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| AXIL Brands, Inc. Reports Third Quarter Fiscal Year 2024 Financial Results |
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| 8:30a ET April 10 '24 GlobeNewswire |
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| AXIL Brands, Inc. Reports Third Quarter Fiscal Year 2024 Financial ResultsGlobeNewswireApril 10, 2024 LOS ANGELES, April 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(R) hearing protection and enhancement products and Reviv3(R) hair and skin care products, today announced financial and operational results for the third quarter ended February 29, 2024. Highlights for the Quarter Ended February 29, 2024 Net Sales (revenue) increased 14.4% to approximately $6.47 million in the third quarter, as compared to the prior year period.Gross profit as a percentage of sales was 71.5% in the third quarter, as compared to 74.6% for the prior year period.Operating expenses as a percentage of net revenue were 73.1% in the third quarter, compared to 70.7% for the prior year period.Loss before provision for income taxes was $46,345 and benefit provision from income taxes was $827,436 in the third quarter.Reported third quarter net income of $781,091 or $0.04 on a fully diluted basis compared to $162,048 or $0.01 for the prior year period.Key Updates Since AXIL's Last Quarterly Earnings Release As part of our rebranding the Company changed its name to AXIL Brands, Inc. and stock ticker symbol to "AXIL".Completed uplist to the NYSE American Stock Exchange.In March 2024, AXIL repurchased 207,748,250 shares of Series A preferred stock equivalent, in the aggregate, to 10,387,413 shares of the Company's common stock on an as converted basis resulting in the reduction of approximately 83% of the Company's outstanding Series A preferred shares or approximately 55% of the Company's total outstanding shares on a fully diluted basis."We are extremely pleased with our business performance and the significant objectives achieved during this quarter. Our successful listing on the NYSE American stock exchange and recent repurchase of our Series A preferred shares enhances our ability to execute our enterprise growth strategy and unlock value for our shareholders." Commented Jeff Toghraie, Chairman and Chief Executive Officer. "Looking ahead, we remain committed to expansion into new markets, optimizing operations and creating sustainable long term growth." AXIL BRANDS, INC. AND SUBSIDIARYCONSOLIDATED BALANCE SHEETSFebruary 29, 2024May 31, 2023(Unaudited)ASSETSCURRENT ASSETS:Cash$4,887,567$4,832,682Accounts receivable, net719,504417,016Inventory, net3,443,2931,311,864Due from related party18,536--Prepaid expenses and other current assets656,328801,360Deferred tax asset234,161--Total Current Assets9,959,3897,362,922OTHER ASSETS:Property and equipment, net212,146157,463Intangible assets, net324,549382,674Right of use asset53,224101,845Other assets12,19512,195Goodwill2,152,2152,152,215Total Other Assets2,754,3292,806,392TOTAL ASSETS$12,713,718$10,169,314LIABILITIES AND STOCKHOLDERS' EQUITYCURRENT LIABILITIES:Accounts payable$1,890,844$908,606Customer deposits37,140183,688Equipment payable, current--2,200Contract liabilities, current880,450827,106Notes payable, current3,310172,588Due to related party--158,072Lease Liability, current54,32265,824Income Tax Liability68,019230,913Other current liabilities307,794305,664Total Current Liabilities3,241,8792,854,661LONG TERM LIABILITIES:Notes payable, long term143,840--Lease liability, long term--36,752Contract liabilities, long term541,108605,942Total Long Term Liabilities684,948642,694Total Liabilities3,926,8273,497,355Commitments and contingencies (see Note 11)----STOCKHOLDERS' EQUITY:Preferred stock, $0.0001 par value; 300,000,000 shares authorized; 250,000,000 shares issued and outstanding as of February 29, 2024 and May 31, 2023, respectively25,00025,000Common stock, $0.0001 par value: 450,000,000 shares authorized; 5,878,939 and 5,863,939 shares issued, and outstanding as of February 29, 2024 and May 31, 