AXIL Brands(AXIL) - 2024 Q1 - Quarterly Results

Financial Performance - Net sales increased by 14.4% to approximately $6.47 million in the third quarter compared to the prior year period[5] - Gross profit margin decreased to 71.5% in the third quarter from 74.6% in the prior year period[5] - Operating expenses as a percentage of net revenue rose to 73.1% in the third quarter from 70.7% in the prior year period[5] - Reported net income for the third quarter was $781,091, or $0.04 per fully diluted share, compared to $162,048, or $0.01 per share in the prior year[5] - For the nine months ended February 29, 2024, net income was $1,953,618, compared to $1,064,475 for the same period in the prior year[10] - For the nine months ended February 29, 2024, net income increased to $1,953,618 compared to $1,064,475 for the same period in 2023, representing an 83.5% growth[17] - Operating cash flow for the nine months ended February 29, 2024, was $339,323, a significant decrease from $2,319,976 in the prior year[17] - The company reported a net increase in cash of $54,885, bringing the total cash at the end of the period to $4,887,567, compared to $4,180,332 at the end of the previous period[17] - Stock-based compensation for the nine months ended February 29, 2024, was $161,314, slightly up from $155,067 in the same period last year[17] Assets and Liabilities - Total current assets increased to $9.96 million as of February 29, 2024, compared to $7.36 million as of May 31, 2023[7] - Total liabilities increased to $3.93 million as of February 29, 2024, compared to $3.50 million as of May 31, 2023[8] - The company has a total stockholders' equity of $5,859,584 as of February 28, 2023, up from $5,546,814 as of November 30, 2022[15] - Total liabilities assumed in the business combination amounted to $1,408,823[18] Corporate Actions - The company completed the repurchase of 207,748,250 shares of Series A preferred stock, reducing outstanding Series A preferred shares by approximately 83%[5] - The company changed its name to AXIL Brands, Inc. and its stock ticker symbol to "AXIL" as part of a rebranding effort[5] - The company acquired cash of $1,066,414 through business acquisition during the investing activities[17] - The company has recognized significant non-cash investing activities, including $4,007,480 for stock issued for asset purchase agreements[17] Strategic Goals and Challenges - The company aims to expand into new markets and optimize operations for sustainable long-term growth[4] - The company is focused on expanding its market presence in the United States, Canada, the European Union, and Asia with its AXIL® and Reviv3 Procare brands[19] - Management anticipates challenges in achieving net sales growth and integrating the AXIL® brand due to market conditions and competition[20]