CAVE CREEK, AZ , Aug. 06, 2024 (GLOBE NEWSWIRE) -- Endexx Corporation (OTCQB: EDXC), a leading provider of innovative plant-based wellness and nutritional products, today announced its financial results for the second quarter of 2024 and provided an update on strategic developments.
Q2 2024 Financial Overview
Revenue: $2,181,012 (a 33.42% decrease from Q1 2024)
Gross Profit: $1,246,677 (a 34.16% decrease from Q1 2024)
Net Loss: $905,615 (an improvement of 55.27% compared to Q1 2024)
From the Desk of Brad Listermann, Interim CEO
Dear Shareholders,
As your Interim CEO, I am committed to transparency and proactive communication as we navigate this transitional phase. Our Q2 2024 filing reflects the challenges and opportunities we are currently facing. Below is a detailed overview of our Q2 performance, key developments, and strategic direction.
Bright Spots in Q2
Improved Cash Management:
Net Cash Used in Operating Activities: Improved by 53.44%, reflecting better cash flow management.
Cash End of Period: Increased by 187.15%, enhancing our liquidity position.
Reduction in Net Loss:
The net loss has been reduced significantly, indicating better management of expenses and operational efficiencies.
Increased Assets:
Total assets have increased by 18.92%, demonstrating a more robust asset base to support future growth.
Vaping Industry Growth and HYLA’s Potential
The vaping industry continues to evolve rapidly, driven by increasing consumer demand for healthier alternatives to traditional smoking. According to recent market research, the global vaping market is projected to grow at a compound annual growth rate (CAGR) of 23.8% from 2023 to 2030. This growth is fueled by innovation, regulatory changes, and shifting consumer preferences.
HYLA’s Positioning:
First-Mover Advantage: HYLA’s organic, plant-based, zero-nicotine vape products position us uniquely in the market. Our products are designed to meet the growing demand for healthier, non-tobacco alternatives.
Strategic Partnerships: Under the leadership of Dustin Sullivan, VP of Sales, and working closely with Nick Mehdi of HYLA, our distribution and sales channels are expanding significantly. Key developments include:
300 Store Retailer: We are moving forward with shipping 4,200 units as soon as their deposit comes in. We expect the deposit shortly.
Major Convenience Store Chain: We have sent samples to the buyer and are following up on feedback.
Regional Franchise Network: Scheduled meeting with a key contact facilitated through our network connections.
Regional Grocer: Planning outreach after their corporate office move.
National Convenience Distributors and Others: Opening online submissions to major distributors including several prominent convenience store chains.
Strategic Initiatives
Exploring Roll-Up Acquisitions and Strategic Partnerships: We are actively exploring acquisition targets and strategic partnerships to grow HYLA significantly. These efforts aim to consolidate our market position and expand our product offerings.
Direct-to-Consumer (DTC) Initiatives: Enhance our website to list products with updated specifications and resolve shipping challenges within the industry.
Marketing Efforts: Collaborating with marketing experts in key regions (e.g., NYC and Chicago) to bolster our social media presence and participate in events and festivals.
Looking Ahead
While we navigate through these changes, the long-term outlook remains positive. Our focus is on leveraging our strengths, optimizing operations, and capitalizing on market opportunities. Your support and trust are invaluable as we continue to build a robust and resilient Endexx.
Thank you for your continued investment and confidence in our company.
Sincerely,
Brad Listermann, Interim CEO, Endexx Corporation
About Endexx Corporation
Endexx Corporation develops and distributes all-natural, plant-derived wellness products and topical skincare products. Its products, ranging from balms, creams, lotions, kinds of butter, masks, scrubs, and oils, are aimed at promoting healthy skin and grooming wellness. The science behind these products involves a decade of clinical research, ensuring functional formulations with ingredients for optimal absorption and skin health support. www.endexx.com
About HYLA
HYLA, a division of Endexx, markets proprietary non-nicotine, guarana, and L-Dopa-based vape products in various flavors. The HYLA device is a first-of-its-kind non-nicotine vape product in the United States, offering up to 4,500 puffs per device. HYLA is currently distributed in 10 countries, with distribution agreements in an additional nine countries. www.tryhyla.com
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
We caution that any forward-looking statements (as such term is defined in the U.S. Private Securities Litigation Reform Act of 1995) contained in this press release or made by us, our management, or our spokespeople involve risks and uncertainties and are subject to change based on various factors, many of which are beyond our control. Accordingly, our future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Forward-looking statements include, without limitation, statements regarding our future operating results, the implementation and impact of our strategic plans, and our ability to meet environmental, social, and governance goals. Words such as “estimate,” “commit,” “target,” “goal,” “project,” “plan,” “believe,” “seek,” “strive,” “expect,” “anticipate,” “intend,” “potential,” and any similar expressions may identify forward-looking statements. Risks associated with the following factors, among others, could affect our financial performance and cause actual results to differ materially from those expressed or implied in any forward-looking statements.
Except as may be required by law, we assume no obligation and do not intend to make publicly available any update or other revisions to any of the forward-looking statements contained in this press release to reflect circumstances existing after the date of this press release or to reflect the occurrence of future events, even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized. More information on potential factors that could affect our results is included in “Risk Factors” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission.
