Financial Performance - Net sales for Q4 2025 totaled $1.37 billion, a decrease of 2.1% from $1.40 billion in Q4 2024[2] - Net income for Q4 2025 was $25.7 million, a significant recovery from a net loss of $1.5 million in Q4 2024[5] - For the fiscal year 2025, net sales were $5.33 billion, down 5.5% from $5.64 billion in fiscal year 2024[7] Profitability - Gross profit for Q4 2025 was $334.7 million, representing 24.5% of sales, compared to $299.4 million or 21.4% of sales in Q4 2024[3] - Gross profit for the fiscal year 2025 was $1.27 billion, or 23.9% of sales, compared to $1.30 billion or 23.0% of sales in fiscal year 2024[7] Expenses - Operating and administrative expenses for fiscal year 2025 totaled $1.159 billion, slightly down from $1.162 billion in fiscal year 2024[8] - Interest expense decreased to $19.7 million in fiscal year 2025 from $21.9 million in fiscal year 2024[8] Earnings - Basic earnings per share for Class A Common Stock were $4.50 for fiscal year 2025, down from $5.68 in fiscal year 2024[9] Capital Expenditures and Debt - Capital expenditures for fiscal year 2025 were $114.5 million, significantly lower than $210.9 million in fiscal year 2024[10] - Total debt at the end of fiscal year 2025 was $514.8 million, reduced from $532.6 million at the end of fiscal year 2024[4]

Revenue Performance - Q3 2025 revenue reached $13.0 million, representing an 81% increase year-over-year from $7.2 million in Q3 2024[2] - The majority of Q3 2025 revenue growth was driven by existing customer expansion, with significant contributions from large-scale AI customers[4][7] - The company expects Q4 2025 revenue to be approximately $12 million, up 63% year-over-year, with Adjusted EBITDA around $1 million[6] - Total revenue for the nine months ended September 30, 2025, was $28.935 million, a 18.1% increase from $24.454 million in the same period of 2024[19] Profitability Metrics - Net profit for Q3 2025 was $0.1 million, a decrease from $4.2 million in Q3 2024, while Adjusted EBITDA was $1.2 million[2][11] - Gross profit for Q3 2025 was $7.2 million, compared to $5.2 million in Q3 2024, with a gross margin of 55.6%[11] - Operating profit for the nine months ended September 30, 2025, was $176 thousand, a significant decrease from $6.329 million in the same period of 2024[19] - Net profit for the nine months ended September 30, 2025, was $748 thousand, down from $5.338 million in the same period of 2024, representing a decline of 86%[19] - Adjusted EBITDA for the nine months ended September 30, 2025, was $3.4 million, compared to $7.9 million in the same period of 2024, a decrease of 56.9%[27] - Non-IFRS net profit for the nine months ended September 30, 2025, was $3.5 million, down from $7.0 million in the same period of 2024[27] Customer Growth - The company experienced a 26% increase in paying customers and a 17% rise in average revenue per customer in Q3 2025[3] Operating Expenses - Operating expenses in Q3 2025 totaled $7.4 million, up from $4.1 million in Q3 2024, primarily due to increased research and development costs[11] Cash and Assets - Cash, cash equivalents, and investments stood at $24.6 million with no debt as of September 30, 2025[7] - Total assets as of September 30, 2025, were $43.442 million, an increase of 30.5% from $33.271 million as of September 30, 2024[18] - Total liabilities as of September 30, 2025, were $12.348 million, up from $8.297 million as of September 30, 2024, indicating a 48.5% increase[18] - Cash and cash equivalents as of September 30, 2025, were $14.366 million, a decrease of 40.3% from $24.011 million as of September 30, 2024[18] Strategic Focus - The company is prioritizing long-term market share capture in the AI training-data segment over short-term profitability, expecting significant growth and margin improvement in the future[2][3] - New AI-focused products are rapidly increasing their contribution to total revenue, with triple-digit growth in Website Unblocker and high-double-digit growth in custom Scraper solutions[7] - The company is focusing on expanding its data collection solutions and enhancing its AI capabilities to adapt to market changes[29]

