SRx Health Solutions, Inc. Annual Report - How They Did This Year

Hey there! Let's take a look at what SRx Health Solutions has been up to this past year, which for them runs from October 1st, 2023, to September 30th, 2024. We'll also touch on some big changes that have happened or are planned for just after this period, as they're super important for understanding the company's direction.

How They Reach Their Customers

SRx Health Solutions sells its products and services through a few different avenues:

• Online (Digital): They have a presence in the digital world, likely through their website or other online platforms.
• Around the World (International): They're not just focused on one country; they're selling internationally too.
• Physical Stores (Brick-and-Mortar): You can also find their offerings in traditional physical locations.

A Look at Their Business Foundation (Assets)

To keep things running, SRx Health Solutions owns a variety of important assets. Think of these as the tools and property they use every day:

• Equipment & Furniture: The basics for any business.
• Specialized Medical Gear: Given their name, it's no surprise they have specific medical equipment.
• Vehicles: For transportation, deliveries, or staff.
• Tech & Online Presence: This includes computer software and even their internet domain names, which are crucial for their digital operations.
• Buildings & Improvements: They own or have made significant improvements to their physical locations.
• Signs: To help customers find them!
• Customer Lists: A valuable asset for any company, helping them connect with their audience.
• A Charter License: This is likely a special permit or authorization essential for their specific type of business.

How They Fund Their Operations (Financing & Equity)

Like most companies, SRx Health Solutions uses a mix of borrowed money (debt) and money from investors (equity) to grow and operate:

• Borrowing Money (Debt): They have what are called "revolving credit facilities" with banks like Canadian Western Bank and CWB Financial Limited. They also have some government-backed "Canadian Emergency Business Account (CEBA)" loans and other loans. Recently, they've also taken on "senior secured convertible notes," which are a type of loan that can be converted into company stock later on.
• Investor Money (Equity): This includes the common stock investors own, "additional paid-in capital" (money investors put in beyond the basic stock value), and "retained earnings" (profits the company has kept to reinvest). They also have a plan to give employees "stock options" and "restricted stock units," which are ways to reward staff with a piece of the company. They've also issued "warrants," which give holders the right to buy company stock at a set price in the future.

Big Changes & What's Next (Major Corporate Events)

This past year and the period immediately following have been, or will be, quite eventful for SRx Health Solutions:

• Reverse Merger & New Funding: Around April 2025 (just after the fiscal year we're reviewing), SRx Health Solutions was involved in a "reverse merger." This is a clever way for a private company to become publicly traded by merging with an existing public company. As part of this, they also raised new money through a "private placement," selling common stock and "pre-funded warrants" (which are like pre-paid rights to buy stock). This is a huge step for the company!
• Potential Spin-Out: In August 2025, there's a mention of a "Halo Spin-Out SPV Inc." event. This could mean they're planning to separate a part of their business into a new, independent company.
• New Debt & Warrants: In July 2025, they finalized agreements for those senior secured convertible notes and issued more warrants, further shaping their financial future.
• Leadership Updates: There have also been some changes to their team of officers and directors around August and September 2025.

What to Keep an Eye On (Risk Factors)

One important thing to note is their customer concentration. For their Digital sales, a big chunk of their revenue comes from just two wholesale customers. Similarly, their International sales and Brick-and-Mortar sales each rely heavily on one major customer. This means if any of these key customers decide to take their business elsewhere, it could significantly impact SRx Health Solutions' sales.

Key Takeaways

SRx Health Solutions operates through digital, international, and physical channels, supported by a range of assets including specialized medical gear and a charter license. The company utilizes a mix of debt, including revolving credit facilities and convertible notes, and equity, such as common stock and employee stock options, for its operations. Recent and upcoming corporate events highlight significant strategic shifts, including a reverse merger and new funding, a potential spin-out, and further debt and warrant issuances. Investors should note the company's customer concentration as a key risk factor across its sales channels.