AXIL Brands, Inc. Reports First Quarter Fiscal Year 2025 Financial Results
LOS ANGELES, Oct. 10, 2024 (GLOBE NEWSWIRE) -- AXIL Brands, Inc. ("AXIL," "we," "us," "our," or the "Company") (NYSE:AXIL), an emerging global consumer products company for AXIL® hearing protection and enhancement products and Reviv3® hair and skin care products, today announced financial and operational results for the first quarter ended August 31, 2024.
Highlights for the Quarter Ended August 31, 2024
Net Sales (revenue) of $5.85 million as compared to $6.1 million in the prior year period.
Gross profit as a percentage of sales was 71% in the first quarter of fiscal 2025, as compared to 76.1% for the prior year period.
Operating expenses as a percentage of sales were 73.4% in the first quarter of fiscal 2025, compared to 73.3% for the prior year period.
Net Cash provided by operating activities was $897,318 as compared to $397,172 in the prior year period.
Net increase in cash was $894,848 as compared to $229,041 in the prior year period.
Weighted average dilutive shares was 6,172,379 compared to 18,622,597 in the prior year period.
As a result of the above, we reported a net loss of $109,805, and depreciation and amortization and stock-based compensation of $310,759, for the first quarter of fiscal 2025, compared to a net income of $154,452 in the prior year period.
"The first quarter marked a strong start to the fiscal year for AXIL," commented Chairman and Chief Executive Officer Jeff Toghraie. "We achieved significant progress by expanding into new channels and diversifying our business mix. Our continued investment in innovation and the development of compelling new products for both domestic and international markets remain a priority. We are excited by the opportunities that lie ahead and remain committed to operational excellence and delivering value to our shareholders."
Results from Operations
AXIL BRANDS, INC. AND SUBSIDIARYCONSOLIDATED BALANCE SHEETS
August 31, 2024
May 31, 2024
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash
$
4,148,724
$
3,253,876
Accounts receivable, net
599,150
509,835
Inventory, net
3,273,419
3,394,023
Prepaid expenses and other current assets
322,168
809,126
Total Current Assets
8,343,461
7,966,860
OTHER ASSETS:
Property and equipment, net
251,055
260,948
Intangible assets, net
347,942
309,104
Right of use asset
18,284
36,752
Deferred tax asset
231,587
231,587
Other assets
12,195
16,895
Goodwill
2,152,215
2,152,215
Total Other Assets
3,013,278
3,007,501
TOTAL ASSETS
$
11,356,739
$
10,974,361
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable
$
1,373,106
$
967,596
Customer deposits
74,053
154,762
Contract liabilities- current
938,498
905,311
Notes payable
144,257
146,594
Due to related party
53,505
11,798
Lease liability, current
18,650
36,752
Income tax liability
242,296
242,296
Other current liabilities
229,848
332,936
Total Current Liabilities
3,074,213
2,798,045
LONG TERM LIABILITIES:
Contract liabilities- long term
398,681
480,530
Total Long Term Liabilities
398,681
480,530
Total Liabilities
3,472,894
3,278,575
Commitments and contingencies (see Note 10)
-
-
STOCKHOLDERS' EQUITY:
Preferred stock, $0.0001 par value; 300,000,000 shares authorized; 31,133,500 and 42,251,750 shares issued and outstanding as of August 31, 2024 and May 31, 2024, respectively
3,113
4,225
Common stock, $0.0001 par value: 450,000,000 shares authorized; 6,464,852 and 5,908,939 shares issued, issuable and outstanding as of August 31, 2024 and May 31, 2024, respectively
647
591
Additional paid-in capital
8,124,160
7,825,240
Accumulated deficit
(244,075
)
(134,270
)
Total Stockholders' Equity
7,883,845
7,695,786
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$
11,356,739
$
10,974,361
AXIL BRANDS, INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS OF OPERATIONSFOR THE THREE MONTHS ENDED AUGUST 31, 2024 AND 2023(UNAUDITED)
2024
2023
Sales, net
$
5,851,272
