Aires Announces Record Q3/2025 Revenue of $7.4 Million and 61% YoY Sales Growth and Discusses Factors Related to Liquidity and Continuing Operations

Executive Summary

• Q3 2025 unaudited results show sales of $7.39 M (↑61% YoY) and gross profit of $5.04 M (↑73% YoY), but adjusted EBITDA loss widened to $1.46 M versus $1.17 M a year ago.
• Cash balance fell to $0.23 M, working‑capital deficiency rose to $5.54 M, and the company disclosed material uncertainty about its ability to continue as a going concern.
• Management is pursuing cost reductions, liquidity preservation, and equity/non‑dilutive financing while evaluating strategic alternatives amid advertising platform changes and unresolved CEO misconduct issues.

Key Details

• Revenue & Profitability
• Sales: $7,387,036 (Q3 2025) vs. $4,594,953 (Q3 2024).
• Gross profit: $5,039,077 vs. $2,905,891; gross margin 68% vs. 63%.

• Adjusted EBITDA loss: $(1,462,930) vs. $(1,165,453) a year ago.

• Expense Highlights

• Advertising & promotion expense: $(3,460,229) (↑49%).
• Marketing expense: $(2,082,025) (↑83%).
• Legal & professional expenses surged to $(303,348) from $(36,173).

• Share‑based compensation decreased to $(18,005) from $(111,413).

• Liquidity Position

• Cash as of Sept 30 2025: $0.23 M.
• Inventory: $2.21 M (IFRS); non‑IFRS cost of inventory $1.64 M.

• Working‑capital deficiency: $5,541,178 (up from $3,931,125 at June 30 2025).

• Going‑Concern Disclosure

• Management identified material uncertainties that could cast significant doubt on the company’s ability to continue as a going concern.

• Potential inability to settle accounts payable may trigger breaches of vendor contracts and further restrict operations.

• Operational Commentary

• Strong August sales but mid‑September advertising platform algorithm changes increased costs and reduced conversion rates, impacting Q3 performance.

• Anticipated seasonal uplift in Q4 may be muted due to higher operating losses and cash constraints.

• Financing & Strategic Initiatives

• Pursuing equity and non‑dilutive financing (e.g., Shopify Capital loan repayment acceleration for larger advance facility).
• Evaluating strategic alternatives: partnerships, joint ventures, or other transactions to access capital and markets.

• In‑house investor relations program being launched to improve market awareness.

• Risk Factors

• Ongoing fallout from former CEO Dimitry Serov’s misconduct, unresolved IP and manufacturing agreements increase investor risk perception.
• Advertising platform changes could continue to affect cost efficiency and sales conversion.

Notable Quotes

• “Our near‑term business objectives are focused on preserving cash, stabilizing operations, and securing the financial resources required to support continuity of operations,” – Josh Bruni, CEO.