. Expenses and Costs - The company recorded a depreciation expense of $106,000 for property and equipment for the three months ended September 30, 2024 [65]. - The company recorded an unamortized balance of $811 for the debt discount related to future receipts as of September 30, 2024 [71]. - The total stock compensation expense recognized for stock options was $508 for the six months ended September 30, 2024, compared to $14 for the same period in 2023 [78]. - The total fair value of restricted stock units that vested during the period was $204, included in selling, general, and administrative expenses [74]. Risks and Concerns - The company is exposed to interest rate risk, particularly related to financing arrangements tied to HIBOR or SOFR, but does not expect significant impact on operations [101]. - The company is beginning to observe increases in costs of goods sold, particularly transportation costs, which may affect financial performance if inflation persists [225]. - Revenue is primarily generated in U.S. dollars, U.K. pounds, and euros, exposing the company to foreign exchange risk, particularly with fluctuations in the U.K. pound and euro [227]. - Legal proceedings, including the ASC Suit, are not expected to have a material adverse effect on the company's financial condition [89]. Related Party Transactions - Related party transactions for consulting services amounted to $112 thousand for the three months ended September 30, 2024 [94].
Perfect Moment(PMNT) - 2024 Q3 - Quarterly Report