Revenue Performance - Total revenue for the year ended October 31, 2024, was approximately $108.2 million, an increase of $12.9 million or 13.6% compared to $95.3 million in 2023[176]. - Ocean freight revenue increased by approximately $10.9 million or 11.5%, from approximately $94.5 million in 2023 to approximately $105.4 million in 2024, driven by higher ocean freight prices[177]. - Vessel service revenue surged by approximately $2.1 million or 280.0%, from approximately $0.7 million in 2023 to approximately $2.8 million in 2024[178]. - Total revenue for the year ended October 31, 2023, was approximately $95.3 million, a decrease of approximately $90.1 million or 48.6% compared to $185.3 million in 2022[191]. - Ocean freight revenue decreased by approximately $83.6 million or 46.9%, from approximately $178.1 million in 2022 to approximately $94.5 million in 2023, primarily due to a decrease in ocean freight prices[192]. - Vessel service revenue decreased by approximately $6.5 million or 89.8%, from approximately $7.2 million in 2022 to approximately $0.7 million in 2023[193]. Cost and Profitability - Cost of revenues decreased by approximately $7.1 million or 6.6%, from approximately $107.1 million in 2023 to approximately $100.1 million in 2024, due to lower average market prices for ship leases, oil, and port charges[179]. - Gross profit for the year ended October 31, 2024, was approximately $8.1 million, compared to a gross loss of approximately $11.9 million in 2023, resulting in a gross margin of 7.5%[180]. - Gross loss amounted to approximately $11.9 million for the year ended October 31, 2023, compared to a gross profit of approximately $26.8 million in 2022, resulting in a gross margin of negative 12.5%[195]. - Cost of revenues amounted to approximately $107.1 million for the year ended October 31, 2023, representing a decrease of approximately $51.4 million or 32.4% compared to $158.5 million in 2022[194]. Operating Expenses and Losses - Operating expenses increased by approximately $2.1 million or 54.9%, from approximately $3.7 million in 2023 to approximately $5.8 million in 2024, primarily due to higher consulting and professional service fees[181]. - Operating expenses increased by approximately $0.5 million or 14.6%, from approximately $3.3 million in 2022 to approximately $3.7 million in 2023[197]. - The net loss for the year ended October 31, 2024, was approximately $21.2 million, compared to a net loss of approximately $15.8 million in 2023, reflecting an increase in losses of $5.4 million or 34.5%[186]. - Net loss amounted to approximately $15.8 million for the year ended October 31, 2023, compared to net income of approximately $23.6 million in 2022[202]. - The company had a net loss of approximately $21.2 million for the year ended October 31, 2024, primarily due to fair value losses and increased working capital needs[212]. Cash Flow and Financing - For the year ended October 31, 2024, net cash used in operating activities was approximately $3.3 million, a significant improvement from $17.8 million in 2023[212][213]. - The company reported a net cash provided by financing activities of approximately $8.0 million for the year ended October 31, 2024, compared to a net cash used of $1.6 million in 2023[216][217]. - The total cash and cash equivalents increased by $4.6 million for the year ended October 31, 2024, reversing a decrease of $19.4 million in 2023[211]. Share Issuance and Debt - The company issued 11,500,000 Class A Ordinary Shares to third-party consultants for market development and entry into the onboard carbon capture business during the year[183]. - The company fully converted the September 2024 Note into 35,480,000 Class A Ordinary Shares at a conversion price of $0.10 per share[208]. - The October 2024 Notes had an aggregate principal amount of $1,752,000 and were fully converted into 17,520,000 Ordinary Shares at the same conversion price of $0.10 per share[209]. - As of October 31, 2024, the company had an outstanding bank loan of approximately $1,496,999[220]. Tax and Other Financial Information - The provision for income taxes was $4,139 for 2024, with expectations of continued tax exemptions under the Maritime Sector Incentive-Approved International Shipping Enterprise program in Singapore[185]. - There were no off-balance sheet arrangements that could materially affect the financial condition or results of operations for the years ended October 31, 2024, 2023, and 2022[222]. - The company did not make any material capital expenditures in the three years ended October 31, 2024, 2023, and 2022[219]. Operational Metrics - The total number of voyage days for ocean freight was 3,452 days in 2023, a decrease of 5 days from 3,457 days in 2022[192]. - The average charge per day for ocean freight decreased to approximately $27,344 in 2023 from $51,526 in 2022, reflecting a significant decline in pricing[192]. - The company has entered into non-cancellable operating lease agreements for office space in Singapore, expiring on March 14, 2025[220].
Caravelle International Group(HTCO) - 2024 Q4 - Annual Report