CAVE CREEK, Ariz. - (NewMediaWire) - December 30, 2024 - Endexx Corporation (OTC: EDXC), a leading innovator in the plant-based wellness sector, today released a year-end letter from Interim CEO Brad Listermann to shareholders. The letter details the company's strategic progress in 2024, highlights significant financial improvements, and outlines plans for continued sustainable growth in 2025.
Letter from Interim CEO Brad Listermann:
Dear Shareholders,
As 2024 concludes, I'm excited to share a pivotal update on Endexx Corporation's journey. While this year presented its share of challenges, it also marked a period of strategic transformation, laying the groundwork for significant sustainable growth and market leadership in the burgeoning wellness sector. Furthermore, I'm pleased to share some very encouraging highlights from our year-end financial filings, which will be formally released tomorrow. These results demonstrate the significant progress we've made in strengthening our financial position and underscore our commitment to building a sustainable and profitable future. We are on the cusp of an exciting new chapter, and I'm confident that 2025 will be a defining year for Endexx and our shareholders.
2024: Building the Foundation for Future Success and Demonstrating Financial Resilience
This year was about strategically repositioning Endexx for long-term success. While we faced some headwinds, we made critical strides in optimizing operations, building a robust foundation for future growth, and achieving significant improvements in our financial performance:
Financial Performance: We reported revenue of $1,656,000 in fiscal 2024 and a gross profit of $831,000. While there was a decrease in revenues from fiscal 2023, fiscal 2024 saw an improvement in gross margins from ($880,000) in 2023 to $831,000 in 2024. Further, cash used in operating activities was reduced from $1,623,000 in 2023 to $452,000 in 2024. The improvements in margins and cash utilization demonstrate our focus on profitable product lines, commitment to operational efficiency and disciplined cost management. These strategic actions are paving the way for enhanced profitability in the coming years.
Year-End Financial Highlights:
Revenue Generation: Despite a challenging market, we generated $1,656,000 in revenue in 2024. This demonstrates our continued market presence and the ongoing demand for our products.
Cost Control: We significantly reduced our Cost of Revenues, resulting in a gross profit of $831,000 in 2024, a major improvement from a gross loss of ($880,000) in 2023. This reflects improved efficiency, a focus on profitable product lines, and strategic cost-cutting measures that are crucial for our financial sustainability.
Cash Management: We reduced cash used in operating activities to $452,000 in 2024 down from $1,623,000 in 2023. This demonstrates our commitment to maintaining liquidity and managing resources effectively.
Net Loss Reduction: We made substantial progress in reducing our net loss, demonstrating our focused efforts to streamline operations and improve profitability.
Operational Adjustments: The adjustments made to reconcile net losses indicate proactive management of our resources and a focus on optimizing cash flow.
Key Highlights: Setting the Stage for a Breakthrough Year
HYLA E-Commerce Platform: We are putting the finishing touches on our enhanced HYLA e-commerce platform. With a new distribution backend partner and a powerful marketing strategy, we anticipate a full rollout early next year, poised to drive significant consumer engagement and sales.
Strategic Partnership with American Shaman: We've successfully launched HYLA products in 40 corporate-owned American Shaman locations, with plans to expand to their full network of 300 stores. This partnership significantly expands our domestic footprint and validates the strong market demand for our products.
Strengthened Leadership Team: We were thrilled to welcome Doug Williams, CPA, as our Fractional CFO, bringing invaluable financial expertise and ensuring fiscal discipline. We are also incredibly honored to have Colonel Elton Johnson join our leadership team. As the founder of AmeriVet Securities and a decorated war hero, Col. Johnson brings unparalleled leadership, financial acumen, and unwavering dedication that will be instrumental in driving our strategic vision and operational excellence.
Igniting Growth: Major Developments on the Horizon
Transformative Joint Venture Opportunity: We are in advanced discussions for a potentially game-changing joint venture distribution agreement with a highly respected partner renowned for its television infomercial and global e-commerce prowess. This partner boasts a remarkable track record, generating hundreds of millions in annual product sales. An offer is on the table, and while negotiations are ongoing, we are highly optimistic about finalizing this agreement, which could dramatically accelerate our growth trajectory.