2023, respectively588586Additional paid-in capital10,274,67710,113,365Accumulated deficit(1,513,374)(3,466,992)Total Stockholders' Equity8,786,8916,671,959TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$12,713,718$10,169,314AXIL BRANDS, INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS OF OPERATIONS(UNAUDITED)For the Three Months EndedFor the Nine Months EndedFebruary 29,February 28,February 29,February 28,2024202320242023Sales, net$6,469,343$5,656,461$20,997,289$16,625,818Cost of sales1,845,0171,437,9765,467,4584,085,64525%26%25%Gross profit4,624,3264,218,48515,529,83112,540,17375%74.0%75%OPERATING EXPENSES:Sales and marketing3,398,9493,173,38310,278,5708,250,257Compensation and related taxes228,869360,802713,5041,214,213Professional and consulting552,922216,6871,471,025832,958General and administrative547,465251,0251,732,942841,761Total Operating Expenses4,728,2054,001,89714,196,04111,139,18971%68%67%(LOSS) INCOME FROM OPERATIONS(103,879)216,5881,333,7901,400,984OTHER INCOME (EXPENSE):Gain on debt settlement----79,18250,500Other income6,114--19,138--Interest income52,9156,721129,23313,262Interest expense and other finance charges(1,495)(1,714)(4,779)(4,927)Other Income, Net57,5345,007222,77458,835(LOSS) INCOME BEFORE PROVISION FOR INCOME TAXES(46,345)221,5951,556,5641,459,819(Benefit) Provision for income taxes(827,436)59,547(397,054)395,344NET INCOME$781,091$162,048$1,953,618$1,064,475NET INCOME PER COMMON SHARE:Basic$0.13$0.03$0.33$0.19Diluted$0.04$0.01$0.11$0.06WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:Basic5,863,9395,849,5015,863,9395,574,312Diluted18,576,91418,629,50118,569,14017,497,737AXIL BRANDS, INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY(UNAUDITED)For the nine months ended February 29, 2024Common StockAdditionalTotalPreferred StockIssued/IssuablePaid-inAccumulatedStockholders'SharesAmountSharesAmountCapitalDeficitEquityBalance, May 31, 2023250,000,000$25,0005,863,939$586$10,113,365$(3,466,992)$6,671,959Stock options expense--------153,320--153,320Restricted stock awards----15,00027,992--7,994Net income----------1,953,6181,953,618Balance, February 29, 2024250,000,000$25,0005,878,939$588$10,274,677$(1,513,374)$8,786,891For the three months ended February 29, 2024Common StockAdditionalTotalPreferred StockIssued/IssuablePaid-inAccumulatedStockholders'SharesAmountSharesAmountCapitalDeficitEquityBalance, November 30, 2023250,000,000$25,0005,863,939$586$10,215,580$(2,294,465)$7,946,701Stock options expense--------51,105--51,105Restricted stock awards----15,00027,992--7,994Net income-- --------781,091781,091Balance, February 29, 2024250,000,000$25,0005,878,939$588$10,274,677$(1,513,374)$8,786,891For the nine months ended February 28, 2023Common StockAdditionalTotalPreferred StockIssued/IssuablePaid-inAccumulatedStockholders'SharesAmountSharesAmountCapitalDeficitEquityBalance, May 31, 2022--$--2,107,385$211$5,476,068$(5,291,567)$184,712Shares issued for acquisition of business250,000,00025,0003,659,1953663,982,115--4,007,481Stock options expense--------155,067--155,067Shares to be issued for cash----97,3599447,840--447,849Net income----------1,064,4751,064,475Balance, February 28, 2023250,000,000$25,0005,863,939$586$10,061,090$(4,227,092)$5,859,584For the three months ended February 28, 2023Common StockAdditionalTotalPreferred StockIssued/IssuablePaid-inAccumulatedStockholders'SharesAmountSharesAmountCapitalDeficitEquityBalance, November 30, 2022250,000,000$25,0005,837,899$583$9,910,371$(4,389,140)$5,546,814Stock options expense--------30,922--30,922Shares to be issued for cash----26,0403119,797--119,800Net income----------162,048162,048Balance, February 28, 2023250,000,000$25,0005,863,939$586$10,061,090$(4,227,092)$5,859,584AXIL BRANDS, INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS OF CASH FLOWS(UNAUDITED)For the Nine Months EndedFebruary 29,February 28,20242023CASH FLOWS FROM OPERATING ACTIVITIESNet income$1,953,618$1,064,475Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization83,63466,944Bad debts143,39513,782Stock based compensation161,314155,067Gain