Revenue and Sales Performance - Revenue for Q3 2025 was $214.0 million, an increase of 7.8% from $198.6 million in Q3 2024[6] - Total guest visits exceeded 8.1 million, representing a 9.5% increase from 7.4 million in the same period of 2024[6] - Same-store sales reached $182.2 million, up 2.3% from $178.1 million in Q3 2024[6] - Revenue from delivery business surged 69.2% to $4.4 million from $2.6 million in Q3 2024[11] - Revenue from other business increased by 74.5% to $8.9 million from $5.1 million in Q3 2024[11] - Revenue for Q3 2025 increased to $214,048,000, up 7.2% from $198,616,000 in Q3 2024[25] Profit and Income - Profit for the period was $3.6 million, a significant decrease from $37.7 million in Q3 2024, primarily due to a net foreign exchange loss of $31.7 million[13] - Profit for the period decreased significantly to $3,593,000, down 90.5% from $37,656,000 in the same period last year[25] - Total comprehensive income for the period was $7,132,000, compared to $24,070,000 in Q3 2024, reflecting a decline of 70.3%[25] - The company reported a net loss of $6,163,000 in other gains/losses, contrasting with a gain of $25,851,000 in Q3 2024[25] Operational Metrics - Income from operation was $12.6 million, a decrease of 15.4% from $14.9 million in Q3 2024, but increased by $8.9 million sequentially, representing a 240.5% growth[6][12] - Overall average table turnover rate improved to 3.9 times per day, compared to 3.8 times per day in Q3 2024[6] Costs and Expenses - Raw materials and consumables used were $71.2 million, an increase of 8.7% from $65.5 million in Q3 2024, with a percentage of revenue rising to 33.3%[9] - Staff costs rose to $71.0 million, up 7.9% from $65.8 million in Q3 2024, accounting for 33.2% of revenue[10] Cash Flow and Assets - Net cash from operating activities was $34,142,000, down from $40,699,000 in Q3 2024, indicating a decrease of 16.4%[28] - Cash and cash equivalents at the end of the period were $217,771,000, slightly up from $215,162,000 year-over-year[28] - Non-current assets increased to $378,885,000 as of September 30, 2025, compared to $361,198,000 at the end of 2024[26] - Current liabilities rose to $134,636,000, up from $128,568,000 at the end of 2024, reflecting an increase of 4.2%[27] - Net current assets improved to $206,079,000, compared to $194,659,000 at the end of 2024, showing a growth of 5.8%[27] Earnings Per Share - Earnings per share decreased to $0.01 from $0.06 in Q3 2024, a decline of 83.3%[25]

Financial Performance - Deere & Company reported net income of $1.065 billion for Q4 2025, a decrease of 14% from $1.245 billion in Q4 2024, with earnings per share of $3.93 compared to $4.55[1][6] - Total net sales and revenues for Q4 2025 increased by 11% to $12.394 billion, while full-year revenues decreased by 12% to $45.684 billion[2][6] - The company forecasts net income for fiscal 2026 to be between $4.00 billion and $4.75 billion[4][5] - Deere's operating profit for the full year 2025 was $6.020 billion, a decline of 33% from $9.039 billion in 2024[22] - Total net income attributable to Deere & Company for the year ended November 2, 2025, was $5,027 million, down 29.9% from $7,100 million in 2024[25] - The total income after income taxes for the three months ended November 2, 2025, was $1,070 million, compared to $1,270 million in the same period of 2024[45] - The company reported a net income attributable to Deere & Company of $1,065 million for the three months ended November 2, 2025, down from $1,245 million in the same period of 2024[45] - Net sales for Deere & Company decreased to $38,917 million in 2025 from $44,759 million in 2024, representing a decline of approximately 13.2%[47] - Total income after income taxes fell to $4,998 million in 2025, down from $7,112 million in 2024, a decrease of about 29.6%[47] - The net income attributable to Deere & Company was $5,027 million in 2025, down from $7,100 million in 2024, a decrease of about 29.2%[47] - The company reported a net income of $4,998 million in 2025, down from $7,088 million in 2024, representing a decrease of approximately 29.4%[52] Sales and Revenue Breakdown - Production & Precision Agriculture net sales increased by 10% to $4.740 billion in Q4 2025, but operating profit decreased by 8% to $604 million[7][22] - Small Agriculture & Turf net sales rose by 7% to $2.457 billion, but operating profit plummeted by 89% to $25 million due to higher tariffs and production costs[9][22] - Construction & Forestry net sales surged by 27% to $3.382 billion, with operating profit increasing by 6% to $348 million[12][22] - Net sales for the three months ended November 2, 2025, were $10,579 million, a 14.0% increase from $9,275 million in the same period of 2024[25] - Research and development expenses increased to $681 million for the three months ended November 2, 2025, compared to $626 million in the same period of 2024, reflecting a 8.8% rise[25] Assets and Liabilities - Total assets as of November 2, 2025, were $105,996 million, a decrease from $107,320 million as of October 27, 2024[27] - The company reported a total liabilities figure of $79,989 million as of November 2, 2025, down from $84,395 million in the previous year[27] - Total assets decreased to $105,996 million in 2025 from $107,320 million in 2024, a reduction of approximately 1.2%[50] - Total liabilities decreased to $79,989 million in 2025 from $84,395 million in 2024, reflecting a decline of about 5.2%[50] Cash Flow and Investments - Cash flows from operating activities