PCS Edventures!, Inc. reported its financial results for the three and six months ended September 30, 2024, revealing a significant decline in revenue and net income compared to the same periods in the previous fiscal year.

For the three months ended September 30, 2024, the company generated revenue of $2,267,338, a decrease of $1,499,988 from $3,767,326 in the same quarter of 2023. The decline was primarily attributed to the fulfillment of two large customer orders in the prior year, specifically $1,246,236 from Air Force JROTC and $801,301 from Iowa Scale-Up, which were not matched in the current quarter. Gross profit for the quarter was $1,354,687, down from $2,578,500 in the prior year. Operating expenses increased slightly to $841,888 from $808,483, leading to income from operations of $512,799, a decrease from $1,770,017 in the previous year. Net income for the quarter was $431,229, a sharp decline from $1,811,590 in the same quarter of 2023.

For the six months ended September 30, 2024, total revenue was $5,427,262, down from $6,372,607 in the prior year, reflecting a decrease of $946,345. Gross profit for this period was $3,316,175, compared to $4,179,711 in the previous year. Operating expenses rose to $1,719,955 from $1,549,593, resulting in income from operations of $1,596,220, down from $2,630,118. Net income for the six-month period was $1,288,504, significantly lower than $2,671,968 in the same period of 2023.

Despite the revenue decline, the company reported an increase in cash provided by operating activities, which rose to $2,852,232 from $1,749,146 in the prior year. The increase was attributed to a decrease in accounts receivable. As of September 30, 2024, PCS Edventures! had total current assets of $6,992,836, up from $5,425,141 as of March 31, 2024, and cash of $4,005,145, a substantial increase from $1,329,708.

The company also reported a significant increase in deferred revenue, which rose to $107,336 from $14,549, indicating future obligations. Additionally, PCS Edventures! completed two private transactions to purchase and retire shares of common stock during the quarter, totaling $143,813 in cash used for financing activities.

Overall, the financial results reflect challenges in revenue generation, particularly from key customers, while the company maintains a strong cash position and improved working capital.