Why did NIXX's operating expenses surge in Q3 2024?

NIXX's operating expenses surged in Q3 2024 due to several key factors:

1. **Increased Inventory Scrap Costs and Purchase Price Variance**: The gross profit margin decreased significantly year-over-year because of increased inventory scrap costs and a rise in purchase price variance from escalating vendor costs. These cost increases directly impact the operating expenses of the company.
2. **Transition to a New Distributor**: The transition to a new distributor in the Middle East had an impact on sales and, consequently, net revenue in Q3 2024. Such transitions often require adjustments and investments, which can temporarily strain operating expenses.
3. **Products’ Lack of Microsoft Teams Certification**: The lack of Microsoft Teams certification for some products has been a sales hindrance. This issue, coupled with other market dynamics, has affected the revenue and, by extension, the operating expenses of the company.

In summary, NIXX's operating expenses surged in Q3 2024 primarily due to increased inventory scrap costs, purchase price variance, transition to a new distributor, and products’ lack of Microsoft Teams certification. These factors collectively contributed to the company's operating expense surge during the quarter.