Hammer Fiber Optics Holdings Corp reported its financial results for the third quarter and the first nine months of fiscal year 2024, highlighting both revenue growth and increased losses compared to the previous fiscal period.

For the third quarter ended April 30, 2024, the company generated revenues of $770,412, a slight increase of 0.4% from $767,527 in Q3 2023. Over the first nine months of 2024, revenues rose by 8.5% to $2,506,966, compared to $2,311,038 in the same period last year. This growth is attributed to the performance of its subsidiaries, particularly in retail web and voice hosting services.

However, the company faced significant increases in operating expenses, which totaled $1,059,174 for Q3 2024, up 35% from $788,698 in Q3 2023. For the nine-month period, total operating expenses increased by 10.2% to $3,050,369 from $2,768,264. The rise in expenses, particularly in selling, general, and administrative costs, contributed to a loss from operations of $(288,762) in Q3 2024, compared to a loss of $(21,171) in Q3 2023. The net loss for Q3 2024 was $(504,467), significantly higher than the $(205,711) loss reported in the same quarter of the previous year.

Despite the increased losses, the net loss for the nine months ended April 30, 2024, improved to $(581,664) from $(628,936) in the prior year. The company reported a net cash increase of $23,516 for the nine months, contrasting with a cash decrease of $(369,703) in the same period of 2023, primarily due to a substantial rise in financing activities, which provided $686,433 compared to $139,334 in the previous year.

As of April 30, 2024, total current assets increased to $456,525 from $331,499 as of July 31, 2023, with cash and cash equivalents rising to $90,204. However, total current liabilities also increased to $4,181,279 from $3,669,858, leading to a decline in total stockholder's equity to $3,776,966 from $4,158,180.

Strategically, the company has focused on financial services technology and wireless telecommunications infrastructure, with its key product being the HammerPay mobile payments platform. Notably, on August 7, 2024, Hammer Fiber executed a Purchase Agreement with Viper Networks Inc. to sell its telecommunication assets, which included significant subsidiaries, in exchange for 2.5 million shares of the company's common stock. This move is part of a broader strategy to streamline operations and focus on core business areas.

The company continues to face challenges, including a material weakness in internal controls and ongoing losses since inception, raising concerns about its ability to continue as a going concern.