Financial Data and Key Metrics Changes - Net revenue for Q3 2020 increased by 45% to $58.8 million from $40.6 million in the same period last year, driven by increased direct sales volume and wholesale PPE products [14][19]. - Adjusted EBITDA improved to $5.1 million, compared to a loss of $2.7 million in Q3 2019, reflecting growth from existing and new product launches [16][19]. - Gross margin increased to 47.8%, up from 43.2% year-over-year, attributed to favorable product mix and higher pricing [15]. Business Line Data and Key Metrics Changes - The company launched seven different brands and over 250 consumer products across various categories, primarily through online retail marketplaces [8]. - The acquisition of Truweo, a wellness brand, was completed for approximately $16.4 million, expected to enhance the company's product offerings in the wellness category [17]. Market Data and Key Metrics Changes - The company noted a significant increase in e-commerce adoption due to COVID-19, which is expected to have lasting effects on consumer shopping behavior [23]. - The report from McKinsey highlighted trends such as digital ubiquity and the rise of small brands, which align with the company's strategy [10][11]. Company Strategy and Development Direction - The company aims to build a consumer product platform leveraging technology to automate supply chain and marketing efforts, positioning itself to capitalize on the shift to e-commerce [7][10]. - The strategy includes acquiring and consolidating third-party Amazon brands, with a focus on operational efficiency and scalability [10][27]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of e-commerce growth post-COVID, emphasizing that the acceleration in online shopping is likely to continue [23]. - The company expects to launch approximately seven to ten new products in Q4 2020 and projects full-year 2020 net revenue to be between $175 million and $185 million [19]. Other Important Information - Fixed operating costs decreased by 7.5% to $6.2 million in Q3 2020, contributing to improved profitability [16]. - The company reported cash of $37.4 million as of September 30, 2020, up from $17.2 million at the end of June 2020, indicating strong cash flow management [18]. Q&A Session Summary Question: What are the short-term and long-term benefits to e-commerce from COVID? - Management believes the acceleration in e-commerce adoption due to COVID-19 will have lasting effects, as many consumers who were previously hesitant have now adopted online shopping [23]. Question: How does the acquisition of Truweo affect future acquisitions? - The acquisition of Truweo has positioned the company well for future acquisitions, allowing for rapid integration without additional fixed costs [25][26]. Question: What drove the strong profitability this quarter? - Profitability was driven by operational efficiencies, including a rationalization of the operating structure and reductions in general and administrative expenses [29][30]. Question: How is the product launch pipeline maturing? - The company aims to reach a goal of launching ten new products per month next year, with a current success ratio of over 80% for product launches [32][35]. Question: What is the outlook for PPE revenue post-COVID? - The company does not rely on PPE revenue as a core business but is open to benefiting from it as long as it remains viable [56]. Question: How does competition from Amazon private label affect the company? - Management believes that their biggest competition is internal execution rather than Amazon, emphasizing the importance of maintaining market share through effective inventory management and product quality [63][65].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-38937 Mohawk Group Holdings, Inc. (Exact name of registrant as specified in its charter) Delaware 83-1739858 (State or other jurisdiction of incorporation or o ...

Mohawk Group Holdings, Inc. (MWK) Q2 2020 Earnings Conference Call July 30, 2020 5:00 PM ET Company Participants Ilya Grozovsky - Director, IR Yaniv Sarig - Co-Founder and CEO Fabrice Hamaide - CFO Conference Call Participants Thomas Forte - D.A. Davidson Matt Koranda - ROTH Brian Kinstlinger - Alliance Global Allen Klee - National Securities Operator Good afternoon ladies and gentlemen and welcome to the Mohawk Group Holdings Inc. Q2 Earnings Report. At this time, all participants are in listen only mode. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-38937 Mohawk Group Holdings, Inc. (Exact name of registrant as specified in its charter) Delaware 83-1739858 (State or other jurisdiction of incorporation or organi ...

Mohawk Group Holdings, Inc. (MWK) Q1 2020 Earnings Conference Call May 11, 2020 5:00 PM ET Company Participants Ilya Grozovsky – Investor Relations Yaniv Sarig – Co-Founder and Chief Executive Officer Fabrice Hamaide – Chief Financial Officer Conference Call Participants Tom Forte – D.A. Davidson Brian Kinstlinger – Alliance Global Partners Allen Klee – National Securities Scott Searle – Roth Capital Partners Operator Ladies and gentleman, thank you for standing by. And welcome to the Mohawk Group Holdings ...

