Connexa Sports Technologies Inc.(YYAI) - 2026 Q3 - Quarterly Report

Revenue Growth - Revenue for the nine months ended January 31, 2026, increased by $3.2 million, or 32%, to $12.97 million compared to $9.82 million for the same period in 2025[202]. - Revenue for the three months ended January 31, 2026, surged by $3.7 million, or 113%, reaching $6.97 million compared to $3.27 million in the prior year[202]. - Revenue from the new advertising business line totaled $5.0 million, accounting for 44% of total revenue for the three months ended January 31, 2026[202]. Cost and Expenses - Cost of revenue increased by $5.8 million, or 261%, to $8.07 million for the nine months ended January 31, 2026, compared to $2.23 million in the previous year[203]. - General and administrative expenses rose by $2.1 million, or 96%, to $4.47 million for the nine months ended January 31, 2026, compared to $2.29 million for the same period in 2025[205]. Working Capital and Cash Position - Working capital increased by approximately $33.8 million, or 212%, to $49.7 million as of January 31, 2026, compared to $15.9 million as of April 30, 2025[207]. - Cash and cash equivalents increased by approximately $36.0 million, from $0.05 million as of April 30, 2025, to $36.0 million as of January 31, 2026[208]. - Net cash provided by operating activities was $3.82 million for the nine months ended January 31, 2026, compared to $44,359 in the prior year, reflecting an increase of 8,515%[209]. - Net cash provided by financing activities was $197.6 million during the nine months ended January 31, 2026, primarily from an ATM offering of $172.6 million[212]. - The company believes existing cash will meet anticipated operating needs for at least the next 12 months, with additional resources available through capital markets fundraising if needed[213]. Investments and Acquisitions - The company signed a $500 million joint venture agreement to form AiRWA Exchange, a digital asset exchange focused on tokenizing real-world assets[188]. - On January 30, 2026, the company entered into a share purchase agreement to acquire Aberfeldy Holdings Limited for $140 million, enhancing its AI capabilities[194]. Financial Condition and Accounting Policies - The company had no off-balance sheet arrangements that could materially affect its financial condition or results of operations[215]. - The allowance for credit losses is based on management's estimates, with no reserves made as of January 31, 2026, and April 30, 2025[220]. - There were no impairment charges recognized for long-lived assets for the nine months ended January 31, 2026, and 2024[221]. - Revenue is recognized when performance obligations are satisfied, with accounts receivable recorded when obligations have been performed and billed[225]. - Royalty income is recognized over time as the company's technology rights are used by customers[226]. - The company adopted ASC 740 for income taxes, recognizing deferred tax assets and liabilities for future tax consequences[227]. - The company is currently evaluating the impact of several recent accounting pronouncements but does not expect them to materially affect its financial position or results of operations[230][231][232][233][234][235][236][237][238].