Financial Performance - Total net revenues for the three months ended December 31, 2025, increased to $13.39 million, up from $12.52 million in the same period of 2024, representing a growth of 6.95%[12] - Gross profit for the nine months ended December 31, 2025, was $32.44 million, compared to $31.90 million for the same period in 2024, reflecting an increase of 1.69%[12] - The company reported a net income of $1.46 million for the three months ended December 31, 2025, compared to a net loss of $26.91 million in the same period of 2024[12] - Basic income per share for the three months ended December 31, 2025, was $0.01, compared to a loss of $0.23 per share in the same period of 2024[12] - The company reported a net income of $2.230 million for the quarter ending December 31, 2025, compared to a net income of $1.404 million for the quarter ending June 30, 2025[13] - For the nine months ended December 31, 2025, the net loss from continuing operations was $2,227,615, a significant improvement compared to a net loss of $38,259,945 for the same period in 2024, representing a reduction of approximately 94.2%[18] - The company reported a net loss from discontinued operations of $595,634 for the three months ended December 31, 2024, with total revenues of $752,762 for the same period[75] Assets and Liabilities - Total current assets as of December 31, 2025, amounted to $82.52 million, a rise from $72.15 million as of March 31, 2025, indicating a growth of 14.66%[9] - Total liabilities decreased to $34.39 million as of December 31, 2025, from $75.30 million as of March 31, 2025, a reduction of 54.30%[9] - The company’s cash and cash equivalents increased to $69.86 million as of December 31, 2025, compared to $30.23 million as of March 31, 2025, representing a growth of 131.31%[9] - The company’s accumulated deficit as of December 31, 2025, was $(208.97) million, compared to $(203.86) million as of March 31, 2025, reflecting an increase in the deficit of 2.73%[9] - Total shareholders' equity increased to $237.27 million as of December 31, 2025, from $222.03 million as of March 31, 2025, an increase of 6.85%[9] - The company had net accounts receivable of $9,169,620 as of December 31, 2025, down from $10,189,011 as of March 31, 2025[79] Cash Flow and Financing - The company reported net cash provided by operating activities of $2,228,215 for the nine months ended December 31, 2025, compared to a net cash used in operating activities of $(3,537,004) in the prior year[18] - Cash flow from investing activities showed a net increase of $41,254,111, primarily due to the sale of ammunition business assets amounting to $42,946,905[18] - The company reported net cash used in financing activities of $(2,413,989) for the nine months ended December 31, 2025, compared to $(10,801,630) in the prior year, reflecting a decrease of approximately 77.7%[18] - The company incurred $166,107 in interest expenses during the nine months ended December 31, 2025, compared to $136,402 in the same period of 2024, indicating an increase of about 21.7%[20] - The company issued notes payable related to a litigation settlement amounting to $51,000,000, with a discount of $28,891,590 recognized on these notes[20] Shareholder Information - The balance of common stock increased to 117,288,753 shares as of December 31, 2025, up from 117,110,827 shares as of June 30, 2025[13] - Preferred stock dividends accumulated amounted to $638,021 for the quarter ending December 31, 2025[13] - The company repurchased 45,824 shares of common stock, resulting in a reduction of treasury stock by $82,025[13] - The total paid-in capital increased to $454.688 million as of December 31, 2025, from $454.300 million as of September 30, 2025[13] - The total basic income per share attributable to common stockholders for the three months ended December 31, 2025, was $0.01, compared to a loss of $(0.23) for the same period in 2024[70] Revenue Recognition - Revenue is recognized when control of promised services is transferred to customers, reflecting the expected consideration for those services[42] - Marketplace service fee revenue is based on a percentage of the final price of items purchased, recognized at the time of transaction processing[43] - Shipping revenue is recognized when the shipping label is printed, based on fees charged for shipping sold items[44] - Advertising revenue is recognized at the end of the selected month, based on the number of impressions generated for advertisements[45] Legal and Regulatory Matters - The Company is engaged in ongoing litigation related to a breach of contract claim, with potential damages claimed at $100 million[145] - The SEC Investigation concluded without a civil penalty, resolving issues related to share-based compensation and other disclosures[146] - A settlement with Vista Outdoor Sales, LLC was agreed upon, requiring the Company to pay $2.75 million in cash in twelve quarterly installments[148] - As of December 31, 2025, the Company had a liability of $2.5 million related to the Vista Settlement, with $0.9 million recorded in accounts payable[149] Future Outlook - The Company plans to expand its e-commerce platform and enhance customer retention strategies as part of its future growth plans[154] - The Company faces risks including intense market competition and potential legal claims that could impact financial results[157]
AMMO(POWWP) - 2026 Q3 - Quarterly Report