Financial 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] - 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, indicating a significant improvement[19] - The company reported a net loss from continuing operations of $4,457,865 for the six months ended September 30, 2025, compared to $17,865,230 in the same period of 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 in the prior year[19] - Consolidated EBITDA for the six months ended September 30, 2025, was $1,781,961, compared to a loss of $5,539,700 for the same period in 2024[111] 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 total accumulated deficit as of September 30, 2025, was $(210,438,277)[15] - 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, slightly up from $10,562,538 as of March 31, 2025[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 Financing Activities - Cash flow from investing activities showed a net cash provided of $41,899,318 for the six months ended September 30, 2025, primarily due to the sale of ammunition business assets[19] - The company ended the period with cash of $65,669,937, an increase from $30,227,796 at the beginning of the period[19] - The net cash used in financing activities was $(1,566,339) for the six months ended September 30, 2025, compared to $(9,210,795) in the prior year[19] - For the six months ended September 30, 2025, cash paid for interest was $166,107, a decrease of 15.5% compared to $196,552 for the same period in 2024[21] - The company issued $51 million in notes payable related to a litigation settlement, with a discount of $28,891,590 on those notes[21] Stock and Compensation - 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] - 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] 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] - For the six months ended September 30, 2025, the Ammunition segment reported net revenues of $752,762, a significant decrease 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] Tax and Regulatory Matters - 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] - The SEC Investigation may lead to potential enforcement actions regarding share-based compensation and other disclosures, with no current estimate of loss[147] Miscellaneous - The company continues to operate its online Marketplace business following the sale of the Ammunition Manufacturing Business[25] - The company utilizes U.S. GAAP for financial reporting, with all amounts expressed in U.S. dollars[30] - No customers comprised more than 10% of total revenues for the three and six months ended September 30, 2025[47] - The company is currently evaluating the potential impact of new accounting standards on its consolidated financial statements and disclosures[63]
AMMO(POWWP) - 2026 Q2 - Quarterly Report