Aires Announces Record Q3/2025 Revenue of $7.4 Million and 61% YoY Sales Growth and Discusses Factors Related to Liquidity and Continuing Operations

Core Insights - American Aires Inc. reported record Q3/2025 revenue of $7.39 million, reflecting a 61% year-over-year growth compared to $4.59 million in Q3/2024 [2][5] - The company experienced a gross profit increase of 73% year-over-year, reaching $5.04 million, with a gross margin percentage improvement to 68% from 63% [5][6] - Adjusted EBITDA loss was reported at $1.46 million, compared to a loss of $1.17 million in the same quarter last year [3][6] Financial Performance - Q3/2025 sales reached $7.39 million, a 61% increase from $4.59 million in Q3/2024 [2][5] - Gross profit rose to $5.04 million, up 73% year-over-year, with gross margin improving to 68% [5][6] - Advertising and promotion expenses increased by 49% to $3.46 million, while marketing expenses surged by 83% to $2.08 million [6][8] Liquidity and Operational Challenges - Cash as of September 30, 2025, was reported at $0.23 million, with inventory at $2.21 million [3] - Working capital deficiency increased to $5.54 million from $3.93 million as of June 30, 2025, due to higher operating losses and negative cash flows [18][19] - Management is focused on preserving cash, stabilizing operations, and securing financial resources to support continuity of operations [19][20] Strategic Initiatives - The company is pursuing both equity and non-dilutive financing alternatives to strengthen its balance sheet [20] - Management aims to maintain product availability and support existing sales channels to sustain revenue generation despite financial pressures [21] - A strategic review is ongoing to enhance shareholder value and improve long-term financial position through potential partnerships or joint ventures [22]