Hammer Fiber Optics Reports $1.375M Net Income After Divesting Telecommunications Assets

Hammer Fiber Optics Holdings Corp. reported its financial results for the three and six months ended January 31, 2025, revealing a significant shift in its operational focus following the divestiture of its telecommunications assets. The company recorded a net income of $1.375 million for the three months ended January 31, 2025, compared to a net loss of $155,634 in the same period the previous year. This turnaround was largely attributed to a gain of $1.656 million from discontinued operations related to the sale of its telecommunications assets to Viper Networks, Inc., which closed on November 1, 2024.

In terms of operational performance, Hammer Fiber did not generate any revenue from continuing operations during the reported periods. Total operating expenses increased to $347,575 for the three months ended January 31, 2025, up from $326,898 in the prior year, primarily due to costs associated with the launch of its HammerPay software. The company’s selling, general, and administrative expenses rose by 11.6% to $176,928, while depreciation and amortization expenses remained relatively stable.

The company’s balance sheet showed total assets of $2.477 million as of January 31, 2025, a decrease from $3.037 million as of July 31, 2024. Current liabilities also decreased to $3.124 million from $3.998 million, reflecting the impact of the Viper sale. However, Hammer Fiber reported a working capital deficiency of $3.089 million, indicating ongoing financial challenges. The company’s stockholders' equity improved to a deficit of $646,313, compared to a deficit of $961,317 in the previous period.

Looking ahead, Hammer Fiber Fiber Optics Holdings Corp. is focusing on its fintech initiatives, particularly the HammerPay platform, which aims to facilitate digital commerce in emerging markets. The company has expressed concerns regarding its ability to continue as a going concern, citing the need for additional financing to support operations and development. As of January 31, 2025, the company had $29,552 in cash, a notable increase from zero at the end of the previous fiscal year, but it remains reliant on raising further capital to sustain its business model.