AXIL Brands Inc. (AXIL) has submitted its 10-Q filing for the quarterly period ended November 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in net sales to $7,732,574 from $8,421,677 in the same quarter the previous year. This decrease is attributed to the timing of post-Thanksgiving sales events and reduced advertising expenditure.
Cost of sales for the quarter was $2,234,527, representing 28.9% of sales, compared to 25.7% in the same quarter of the previous year. This increase in cost ratio is due to a higher proportion of sales to distributors with lower margins.
The company reported a gross profit of $5,498,047 for the quarter, compared to $6,257,939 in the previous year, with the decline attributed to increased cost of sales and discounts.
Operating expenses decreased to $4,825,176 from $4,994,027, primarily due to lower advertising costs and forgiveness of accounts payable, partially offset by increased stock-based compensation and consulting fees.
Net income for the quarter was $633,706, down from $1,018,075 in the previous year. The decrease is primarily due to lower gross profit and increased stock-based compensation.
Cash provided by operating activities was $1,904,174, while cash used in investing and financing activities was $107,623 and $163,470, respectively.
AXIL had a working capital of $10,047,382 as of November 30, 2024. The company expects to meet its working capital requirements for at least one year from the date of the filing.
The filing also details various financial metrics, including a decrease in adjusted EBITDA to $1,013,952 from $1,425,176 in the previous year.
AXIL continues to focus on expanding its market share through direct-to-consumer campaigns and strategic partnerships, with a primary focus on optimizing e-commerce strategies.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the AXIL Brands Inc. quarterly 10-Q report dated January 8, 2025. To report an error, please email [email protected].