Revenue and Business Model - Roadzen's revenue for the three months ended June 30, 2025, was derived 53% from Brokerage Solutions and 47% from the IaaS Platform[222]. - The IaaS Platform accounted for approximately 47% of total revenues, while the Brokerage Solutions accounted for approximately 53%[209][211]. - Revenue for the three months ended June 30, 2025, was $10,865,545, representing a 22% increase compared to $8,931,517 for the same period in 2024[246]. - Commission and Distribution Income increased by $2,645,563, or 86%, compared to the previous year, driven by strategic marketing efforts and network expansion[248]. - Revenue from the Insurance as a Service (IaaS) platform decreased by $711,535, or 12%, primarily due to the pause of the Guaranteed Asset Protection (GAP) product in the U.K.[248]. - Roadzen's business model is capital light, meaning it does not underwrite any risk itself or carry it on its balance sheet[206]. Customer Agreements and Market Presence - As of June 30, 2025, Roadzen had 34 insurance customer agreements, 78 automotive customer agreements, and approximately 3,800 agents and fleet customer agreements[220]. - The company aims to expand into new markets and enhance its technology offerings to capture a greater part of the insurance value chain[221]. - Roadzen's operations are supported by a robust network of over 75,000 service providers nationwide in the U.S. for roadside assistance and claims management[203]. Technology and Innovation - Roadzen's technology enables customers to obtain a policy within seconds and process a claim estimate within minutes, significantly faster than traditional methods[208]. - Roadzen's investment in core technology and AI is crucial for maintaining competitive advantages and supporting growth in global markets[214]. - The company has received multiple industry accolades for its advancements in AI and technology, including 'Best AI in Deep Tech' at the AI Awards Summit 2025[205]. Financial Performance and Expenses - Total costs and expenses decreased significantly to $13,385,894 from $39,325,817 year-over-year, primarily due to a reduction in research and development costs[14]. - Research and development expenses decreased by $1,708,008, or 95%, primarily due to a decline in non-cash compensation expenses associated with RSU grants[251]. - Sales and marketing expenses increased by $329,713, or 6%, primarily due to enhanced marketing efforts[252]. - General and administrative expenses declined by $23,248,291, or 90%, driven by a reduction in non-cash RSU expenses and cost discipline efforts[253]. - Depreciation and amortization decreased by $355,349, or 74%, for the three months ended June 30, 2025, compared to the same period in 2024[254]. - The net loss attributable to ordinary shareholders for the quarter was $4,005,770, a substantial improvement compared to a net loss of $48,407,025 in the prior year[14]. Cash Flow and Financial Position - Net cash used in operating activities decreased by $2.7 million to $(2,921,507) for the three months ended June 30, 2025, compared to $(5,621,361) in the same period last year[266]. - Cash generated from investing activities was $(200,940) for the three months ended June 30, 2025, compared to $1,226,351 in the same period last year[268]. - Cash provided by financing activities was $1.4 million for the three months ended June 30, 2025, primarily from the issuance of ordinary shares[271]. - The accumulated deficit increased to $228.4 million as of June 30, 2025, up from $224.3 million the previous year, primarily due to substantial operating losses[262]. - The company anticipates continued operating losses and negative cash flows, necessitating additional capital resources to support strategic initiatives[262]. Debt and Financing Activities - Total contractual obligations amounted to $58.7 million as of June 30, 2025, including $23.7 million in debt and $1.1 million in operating leases[274]. - The company entered into a Note Purchase Agreement with Mizuho for senior secured notes totaling $7,500,000, bearing an interest rate of 15% per annum, which can increase by 5% upon certain events[278]. - The company has a cash reserve requirement of at least $1 million as part of the covenants in the Note Purchase Agreement[280]. - The December 2023 Convertible Debentures allow the company to issue up to $50 million, with an initial interest rate of 13% per annum, maturing on December 15, 2025[286][287]. - The company raised approximately $2.25 million by issuing 1,803,134 Ordinary Shares at $1.25 per share through PIPE Purchase Agreements[301]. - A Direct Offering of 1,730,769 Ordinary Shares was completed at an offering price of $1.30 per share, generating gross proceeds of approximately $2.25 million[304]. Regulatory and Accounting Standards - The company is classified as an "emerging growth company," allowing it to delay the adoption of certain accounting standards[309]. - The company has not identified any recently issued accounting standards that would materially affect its financial statements[312]. - The Company recognizes revenue from insurance policy distribution and brokerage income at the point services are rendered, net of Goods and Service tax[78]. - The FASB issued ASU 2023-09, which requires additional disclosures related to income tax rate reconciliations and income taxes paid[95].
VAHANNA TECH EDG(VHNA) - 2025 Q2 - Quarterly Report