ToughBuilt(US:TBLT)2023-08-21 20:15Sales Performance - In January 2023, global Amazon sales reached approximately $15.9 million, marking a 34% increase from $11.9 million in 2022[174]. - Revenues for the three months ended June 30, 2023, increased by $991,914, or 5.55%, to $18,879,569 compared to $17,887,655 for the same period in 2022[192]. - Revenues for the six months ended June 30, 2023, increased by $3,983,879, or 11.35%, to $39,092,279 compared to $35,108,400 in 2022[199]. Product Launches - The company launched over 40 new SKUs in the Handheld Screwdrivers segment in January 2023, including various types of screwdrivers[174]. - The company launched over 20 new SKUs in the Handheld Wrenches segment in January 2023, including adjustable and construction wrenches[174]. - A new line of pliers and clamps, comprising more than 40 SKUs, was launched in February 2023 for major US home improvement retailers[174]. - An expanded distribution agreement with Sodimac will introduce 15 SKUs in-store and 23 SKUs online across multiple South American countries[174]. Financial Performance - Cost of goods sold for the three months ended June 30, 2023, was $13,038,596, representing an increase of $99,357, or 0.77%, from $12,939,239 in 2022, with a cost of goods sold as a percentage of revenues decreasing to 69.06% from 72.34%[193]. - Operating expenses for the three months ended June 30, 2023, were $14,967,257, an increase of $470,315, or 3.24%, compared to $14,496,942 in 2022, with SG&A expenses as a percentage of revenues decreasing to 79.28% from 81.04%[194]. - Research and development costs for the three months ended June 30, 2023, increased by $159,052, or 5.77%, to $2,913,403, primarily due to the development of new tools for the construction industry[196]. - The net loss for the three months ended June 30, 2023, was $5,725,370, an improvement from a net loss of $12,136,051 for the same period in 2022[198]. - Cost of goods sold for the six months ended June 30, 2023, was $29,694,036, an increase of $2,537,179, or 9.34%, with a cost of goods sold as a percentage of revenues decreasing to 75.96% from 77.35%[200]. - SG&A expenses for the six months ended June 30, 2023, decreased by $384,397, or 1.26%, to $30,046,444 compared to $30,430,841 in 2022, with SG&A expenses as a percentage of revenues decreasing to 76.86% from 86.68%[201]. - The company recorded a net loss of $14,000,532 for the six months ended June 30, 2023, compared to a net loss of $24,239,990 for the same period in 2022[205]. Market Expansion - The company is actively expanding into markets in Mexico, Latin America, the Middle East, and South Africa[179]. Industry Competition - The tool equipment and accessories industry is highly competitive, with major competitors including DeWalt, Caterpillar, and Samsung Active[186]. Funding and Losses - The company has incurred substantial operating losses since inception and anticipates additional losses until technology in development is commercialized[171]. - The company plans to fund operations and growth through the sale of debt or equity securities, facing uncertainty in obtaining financing on acceptable terms[171]. - The company completed a public offering on June 23, 2023, raising net proceeds of approximately $3,800,000 after expenses[209].