Connexa Sports Technologies Inc (YYAI) reported QQ4 2023 revenue of $0.912 million with a gross profit of $0.561 million, yielding a gross margin of 61.5%. Despite the favorable gross margin, the quarter produced a substantial operating loss of $1.121 million and a net loss of $12.779 million, driven by a large negative contribution from total other income/expenses totaling $11.659 million and notable financing/interest costs. EBITDA was negative by $12.008 million, translating to an EBITDA margin of approximately -13.2%. The EPS for the quarter stood at -$7.01 on 1.824 million weighted shares.
From a liquidity and capital-structure perspective, Connexa entered QQ4 2023 with a modest cash balance of about $0.230 million and a sizable investment portfolio totaling roughly $16.7 million (short-term investments of $16.5 million). Net cash provided by operating activities was a use of $0.253 million for the quarter, while investing activities consumed about $16.5 million (primarily investments), and financing activities used about $0.211 million. The ending cash balance was $0.230 million. On the balance sheet, total assets were $21.622 million against total liabilities of $12.0228 million and stockholders’ equity of $9.600 million, with a sizable accumulated deficit reflected in retain earnings of $(167.387) million. Working capital remained positive (current ratio ~1.63), but profitability remains elusive, and liquidity hinges on asset monetization or external financing.
Strategically, Connexa continues to advance its product portfolio (Slinger Launcher, Slinger Bag Launcher) and Gameface AI analytics platform, positioning itself in a growing leisure tech and sports analytics market. However, the QQ4 2023 results underscore a narrow top-line and heavy non-operating charges that overshadow the core revenue generation. Investors should weigh the near-term cash burn and the need for meaningful revenue growth or cost discipline against the potential long-term value of the Slinger ecosystem and AI-enabled performance analytics.