AXIL Brands, Inc. Reports Record Fiscal Year 2024 Financial Results
2024年8月16日 - 7:04AM
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 fiscal year 2024.
Highlights for Fiscal Year Ended May
31, 2024
All comparisons are to the full year of the prior year, unless
otherwise noted.
- Consolidated net sales (revenue) increased 17% to a record
$27.5 million compared to $23.5 million in the prior year primarily
due to the increase in marketing and sales initiatives in our
hearing protection and enhancement segment.
- Cost of sales increased by $1,494,386 or 26%, as compared to
the comparable period in 2023 due to increases in our branding and
marketing initiatives which increased our sales, thereby leading to
an increased cost of sales. Cost of sales as a percentage of net
revenues for the fiscal year ended May 31, 2024 was 26.6% as
compared to 24.7% for the comparable period in 2023.
- Gross profit as a percentage of sales was 73.4% for the fiscal
year ended May 31, 2024, compared to 75.3% for the prior year. The
decrease in gross profit, as a percentage of sales, was primarily
attributable to costs associated with expansion into new retail and
distribution channels.
- Operating expenses as a percentage of net revenues were 68.0%
for the fiscal year ended May 31, 2024, compared to 66.9% for the
full year 2023. The increase was primarily due to higher marketing
and selling expenses, increased compensation, and a rise in general
and administrative expenses, including expenses associated with our
listing on the NYSE American exchange.
- Net income per common share on fully diluted basis was $0.21,
including $0.08 of gain on redemption of preferred shares, compared
to $0.10 for the prior year. Net income per common share on basic
basis was $0.57, including $0.23 gain on redemption of preferred
shares, compared to $0.32 for the prior year.
- Diluted earnings per share for 2024 reflects weighed average
outstanding shares on a diluted basis of 16,168,181. As of August
13, 2024, the weighted average outstanding shares on a diluted
basis were 8,290,277 or a 49% reduction of our weighted average
outstanding on a fully diluted basis.
“We are making continued progress in areas that should
contribute to our sustainable, long-term growth and profitability.
The impressive results underscore our team's relentless dedication
and the successful execution of our strategic initiatives,”
commented Jeff Toghraie, Chairman and Chief Executive Officer of
AXIL. “For 2025, our strategic initiatives are geared towards
enhancing our global presence, fostering strategic partnerships,
and adapting our offerings to meet diverse market needs. This
emphasis on international expansion not only broadens our market
reach but also strengthens our competitive position on the global
stage, in our view, driving sustainable growth and maximizing our
potential for success in new and dynamic markets.”
“We concluded the fiscal year with record
revenues of $27.5 million, reflecting a solid 17% year-over-year
growth, largely driven by our strategic focus on expanding
distribution and retail channels,” remarked Jeff Brown, Chief
Financial Officer of AXIL Brands. “For the fiscal year, our fully
diluted EPS reflects a weighted average of 16,168,181 outstanding
shares on a diluted basis. As of August 13, 2024, the number of
weighted average outstanding shares on a diluted basis was
approximately 8,90,277, representing a 49% reduction from the
weighted average outstanding shares on a fully diluted basis.
Maintaining the quality of our revenue is a key priority this year
as we focus on optimizing our existing partnerships and
establishing new ones. There was no single customer that accounted
for greater than 10% of total sales in our hearing protection and
enhancement segment which accounted for approximately 95% of our
total revenue for fiscal year 2024.”