for the year ended November 2, 2025, were $7,459 million, a decrease from $9,231 million in 2024[29] - Cash and cash equivalents increased to $8,276 million in 2025 from $7,324 million in 2024, an increase of approximately 13.0%[50] - Net cash provided by operating activities decreased to $7,459 million in 2025 from $9,231 million in 2024, a decline of approximately 19.2%[52] - Total cash flows from investing activities showed a net outflow of $2,057 million in 2025 compared to an outflow of $6,464 million in 2024, indicating an improvement in cash management[52] - Cash, cash equivalents, and restricted cash at the end of 2025 totaled $8,533 million, up from $7,633 million at the end of 2024, reflecting a year-over-year increase of 11.8%[52] Operational Challenges and Strategic Moves - The company faces ongoing margin pressures from tariffs and challenges in the large agriculture sector, but remains committed to inventory management and cost control[5][19] - The company anticipates a recovery in small agriculture and construction sectors, while large agriculture remains subdued[5][16] - The company acquired several small-scale businesses in 2025 for a total consideration of $115 million, aimed at enhancing technology offerings in various segments[31] - Employee-separation programs implemented in Q3 2024 resulted in pretax expenses of $152 million for the fiscal year, with significant costs across various segments[40] Other Financial Metrics - Basic earnings per share for the three months ended November 2, 2025, were $3.94, compared to $4.57 in the same period of 2024, reflecting a 13.8% decline[25] - Dividends declared for the year ended November 2, 2025, were $6.48 per share, an increase from $5.88 in 2024[25] - Interest expense decreased to $3,170 million in 2025 from $3,348 million in 2024, a reduction of approximately 5.3%[47] - The company reported a total of $1,809 million in other receivables in 2025, down from $2,193 million in 2024, a decrease of about 17.5%[50] - The equity in income of unconsolidated affiliates improved to $17 million in 2025 from a loss of $24 million in 2024[47] - The provision for credit losses increased to $1,368 million in 2025 from $250 million in 2024, a significant rise of 447.2%[52] - Depreciation and amortization expenses were $1,082 million in 2025, compared to $1,040 million in 2024, reflecting a slight increase of 4.0%[52] - The company experienced a decrease in accounts payable and accrued expenses, which fell to $(1,040) million in 2025 from $(617) million in 2024[52] - The total proceeds from borrowings issued (original maturities greater than three months) were $10,792 million in 2025, a decrease from $17,937 million in 2024, indicating a reduction of 39.5%[52] - The company repurchased common stock amounting to $1,138 million in 2025, down from $4,007 million in 2024, a decrease of 71.6%[52] - The effect of exchange rate changes on cash and cash equivalents resulted in a positive adjustment of $77 million in 2025, compared to a negative adjustment of $(37) million in 2024[52]

Financial Performance - The company had a net income of $149,028 for the three months ended September 30, 2025, compared to a net income of $296,392 for the same period in 2024, reflecting a decrease of approximately 49.7%[154] - For the nine months ended September 30, 2025, the company reported a net income of $296,369, down from $1,659,067 in the same period of 2024, indicating an 82.1% decrease[155] - The company incurred operating costs of $87,438 for the three months ended September 30, 2025, compared to $499,346 for the same period in 2024, showing a decrease of approximately 82.5%[154] Capital and Financing - The company generated gross proceeds of $69,000,000 from the IPO by selling 6,900,000 units at an offering price of $10.00 per unit[134] - The company completed a private placement of 385,750 units, generating gross proceeds of $3,857,500 at a purchase price of $10.00 per unit[135] - The company issued a total of nine unsecured promissory notes for Monthly Extension Fees amounting to $1,080,000 from January 2025 to the date of the report[146] - The company issued a Sponsor Working Capital Note of $300,000, which bears no interest and is payable upon the consummation of the business combination or at the maturity date[165] - The company has a contractual obligation to issue Deferred Underwriting Shares equal to 3.5% of the gross proceeds of the IPO[163] Cash and Working Capital - As of September 30, 2025, the company had cash of $7,679 available for working capital needs, with all remaining cash held in the Trust Account[156] - As of September 30, 2025, the company had cash of $7,679 and a working capital deficiency of $3,448,729, raising substantial doubt about its ability to continue as a going concern[161] Business Combination and Obligations - The company has until November 27, 2025, to consummate its initial business combination, which could be extended up to April 26, 2026, by five Monthly Extensions[148] - The company has not selected any target business for its initial business combination as of the date of the report[142] - The company has no long-term debt or capital lease obligations as of September 30, 2025, and is obligated to issue 805,000 Deferred Underwriting Shares at $3.00 per share upon completion of a business combination[163] Trust Account and Assets - The assets held in the Trust Account amounted to $23,091,185, primarily in mutual funds, classified as trading securities[168] - The company has not entered into any off-balance sheet financing arrangements as of September 30, 2025[162] - The company has no obligations, assets, or liabilities that would be considered off-balance sheet arrangements as of September 30, 2025[162] Accounting and Tax Positions - The company accounts for share-based compensation expense in accordance with ASC 718, recognizing it over the requisite service period[172] - The company has identified no significant uncertain tax positions requiring recognition in its financial statements, as it is considered an exempted Cayman Islands Company[181] - The company has determined that its warrants qualify for equity accounting treatment[170]

Financial Performance - The company had a net income of $149,028 for the three months ended September 30, 2025, compared to a net income of $296,392 for the same period in 2024, reflecting a decrease of approximately 49.8%[154] - For the nine months ended September 30, 2025, the company reported a net income of $296,369, down from $1,659,067 in the same period of 2024, indicating an 82.1% decrease[155] - The company incurred operating costs of $87,438 for the three months ended September 30, 2025, compared to $499,346 for the same period in 2024, showing a decrease of approximately 82.5%[154] Capital and Financing - The company generated gross proceeds of $69,000,000 from the IPO by selling 6,900,000 units at an offering price of $10.00 per unit[134] - The company completed a private placement of 385,750 units, generating gross proceeds of $3,857,500 at a purchase price of $10.00 per unit[135] - The company issued a total of nine unsecured promissory notes for Monthly Extension Fees amounting to $1,080,000 from January 2025 to the date of the report[146] - The company issued a Sponsor Working Capital Note of $300,000 on June 13, 2025, to be used for general working capital purposes, with no interest and payable upon the consummation of the business combination or maturity date[165] Cash and Working Capital - As of September 30, 2025, the company had cash of $7,679 available for working capital needs, with all remaining cash held in the Trust Account[156] - As of September 30, 2025, the company had cash of $7,679 and a working capital deficiency of $3,448,729, raising substantial doubt about its ability to continue as a going concern[161] Business Combination and Extensions - The company has until November 27, 2025, to consummate its initial business combination, which could be extended up to April 26, 2026, by five Monthly Extensions[148] - The company has not selected any other target business for its initial business combination as of the date of the report[142] Trust Account and Assets - Assets held in the Trust Account amounted to $23,091,185, primarily in mutual funds, classified as trading securities[168] - The company’s investments held in the Trust Account are presented at fair value, with gains and losses included in interest and dividend income[168] Debt and Obligations - The company has no long-term debt or capital lease obligations as of September 30, 2025, and is obligated to issue 805,000 Deferred Underwriting Shares upon the completion of a business combination[163] - The company has not entered into any off-balance sheet financing arrangements as of September 30, 2025[162] Accounting and Tax - The company accounts for share-based compensation expense in accordance with ASC 718, recognizing it over the requisite service period[172] - The company has identified Cayman Islands as its only major tax jurisdiction, concluding no significant uncertain tax positions require recognition in its financial statements[179] - The company’s financial statements do not include adjustments that might result from the uncertainty regarding its ability to continue as a going concern[161] - The company complies with ASC 260 for net income (loss) per ordinary share, allocating undistributed income (loss) between redeemable and non-redeemable shares[175]

