Mergers and Acquisitions - ConnectM completed a merger with Monterey Capital Acquisition Corporation, resulting in the issuance of 14,500,000 shares of common stock and becoming a publicly listed company[199]. - ConnectM's acquisition of Cambridge Energy Resources Pvt. Ltd. for approximately $1,135,000 is expected to increase India-based operations from 5% to 15% of global revenue, approximately $10,000,000 annualized, over the next twelve months[210]. - The acquisition of Amperics' nanotechnology-based energy-storage business was completed on November 3, 2025, with consideration consisting of 2,700,000 shares of common stock[229][230]. - The company acquired approximately 86.22% of the voting equity interests of Geo Impex India through an Exchange and Acquisition Agreement, issuing 33,300,000 shares and a promissory note of $788,900[235][236][237]. - The principal asset acquired from Geo Impex India includes approximately 76 acres of land for developing a multimodal logistics park and an AI-enabled data-center campus[239]. Financial Performance - Revenues increased by $2,709,000 or 45% to approximately $8,707,000 for the three months ended September 30, 2025, driven by the new Logistics segment and geographic market expansion[258]. - For the nine months ended September 30, 2025, revenues increased by $9,826,000 or 60% to approximately $26,207,000, primarily due to the Logistics segment and service network expansion[259]. - Cost of revenues rose by $1,632,000 or 39% to approximately $5,832,000 for the three months ended September 30, 2025, largely due to the new Logistics segment[260]. - For the nine months ended September 30, 2025, cost of revenues increased by $6,336,000 or 58% to approximately $17,346,000, driven by the Logistics segment[261]. - Total other income for the three months ended September 30, 2025 was $1,823,683, a significant increase of $9,154,489 compared to a loss of $7,330,806 in the same period of 2024[264]. - For the nine months ended September 30, 2025, total other expense was $(1,967,038), a decrease of $7,320,394 from $(9,287,432) in the same period of 2024[265]. Expenses and Cash Flow - Selling, general and administrative expenses decreased by $1,361,000 or 31% to approximately $5,691,000 for the three months ended September 30, 2025[262]. - For the nine months ended September 30, 2025, selling, general and administrative expenses increased by $7,908,000 or 76% to approximately $18,271,000, influenced by public company costs and marketing expenses[263]. - Net cash used in operating activities for the nine months ended September 30, 2025 was approximately $(6,697,000), primarily due to a net loss of approximately $(11,376,000)[271]. - As of September 30, 2025, the minimum cash balance requirement was approximately $2,499,000[269]. - Net cash used in operating activities for the nine months ended September 30, 2024 was approximately $2,772,000, primarily due to a net loss of approximately $14,685,000, offset by approximately $8,694,000 of noncash items[273]. Financing Activities - The Company entered into twelve convertible note agreements in Q1 2025, raising $2,530,000 with interest rates of 20.0% per annum[207]. - The Company issued 3,658,333 shares for gross proceeds of approximately $805,000 during May and June 2025[218]. - ConnectM's Q2 2025 Convertible Notes raised $1,026,000, with interest rates of 20.0% per annum and various conversion terms[219]. - On October 23, 2025, the company issued a convertible promissory note of $275,000 with a 10% original issue discount, resulting in net proceeds of $250,000[226]. - The company formed Keen Labs Operations LLC on October 27, 2025, to consolidate and expand its AI and technology operations, focusing on product development and growth in energy transition, logistics, and mobility sectors[227]. Agreements and Obligations - The Company reported a settlement agreement with Last Horizon, issuing 13,744,131 shares to resolve $8,908,000 in overdue liabilities[203]. - ConnectM entered into a structured repayment plan for a remaining debt balance of approximately $3.1 million with Libertas Funding, LLC, including a right to redeem shares post-repayment[223]. - A distribution agreement was signed with Greentech Renewables on November 10, 2025, to expand the distribution of Keen-branded high-efficiency heat pumps, expected to contribute to future sales growth starting in 2026[242][244]. - The company anticipates increased selling, general, and administrative expenses due to scaling headcount and compliance with public company regulations[254][255]. - Future contractual obligations and commitments are based on the terms of relevant agreements and may differ from actual payments due to future events[279]. Accounting and Compliance - The company is evaluating the accounting implications of its agreements under ASC 606, including revenue recognition and variable considerations[244]. - The fair value of the 3(a)(10) Settlement Agreement is re-measured each reporting period, with significant assumptions impacting the concluded fair value[285]. - The company did not have any off-balance sheet arrangements during the periods presented[278]. - The company incurs contractual obligations in the normal course of operations, including future cash payments under existing contracts such as debt and lease agreements[280].
ConnectM Technology Solutions, Inc.(CNTM) - 2025 Q3 - Quarterly Report