GMTech Inc. reported significant changes in its financial performance for the three and nine months ended July 31, 2024, compared to the same periods in the previous fiscal year. The company, which focuses on IT consulting services in North America, experienced a notable decline in revenue, with total revenue for the three months at $12,000, down from $32,500 in the prior year. For the nine-month period, revenue decreased to $46,800 from $82,500. This decline in revenue is attributed to a concentrated customer base, as three customers accounted for 100% of the revenue in both fiscal periods.

Gross profit mirrored the revenue trend, falling to $12,000 for the three months ended July 31, 2024, from $32,500 in the same period of 2023. For the nine months, gross profit decreased to $37,300 from $62,500. Operating expenses increased significantly, totaling $18,048 for the three months ended July 31, 2024, compared to $10,004 in the previous year. For the nine months, operating expenses rose to $65,477 from $41,506, contributing to a net loss of $6,048 for the three months and $28,177 for the nine months, contrasting with net income of $22,496 and $20,994 in the respective prior periods.

The company’s total assets surged to $113,997 as of July 31, 2024, from $24,267 as of October 31, 2023, primarily due to an increase in cash and cash equivalents, which reached $109,329. This increase was bolstered by proceeds from the issuance of common stock, totaling $140,000 during the nine months ended July 31, 2024. The total stockholders’ equity also rose significantly to $113,696 from $1,873.

Strategically, GMTech acquired Anptech Inc. on October 16, 2023, issuing 2,000,000 shares of common stock as part of the transaction. The acquisition is expected to enhance GMTech's service offerings. The company has also entered into a short-term office lease at 45 Rockefeller Plaza, New York, which will expire in September 2024.

Despite the challenges in revenue generation and profitability, GMTech's management anticipates future financing needs will be met through equity financing, although this may lead to dilution for current shareholders. The company has not established specific plans for additional funding but is exploring options for future equity financing.