Revenue and Customer Growth - Annual Recurring Revenue (ARR) increased to $497.1 million as of October 31, 2025, up from $483.0 million in 2024, representing a growth of 2.3%[134] - The total number of customers reached 15,398 as of October 31, 2025, compared to 15,050 in 2024, indicating an increase of 2.3%[135] - Customers with greater than $100,000 in ARR grew to 867 in 2025 from 825 in 2024, reflecting a growth of 5.1%[135] - Revenue for the three months ended October 31, 2025, was $124.5 million, a 4.7% increase from $118.9 million in the same period of 2024[141] - Revenue for the nine months ended October 31, 2025, was $367,761, an increase of $21,708, or 6.3%, compared to $346,053 in 2024[161] Profitability and Income - Gross profit for the three months ended October 31, 2025, was $106.2 million, with a gross margin of 85.3%, up from 83.0% in 2024[138] - Net income attributable to PagerDuty, Inc. common stockholders was $159.6 million for the three months ended October 31, 2025, compared to a net loss of $6.6 million in 2024[138] - Gross profit margin improved from 82.8% in 2024 to 84.6% in 2025, with gross profit increasing to $311,219[160] - Net income attributable to PagerDuty, Inc. increased to $163,999 in 2025, compared to a net loss of $33,975 in 2024[160] - For the three months ended October 31, 2025, non-GAAP net income attributable to PagerDuty, Inc. common stockholders was $31,217,000, compared to $23,721,000 for the same period in 2024, representing a 31.5% increase[186] Operating Expenses - Operating expenses decreased to $98.1 million for the three months ended October 31, 2025, from $109.0 million in 2024, a reduction of 10.5%[138] - Total operating expenses decreased by $10,862, or 10.0%, from $108,971 in 2024 to $98,109 in 2025[146] - Research and development expenses decreased by $4,849, or 14.2%, from $34,267 in 2024 to $29,418 in 2025[146] - Sales and marketing expenses decreased by $4,950, or 10.0%, from $49,272 in 2024 to $44,322 in 2025[146] - General and administrative expenses decreased by $1,063, or 4.2%, from $25,432 in 2024 to $24,369 in 2025[146] Cash Flow and Financial Position - Free cash flow for the three months ended October 31, 2025, was $20,929,000, up from $19,443,000 in the same period of 2024, indicating a 7.6% increase[188] - As of October 31, 2025, the company had cash and cash equivalents totaling $547.8 million, which is expected to support working capital and capital expenditure requirements for at least the next 12 months[189] - Net cash provided by operating activities for the nine months ended October 31, 2025, was $89,447,000, an increase of $2,958,000 from $86,489,000 in 2024[196] - Net cash used in financing activities decreased to $105,386,000 for the nine months ended October 31, 2025, compared to $113,323,000 in 2024, reflecting a reduction in stock repurchases[199] Debt and Obligations - Total debt obligations as of October 31, 2025, amounted to $395.1 million, all of which is long-term[194] - The company had $1.0 million of irrevocable standby letters of credit outstanding as of October 31, 2025, primarily used as security deposits for leased spaces[201] Tax and Valuation - The company released $154.2 million of its valuation allowance as a discrete tax benefit during the three months ended October 31, 2025[159] - The company maintains a valuation allowance of $0.8 million against certain deferred tax assets due to realizability uncertainty[170] - The projected non-GAAP tax rate for fiscal 2026 is set at 22% to provide consistency across interim reporting periods[180] Retention and Customer Focus - The dollar-based net retention rate was 100% for the last 12 months ended October 31, 2025, down from 107% in 2024[137] - The company continues to focus on expanding its enterprise customer base, which constitutes the majority of its revenue[127]

Financial Performance - Net sales for fiscal 2025 decreased by $351.7 million, or 11.0%, to $2,850.4 million compared to $3,202.1 million in fiscal 2024, primarily due to decreased average selling prices[236] - Gross profit for fiscal 2025 was $676.1 million, a decrease of $401.7 million, or 37.3%, from $1,077.8 million in fiscal 2024[236] - Operating income plummeted by $601.6 million, or 96.3%, to $23.2 million in fiscal 2025 compared to $624.8 million in fiscal 2024[236] - Net income for fiscal 2025 was a loss of $15.2 million, a decrease of $488.0 million, or 103.2%, from a net income of $472.9 million in fiscal 2024[236] - Adjusted EBITDA decreased by $397.8 million, or 54.6%, to $330.5 million for fiscal 2025, compared to $728.3 million for fiscal 2024[247] Cost and Expenses - Cost of sales increased by $50.1 million, or 2.4%, to $2,174.3 million for fiscal 2025, driven by increased freight costs and higher sales volume[238] - Selling, general and administrative expenses decreased by $0.9 million, or 0.2%, to $396.6 million in fiscal 2025, attributed to lower costs across various categories[239] - Intangible asset amortization expense decreased by $13.6 million, or 