AXIL BRANDS, INC. AND SUBSIDIARY |
CONSOLIDATED BALANCE SHEETS |
|
|
|
|
|
|
|
|
|
|
|
May 31,2024 |
|
May 31,2023 |
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
|
|
|
Cash |
|
$ |
3,253,876 |
|
|
$ |
4,832,682 |
|
Accounts receivable, net |
|
|
509,835 |
|
|
|
417,016 |
|
Inventory, net |
|
|
3,394,023 |
|
|
|
1,311,864 |
|
Prepaid expenses and other current assets |
|
|
809,126 |
|
|
|
801,360 |
|
|
|
|
|
|
|
|
|
|
Total Current Assets |
|
|
7,966,860 |
|
|
|
7,362,922 |
|
|
|
|
|
|
|
|
|
|
OTHER ASSETS: |
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
260,948 |
|
|
|
157,463 |
|
Deferred tax asset |
|
|
231,587 |
|
|
|
|
|
Intangible assets, net |
|
|
309,104 |
|
|
|
382,674 |
|
Right of use asset |
|
|
36,752 |
|
|
|
101,845 |
|
Other assets |
|
|
16,895 |
|
|
|
12,195 |
|
Goodwill |
|
|
2,152,215 |
|
|
|
2,152,215 |
|
|
|
|
|
|
|
|
|
|
Total Other Assets |
|
|
3,007,501 |
|
|
|
2,806,392 |
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
$ |
10,974,361 |
|
|
$ |
10,169,314 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
967,596 |
|
|
$ |
908,606 |
|
Customer deposits |
|
|
154,762 |
|
|
|
183,688 |
|
Equipment payable, current |
|
|
- |
|
|
|
2,200 |
|
Contract liabilities- current |
|
|
905,311 |
|
|
|
827,106 |
|
Notes payable |
|
|
146,594 |
|
|
|
172,588 |
|
Due to related party |
|
|
11,798 |
|
|
|
158,072 |
|
Lease liability, current |
|
|
36,752 |
|
|
|
65,824 |
|
Income tax liability |
|
|
242,296 |
|
|
|
230,913 |
|
Other current liabilities |
|
|
332,936 |
|
|
|
305,664 |
|
|
|
|
|
|
|
|
|
|
Total Current Liabilities |
|
|
2,798,045 |
|
|
|
2,854,661 |
|
|
|
|
|
|
|
|
|
|
LONG TERM LIABILITIES: |
|
|
|
|
|
|
|
|
Lease liability- long term |
|
|
- |
|
|
|
36,752 |
|
Contract liabilities- long term |
|
|
480,530 |
|
|
|
605,942 |
|
|
|
|
|
|
|
|
|
|
Total Long Term Liabilities |
|
|
480,530 |
|
|
|
642,694 |
|
|
|
|
|
|
|
|
|
|
Total Liabilities |
|
|
3,278,575 |
|
|
|
3,497,355 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies (see Note 11) |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY: |
|
|
|
|
|
|
|
|
Preferred stock, $0.0001 par value; 300,000,000 shares authorized;
42,251,750 and 250,000,000 shares issued and outstanding as of May
31, 2024 and 2023, respectively |
|
|
4,225 |
|
|
|
25,000 |
|
Common stock, $0.0001 par value: 450,000,000 shares authorized;
5,908,939 and 5,863,939 shares issued, issuable and outstanding as
of May 31, 2024 and 2023, respectively |
|
|
591 |
|
|
|
586 |
|
Additional paid-in capital |
|
|
7,825,240 |
|
|
|
10,113,365 |
|
Accumulated deficit |
|
|
(134,270 |
) |
|
|
(3,466,992 |
) |
|
|
|
|
|
|
|
|
|
Total Stockholders'
Equity |
|
|
7,695,786 |
|
|
|
6,671,959 |
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
$ |
10,974,361 |
|
|
$ |
10,169,314 |
|
AXIL BRANDS, INC. AND SUBSIDIARY |
CONSOLIDATED STATEMENTS OF OPERATIONS |
FOR THE YEARS ENDED MAY 31, 2024 AND 2023 |
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
2023 |
|
|
|
|
|
Sales, net |
|
$ |
27,498,539 |
|
|
$ |
23,521,027 |
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
|
7,304,602 |
|
|
|
5,810,216 |
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
20,193,937 |
|
|
|
17,710,811 |
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
Sales and marketing |
|
|
13,449,054 |
|
|
|
11,675,206 |
|
Compensation and related taxes |
|
|
965,931 |
|
|
|
1,347,839 |
|
Professional and consulting |
|
|