on settlement(79,182)(50,500)Provision (benefit) for deferred income taxes(397,054)--Change in operating assets and liabilities:Accounts receivable(445,883)(134,622)Inventory(2,131,429)297,213Prepaid expenses and other current assets145,032(296,787)Deposits--(3,810)Accounts payable and accrued expenses1,061,42087,879Other current liabilities(144,052)860,973Contract liabilities(11,490)259,362NET CASH PROVIDED BY OPERATING ACTIVITIES339,3232,319,976CASH FLOWS FROM INVESTING ACTIVITIESCash acquired on business acquisition--1,066,414Purchases of property and equipment(80,192)(65,650)NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES(80,192)1,000,764CASH FLOWS FROM FINANCING ACTIVITIESCash raised for common stock to be issued--447,850Repayment of equipment financing(2,200)(2,200)Repayment of note payable(25,438)(22,797)Advances (repayments) to/from a related party(176,608)63,008NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES(204,246)485,861NET INCREASE IN CASH54,8853,806,601CASH - Beginning of period4,832,682373,731CASH - End of period$4,887,567$4,180,332SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:Cash paid during the period for:Interest$4,681$3,173Income taxes$--$--SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:Stock issued for asset purchase agreement$--$4,007,480Right of use assets recognized as lease liability$--$131,970Tangible assets (excluding cash) acquired in business combination$--$1,740,729Intangible assets acquired in business combination$--$456,945Goodwill acquired in business combination$--$2,152,215Liabilities assumed in business combination$--$1,408,823About 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(R) 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(R) brand, visit www.axilbrands.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 "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 net sales as anticipated and perform in accordance with 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, including integrating the AXIL(R) brand; (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; and (vii) 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 COMTEX_450633649/2010/2024-04-10T08:30:31 LOS ANGELES, April 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(R) hearing protection and enhancement products and Reviv3(R) hair and skin care products, today announced financial and operational results for the third quarter ended February 29, 2024. Highlights for the Quarter Ended February 29, 2024 Net Sales (revenue) increased 14.4% to approximately $6.47 million in the third quarter, as compared to the prior year period.Gross profit as a percentage of sales was 71.5% in the third quarter, as compared to 74.6% for the prior year period.Operating expenses as a percentage of net revenue were 73.1% in the third quarter, compared to 70.7% for the prior year period.Loss before provision for income taxes was $46,345 and benefit provision from income taxes was $827,436 in the third quarter.Reported third quarter net income of $781,091 or $0.04 on a fully diluted basis compared to $162,048 or $0.01 for the prior year period.Key Updates Since AXIL's Last Quarterly Earnings Release As part of our rebranding the Company changed its name to AXIL Brands, Inc. and stock ticker symbol to "AXIL".Completed uplist to the NYSE American Stock Exchange.In March 2024, AXIL repurchased 207,748,250 shares of Series A preferred stock equivalent, in the aggregate, to 10,387,413 shares of the Company's common stock on an as converted basis resulting in the reduction of approximately 83% of the Company's outstanding Series A preferred shares or approximately 55% of the Company's total outstanding shares on a fully diluted basis."We are extremely pleased with our business performance and the significant objectives achieved during this quarter. Our successful listing on the NYSE American stock exchange and recent repurchase of our Series A preferred shares enhances our ability to execute our enterprise growth strategy and unlock value for our shareholders." Commented