EvoAir Holdings Reports Significant Revenue Decline and Increased Net Losses for May 2025

EvoAir Holdings Inc. reported a significant decline in financial performance for the three and nine months ended May 31, 2025, compared to the same periods in 2024. The company generated revenues of $37,306 for the three months, down 58% from $89,616 in the prior year, and $160,359 for the nine months, a decrease of 28% from $222,108. The gross profit for the three months was $28,801, representing a gross margin of 77%, while the nine-month gross loss was $8,322, improving from a loss of $22,034 in the previous year. The net loss attributable to equity holders for the three months was $1,117,824, compared to $892,694 in the same period last year, and for the nine months, the loss was $6,879,047, up from $3,703,921.

The company's financial position showed a decrease in total assets, which fell to $53.1 million as of May 31, 2025, from $53.3 million at the end of August 2024. Current liabilities increased significantly to $2.74 million, up 63% from $1.68 million, primarily due to a rise in amounts due to shareholders. The accumulated deficit also widened to $46.3 million from $39.4 million, indicating ongoing challenges in achieving profitability. The working capital deficiency increased to $2.08 million, compared to $893,886 in the previous fiscal period.

Strategically, EvoAir has focused on expanding its product offerings and geographical reach, particularly in the HVAC sector. The company is actively pursuing additional funding to support its operations and plans to uplist on the Nasdaq Capital Market, which is expected to enhance its capital access. Despite the current financial challenges, management remains optimistic about the long-term prospects of its products, particularly the EvoAir™ air-conditioner and the Ionic Nano Copper Zinc solution, which has seen increased sales.

Operationally, the company reported a decrease in customer engagement metrics, with a notable reduction in sales of its air-conditioning products. However, the Ionic Nano Copper Zinc solution has shown potential for growth, contributing positively to the overall financial performance. The company is also focused on improving operational efficiencies and achieving economies of scale to enhance profitability in the future. As of May 31, 2025, EvoAir had a total employee headcount of 27,180,631 shares outstanding, reflecting a reverse stock split that took effect in September 2024.

Looking ahead, EvoAir's management has outlined a strategic plan that includes diversifying revenue streams, expanding into new markets, and optimizing operational efficiencies. The company aims to address its financial challenges while positioning itself for future growth in the eco-friendly air-conditioning market. However, the ongoing net losses and working capital deficiencies raise concerns about its ability to sustain operations without additional funding or significant revenue growth.