EvoAir Holdings Inc. SEC 10-Q Report

EvoAir Holdings Inc., a company specializing in eco-friendly air-conditioning solutions, has released its Form 10-Q report for the third quarter. The report provides a detailed overview of the company's financial performance and operational highlights, reflecting the challenges and strategic initiatives undertaken during the period. Financial Highlights Revenue: $51,929, a decrease of 43% compared to the same period last year, primarily due to a reduction in sales of eco-friendly air-conditioning units.Gross Loss: $(38,181), representing a gross loss margin of 74%, driven by fixed operational costs not scaling with the decline in revenue.Loss from Operation: $(4,641,057), an increase of 204% from the previous year, primarily due to a rise in stock-based compensation.Net Loss: $(4,640,904), reflecting continued strategic investments in infrastructure and resources for business expansion.Net Loss Attributable to Equity Holders of the Company per Common Share: $(0.18), reflecting the impact of increased operating expenses and reduced revenue. Business Highlights Revenue Segments: The company experienced a decline in sales of its eco-friendly air-conditioning units, particularly the EvoAir™, which is a pioneering hybrid air-conditioner designed with a proprietary HECS system.Geographical Performance: The company is actively expanding its product's reach across various markets, including residential, commercial, and industrial sectors, through strategic distribution channels, project collaborations, and private labeling and licensing models.Sales Units: The company faced challenges in the adoption of EvoAir™ by corporate clients, resulting in extended decision-making timelines due to additional studies conducted by potential customers to evaluate the long-term benefits of the product.Future Outlook: The company remains optimistic about the long-term potential of EvoAir™ and is focused on continuing to innovate and address challenges, with a view to establishing the product as a leading solution in the sustainable cooling market. The company is also pursuing plans to raise additional funding to support operations and business expansion, including preparations to uplist on the Nasdaq Capital Market.SEC Filing: EvoAir Holdings Inc. [ EVOH ] - 10-Q - Jan. 17, 2025