2,589,496 |
|
|
|
1,420,990 |
|
General and administrative |
|
|
1,686,076 |
|
|
|
1,282,565 |
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses |
|
|
18,690,557 |
|
|
|
15,726,600 |
|
|
|
|
|
|
|
|
|
|
INCOME FROM OPERATIONS |
|
|
1,503,380 |
|
|
|
1,984,211 |
|
|
|
|
|
|
|
|
|
|
OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
|
|
Gain on debt settlement |
|
|
79,182 |
|
|
|
50,500 |
|
Other income |
|
|
22,534 |
|
|
|
16,829 |
|
Interest income |
|
|
182,225 |
|
|
|
6,469 |
|
Interest expense and other finance charges |
|
|
(4,392 |
) |
|
|
(2,521 |
) |
|
|
|
|
|
|
|
|
|
Other Income (Expense), Net |
|
|
279,549 |
|
|
|
71,277 |
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE PROVISION FOR
INCOME TAXES |
|
|
1,782,929 |
|
|
|
2,055,488 |
|
|
|
|
|
|
|
|
|
|
Provision (benefit) for income
taxes |
|
|
(220,205 |
) |
|
|
230,913 |
|
|
|
|
|
|
|
|
|
|
NET INCOME |
|
$ |
2,003,134 |
|
|
$ |
1,824,575 |
|
|
|
|
|
|
|
|
|
|
Deemed dividend on preferred
stock buyback |
|
$ |
1,329,588 |
|
|
$ |
- |
|
Net income available to common
shareholders |
|
$ |
3,332,722 |
|
|
$ |
1,824,575 |
|
|
|
|
|
|
|
|
|
|
NET INCOME PER COMMON
SHARE: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.57 |
|
|
$ |
0.32 |
|
Diluted |
|
$ |
0.21 |
|
|
$ |
0.10 |
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING: |
|
|
|
|
|
|
|
|
Basic |
|
|
5,868,570 |
|
|
|
5,644,771 |
|
Diluted |
|
|
16,168,181 |
|
|
|
17,869,264 |
|
AXIL BRANDS, INC. AND SUBSIDIARY |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS'
EQUITY |
FOR THE YEARS ENDED MAY 31, 2024 AND 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock |
|
|
|
|
|
Total |
|
|
Preferred Stock |
|
Issued/Issuable |
|
Additional Paid-in |
|
Accumulated |
|
Stockholders' |
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Capital |
|
Deficit |
|
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, May 31, 2022 |
|
|
- |
|
|
$ |
- |
|
|
|
2,107,385 |
|
|
$ |
211 |
|
|
$ |
5,476,068 |
|
|
$ |
(5,291,567 |
) |
|
$ |
184,712 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares issued for acquisition
of business |
|
|
250,000,000 |
|
|
|
25,000 |
|
|
|
3,659,195 |
|
|
|
366 |
|
|
|
3,982,114 |
|
|
|
- |
|
|
|
4,007,480 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock options expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
207,342 |
|
|
|
- |
|
|
|
207,342 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares to be issued for
cash |
|
|
- |
|
|
|
- |
|
|
|
97,359 |
|
|
|
9 |
|
|
|
447,841 |
|
|
|
- |
|
|
|
447,850 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income for the year ended
May 31, 2023 |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,824,575 |
|
|
|
1,824,575 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
204,429 |
|
|
|
- |
|
|
|
204,429 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restricted stock awards |
|
|
- |
|
|
|
- |
|
|
|
45,000 |
|
|
|
5 |
|
|
|
62,749 |
|
|
|
- |
|
|
|
62,754 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock buyback |
|
|
(207,748,250 |
) |
|
|
(20,775 |
) |
|
|
- |
|
|
|
- |
|
|
|
(2,555,303 |
) |
|
|
1,329,588 |
|
|
|
(1,246,490 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income for the year ended
May 31, 2024 |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,003,134 |
|
|
|
2,003,134 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, May 31, 2024 |
|
|
42,251,750 |
|
|
$ |
4,225 |
|
|
|