Jeff Toghraie, Chairman and Chief Executive Officer. "Looking ahead, we remain committed to expansion into new markets, optimizing operations and creating sustainable long term growth." AXIL BRANDS, INC. AND SUBSIDIARYCONSOLIDATED BALANCE SHEETSFebruary 29, 2024May 31, 2023(Unaudited)ASSETSCURRENT ASSETS:Cash$4,887,567$4,832,682Accounts receivable, net719,504417,016Inventory, net3,443,2931,311,864Due from related party18,536--Prepaid expenses and other current assets656,328801,360Deferred tax asset234,161--Total Current Assets9,959,3897,362,922OTHER ASSETS:Property and equipment, net212,146157,463Intangible assets, net324,549382,674Right of use asset53,224101,845Other assets12,19512,195Goodwill2,152,2152,152,215Total Other Assets2,754,3292,806,392TOTAL ASSETS$12,713,718$10,169,314LIABILITIES AND STOCKHOLDERS' EQUITYCURRENT LIABILITIES:Accounts payable$1,890,844$908,606Customer deposits37,140183,688Equipment payable, current--2,200Contract liabilities, current880,450827,106Notes payable, current3,310172,588Due to related party--158,072Lease Liability, current54,32265,824Income Tax Liability68,019230,913Other current liabilities307,794305,664Total Current Liabilities3,241,8792,854,661LONG TERM LIABILITIES:Notes payable, long term143,840--Lease liability, long term--36,752Contract liabilities, long term541,108605,942Total Long Term Liabilities684,948642,694Total Liabilities3,926,8273,497,355Commitments and contingencies (see Note 11)----STOCKHOLDERS' EQUITY:Preferred stock, $0.0001 par value; 300,000,000 shares authorized; 250,000,000 shares issued and outstanding as of February 29, 2024 and May 31, 2023, respectively25,00025,000Common stock, $0.0001 par value: 450,000,000 shares authorized; 5,878,939 and 5,863,939 shares issued, and outstanding as of February 29, 2024 and May 31, 2023, respectively588586Additional paid-in capital10,274,67710,113,365Accumulated deficit(1,513,374)(3,466,992)Total Stockholders' Equity8,786,8916,671,959TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$12,713,718$10,169,314AXIL BRANDS, INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS OF OPERATIONS(UNAUDITED)For the Three Months EndedFor the Nine Months EndedFebruary 29,February 28,February 29,February 28,2024202320242023Sales, net$6,469,343$5,656,461$20,997,289$16,625,818Cost of sales1,845,0171,437,9765,467,4584,085,64525%26%25%Gross profit4,624,3264,218,48515,529,83112,540,17375%74.0%75%OPERATING EXPENSES:Sales and marketing3,398,9493,173,38310,278,5708,250,257Compensation and related taxes228,869360,802713,5041,214,213Professional and consulting552,922216,6871,471,025832,958General and administrative547,465251,0251,732,942841,761Total Operating Expenses4,728,2054,001,89714,196,04111,139,18971%68%67%(LOSS) INCOME FROM OPERATIONS(103,879)216,5881,333,7901,400,984OTHER INCOME (EXPENSE):Gain on debt settlement----79,18250,500Other income6,114--19,138--Interest income52,9156,721129,23313,262Interest expense and other finance charges(1,495)(1,714)(4,779)(4,927)Other Income, Net57,5345,007222,77458,835(LOSS) INCOME BEFORE PROVISION FOR INCOME TAXES(46,345)221,5951,556,5641,459,819(Benefit) Provision for income taxes(827,436)59,547(397,054)395,344NET INCOME$781,091$162,048$1,953,618$1,064,475NET INCOME PER COMMON SHARE:Basic$0.13$0.03$0.33$0.19Diluted$0.04$0.01$0.11$0.06WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:Basic5,863,9395,849,5015,863,9395,574,312Diluted18,576,91418,629,50118,569,14017,497,737AXIL BRANDS, INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY(UNAUDITED)For the nine months ended February 29, 2024Common StockAdditionalTotalPreferred StockIssued/IssuablePaid-inAccumulatedStockholders'SharesAmountSharesAmountCapitalDeficitEquityBalance, May 31, 2023250,000,000$25,0005,863,939$586$10,113,365$(3,466,992)$6,671,959Stock options expense--------153,320--153,320Restricted stock awards----15,00027,992--7,994Net income----------1,953,6181,953,618Balance, February 29, 2024250,000,000$25,0005,878,939$588$10,274,677$(1,513,374)$8,786,891For the three months ended February 29, 2024Common