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Connexa(CNXA) - 2024 Q3 - Quarterly Report
ConnexaConnexa(US:CNXA)2024-03-04 16:00

Financial Performance - Net sales increased by $463,776, or 29%, during the three months ended January 31, 2024, compared to the same period in 2023, driven by the introduction of Slinger Bag Pickleball[338]. - Cost of sales increased by $240,887, or 45%, during the three months ended January 31, 2024, primarily due to the increase in net sales[325]. - Gross income increased by $222,889, or 21%, during the three months ended January 31, 2024, attributed to higher net sales and improved supply chain efficiencies[325]. - Loss from operations was $2,193,122 for the three months ended January 31, 2024, compared to a loss of $1,040,617 in the same period in 2023, reflecting an increase in operational losses[337]. - Net loss from continuing operations was $3,772,628 for the three months ended January 31, 2024, a decrease of $3,058,144 compared to a net loss of $6,830,772 in the same period in 2023[337]. Expenses - Selling and marketing expenses rose by $464,853, or 172%, during the three months ended January 31, 2024, largely due to increased social media advertising and public relations investments[340]. - General and administrative expenses increased by $914,179, or 50%, during the three months ended January 31, 2024, primarily driven by higher debt settlement and legal fees[341]. - Research and development costs decreased by $3,638, or 100%, during the three months ended January 31, 2024, due to a pause in development activities caused by limited cash flow[326]. Financing Activities - The company sold $1,183,200 in future receivables to Cedar Advance LLC for $752,000 in cash, agreeing to weekly payments of $39,440 until the receivable amount is paid in full[335]. Business Operations - The company operates in the sports equipment and technology business, owning the Slinger Bag Launcher and Gameface, which provides AI technology and performance analytics for sports[336].