5,908,939 |
|
|
$ |
591 |
|
|
$ |
7,825,240 |
|
|
$ |
(134,270 |
) |
|
$ |
7,695,786 |
|
AXIL BRANDS, INC. AND SUBSIDIARY |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
FOR THE YEARS ENDED MAY 31, 2024 AND 2023 |
|
|
|
|
|
|
|
|
|
|
|
May 31, |
|
|
2024 |
|
2023 |
|
|
|
|
|
CASH FLOWS FROM OPERATING
ACTIVITIES |
|
|
|
|
|
|
|
|
Net income |
|
$ |
2,003,134 |
|
|
$ |
1,824,575 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
130,610 |
|
|
|
95,179 |
|
Bad debts |
|
|
25,471 |
|
|
|
76,969 |
|
Inventory obsolescence |
|
|
46,895 |
|
|
|
- |
|
Stock-based compensation |
|
|
267,183 |
|
|
|
207,342 |
|
Gain on debt settlement |
|
|
(79,182 |
) |
|
|
(50,500 |
) |
Deferred income taxes |
|
|
(231,587 |
) |
|
|
- |
|
Change in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(118,290 |
) |
|
|
(160,277 |
) |
Inventory |
|
|
(2,129,054 |
) |
|
|
353,985 |
|
Prepaid expenses and other current assets |
|
|
(7,766 |
) |
|
|
(661,115 |
) |
Deposits |
|
|
- |
|
|
|
(3,810 |
) |
Accounts payable and accrued expenses |
|
|
138,172 |
|
|
|
215,175 |
|
Other current liabilities |
|
|
4,298 |
|
|
|
630,897 |
|
Contract liabilities |
|
|
(47,207 |
) |
|
|
389,716 |
|
|
|
|
|
|
|
|
|
|
NET CASH PROVIDED BY OPERATING
ACTIVITIES |
|
|
2,677 |
|
|
|
2,918,136 |
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES |
|
|
|
|
|
|
|
|
Cash acquired on business acquisition |
|
|
- |
|
|
|
1,066,414 |
|
Purchase of intangibles |
|
|
(22,080 |
) |
|
|
- |
|
Purchase of property and equipment |
|
|
(138,445 |
) |
|
|
(65,650 |
) |
|
|
|
|
|
|
|
|
|
NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES |
|
|
(160,525 |
) |
|
|
1,000,764 |
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES |
|
|
|
|
|
|
|
|
Cash raised for common stock to be issued |
|
|
- |
|
|
|
447,850 |
|
Repurchase of preferred stock |
|
|
(1,246,490 |
) |
|
|
- |
|
Repayment of equipment financing |
|
|
(2,200 |
) |
|
|
(3,300 |
) |
Repayment of note payable |
|
|
(25,994 |
) |
|
|
(37,119 |
) |
Advances (payments) from a related party |
|
|
(146,274 |
) |
|
|
132,620 |
|
|
|
|
|
|
|
|
|
|
NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES |
|
|
(1,420,958 |
) |
|
|
540,051 |
|
|
|
|
|
|
|
|
|
|
NET INCREASE (DECREASE) IN
CASH |
|
|
(1,578,806 |
) |
|
|
4,458,951 |
|
|
|
|
|
|
|
|
|
|
CASH - Beginning of year |
|
|
4,832,682 |
|
|
|
373,731 |
|
|
|
|
|
|
|
|
|
|
CASH - End of year |
|
$ |
3,253,876 |
|
|
$ |
4,832,682 |
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATION: |
|
|
|
|
|
|
|
|
Cash paid during the year
for: |
|
|
|
|
|
|
|
|
Interest |
|
$ |
6,907 |
|
|
$ |
2,521 |
|
Income taxes |
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURE OF
NON-CASH INVESTING AND FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Stock issued for asset purchase agreement |
|
$ |
- |
|
|
$ |
4,007,480 |
|
Right of use assets recognized as lease liability |
|
$ |
- |
|
|
$ |
131,970 |
|
Tangible assets (excluding cash) acquired in business
combination |
|
$ |
- |
|
|
$ |
1,740,729 |
|
Intangible assets acquired in business combination |
|
$ |
- |
|
|
$ |
456,945 |
|
Goodwill acquired in business combination |
|
$ |
- |
|
|
$ |
2,152,215 |
|
Liabilities assumed in business combination |
|
$ |
- |
|
|
$ |
1,408,823 |
|
|
|
|
|
|
|
|
|
|
About AXILAXIL (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 the Company's website
at www.reviv3.com and, for the AXIL® brand,
visit www.goaxil.com.
