AMMO(POWWP) - 2026 Q1 - Quarterly Report

Financial Performance - Net revenues for the three months ended June 30, 2025, were $11,857,376, a decrease of 3.4% compared to $12,281,991 in the same period of 2024[12]. - Gross profit for the same period was $10,334,978, down from $10,537,201, reflecting a gross margin of approximately 87%[12]. - The company reported a net loss attributable to common stock shareholders of $7,232,459 for Q2 2025, compared to a net loss of $15,534,107 in Q2 2024, indicating a 53.5% improvement year-over-year[12]. - Operating expenses for Q2 2025 were $16,345,653, a slight decrease from $16,772,566 in Q2 2024, indicating cost management efforts[12]. - The company reported a basic loss per share of $0.06 for Q2 2025, an improvement from a loss of $0.13 per share in Q2 2024[12]. - Consolidated net revenues for Q2 2025 were $11,857,376, a decrease of 3.4% compared to $12,281,991 in Q2 2024[93]. - Consolidated EBITDA for Q2 2025 was $(2,500,654), an improvement from $(2,889,562) in Q2 2024[93]. - Net loss from continuing operations for Q2 2025 was $(5,862,693), significantly reduced from $(11,997,025) in Q2 2024[93]. Assets and Liabilities - Total current assets increased to $74,486,175 as of June 30, 2025, compared to $72,148,138 as of March 31, 2025, primarily driven by an increase in cash and cash equivalents[9]. - Total liabilities decreased to $46,961,667 as of June 30, 2025, down from $75,303,066 as of March 31, 2025, reflecting a significant reduction in current liabilities[9]. - The company’s total shareholders' equity increased to $222,505,655 as of June 30, 2025, compared to $222,026,563 as of March 31, 2025[9]. - Cash and cash equivalents increased significantly to $63,363,812 as of June 30, 2025, compared to $30,227,796 as of March 31, 2025, indicating improved liquidity[9]. - The total assets of the company were $269.47 million, a decrease from $297.33 million as of March 31, 2025[9]. - Total current liabilities decreased significantly to $22.73 million as of June 30, 2025, from $62.09 million as of March 31, 2025[9]. - The company reported an accumulated deficit of $211.09 million as of June 30, 2025, compared to $203.86 million as of March 31, 2025[9]. Cash Flow and Investments - Cash flow from operating activities resulted in a net cash used of $6,673,464, compared to a net cash provided of $889,653 in the prior year[17]. - The company generated $42,946,905 from the sale of ammunition business assets, significantly impacting cash flow from investing activities[17]. - The net cash provided by investing activities was $42,057,105, compared to a net cash used of $802,396 in the same period last year[17]. - The company reported a cash balance of $63,363,812 at the end of the period, an increase from $50,754,570 at the end of the previous year[17]. Discontinued Operations - The company ceased operations of its Ammunition segment, which was classified as discontinued operations, impacting overall financial results[23]. - The Ammunition segment reported net revenues of $752,762 for the three months ended June 30, 2025, a significant decrease from $18,671,559 in 2024, representing a decline of approximately 96%[67]. - The gross profit from the Ammunition segment was $(846,440) for the three months ended June 30, 2025, compared to $(759,900) in 2024, indicating a worsening in profitability[67]. - The total operating expenses for the Ammunition segment were $332,425 for the three months ended June 30, 2025, down from $3,412,929 in 2024, reflecting a decrease of approximately 90%[67]. - Capital expenditures related to discontinued operations were $40,000 for the three months ended June 30, 2025, compared to $600,000 in 2024[71]. Shareholder Information - The company has maintained its preferred stock dividend at $774,132 for both Q2 2025 and Q2 2024, reflecting consistent dividend policy[12]. - Preferred dividends accumulated as of June 30, 2025, were $136,111, consistent with the previous year[83]. - The company has authorized capital consisting of 200,000,000 shares of common stock with a par value of $0.001 per share[84]. Strategic Changes - The company changed its name from AMMO, Inc. to Outdoor Holding Company on April 21, 2025, reflecting its strategic shift[24]. - The company plans to expand its e-commerce platform and enhance customer retention strategies as part of its future growth plans[127]. Legal and Regulatory Matters - The company is involved in ongoing litigation, with claims seeking compensatory damages of not less than $140 million related to the acquisition of GunBroker.com[117]. - The company is involved in a civil action alleging $100 million in damages related to a breach of contract, with trial expected in 2026[122]. - The SEC Investigation is ongoing, with potential enforcement actions related to share-based compensation and other financial disclosures, but no loss estimate can be made at this time[123].