Product Launch and Revenue Growth - Mohawk launched 16 new products in the first quarter of 2020, achieving a 47.7% growth in direct net revenue compared to the previous year[50]. - The company aims for a target average of positive 10% net margin for products within approximately three months of launch[49]. - Direct sales volume contributed an increase of $8.1 million, or 47.7%, primarily from growth in the existing product portfolio and new products released in the second half of 2019[67]. - Net revenue increased by $7.8 million, or 43.6%, to $25.6 million for the three months ended March 31, 2020, compared to $17.8 million for the same period in 2019[67]. Financial Performance Metrics - The contribution margin, which reflects operating loss plus general and administrative expenses, is a key metric for assessing product performance[54]. - Adjusted EBITDA was $(5.6) million for the three months ended March 31, 2020, compared to $(6.4) million for the same period in 2019, representing an improvement[61]. - Contribution margin as a percentage of net revenue was (2.9)% for the three months ended March 31, 2020, compared to (4.5)% for the same period in 2019[59]. - Operating loss increased by $6.8 million, or 94.8%, to $(13.9) million for the three months ended March 31, 2020, compared to $(7.1) million for the same period in 2019[63]. - Net loss was $(15.0) million for the three months ended March 31, 2020, compared to $(8.4) million for the same period in 2019, reflecting a 79.2% increase[63]. Cost and Expense Analysis - Gross profit rose by $3.6 million, or 54.4%, to $10.3 million for the three months ended March 31, 2020, compared to $6.7 million for the same period in 2019[69]. - Cost of goods sold increased by $4.2 million, or 37.2%, to $15.3 million during the three months ended March 31, 2020[70]. - Gross margin improved to 40.2% for the three months ended March 31, 2020, up from 37.4% for the same period in 2019[70]. - Research and development expenses increased by $1.1 million, or 96.1%, to $2.3 million for the three months ended March 31, 2020, compared to $1.2 million for the same period in 2019[63]. - Sales and distribution expenses increased by $4.6 million from $9.3 million for the three months ended March 31, 2019 to $13.9 million for the three months ended March 31, 2020, representing a 50.0% increase[71]. - General and administrative expenses increased by $4.6 million from $3.4 million for the three months ended March 31, 2019 to $8.0 million for the three months ended March 31, 2020[73]. Operational and Strategic Developments - Mohawk's products are currently in the launch and sustain phases, with none achieving the milk phase yet[49]. - The company has expanded its fulfillment capabilities by adding five fulfillment by Mohawk (FBM) warehouses, covering approximately 90% of the U.S.[53]. - The company added five third-party FBM warehouses to its direct fulfillment platform, enabling One Day Prime delivery for 90% of the United States[71]. - The key manufacturing partner in China reopened its facilities on February 10, 2020, and reached over 90% capacity by early March 2020, expected to manufacture over 30% of the company's inventory in 2020[82]. Risks and Uncertainties - The company is exposed to tariff risks due to reliance on manufacturers in China, which could impact cost of goods sold[51]. - The future impact of the COVID-19 pandemic on personnel, business operations, and financial condition remains uncertain, with potential disruptions across the value chain[82]. - The company may experience a substantial decrease in demand for its products, most of which are considered non-essential, during the pandemic[82]. - The company intends to seek additional financing options, which may be expensive and/or dilutive, due to uncertainty regarding compliance with existing loan agreements[82]. - The company is currently seeking to preserve liquidity through various actions, including delaying payments to certain vendors, which may adversely impact business relationships[82]. Cash Flow and Financing - Cash used in operating activities increased from $11.9 million for the three months ended March 31, 2019 to $17.1 million for the three months ended March 31, 2020[76]. - Net cash provided by financing activities decreased from $4.6 million for the three months ended March 31, 2019 to $0.8 million for the three months ended March 31, 2020[78]. - The accumulated deficit increased from $129.8 million at December 31, 2019 to $144.8 million at March 31, 2020[79]. - Cash on hand decreased from $30.4 million at December 31, 2019 to $14.1 million at March 31, 2020[79]. - As of March 31, 2020, the outstanding indebtedness under the Credit Facility was $25.0 million, bearing interest at LIBOR plus 5.75%, and the Term Loan was $15.0 million, bearing interest at 9.90% plus a variable rate[85]. Currency and Interest Rate Exposure - Sales outside of the United States represented less than 1% of net revenue for the three months ended March 31, 2019, and 2020, indicating minimal foreign currency exposure[85]. - The company does not currently engage in hedging transactions to manage foreign currency exchange rate risk, as exposure is considered minimal[85]. - An immediate 100 basis point change in interest rates would not materially affect the fair market value of the company's investments due to their short-term maturities and low risk profiles[85]. - Interest expense, net decreased by $0.1 million from $1.2 million for the three months ended March 31, 2019 to $1.1 million for the three months ended March 31, 2020, an 8.5% decrease[74]. - Inflation has not had a material effect on the company's business, financial condition, or results of operations for the three months ended March 31, 2019, and 2020[85].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 001-38937 Mohawk Group Holdings, Inc. (Exact name of Registrant as specified in its charter) Delaware 83-1739858 (State or other jurisdic ...

