Connexa Announces Quarterly and Half Year Results
- Connexa Records 59 Percent Improvement in Operating Loss for Quarter Ended October 2023 and 72 Percent Improvement Year-to-Date.
- Operating Expenses Reduced 60 Percent Year-on-Year.
- Positive NET INCOME for the 6 Months to October 2023.
- Revenue on Track for Estimated 10 Percent Growth in FY24
- Operational Profitability Expected by 4Q24
Windsor Mills, MD, Nov. 28, 2023 (GLOBE NEWSWIRE) -- Connexa Sports Technologies Inc. (NASDAQ:CNXA) reported operating results for the quarter and half year periods ended October 31, 2023 and provided an update and review of operations, including launch of its Slinger Bag AI App for beta testing.
For the second fiscal quarter ended October 31, 2023, the Company reported revenue of $2.3 million compared to $2.4 million in the year-ago period, and an operating loss of $1.2 million, down approximately 59 percent from the $4.5 million reported in last year's second fiscal quarter. Taking into account orders received but not shipped due to inventory shortages in the period to October 31, 2023, revenue would have increased approximately 10% over the prior year.
For the six month half-year period ended October 31, 2023, the Company reported revenue of $5.4 million compared to $6.0 million in the same period a year-ago, and an operating loss of $3.1 million, down approximately 72 percent from the operating loss of $7.6 million in last year's second quarter.
"Our underlying Slinger Bag business continues to be strong and our focus on reducing our operating expense burden is already driving significant improvements in operating and net income results for both the quarter and half-year periods. Our expectation remains unchanged in that we expect to deliver revenue growth at least 10% for fiscal 2024 and to deliver sustainable operating profitability within the fourth quarter," said Mike Ballardie, CEO of Connexa Sports Technologies.
"Slinger Bag remains strongly in demand by tennis consumers across the globe and we are now seeing demand increasing for both our recently introduced Pickleball and Padel Tennis launchers now that they are being seen in action out on courts everywhere," he continued. "In the latest quarter consumer demand in the US outstripped supply and we found ourselves out of inventory for the last 2 weeks of the quarter. We are working with our Asian suppliers to build inventory at a faster rate for the balance of this fiscal year."
Over the last few weeks, as part of its Sport-as-a-Service vision, the Company initiated beta testing of its Slinger App, bringing its patent-pending AI algorithms and analysis for tennis. Available on IOS and Android, the Slinger App records practice session or match play video, analyzes play and provides specific actionable feedback on how to improve.
To join our Beta testing team please complete the Beta test application form at www.Slingerbag.com/betatest
This market provides an opportunity for supplemental revenue growth based on monthly or yearly subscriptions in the range of $15 and $100, respectively.
"We envision our AI platform as a product and technology that will be at the heart of ‘powering' the Connexa portfolio of brands. It will be the driver of real-time data and analytics for tennis players and the Slinger App has been designed to be used both as a stand-alone app or in conjunction with a player using their Slinger Bag Launcher," commented Ballardie.
CONNEXA SPORTS TECHNOLOGIES, INC
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
SIX AND THREE MONTHS ENDED OCTOBER 31, 2023 AND 2022
| SIX MONTHS ENDED | THREE MONTHS ENDED | |||||||||||||||
| OCTOBER 31, | OCTOBER 31, | OCTOBER 31, | OCTOBER 31, | |||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| NET SALES | $ | 5,416,149 | $ | 6,027,157 | $ | 2,295,918 | $ | 2,443,821 | ||||||||
| COST OF SALES | 3,876,437 | 4,718,824 | 1,648,955 | 2,156,780 | ||||||||||||
| . | ||||||||||||||||
| GROSS PROFIT | 1,539,712 | 1,308,333 | 646,963 | 287,041 | ||||||||||||
| OPERATING EXPENSES | ||||||||||||||||
| Selling and marketing expenses | 547,390 | 1,103,952 | 305,037 | 347,129 | ||||||||||||
| General and administrative expenses | 4,121,385 | 7,751,470 | 1,616,325 | 4,436,860 | ||||||||||||
| Research and development costs | - | 34,405 | - | 14,980 | ||||||||||||
| Total Operating Expenses | 4,668,775 | 8,889,827 | 1,921,362 | 4,798,969 | ||||||||||||
| OPERATING LOSS | (3,129,063 | ) | (7,581,494 | ) | (1,274,399 | ) | (4,511,928 | ) | ||||||||
| NON-OPERATING INCOME (EXPENSE) | ||||||||||||||||
