Old Market Capital Corporation (formerly Nicholas Financial, Inc.) reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a notable increase in total revenue, which reached $2.96 million for the three months ended September 30, 2024, compared to $0 in the same period of 2023. For the six months ended September 30, 2024, total revenue was $3.45 million, again up from $0 in the prior year. This growth is attributed to the acquisition of Amplex Electric, Inc., which expanded the company's service offerings to include wireless and fiber internet services.

Operating expenses for the third quarter of 2024 were $3.98 million, a substantial increase from $1.61 million in the same quarter of 2023, reflecting a 148% rise. The increase in expenses was primarily driven by higher general and administrative costs, which rose 61% to $2.55 million, and a significant jump in depreciation and amortization expenses, which surged from $22,000 to $501,000. The operating loss for the quarter improved to $(1.03 million) from $(1.61 million) in the previous year, while the net loss narrowed to $(174,000) compared to $(10.49 million) in 2023.

The company reported a net income from discontinued operations of $801,000 for the three months ended September 30, 2024, a significant turnaround from a loss of $(8.83 million) in the same period of 2023. This shift reflects the impact of the asset sale completed on April 26, 2024, where the company sold finance receivables and repossessed assets for $65.6 million, marking a strategic pivot away from its consumer finance segment.

As of September 30, 2024, total assets increased to $80.28 million from $59.84 million at the end of the previous fiscal period, while total current liabilities rose to $3.18 million from $931,000. Shareholders' equity decreased to $56.21 million from $58.84 million, reflecting the financial adjustments following the acquisition and asset sale.

The company also reported cash and cash equivalents of $29.48 million, a significant increase from $18.98 million at the end of March 2024. This increase was bolstered by net cash provided by investing activities of $16.68 million during the six months ended September 30, 2024.

In terms of strategic developments, Old Market Capital Corporation completed its domestication from British Columbia to Delaware and changed its name effective September 27, 2024. The acquisition of Amplex, which serves over 9,100 broadband customers, was a key strategic move, with the company acquiring a 51% stake for $18.4 million. The acquisition is expected to enhance revenue generation through new service offerings in the telecommunications sector.