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Connexa(CNXA) - 2024 Q2 - Quarterly Report
ConnexaConnexa(US:CNXA)2023-11-26 16:00

Financial Performance - Net sales decreased by $147,903, or 6%, for the three months ended October 31, 2023, compared to the same period in 2022, attributed to depleted inventory due to higher than planned sales orders [290]. - The company recorded a net loss from continuing operations of $915,354 for the three months ended October 31, 2023, compared to a loss of $15,289,998 in the same period in 2022 [294]. - The company had an accumulated deficit of $150,835,256 as of October 31, 2023, raising substantial doubt about its ability to continue as a going concern [298]. - The independent auditors expressed substantial doubt about the company's ability to continue as a going concern as of April 30, 2023 [309]. Expenses - General and administrative expenses decreased by $2,820,535, or 64%, during the three months ended October 31, 2023, primarily due to a reduction in share-based compensation and headcount [292]. - Total operating expenses decreased by $4,221,052, or 48%, during the six months ended October 31, 2023, compared to the same period in 2022 [294]. - Selling and marketing expenses decreased by $556,562, or 50%, during the six months ended October 31, 2023, largely due to reduced social media advertising and sponsorships [296]. Cash Flow and Financing - Cash and cash equivalents increased to $285,861 as of October 31, 2023, compared to $202,095 as of April 30, 2023 [299]. - The company entered into a loan and security modification agreement for an additional loan of $1,000,000 on October 11, 2023 [304]. - The company sold $797,500 in future receivables to UFS for $550,000 in cash on August 7, 2023 [283]. Risk and Controls - The company has identified material weaknesses in financial reporting controls and is in the process of implementing compensating controls [337]. - The material weaknesses will remain listed until the applicable controls operate effectively for a sufficient period [337]. - The company has adopted disclosure controls and procedures to ensure timely and accurate reporting [336]. - The company does not anticipate that inflation and price changes will materially affect operations [308].