Disruptive Product Launch: Prepare for a major announcement in Q1 2025! HYLA is poised to enter a significant new market segment with a groundbreaking, nicotine-free product line. This innovative offering has the potential to disrupt a massive market and here's why it matters: the global nicotine pouches market is experiencing explosive growth, projected to reach a staggering $25.56 billion by 2030, up from approximately $3.95 billion in 2024, with a projected CAGR of 34.4% from 2025 to 2030. We believe our superior, plant-based alternative will redefine the category and significantly elevate our position in the wellness space.
Commitment to Compliance and Transparency
We are dedicated to strengthening shareholder confidence and upholding the highest standards of corporate governance:
Audit Preparation: We will initiate an audit early next year, taking a decisive step toward regaining fully reporting SEC status.
Removing the Yield Sign: We are committed to updating our financial disclosures to remove the yield sign on OTC Markets, underscoring our commitment to operational integrity and transparency.
Strategic Goals for 2025: A Year of Significant Sustainable Growth
Our strategic roadmap for 2025 is laser-focused on these key objectives:
HYLA Domination: Aggressively expand domestic and international distribution for HYLA products, capitalizing on the momentum of our upcoming product launch and the American Shaman partnership.
Operational Excellence: Drive further improvements in cash flow and implement strategic cost-saving measures to maximize profitability.
Innovation Pipeline: Continue to expand our portfolio of plant-based wellness offerings, meeting the growing consumer demand for innovative and effective products.
E-Commerce Triumph: Fully leverage our enhanced e-commerce platform and implement dynamic marketing strategies to drive direct-to-consumer sales and build a loyal customer base.
Partnering With Our Shareholders for Unprecedented Success
We invite you to join us on this exciting journey to transform Endexx into a global leader in the wellness industry:
Expand Our Reach: Connect us with potential retail partners and distributors who can help us bring HYLA's groundbreaking products to a wider audience.
Identify Top Talent: Refer exceptional professionals in e-commerce, marketing, and supply chain management to join our growing team.
Champion Our Story: Share our updates, milestones, and vision with your networks, amplifying our message and building excitement around the Endexx brand.
A Heartfelt Thank You
On behalf of the entire Endexx team, I extend my deepest gratitude for your unwavering support and belief in our mission. Your partnership is invaluable as we navigate the challenges and seize the opportunities to build a transformative wellness company.
We are on the threshold of a remarkable year. The progress we made in 2024, as reflected in our soon-to-be-released financials, provides a strong foundation for significant sustainable growth in 2025. Together, we will achieve our ambitious goals and create significant value for our shareholders. I look forward to sharing our progress and celebrating our victories with you in the months ahead.
Sincerely,
Brad Listermann Interim CEO Endexx Corporation
About Endexx Corporation
Endexx Corporation, through its operating divisions CBD Unlimited, Inc., and HYLA, develops and distributes all-natural, plant-based topical products, as well as non-nicotine vape products in the wellness and health market. Its products are designed to promote a healthy lifestyle and are formulated with high-quality ingredients.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts included in this press release are forward-looking statements. These statements relate to future events or to the Company's future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Investors should not place any undue reliance on forward-looking statements since they involve known and unknown uncertainties and other factors that are, in some cases, beyond the Company's control and could, and likely will, materially affect actual results, levels of activity, performance, or achievements. Any forward-looking statement reflects the Company's current views with respect to future events and is subject to these and other risks, uncertainties, and assumptions relating to operations, results of operations, growth strategy, and liquidity. The Company is not currently an SEC reporting company and does not file reports with the Securities and Exchange Commission. The financial information included in this press release is unaudited. Statements in this press release about potential business opportunities, future partnerships, and upcoming events are management's opinions and are subject to change based on market conditions, competitive factors, and other risks. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
