AMMO(US:POWW)2025-11-10 11:25Financial Performance - Total net revenues for the three months ended September 30, 2025, were $11,984,314, slightly up from $11,983,021 in the same period of 2024[12] - Gross profit for the six months ended September 30, 2025, was $20,776,057, compared to $20,950,911 for the same period in 2024, reflecting a decrease of approximately 0.83%[12] - The company reported a net income of $656,217 for the three months ended September 30, 2025, compared to a net loss of $13,210,753 in the same period of 2024[12] - Operating expenses for the three months ended September 30, 2025, were $9,734,055, down from $16,439,324 in the same period of 2024, a decrease of approximately 41.1%[12] - For the six months ended September 30, 2025, the net loss was $5,053,499 compared to a net loss of $27,188,088 for the same period in 2024[19] - The company reported a net cash provided by operating activities of $(3,452,435) for the six months ended September 30, 2025, compared to $1,071,053 for the same period in 2024[19] - The company reported a gain on the extinguishment of debt amounting to $801,894 for the three months ended September 30, 2025[12] - The company reported a gain on the extinguishment of debt amounting to $801,894 for the six months ended September 30, 2025[19] - The effective tax rate for the three and six months ended September 30, 2025, was 0.0%, primarily due to a full valuation allowance against deferred tax assets[112] Assets and Liabilities - Total current assets increased to $78,301,114 as of September 30, 2025, from $72,148,138 as of March 31, 2025, representing an increase of approximately 8.9%[9] - Total liabilities decreased to $34,857,771 as of September 30, 2025, down from $75,303,066 as of March 31, 2025, indicating a reduction of approximately 53.7%[9] - The company’s total shareholders' equity increased to $235,415,672 as of September 30, 2025, compared to $222,026,563 as of March 31, 2025, reflecting an increase of about 6%[9] - The company’s accumulated deficit increased to $(210,438,277) as of September 30, 2025, compared to $(203,862,034) as of March 31, 2025[9] - Net accounts receivable as of September 30, 2025, was $8,855,910, down from $10,189,011 as of March 31, 2025[78] - Total property and equipment as of September 30, 2025, was $10,684,936, with accumulated depreciation of $3,685,401[79] - Accrued liabilities decreased significantly from $37,413,636 as of March 31, 2025, to $6,729,316 as of September 30, 2025[81] Cash Flow and Investments - Cash flow from investing activities showed a net cash provided of $41,899,318 for the six months ended September 30, 2025, while it was $(2,046,157) for the same period in 2024[19] - The company had a cash balance of $65,669,937 at the end of the period on September 30, 2025, compared to $33,525,409 at the end of the same period in 2024[19] - The total cash at the end of the period was $65,669,937, up from $30,227,796 at the beginning of the period[19] Shareholder Information - Basic income per share from continuing operations was $0.01 for the three months ended September 30, 2025, compared to a loss of $0.06 in the same period of 2024[12] - The weighted average number of shares outstanding for basic income was 117,110,827 for the three months ended September 30, 2025[12] - The net loss attributable to common stockholders for the six months ended September 30, 2025, was $28,744,861, compared to a net loss of $6,576,242 for the same period in 2024[69] - The company repurchased common shares totaling $171,200 during the six months ended September 30, 2025, compared to $460,661 in the same period of 2024[19] Discontinued Operations - The company completed the sale of its Ammunition segment assets for $75 million on April 18, 2025, which is classified as discontinued operations[35] - The Ammunition segment reported net revenues of $752,762 for the six months ended September 30, 2025, significantly down from $38,108,123 for the same period in 2024[74] - The loss from discontinued operations before income taxes for the six months ended September 30, 2025, was $10,883,781, compared to a loss of $6,559,908 for the same period in 2024[74] - The company experienced a loss from discontinued operations of $595,634 for the six months ended September 30, 2025, compared to $9,322,858 in the prior year[19] Stock-Based Compensation - Stock-based compensation for the six months ended September 30, 2025, was $787,826, down from $2,623,031 in the same period of 2024[19] - The company recognized stock-based compensation on a straight-line basis over the vesting periods, measured based on the grant-date fair value of the award[57] - The company granted 377,498 stock awards during the six months ended September 30, 2025, with a value per share of $2.02, while 426,027 shares vested[106] Debt and Financing - The company issued $51 million in notes payable related to a litigation settlement, with a discount of $28,891,590 on those notes[21] - The company issued a $12.0 million unsecured promissory note with an interest rate of 6.50% per annum, due on May 30, 2037[121] - An additional $39.0 million unsecured promissory note was issued with an interest rate of 4.62% per annum, due on May 30, 2035[126] - The company recorded interest expense of $327,820 on the $12.0 million note for the six months ended September 30, 2025[123] - The Company entered into a Revolving Loan agreement with a principal amount of up to $20.0 million, with proceeds usable for working capital and general corporate purposes[132] - As of September 30, 2025, the Company had no outstanding balance on the Revolving Loan[139] Regulatory and Compliance - The SEC Investigation may lead to potential enforcement actions regarding share-based compensation and other disclosures, with no current estimate of loss available[147] - The company is currently evaluating the potential impact of new accounting standards on its consolidated financial statements and disclosures[63] - The company utilizes U.S. GAAP for financial reporting, with all amounts expressed in U.S. dollars[30] - Income taxes are accounted for under the asset and liability method in accordance with ASC 740, including federal, state, and local income taxes currently payable, and deferred taxes[59]