24.5%, to $41.9 million in fiscal 2025 due to certain intangibles becoming fully amortized[240] - Other expense, net increased by $5.7 million to $7.7 million for fiscal 2025, compared to $2.0 million for fiscal 2024[243] Impairment Charges - The company recognized a $66.7 million impairment charge related to the potential sale of the HDPE business in fiscal 2025[224] - Asset impairment charges increased to $214.4 million for fiscal 2025, compared to no charges in fiscal 2024[241] - In fiscal 2025, the Company recorded a goodwill impairment of $18.9 million for the Mechanical reporting unit[301] - The Company identified non-cash impairment charges of $194,450 related to the long-lived assets of the HDPE business in fiscal 2025[306] Tax and Income - Income tax expense decreased by $117.8 million to a benefit of $3.4 million for fiscal 2025, compared to an expense of $114.4 million for fiscal 2024[244] - The effective tax rate decreased to 18.4%[244] Cash Flow and Capital Expenditures - Cash and cash equivalents increased by $155.3 million to $506.7 million as of September 30, 2025, compared to the previous year[268] - The company reported cash flows from operating activities of $402.8 million in fiscal 2025, a decrease of 26.6% compared to $549.0 million in fiscal 2024[280] - Cash used in investing activities decreased to $85.6 million in fiscal 2025 from $154.3 million in fiscal 2024, primarily due to reduced capital expenditures[282] - Financing activities resulted in cash outflows of $160.5 million in fiscal 2025, down from $435.3 million in fiscal 2024, mainly due to decreased share repurchases[283] - In fiscal 2025, capital expenditures totaled $107.1 million, focusing on equipment and growth initiatives to support Global Megaprojects[271] Market Dependence and Sales - Approximately 88% of net sales in fiscal 2025 were to customers located in the United States, indicating a strong dependence on the U.S. economy[217] - Approximately 12% of net sales in fiscal 2025 came from international customers, primarily in foreign currencies[225] - Safety & Infrastructure segment net sales increased by $4.3 million, or 0.5%, to $853.4 million for fiscal 2025, compared to $849.1 million for fiscal 2024[249] Future Outlook and Commitments - The company expects to incur additional restructuring costs in fiscal 2026 following a $1.3 million accrual for restructuring activities announced on September 29, 2025[224] - The company has purchase commitments of $110.9 million and $4.1 million for raw materials in 2026 and 2027, respectively[272] - The projected pension contribution for fiscal 2026 is estimated at $0.4 million[273] - Total estimated cash outflows for servicing existing debt instruments amount to $972.4 million, with significant payments due in the next five years[274] Industry Trends - Emerging industry trends indicate a shift towards renewable power generation and increased demand for digital infrastructure products[226][227] Accounting Policies - The Company utilizes the last-in, first-out (LIFO) method for inventory valuation, reflecting current costs and revenues[307] - The Company assesses the recoverability of goodwill and indefinite-lived intangible assets annually, with the measurement date set for the first day of the fourth fiscal quarter[298] - The Company accounts for business combinations using the acquisition method, recording all acquired assets and assumed liabilities at fair value at the date of acquisition[297]

Financial Performance - Revenue for Q3 2025 reached $60.12 million, a 20.24% increase from $50.00 million in Q3 2024[17] - Gross profit for the nine months ended September 30, 2025, was $75.12 million, compared to $99.79 million for the same period in 2024, reflecting a decrease of 24.83%[17] - The net loss for Q3 2025 was $2.48 million, compared to a net loss of $5.82 million in Q3 2024, indicating an improvement of 57.45%[17] - For the nine months ended September 30, 2025, the company reported a net loss of $5,187,125, a significant improvement compared to a net loss of $15,757,196 for the same period in 2024, representing a reduction of approximately 67%[24] - The net loss for the three months ended September 30, 2025 was $2,481,975, a significant improvement of $3,341,108 from a net loss of $5,823,083 in 2024[156] - The Company incurred a net loss of $5,187,125 for the nine months ended September 30, 2025, an improvement of $10,570,071 compared to a net loss of $15,757,196 in 2024[163] Assets and Liabilities - Total current assets increased to $1.83 billion as of September 30, 2025, up from $1.23 billion at the end of 2024, representing a growth of 49.49%[16] - Total liabilities decreased to $12.92 billion from $15.51 billion at the end of 2024, a reduction of 16.73%[16] - The company reported a total stockholders' equity of $3.45 million as of