Forward-Looking Statements
This press release contains a number of forward-looking
statements within the meaning of the federal securities laws.
The use of words such as “anticipate,” “believe,” “expect,”
“continue,” “will,” “prepare,” “should,” and “focus,” among others,
generally identify forward-looking statements. These
forward-looking statements are based on currently available
information, and management’s beliefs, projections, and current
expectations, and are subject to a number of significant risks and
uncertainties, many of which are beyond management’s
control and may cause the Company’s results, performance or
achievements to differ materially from any future results,
performance or achievements expressed or implied by these
forward-looking statements. Factors that could cause actual results
to differ materially from those in the forward-looking
statements include, among other things: (i) the Company’s ability
to grow its net sales and operations, including expanding
internationally, and perform in accordance with any guidance; (ii)
our ability to generate sufficient revenue to support the Company’s
operations and to raise additional funds or obtain other forms of
financing as needed on acceptable terms, or at all; (iii) potential
difficulties or delays the Company may experience in implementing
its cost savings and efficiency initiatives; (iv) the Company’s
ability to compete effectively with other hair and skincare
companies and hearing enhancement and protection companies; (v) the
concentration of the Company’s customers, potentially increasing
the negative impact to the Company by changing purchasing or
selling patterns; (vi) changes in laws or regulations in the United
States and/or in other major markets, such as China, in which the
Company operates, including, without limitation, with respect to
taxes, tariffs, trade policies or product safety, which may
increase the Company product costs and other costs of doing
business, and reduce the Company’s earnings; (vii) our ability to
engage in strategic partnerships and expand our distribution and
retail channels; and (viii) the impact of unstable market and
general economic conditions on the Company’s business, financial
condition and stock price, including inflationary cost pressures,
the possibility of an economic recession and other macroeconomic
factors, geopolitical events, and uncertainty, decreased
discretionary consumer spending, supply chain disruptions and
constraints, labor shortages, ongoing economic disruption,
including the effects of the Ukraine-Russia conflict and the
Israel-Hamas conflict, and other downturns in the business cycle or
the economy. There can be no assurance as to any of these matters,
and potential investors are urged to consider these factors
carefully in evaluating the forward-looking statements. Other
important factors that may cause actual results to differ
materially from those expressed in the forward-looking statements
are discussed in the Company’s filings with the U.S.
Securities and Exchange Commission. These forward-looking
statements speak only as of the date hereof. Except as required by
law, the Company does not assume any obligation to update or
revise these forward-looking statements for any reason, even
if new information becomes available in the future.
Investor Relations:AXIL Investor Relations Team(888)
638-8883investors@axilbrands.com
AXIL Brands (AMEX:AXIL)
過去 株価チャート
から 11 2024 まで 12 2024
AXIL Brands (AMEX:AXIL)
過去 株価チャート
から 12 2023 まで 12 2024