Financial Data and Key Metrics Changes - For the full year 2019, revenue increased approximately 56% to $114.5 million from $73 million in 2018 [6][24] - Fourth quarter revenue increased approximately 30% to $25.6 million from $19.7 million a year ago [6][18] - Gross margin for the fourth quarter decreased to 35.4%, down 773 basis points sequentially [18] - Adjusted EBITDA for the fourth quarter decreased to a loss of $7.6 million from a loss of $2.7 million in the third quarter [23][24] - Full-year EBITDA improved to a loss of $19.5 million from a loss of $28.6 million in 2018 [27] Business Line Data and Key Metrics Changes - Fourth quarter sustain revenue was approximately $20.3 million, down from $36.2 million in Q3 [21] - Launch revenue for Q4 was approximately $3 million, compared to $2.8 million in Q3 [21] - SaaS revenue remained flat at approximately $0.3 million for both Q4 and Q3 [21] - Liquidation and other revenue increased to approximately $2 million in Q4 from $1.4 million in Q3 [22] Market Data and Key Metrics Changes - The company launched 32 new products in 2019, compared to 11 in 2018 [6] - In Q4, 18 new products were launched, with 14 being non-environmental products [6] - The company aims to launch up to 20 new products in Q1 2020, with plans to double the number of launches in 2020 compared to 2019 [30] Company Strategy and Development Direction - The company is focused on disrupting the traditional CPG model through technology and supply chain optimization [7][11] - Plans to build a large and profitable company while maintaining a commitment to its vision [14] - The strategy includes vertical integration of technology with agile sourcing and supply chain [11][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledges challenges in scaling the business model and overcoming skepticism from external observers [7][8] - The company expects net revenue for 2020 to be in the range of $160 million to $170 million, despite potential inventory constraints [31] - Management is cautious about the impact of COVID-19 on supply chain and product launches, particularly in the second half of 2020 [30][31] Other Important Information - The company may need to refile financial statements for Q2 and Q3 of 2019 due to changes in stock-based compensation expense recognition [15][16] - Cash used in operating activities for Q4 was $12.1 million, compared to cash provided by operating activities of $3.1 million in Q3 [28] - Total debt as of December 31, 2019, was $37.9 million, an increase from $30.1 million at the end of Q3 [28] Q&A Session Summary Question: Impact of Amazon's one-day shipping on the company - The company is working to move to one-day shipping to enhance service quality and reduce fulfillment costs, aligning with Amazon's strategy [34][35] Question: Reconsideration of China's role in the supply chain due to tariffs and coronavirus - The company is diversifying its supply chain and sourcing some products outside of China to mitigate tariff impacts and improve consumer value [36] Question: Clarification on expected revenue from successful product launches - The company maintains that successful product launches are expected to generate $1.5 million in annual revenue, despite referencing a lower figure for comparability [39] Question: Early successes of non-environmental products - The company reports an 80% success ratio for products that have exited the launch phase, with a focus on non-environmental products [42] Question: Potential inventory shortages due to shipment difficulties - The company has built up inventory for new products, but delays in manufacturing could lead to shortages in Q2 and Q3 if capacity does not normalize [45] Question: Impact of increased e-commerce demand on shipping times - The company has not experienced significant shipping delays despite increased demand for e-commerce purchases [49] Question: Revenue guidance for 2020 and product launch expectations - The revenue guidance of $160 million to $170 million for 2020 accounts for potential delays in product launches and replenishment issues [51][56] Question: SaaS business outlook and potential changes - The company is actively engaging with 46 different companies regarding SaaS opportunities, indicating a focus on growth in this area [78]

Mohawk Group Holdings, Inc. (MWK) Q3 2019 Results Earnings Conference Call November 5, 2019 5:00 PM ET Company Participants Ilya Grozovsky - Director Yaniv Sarig - Director, President, Chief Executive Officer Fabrice Hamaide - Director, Chief Financial Officer Conference Call Participants Dave King - ROTH Capital Brian Kinstlinger - Alliance Global Partners Operator Good afternoon ladies and gentleman and welcome to the Mohawk Group Holdings Q3 earnings report conference call. At this time, all participants ...