In This Article:
LOS ANGELES, Oct. 10, 2024 (GLOBE NEWSWIRE) -- AXIL Brands, Inc. (“AXIL,” “we,” “us,” “our,” or the “Company”) (NYSE American: 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 SUBSIDIARY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| August 31, |
| May 31, | ||||
|
|
| (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 SUBSIDIARY | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| 2024 |
| 2023 | ||||
|
|
|
|
|
| ||||
| Sales, net |
| $ | 5,851,272 |
|
| $ | 6,106,269 |
|
|
|
|
|
|
|
|
|
|
|
| Cost of sales |
|
| 1,697,624 |
|
|
| 1,458,703 |
|
|
|
|
|
|
|
|
|
|
|
| Gross profit |
|
| 4,153,648 |
|
|
| 4,647,566 |
|
|
|
|
|
|
|
|
|
|
|
| OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
| Sales and marketing |
|
| 2,669,471 |
|
|
| 3,206,841 |
|
| Compensation and related taxes |
|
| 190,648 |
|
|
| 279,989 |
|
| Professional and consulting |
|
| 947,849 |
|
|
| 426,775 |
|
| General and administrative |
|
| 486,382 |
|
|
| 560,204 |
|
|
|
|
|
|
|
|
|
|
|
| Total Operating Expenses |
|
| 4,294,350 |
|
|
| 4,473,809 |
|
|
|
|
|
|
|
|
|
|
|
| INCOME (LOSS) FROM OPERATIONS |
|
| (140,702 | ) |
|
| 173,757 |
|
|
|
|
|
|
|
|
|
|
|
| OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
|
|
| Other income |
|
| 2,266 |
|
|
| 9,835 |
|
| Interest income |
|
| 28,631 |
|
|
| 38,493 |
|
| Interest expense and other finance charges |
|
| - |
|
|
| (1,644 | ) |
|
|
|
|
|
|
|
|
|
|
| Other Income (Expense), Net |
|
| 30,897 |
|
|
| 46,684 |
|
|
|
|
|
|
|
|
|
|
|
| INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES |
|
| (109,805 | ) |
|
| 220,441 |
|
|
|
|
|
|
|
|
|
|
|
| Provision (benefit) for income taxes |
|
| - |
|
|
| 65,989 |
|
|
|
|
|
|
|
|
|
|
|
| NET INCOME (LOSS) |
| $ | (109,805 | ) |
| $ | 154,452 |
|
|
|
|
|
|
|
|
|
|
|
| NET INCOME (LOSS) PER COMMON SHARE: |
|
|
|
|
|
|
|
|
| Basic |
| $ | (0.02 | ) |
| $ | 0.03 |
|
| Diluted |
| $ | (0.02 | ) |
| $ | 0.01 |
|
|
|
|
|
|
|
|
|
|
|
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: |
|
|
|
|
|
|
|
|
| Basic |
|
| 6,172,379 |
|
|
| 5,853,847 |
|
|
|
|
| 6,172,379 |
|
|
| 18,622,597 |
|
| AXIL BRANDS, INC. AND SUBSIDIARY | ||||||||||||||||||||||||||||
| For the three months ended August 31, 2024 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common Stock |
|
|
|
|
| Total | ||||||||||||||||||
|
|
| Preferred Stock |
| Issued/Issuable |
| Additional Paid-in |
| Accumulated |
| Stockholders' | ||||||||||||||||||
|
|
| Shares |
| Amount |
| Shares |
| Amount |
| Capital |
| Deficit |
| Equity | ||||||||||||||
| Balance, May 31, 2024 |
|
| 42,251,750 |
|
| $ | 4,225 |
|
|
| 5,908,939 |
|
| $ | 591 |
|
| $ | 7,825,240 |
|
| $ | (134,270 | ) |
| $ | 7,695,786 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stock options expense |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 72,632 |
|
|
| - |
|
|
| 72,632 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stock based compensation |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 225,232 |
|
|
| - |
|
|
| 225,232 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Preferred Stock converted to Common Stock |
|
| (11,118,250 | ) |
|
| (1,112 | ) |
|
| 555,913 |
|
|
| 56 |
|
|
| 1,056 |
|
|
| - |
|
|
| - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss for the three months ended August 31, 2024 |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| (109,805 | ) |
|
| (109,805 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance, August 31, 2024 |
|
| 31,133,500 |
|
| $ | 3,113 |
|
|
| 6,464,852 |
|
| $ | 647 |
|
| $ | 8,124,160 |
|
| $ | (244,075 | ) |
| $ | 7,883,845 |
|
| For the three months ended August 31, 2023 | ||||||||||||||||||||||||||||
|
|
|
|
| Common Stock |
