AERT.O Reports Strong Cash Position and Improved Equity in Q2 2024

AERT.O Financial Performance Update: June 30, 2024

Key Financial Highlights

• Net Cash Flow: The company reported a net increase in cash and cash equivalents of $2,113,000, ending the period with $4,197,000 compared to $2,084,000 at the beginning.

• Operating Activities: Net cash used in operating activities was $1,720,000, a decrease from the previous period's $101,000 provided.

• Investing Activities: Cash used in investing activities amounted to $608,000, slightly higher than the $566,000 used in the prior period.

• Financing Activities: The company generated $4,385,000 from financing activities, significantly up from $1,006,000 in the previous period, primarily due to proceeds from the issuance of Class A ordinary shares.

Balance Sheet Overview

• Total Assets: Increased to $51,768,000 from $49,407,000.

• Current Assets: Total current assets rose to $33,799,000, primarily due to an increase in cash and cash equivalents and prepaid expenses.

• Liabilities: Total liabilities were $50,847,000, a slight increase from $50,587,000, with notable changes in forward purchase agreement put option liability and other current liabilities.

• Shareholders’ Equity: The shareholders’ equity showed a deficit of $231,000, an improvement from the previous deficit of $12,240,000.

Additional Financial Metrics

• Accounts Receivable: Adjusted for allowances, accounts receivable decreased to $22,406,000 from $23,757,000.

• Accrued Compensation: Current accrued compensation and related benefits decreased to $2,163,000 from $3,119,000.

• Operating Lease Liabilities: Current liabilities for operating leases decreased to $1,953,000 from $2,080,000.

Supplemental Information

• Interest and Taxes: Cash paid for interest was $118,000, and cash paid for income taxes was $802,000.

• Non-Cash Activities: Unpaid deferred transaction costs included in accounts payable were $643,000, and equipment acquired under finance lease obligations was $38,000.

This financial update reflects AERT.O's strategic financial management and operational adjustments, highlighting a strong cash position and improved equity status.