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AXIL Brands(AXIL) - 2024 Q3 - Quarterly Results
AXIL BrandsAXIL Brands(US:AXIL)2024-10-10 12:01

Financial Performance - Net sales for the first quarter of fiscal 2025 were $5.85 million, a decrease of 4.1% compared to $6.1 million in the prior year period[2] - Gross profit margin decreased to 71% in the first quarter of fiscal 2025 from 76.1% in the prior year period[2] - Operating expenses as a percentage of sales were 73.4%, slightly up from 73.3% in the prior year period[2] - The company reported a net loss of $109,805 for the first quarter of fiscal 2025, compared to a net income of $154,452 in the prior year period[2] - Net income for the three months ended August 31, 2023, was $154,452, while for the same period in 2024, it reported a net loss of $109,805[9] Cash Flow and Assets - Net cash provided by operating activities increased to $897,318 from $397,172 in the prior year period[2] - The company generated net cash provided by operating activities of $897,318 for the three months ended August 31, 2024, compared to $397,172 in 2023, representing a 126.4% increase[9] - Total cash at the end of the period for August 31, 2024, was $4,148,724, down from $5,061,723 in 2023, indicating a decrease of 18%[9] - Total current assets increased to $8.34 million from $7.97 million as of the previous quarter[4] - Total liabilities increased to $3.47 million from $3.28 million in the prior quarter[5] Shareholder Value and Expenses - Weighted average diluted shares decreased to 6,172,379 from 18,622,597 in the prior year period[2] - Stock-based compensation increased significantly to $297,864 in 2024 from $51,107 in 2023, reflecting a 482% rise[9] Operational Strategy and Market Focus - The company emphasized its commitment to innovation and expanding into new channels for future growth[3] - AXIL Brands is focused on operational excellence and delivering value to shareholders amid ongoing market challenges[3] - AXIL is focused on expanding its product offerings in hearing enhancement and protection, as well as hair and skincare products, targeting markets in the U.S., Canada, EU, and Asia[10] - The company anticipates growth in net sales and operations, including the development of new products and international expansion, despite facing significant risks and uncertainties[11] - The company is actively engaging in strategic partnerships and expanding its distribution channels to enhance market presence and competitiveness[11] Inventory and Receivables Management - The company reported a change in accounts receivable of $(108,100) in 2024, compared to $(91,736) in 2023, indicating a worsening in collection efficiency[9] - Inventory changes showed an increase of $120,603 in 2024, contrasting with a significant decrease of $(758,104) in 2023, suggesting a shift in inventory management strategy[9] Investment Activities - AXIL's cash flows from investing activities showed a net cash used of $(41,840) in 2024, compared to $(50,960) in 2023, indicating a slight improvement in investment efficiency[9]