Aeries Technology(AERT) - 2024 Q4 - Annual Report

Revenue Performance - Total revenue for the year ended March 31, 2024, was $72.51 million, a 36.6$53.10 million in 2023[300] - Revenue from North America increased to $56.96 million in 2024 from$48.20 million in 2023, representing a growth of 18.3%[300] - Revenue from Asia Pacific and Other regions surged to $15.55 million in 2024, up from$4.90 million in 2023, marking a significant increase of 217.4%[300] - Net revenues for the year ended March 31, 2024, were $72.5 million, a$19.4 million or 37% increase compared to $53.1 million for the year ended March 31, 2023[303] Profitability - Cost of revenue for the year ended March 31, 2024, was$50.9 million, a $11.4 million or 29$39.4 million for the year ended March 31, 2023[304] - Gross profit for the year ended March 31, 2024, was $21.6 million, a$8.0 million or 58% increase compared to $13.7 million for the year ended March 31, 2023[306] - Net income for the year ended March 31, 2024, was$17.3 million, a $15.6 million or 911$1.7 million for the year ended March 31, 2023[322] - Adjusted EBITDA for the year ended March 31, 2024, was $9.2 million, compared to$8.7 million for the year ended March 31, 2023[316] Expenses - Selling, general and administrative expenses for the year ended March 31, 2024, were $18.7 million, a$7.3 million or 65% increase compared to $11.3 million for the year ended March 31, 2023[308] Cash Flow and Financing - Cash at the end of the period for the year ended March 31, 2024, was$2.1 million, an increase of $953,000 or 84$1.1 million at the end of the previous year[322] - Net cash provided by financing activities for the year ended March 31, 2024, was $7.1 million, a$6.8 million or 2,700% increase compared to $252,000 for the year ended March 31, 2023[322] - Net cash used in investing activities for the year ended March 31, 2024, was$1.7 million, with $1.5 million for property and equipment purchases and$2.3 million for loans to affiliates, offset by $2.1 million from loan repayments[326] - Net cash provided by financing activities for the year ended March 31, 2024, was$7.1 million, primarily from a Business Combination generating $8.7 million and net proceeds from short-term debt of$2.6 million[328] Debt and Liabilities - Aeries amended its revolving credit facility, increasing the total borrowing capacity to $3.8 million as of March 31, 2024[295] - The company has an outstanding unsecured loan of$0.8 million at an interest rate of 10% per annum, with the principal amount outstanding as of March 31, 2024[296] - The company had a deficit of $1.9 million in shareholders' equity as of March 31, 2024, raising concerns about its ability to continue as a going concern[317] Client and Market Position - Aeries had more than 30 clients across various industries, including e-commerce, telecom, security, healthcare, and engineering as of March 31, 2024[280] - The company focuses on maintaining long-term customer relationships, as a significant portion of revenue is derived from long-term contracts[291] Strategic Initiatives - Aeries aims to leverage AI and digital transformation technologies to enhance operational efficiencies and drive innovation for clients[277] - The allowance for credit losses was$1.2 million as of March 31, 2024, compared to $0 as of March 31, 2023, reflecting a transition adjustment and subsequent additions[352] Other Financial Information - Total other income, net for the year ended March 31, 2024, was$16.1 million, a $15.7 million or 3,610$0.4 million for the year ended March 31, 2023[309] - The fair value of the FPA put option liability increased from $25.0 million at the Closing Date to$42.3 million as of March 31, 2024, with a change in fair value of $17.3 million recorded for the year[340] - The Company issued 361,338 Class A ordinary shares to settle vendor balances amounting to$0.9 million in December 2023, with potential additional shares to be issued based on share price performance[342] - The total prepayment amount related to Forward Purchase Agreements was $42.8 million, which includes a net cash outflow of$3.1 million[340] - The Company recorded an unbilled receivable for revenue recognized on contracts exceeding billings, included in accounts receivable, net[351] - The Company capitalizes certain costs related to internal use software, with costs incurred in preliminary stages expensed as incurred[356] - The Company has no material off-balance sheet arrangements as of March 31, 2024[330] - The redeemable noncontrolling interest is recorded as mezzanine equity and is subject to certain exchange conditions and cash redemption features outside the Company's control[350]