September 30, 2025, an increase from $2.64 million at the end of 2024, reflecting a growth of 30.54%[16] - The company had an accumulated deficit of $52,204,274 as of September 30, 2025, highlighting ongoing financial challenges[28] - The Company’s cash and cash equivalents at the end of the year were $102,715, a slight increase from $72,878 at the end of the previous year[24] Operating Expenses - Operating expenses for the nine months ended September 30, 2025, totaled $9.37 million, down from $18.50 million in the same period of 2024, a decrease of 49.33%[17] - General and administrative expenses decreased to approximately $1,451,867 for the three months ended September 30, 2025, down by approximately $2,752,079 from $4,203,946 in 2024[156][158] - Total operating expenses for the three months ended September 30, 2025 were $2,376,733, a decrease of $2,952,779 compared to $5,329,512 in 2024[156] Cash Flow - The company experienced cash used in operating activities of $5,344,393 for the nine months ended September 30, 2025, compared to $11,666,133 for the same period in 2024, indicating a 54% decrease in cash outflow[24] - Cash used in operating activities for the nine months ended September 30, 2025, was approximately $5.34 million, a decrease from $11.67 million in the same period of 2024[195][197] - Cash provided by financing activities for the nine months ended September 30, 2025, was approximately $5.88 million, compared to $10.27 million in 2024[199] Stock and Financing Activities - The company issued 1,186,426 shares of common stock during the period, raising approximately $1.33 million in additional paid-in capital[19] - The company raised $2,654,513 from the sale of common stock during the nine months ended September 30, 2025, compared to $10,274,937 in the same period of 2024, reflecting a decrease of approximately 74%[24] - The Company issued 1,185,000 shares at $5.00 per share, totaling $5,925,000[88] - The Company issued 1,500,000 shares to Yorkville during the nine months ended September 30, 2025[178] Debt and Defaults - The company issued a promissory note of approximately $1,700,000, with a maturity date of March 11, 2025, and is currently in default[77] - As of September 30, 2025, the Company is in default on the Yorkville Promissory Note with an outstanding balance of $416,667, which was settled for $487,453[134] - The Cohen Convertible Note, issued for $1.9 million, is in default with an outstanding balance of $760,000 as of September 30, 2025[135] Future Outlook - The company anticipates continuing to incur operating losses and negative cash flows for at least the next 12 months, raising substantial doubt about its ability to continue as a going concern[28] - The Company expects to continue seeking additional funds primarily through the issuance of debt or equity securities to support its operations[190] - The Company plans to raise additional capital through equity or debt financing to fund operations and product development[171] Research and Development - The company’s research and development activities are supported by an office in the Republic of Korea, focusing on innovative AI technologies[39] - The Company has a significant intellectual property portfolio that is expected to be a cornerstone for its AI solutions in targeted industries such as automotive, healthcare, and financial services[130] Agreements and Partnerships - The Company entered into a definitive Shareholder, License and Reseller Agreement with SKYE LATAM on November 6, 2025, to expand its AI footprint in Latin America and Spain[127] - The Company has established a partnership with SKYE Inteligencia LATAM to commercialize its AI technology across Latin America and Spain, receiving 25% of SKYE LATAM's common stock and 35% of gross revenues from software and services[132] - The Company entered into a reseller agreement with AFG, issuing a nontransferable warrant for 3,750,000 shares of common stock[83] Compliance and Internal Controls - The Company plans to remediate a material weakness in internal controls over financial reporting, including hiring a Chief Financial Officer and engaging third-party professionals for complex accounting matters[211] - The Company has no off-balance sheet financing arrangements as of September 30, 2025[203]