|
|
|
|
| Total | ||||||||||||||||||
|
|
| Preferred Stock |
| Issued And Issuable |
| Additional Paid-in |
| Accumulated |
| Stockholders' | ||||||||||||||||||
|
|
| Shares |
| Amount |
| Shares |
| Amount |
| Capital |
| Deficit |
| Equity | ||||||||||||||
| Balance, May 31, 2023 |
|
| 250,000,000 |
|
| $ | 25,000 |
|
|
| 5,863,939 |
|
| $ | 586 |
|
| $ | 10,113,365 |
|
| $ | (3,466,992 | ) |
| $ | 6,671,959 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stock options expense |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 51,107 |
|
|
| - |
|
|
| 51,107 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income for the three months ended August 31, 2023 |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 154,452 |
|
|
| 154,452 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance, August 31, 2023 |
|
| 250,000,000 |
|
| $ | 25,000 |
|
|
| 5,863,939 |
|
| $ | 586 |
|
| $ | 10,164,472 |
|
| $ | (3,312,540 | ) |
| $ | 6,877,518 |
|
| AXIL BRANDS, INC. AND SUBSIDIARY | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| August 31, |
| |||||
|
|
| 2024 |
| 2023 | ||||
|
|
|
|
|
| ||||
| CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
| Net income (loss) |
| $ | (109,805 | ) |
| $ | 154,452 |
|
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
| Depreciation and amortization |
|
| 12,895 |
|
|
| 28,237 |
|
| Bad debts |
|
| 18,785 |
|
|
| 52,866 |
|
| Stock-based compensation |
|
| 297,864 |
|
|
| 51,107 |
|
| Change in operating assets and liabilities: |
|
|
|
|
|
|
|
|
| Accounts receivable |
|
| (108,100 | ) |
|
| (91,736 | ) |
| Inventory |
|
| 120,603 |
|
|
| (758,104 | ) |
| Prepaid expenses and other current assets |
|
| 486,958 |
|
|
| 315,751 |
|
| Accounts payable and accrued expenses |
|
| 405,511 |
|
|
| 168,399 |
|
| Other current liabilities |
|
| (178,731 | ) |
|
| 438,006 |
|
| Contract liabilities |
|
| (48,662 | ) |
|
| 38,194 |
|
|
|
|
|
|
|
|
|
|
|
| NET CASH PROVIDED BY OPERATING ACTIVITIES |
|
| 897,318 |
|
|
| 397,172 |
|
|
|
|
|
|
|
|
|
|
|
| CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
| Purchase of intangibles |
|
| (41,840 | ) |
|
| - |
|
| Purchase of property and equipment |
|
| - |
|
|
| (50,960 | ) |
|
|
|
|
|
|
|
|
|
|
| NET CASH USED IN INVESTING ACTIVITIES |
|
| (41,840 | ) |
|
| (50,960 | ) |
|
|
|
|
|
|
|
|
|
|
| CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
| Repayment of equipment financing |
|
| - |
|
|
| (825 | ) |
| Repayment of note payable |
|
| (2,337 | ) |
|
| (17,254 | ) |
| Advances (payments) from a related party |
|
| 41,707 |
|
|
| (99,092 | ) |
|
|
|
|
|
|
|
|
|
|
| NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES |
|
| 39,370 |
|
|
| (117,171 | ) |
|
|
|
|
|
|
|
|
|
|
| NET INCREASE IN CASH |
|
| 894,848 |
|
|
| 229,041 |
|
|
|
|
|
|
|
|
|
|
|
| CASH - Beginning of period |
|
| 3,253,876 |
|
|
| 4,832,682 |
|
|
|
|
|
|
|
|
|
|
|
| CASH - End of period |
| $ | 4,148,724 |
|
| $ | 5,061,723 |
|
|
|
|
|
|
|
|
|
|
|
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |
|
|
|
|
|
|
|
|
| Cash paid during the period for: |
|
|
|
|
|
|
|
|
| Interest |
| $ | - |
|
| $ | 1,644 |
|
| Income taxes |
| $ | - |
|
| $ | - |
|
About AXIL
AXIL (NYSE American) is an emerging global e-commerce consumer products company. The Company is a manufacturer and marketer of premium hearing enhancement and protection products, including ear plugs, earmuffs, and ear buds, under the AXIL® brand and premium hair and skincare products under its in-house Reviv3 Procare brand - selling products in the United States, Canada, the European Union and throughout Asia. To learn more, please visit www.reviv3.com for the Reviv3® brand and, for the AXIL® brand, visit www.goaxil.com.