Azzurro Solutions Reports Net Loss, Decreased Operating Cash Flows, and Leadership Changes

Azzurro Solutions Corp., an Electronic Design Automation (EDA) company, reported its financial performance for the three and nine-month periods ending June 30, 2024. The company experienced a net loss of $4.8 million for the three-month period, an increase from a net loss of $3.1 million in the same period of 2023. For the nine-month period, the net loss was $19.6 million, a slight improvement compared to a net loss of $21.5 million for the corresponding period in the previous year. Total expenses for the nine-month period were $17.8 million.

As of June 30, 2024, Azzurro Solutions reported total assets of $4.9 million, a significant increase from $2.5 million as of September 30, 2023. Current liabilities decreased to $9.7 million from $45.9 million during the same timeframe, while stockholders’ deficit improved to $4.8 million from $43.4 million. The company’s net cash flows used in operating activities for the nine-month period were $13.0 million, down from $31.5 million in the prior year. Cash flows from financing activities totaled $17.4 million, compared to $26.3 million in the previous year.

Strategically, Azzurro Solutions executed a stock purchase agreement on February 15, 2024, selling 3 million shares of common stock to five accredited investors from Taiwan, which represented approximately 74% of the issued and outstanding shares. This transaction resulted in the conversion of a $58,209 loan from the previous sole officer and director into additional paid-in capital. The company also secured additional funding through related party loans, including an unsecured loan of $20,000 on September 28, 2024, for operational expenses.

Leadership changes occurred with the appointment of Jian-Meng (James) Yang as Chairman of the Board and Chief Executive Officer on January 22, 2024. The company also registered to do business as Arculus System Inc. on August 13, 2024.

Despite these developments, Azzurro Solutions faces substantial doubt regarding its ability to continue as a going concern, as it has not established a sufficient ongoing source of revenue to cover operating costs. Management plans to seek additional capital resources from significant shareholders and third-party equity or debt financing. The company has no lines of credit or bank financing arrangements and has financed operations through private placements of equity and debt instruments.