Financial Performance - Revenue for Q3 2025 was $60.12 million, a 20.24% increase from $50.00 million in Q3 2024[17] - Gross profit for the nine months ended September 30, 2025, was $75.12 million, compared to $99.79 million for the same period in 2024, reflecting a decrease of 24.83%[17] - Net loss for Q3 2025 was $2.48 million, compared to a net loss of $5.82 million in Q3 2024, indicating an improvement of 57.45%[17] - For the nine months ended September 30, 2025, the net loss was $5,187,125, a significant improvement compared to a net loss of $15,757,196 for the same period in 2024, indicating a reduction of approximately 67%[24] - The net loss for the three months ended September 30, 2025 was $2,481,975, a significant improvement of $3,341,108 from a net loss of $5,823,083 in the prior year[156] - For the nine months ended September 30, 2025, revenues were $75,120, a decrease of $24,670 from $99,790 in the same period of 2024[163][164] Assets and Liabilities - Total current assets increased to $1.83 billion as of September 30, 2025, up from $1.23 billion at the end of 2024, representing a growth of 49.49%[16] - Total liabilities decreased to $12.92 billion as of September 30, 2025, down from $15.51 billion at the end of 2024, a reduction of 16.73%[16] - The company reported a total stockholders' equity of $3.45 million as of September 30, 2025, an increase from $2.64 million at the end of 2024, reflecting a growth of 30.49%[16] - The company reported an accumulated deficit of $52,204,274 as of September 30, 2025, highlighting ongoing financial challenges[28] Cash Flow and Financing - Cash used in operating activities for the nine months ended September 30, 2025, was $5,344,393, down from $11,666,133 in the prior year, reflecting a 54% decrease[24] - Cash and cash equivalents are maintained in business checking and money market accounts, recorded at fair value, and held for short-term liquidity requirements[51] - The Company raised $4.4 million in cash and $0.5 million through offset obligations in the May Private Placement, selling 1,980,000 shares of Common Stock and 3,960,000 warrants[173] - Cash provided by financing activities for the nine months ended September 30, 2025, was approximately $5.88 million, down from $10.27 million in 2024[199] - The Company expects to continue seeking additional funds primarily through the issuance of debt or equity securities to support its operations[190] Operating Expenses - Operating expenses for the nine months ended September 30, 2025, totaled $9.37 million, down from $18.50 million in the same period of 2024, a decrease of 49.33%[17] - General and administrative expenses decreased to approximately $1,451,867 for the three months ended September 30, 2025, down by approximately $2,752,079 from $4,203,946 in the prior year[156][158] - Total operating expenses for the three months ended September 30, 2025 were $2,376,733, a decrease of $2,952,779 compared to $5,329,512 in the same period of 2024[156] Stock and Equity - The weighted average number of common shares outstanding increased to 42,166,121 for Q3 2025, compared to 35,539,043 for Q3 2024, an increase of 18.51%[17] - The Company has 19,148,526 potentially dilutive securities excluded from the calculation of weighted average shares of Common Stock outstanding as of September 30, 2025, compared to 27,816,055 in 2024[64] - The Company issued 200,000 shares and 400,000 warrants for gross proceeds of $500,000 on May 30, 2024[85] - The Company issued 1,500,000 shares of Common Stock to Yorkville under the Standby Equity Purchase Agreement during the nine months ended September 30, 2025[178] Future Outlook - The company expects to continue incurring operating losses and negative cash flows for at least the next 12 months, raising substantial doubt about its ability to continue as a going concern[28] - The company plans to raise additional capital through equity or debt financing to fund operations and product development[171] - The Company plans to launch its Automotive AI Agent, which integrates with major automotive data platforms and supports over 13,000 dealerships nationwide, aiming to improve lead conversions and enhance service efficiency[142] Research and Development - The Company has a dedicated office in the Republic of Korea for research and development activities, indicating a focus on innovation and technology advancement[39] - The Company expects to continue incurring significant operating costs, including research and development expenses, which will impact future profitability[145] Agreements and Partnerships - The Company entered into a definitive Shareholder, License and Reseller Agreement with SKYE LATAM on November 6, 2025, to expand its AI footprint in Latin America and Spain[127] - The Company has established a partnership with SKYE Inteligencia LATAM to commercialize its AI technology across Latin America and Spain, receiving 25% of SKYE LATAM's common stock and 35% of gross revenues from software and services[132] Defaults and Financial Challenges - As of September 30, 2025, the Company is in default on the Yorkville Promissory Note with an outstanding balance of $416,667, which was settled for $487,453[134] - The Cohen Convertible Note, issued for $1.9 million, is in default with an outstanding balance of $760,000 as of September 30, 2025, after $380,000 was converted into 316,666 shares of Common Stock[135]