Helio Corporation Reports 29% Revenue Decline and Increased Net Loss for Quarter Ended January 31, 2025

Helio Corporation reported a significant decline in financial performance for the three months ended January 31, 2025, with total revenue falling to $1.43 million, a decrease of 29% from $2.01 million in the same period last year. The decline in revenue was attributed to a lower volume of work, particularly due to the ongoing reformulation of the NASA Mars Sample Return program and a general downturn in NASA hardware contract awards. The company's gross profit also decreased to $410,728 from $787,058, reflecting a gross margin of 29% compared to 39% in the prior year. Operating expenses rose by 25% to $1.28 million, primarily driven by increased professional fees and general administrative costs, leading to an operating loss of $865,406, compared to a loss of $232,203 in the previous year.

In terms of operational metrics, Helio Corporation serviced eight customers during the quarter, down from eleven in the prior year. The customer base included one direct government customer and one private foundation, with the remaining customers being commercial and non-profit entities. The company reported that 70% of its revenue was derived from government contracts, a decrease from 81% in the previous year, indicating a shift towards a more diversified customer base. However, the concentration of accounts receivable remained high, with four customers accounting for 77% of outstanding receivables as of January 31, 2025.

Helio Corporation's financial position showed a decrease in cash and cash equivalents, which fell to $99,792 from $551,552 at the end of the previous fiscal quarter. The company has outstanding unsecured notes to related parties totaling $602,877, with interest rates ranging from 6.5% to 11.25%. The company also reported a net loss of $919,142 for the quarter, compared to a loss of $241,726 in the same period last year. This increase in net loss was attributed to higher operating expenses and interest expenses, which rose significantly due to increased debt levels.

Strategically, Helio Corporation is preparing for a proposed public offering, having received approval from the NYSE American to list its common stock and warrants. The offering, which consists of 3,333,334 units, is expected to raise funds for debt repayment and operational enhancements. However, the company acknowledged that it may need to raise additional capital in the future to support its business plan. The management expressed confidence that its cash resources and potential financial commitments from current officers would be sufficient to meet working capital needs for at least the next twelve months.

Looking ahead, Helio Corporation faces uncertainties related to government budget priorities, particularly concerning NASA funding, which could impact future revenue opportunities. The company is actively working to expand its offerings to defense agencies and increase its revenue from private and commercial sources to mitigate the risks associated with government contract reliance. The management remains focused on enhancing operational efficiencies and broadening its customer base to navigate the challenges ahead.