| Amortization of debt discounts | (790,262 | ) | (2,872,222 | ) | (13,070 | ) | - | |||||||||
| Loss on conversion of accounts payable to common stock | (289,980 | ) | - | - | - | |||||||||||
| Change in fair value of derivative liability | 16,944,807 | 6,787,597 | 14,800,253 | 3,100,102 | ||||||||||||
| Derivative expense | (11,398,589 | ) | (7,280,405 | ) | (11,398,589 | ) | (7,280,405 | ) | ||||||||
| Interest expense | (421,559 | ) | (597,580 | ) | (352,076 | ) | (406,277 | ) | ||||||||
| Interest expense - related party | - | (82,414 | ) | - | (21,293 | ) | ||||||||||
| Interest expense | - | (82,414 | ) | - | (21,293 | ) | ||||||||||
| Total Non-Operating Income (Expenses) | 4,044,417 | (4,045,024 | ) | 3,036,518 | (4,607,873 | ) | ||||||||||
| NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES | 915,354 | (11,626,518 | ) | 1,762,119 | (9,119,801 | ) | ||||||||||
| DISCONTINUED OPERATIONS | ||||||||||||||||
| Loss from discontinued operations | - | (3,663,480 | ) | - | (1,903,766 | ) | ||||||||||
| Loss on disposal of subsidiaries | - | - | - | - | ||||||||||||
| LOSS FROM DISCONTINUED OPERATIONS | - | (3,663,480 | ) | - | (1,903,766 | ) | ||||||||||
| NET INCOME (LOSS) FROM OPERATIONS BEFORE | ||||||||||||||||
| PROVISION FOR INCOME TAXES | 915,354 | (15,289,998 | ) | 1,762,119 | (11,023,567 | ) | ||||||||||
| Provision for income taxes | - | - | - | - | ||||||||||||
| NET INCOME (LOSS) | $ | 915,354 | $ | (15,289,998 | ) | $ | 1,762,119 | $ | (11,023,567 | ) | ||||||
| Other comprehensive income (loss) | ||||||||||||||||
| Foreign currency translations adjustment | 68,318 | 58,139 | 95,338 | (34,630 | ) | |||||||||||
| Comprehensive income (loss) | $ | 983,672 | $ | (15,231,859 | ) | $ | 1,857,457 | $ | (11,058,197 | ) | ||||||
| Net income (loss) per share - basic and diluted (see Note 3) | ||||||||||||||||
| Continuing operations | $ | (23.13 | ) | $ | (2,708.25 | ) | $ | (14.29 | ) | $ | (3,211.20 | ) | ||||
| Discontinued operations | $ | - | $ | (853.36 | ) | $ | - | $ | (670.34 | ) | ||||||
| Net loss per share - basic and diluted | $ | (23.13 | ) | $ | (3,561.61 | ) | $ | (14.29 | ) | $ | (3,881.54 | ) | ||||
| Weighted average common shares outstanding - basic and diluted | 693,092 | 4,293 | 912,147 | 2,840 | ||||||||||||
Shareholder Letter
Further information for shareholders can be found in an open letter posted on our website at https://www.connexasports.com/investor-relations/
About Connexa Sports Technologies:
Connexa Sports a leading connected sports company delivering products, technologies, and Sport-as-a-Service across a range of sport verticals. Connexa's mission is to reinvent sports through technological innovation driven by an unwavering focus on today's sports consumer.
Contact Information:
[email protected]
www.connexasports.com
Forward-Looking Statements
Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements.
Actual results could differ materially from those anticipated in forward-looking statements for many reasons, including the factors described in "Item 1A. Risk Factors" in our 10-K filing as of September 14, 2023 and our ability to continue as a going concern. Accordingly, you should not rely on these forward-looking statements, which speak only as of the date of this press release. You should, however, review the factors and risks we describe in the reports we will file from time to time with the SEC after the date of this press release.
In addition, statements such as "we believe" and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this press release. And while we believe that information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and you are cautioned not to rely unduly on these statements.
Although we believe the expectations reflected in the forward-looking statements were reasonable at the time made, we cannot guarantee future results, level of activity, performance or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. You should carefully consider the cautionary statements contained or referred to in this section in connection with the forward-looking statements contained in this press release and any subsequent written or oral forward-looking statements that may be issued by us or persons acting on our behalf.
1 International Tennis Federation Global Report (2021)2 https://www.usta.com/en/home/stay-current/national/u-s--tennis-participation-grew-for-third-straight-year-in-2022.html3 https://biz.crast.net/fmi-tennis-equipment-market-growing-at-a-cagr-of-2-9-in-the-forecast-period-2029/
