Financial Performance - Revenue for 2Q25 was $7.7 million, a decrease of 8.3% compared to $8.4 million in the prior year period[9] - Gross profit margin was 71.1% in 2Q25, down from 74.3% in the prior year period[9] - Net income for 2Q25 was $0.6 million, compared to $1.0 million in the prior year period, reflecting a decline of 40%[9] - Adjusted EBITDA for 2Q25 was $1.0 million, down from $1.4 million in the prior year period, representing a decrease of 28.6%[9] - Adjusted EBITDA as a percentage of sales was 13.1% in 2Q25, down from 16.9% in the prior year period[11] - Net income for the six months ended November 30, 2024, was $523,901, a decrease of 55.3% compared to $1,172,527 in 2023[17] - Total cash at the end of the period was $5,213,897, down from $5,962,431 in 2023, reflecting a decrease of 12.6%[17] - Cash provided by operating activities increased to $1,904,174, up 52.0% from $1,252,113 in the previous year[17] Operating Expenses - Operating expenses as a percentage of sales increased to 62.4% in 2Q25 from 59.3% in the prior year period[9] - Stock-based compensation rose significantly to $602,464, compared to $102,215 in the prior year, indicating a 493.5% increase[17] - Accounts receivable saw a negative change of $962,337, worsening from a negative change of $600,626 in 2023[17] - Inventory levels improved with a positive change of $729,534, compared to a negative change of $1,040,351 in the previous year[17] Strategic Initiatives - The company is expanding its retail presence, currently in over 1,000 locations, including Bass Pro Shops and select Walmart stores[5] - AXIL plans to launch a successor series to its TRACKR earmuffs in the first half of calendar year 2025, focusing on technological leadership and improved functionality[6] - The company aims to diversify its distribution strategy and establish additional international distribution agreements[4] - The company is focused on expanding its distribution channels and developing new products to drive net sales growth[19] - AXIL Brands operates in multiple regions including the United States, Canada, the European Union, and Asia, indicating a broad market presence[18] Challenges and Commitments - The company anticipates potential challenges in generating sufficient revenue and managing operational costs amid economic uncertainties[19] - AXIL Brands is committed to enhancing its product offerings in hearing enhancement and protection, as well as hair and skincare products[18]
AXIL Brands(AXIL) - 2024 Q4 - Annual Results