StockAdditionalTotalPreferred StockIssued/IssuablePaid-inAccumulatedStockholders'SharesAmountSharesAmountCapitalDeficitEquityBalance, November 30, 2023250,000,000$25,0005,863,939$586$10,215,580$(2,294,465)$7,946,701Stock options expense--------51,105--51,105Restricted stock awards----15,00027,992--7,994Net income-- --------781,091781,091Balance, February 29, 2024250,000,000$25,0005,878,939$588$10,274,677$(1,513,374)$8,786,891For the nine months ended February 28, 2023Common StockAdditionalTotalPreferred StockIssued/IssuablePaid-inAccumulatedStockholders'SharesAmountSharesAmountCapitalDeficitEquityBalance, May 31, 2022--$--2,107,385$211$5,476,068$(5,291,567)$184,712Shares issued for acquisition of business250,000,00025,0003,659,1953663,982,115--4,007,481Stock options expense--------155,067--155,067Shares to be issued for cash----97,3599447,840--447,849Net income----------1,064,4751,064,475Balance, February 28, 2023250,000,000$25,0005,863,939$586$10,061,090$(4,227,092)$5,859,584For the three months ended February 28, 2023Common StockAdditionalTotalPreferred StockIssued/IssuablePaid-inAccumulatedStockholders'SharesAmountSharesAmountCapitalDeficitEquityBalance, November 30, 2022250,000,000$25,0005,837,899$583$9,910,371$(4,389,140)$5,546,814Stock options expense--------30,922--30,922Shares to be issued for cash----26,0403119,797--119,800Net income----------162,048162,048Balance, February 28, 2023250,000,000$25,0005,863,939$586$10,061,090$(4,227,092)$5,859,584AXIL BRANDS, INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS OF CASH FLOWS(UNAUDITED)For the Nine Months EndedFebruary 29,February 28,20242023CASH FLOWS FROM OPERATING ACTIVITIESNet income$1,953,618$1,064,475Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization83,63466,944Bad debts143,39513,782Stock based compensation161,314155,067Gain on settlement(79,182)(50,500)Provision (benefit) for deferred income taxes(397,054)--Change in operating assets and liabilities:Accounts receivable(445,883)(134,622)Inventory(2,131,429)297,213Prepaid expenses and other current assets145,032(296,787)Deposits--(3,810)Accounts payable and accrued expenses1,061,42087,879Other current liabilities(144,052)860,973Contract liabilities(11,490)259,362NET CASH PROVIDED BY OPERATING ACTIVITIES339,3232,319,976CASH FLOWS FROM INVESTING ACTIVITIESCash acquired on business acquisition--1,066,414Purchases of property and equipment(80,192)(65,650)NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES(80,192)1,000,764CASH FLOWS FROM FINANCING ACTIVITIESCash raised for common stock to be issued--447,850Repayment of equipment financing(2,200)(2,200)Repayment of note payable(25,438)(22,797)Advances (repayments) to/from a related party(176,608)63,008NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES(204,246)485,861NET INCREASE IN CASH54,8853,806,601CASH - Beginning of period4,832,682373,731CASH - End of period$4,887,567$4,180,332SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:Cash paid during the period for:Interest$4,681$3,173Income taxes$--$--SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:Stock issued for asset purchase agreement$--$4,007,480Right of use assets recognized as lease liability$--$131,970Tangible assets (excluding cash) acquired in business combination$--$1,740,729Intangible assets acquired in business combination$--$456,945Goodwill acquired in business combination$--$2,152,215Liabilities assumed in business combination$--$1,408,823About 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(R) 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(R) brand, visit www.axilbrands.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 "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 net sales as anticipated and perform in accordance with 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, including integrating the AXIL(R) brand; (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; and (vii) 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 COMTEX_450633649/2010/2024-04-10T08:30:31 |
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